Bonded warehouses and International Trade

////Bonded warehouses and International Trade

Bonded warehouses and International Trade

ZIMRA's bonded warehouse at Chirundu Border Post. Image credit zimboguide.co.zw

ZIMRA’s bonded warehouse at Chirundu Border Post. Image credit zimboguide.co.zw

ZIMSEC O Level Commerce Notes: Bonded warehouses and International Trade

Why customs authorities control bonded warehouses

  • Bonded warehouses are used to store dutiable goods i.e. goods on which duty has not been paid.
  • Customs authorities control activities of these bonded warehouses in order.
  • Collect import duties before goods are released.
  • Ensure that goods in entrepot (re-export) trade are released without payment of duty.
  • To prevent smuggling of goods under bond.
  • To allow goods to be packed, branded, sampled and bottled.
  • To make possible the movement of goods between bonded warehouses.

Importance of bonded warehouse

Are used:

  • To keep dutiable goods or goods on which duty has not been paid.
  • To allow goods to be packed, branded, sampled, bottled or graded but goods cannot be manufactured in a bonded warehouse.
  • To enable government to raise revenue by collecting customs duties.
  • To allow goods to be removed in small quantities thus saving on working capital.
  • To allow certain goods to mature e.g wine.
  • To enable goods to be transferred from one bonded warehouse to another by a bonded carman. A warehouse warrant is a document of title that allows dutiable goods to be released.
  • To store goods for entrepot trade.
  • To enable goods to be sold whilst in bond thus allowing an importer to possibly avoid paying customs duty. A customs drawback refund on duty previously paid on goods meant for re-export trade.

To access more topics go to the Commerce Notes page.

By |2017-01-17T11:19:27+00:00July 25th, 2015|Notes, O Level Commerce Notes, Ordinary Level Notes|Comments Off on Bonded warehouses and International Trade

About the Author:

He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.
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