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
- State four reasons why John would prefer to obtain a loan from his Sacco but not from a
commercial bank.(Solved)
State four reasons why John would prefer to obtain a loan from his Sacco but not from a
commercial bank.
Date posted: September 28, 2017. Answers (1)
-
Highlight four factors that may have led to the shift in the demand curve from D0D0 to D1D1(Solved)
Highlight four factors that may have led to the shift in the demand curve from D0D0 to D1D1
Date posted: September 28, 2017. Answers (1)
- State four reasons why an entrepreneur would prefer a landscape type of office.
(Solved)
State four reasons why an entrepreneur would prefer a landscape type of office.
Date posted: September 28, 2017. Answers (1)
- Highlight circumstances under which the following chains of distribution are used. (a) Manufacturer ? Consumer (b) Manufacturer ? Retailer ? Consumer (c) Producer ? Marketing Board ? Consumer (d)...(Solved)
Highlight circumstances under which the following chains of distribution are used.
a) Manufacturer ? Consumer
b) Manufacturer ? Retailer ? Consumer
c) Producer ? Marketing Board ? Consumer
d) Manufacturer ? Agent ? Consumer
Date posted: September 28, 2017. Answers (1)
- Outline four canons of taxation.(Solved)
Outline four canons of taxation.
Date posted: September 28, 2017. Answers (1)
- List any four business considerations taken into account when carrying out business opportunity
evaluation.(Solved)
List any four business considerations taken into account when carrying out business opportunity
evaluation.
Date posted: September 28, 2017. Answers (1)
- Onyango intends to insure his motor vehicle with UAP insurance company. Outline the procedure
he would follow to take the policy.(Solved)
Onyango intends to insure his motor vehicle with UAP insurance company. Outline the procedure
he would follow to take the policy.
Date posted: September 28, 2017. Answers (1)
- The government of a developing country intends to formulate an elaborate policy to address the
widespread unemployment. Identify four areas of concern that the policy should...(Solved)
The government of a developing country intends to formulate an elaborate policy to address the
widespread unemployment. Identify four areas of concern that the policy should look into.
Date posted: September 28, 2017. Answers (1)
- Give four reasons why manufacturing firm may offer after sale service to its consumers.(Solved)
Give three reasons why manufacturing firm may offer after sale service to its consumers.
Date posted: September 28, 2017. Answers (1)
- Land is one of the factors of production. Outline four circumstances under which it may discourage
the location of firms.(Solved)
Land is one of the factors of production. Outline four circumstances under which it may discourage
the location of firms.
Date posted: September 28, 2017. Answers (1)
- State four factors that limit the satisfaction of human wants.(Solved)
State four factors that limit the satisfaction of human wants.
Date posted: September 28, 2017. Answers (1)
- Explain five factors that may hinder entrepreneurship development in Kenya.(Solved)
Explain five factors that may hinder entrepreneurship development in Kenya.
Date posted: September 27, 2017. Answers (1)
- Explain five limitations of using per capita income to compare living standards of people in
different countries.(Solved)
Explain five limitations of using per capita income to compare living standards of people in
different countries.
Date posted: September 27, 2017. Answers (1)
- Explain FIVE circumstances under which one may use signs in communication.(Solved)
Explain FIVE circumstances under which one may use signs in communication.
Date posted: September 27, 2017. Answers (1)
- State four challenges that may be faced when using a cell-phone mobile phone.(Solved)
State four challenges that may be faced when using a cell-phone mobile phone.
Date posted: September 27, 2017. Answers (1)
- State four reasons why vegetable exporters would transport their produce by air rather than sea.(Solved)
State four reasons why vegetable exporters would transport their produce by air rather than sea.
Date posted: September 27, 2017. Answers (1)
- Give three uses of ledger accounts.(Solved)
Give three uses of ledger accounts.
Date posted: September 27, 2017. Answers (1)
- State four factors that affect the geographical mobility of labour as a factor of production(Solved)
State four factors that affect the geographical mobility of labour as a factor of production
Date posted: September 27, 2017. Answers (1)
- Highlight four benefits of digital era to a manufacturing firm.(Solved)
Highlight four benefits of digital era to a manufacturing firm.
Date posted: September 27, 2017. Answers (1)
- Outline four reasons why there is high increase in the use of plastic chairs in most function(Solved)
Outline four reasons why there is high increase in the use of plastic chairs in most function
Date posted: September 27, 2017. Answers (1)