Nautical Term: Bonded warehouse
Definition of Bonded warehouse
A bonded warehouse is a specialized storage facility that has been granted permission by customs authorities to hold goods. This authorization permits the deferral of payment of customs duties until the point when the goods are removed from the warehouse.
For instance, an importer might bring in a large shipment of luxury goods, but may not have the immediate cash flow to pay the customs duties upfront. In such a situation, the importer can store the goods in a bonded warehouse. This allows the importer to defer the payment of customs duties until the goods are removed from the warehouse, providing the importer with much-needed time to arrange for the payment of the customs duties.
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