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i. Enables him to look for market while goods are still being held in the bonded warehouse.
ii. He can prepare the assorted goods for sale while still in bond.
iii. Duty on imported goods would be passed on to the buyer if they are sold while still in the
bonded warehouse.
iv. Goods are accorded security by the government as long as they are in bond.
v. It allows the importer to have sometime to arrange to pay the duty if he does not have enough
money.
vi. Some goods may improve in quality (after sometime) e.g. wine, fruits, hence will be better/have
more value.
vii. Some goods (may) lose weight while in the warehouse thereby lowering the duties payable.
-The importer can prepare goods while in the bonded warehouse through packing / branding / grading / blending
-The bonded ware house relieves the importer the costs of providing security / costs of security provided by the government
-The bonded warehouse allows the importer time to look for a buyer / customer / market while goods are still in the warehouse.
-The bonded warehouse allows the importer time to look for / raise funds to pay customs duties/ storage costs/ risks.
-Goods may improve in quality thus improving in prices / to the advantage of the importer e.g. wines / spirits / tobacco
-Relieves the importer worries of theft / leakage / storage risks
-The importer can sell the goods while still under bond in which case the costs of customs duty are passed on to the new buyer.
-The importer can re-export the goods thus evading duty.
-Some goods lose weight reducing customs duty if based on weight.
gideon1 answered the question on September 28, 2017 at 05:20
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