Advantages of a bonded warehouse

TO TRADER/IMPORTER.

1. The warehouse gives the importer time to raise money to pay the duties.
2. The importer/trader can still sell the goods when they are in the warehouse therefore he is relieved from paying storage charges and duties.
3. Some goods loose weight after sometime therefore the trader pays less duties if it is based on the weight of the goods.
4. Goods can still be prepared when they are in the warehouse.

TO THE GOVERNMENT.

1. It is a source of revenue to the government.
2. The government is able to control entry of harmful products and illegal goods.
3. It is able to check the quality and quantity of the of the goods imported.
4. The government is able to verify documents for goods in transit.
5. The government is able to inspect the nature of the goods imported.