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Simple English definitions for legal terms
bonded warehouse
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A quick definition of bonded warehouse:
A bonded warehouse is a special type of building where products that have to pay taxes when they enter a country are stored. It's like a private warehouse that keeps things safe until the taxes are paid.
A more thorough explanation:
Bonded Warehouse
A bonded warehouse is a special type of private warehouse used to store products that are subject to customs duties. It is a building used to store goods and other items.
- A company imports a large quantity of wine from France and stores it in a bonded warehouse until the customs duties are paid.
- A manufacturer stores their products in a bonded warehouse until they are ready to be shipped to customers in another country.
These examples illustrate how a bonded warehouse is used to store products that are subject to customs duties. The goods are held in the warehouse until the duties are paid, and then they can be released for distribution or sale. This helps companies avoid paying customs duties upfront and allows them to manage their inventory more efficiently.