Disadvantages of a bonded warehouse

Business studies study module
  1. The importer may eventually fail to pay customs duties. This forces the customs authorities to auction the bonded goods in order to recover the duties.
  2. When the importer withdraws goods from a bonded warehouse he/she ends up paying a higher duty if he/she had paid the duty at once.
  3. The importer incurs costs in hiring a bonded warehouse as opposed to if he/she had a private warehouse


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