Question

'Goods in bond' is related to which of the following warehouses?

• A. Public warehouses
• B. Bonded warehouses
• C. Co-operative warehouses
• D. Cold-storage warehouse

Answer 1

Answer: (B)

Bonded warehouses

• Public warehouses can be used for storage of goods by traders, manufacturers or any member of the public after the payment of a storage fee or charges. The government regulates the operation of these warehouses by issuing licences for them to private parties.
  
• Bonded warehouses are licensed by the government to accept imported goods prior to payment of tax and customs duty. These are goods which are imported from other countries. Importers are not permitted to remove goods from the docks or the airport till customs duty is paid.
  
• At times, importers are not in a position to pay the duty in full or does not require all the goods immediately. The goods are kept in bonded warehouses by the customs authorities till the customs duty is paid. These goods are said to be in bond.
  
• Some marketing cooperative societies or agricultural cooperative societies have set up their own warehouses for members of their cooperative society.
  
• Cold-storage warehouse are suitable for storing goods that are highly perishable.