Glossary
Bonded Warehouse
A bonded warehouse is a secure site to store the imported goods without paying customs duty. All the taxes and duties become payable when goods leave the warehouse and are delivered to their next destination.
There are generally two types of bonded warehouses:
- Dry
- Wet
A wet bonded warehouse stores goods that are subject to excise taxes, such as tobacco and alcohol. On the other hand, a dry-bonded warehouse is allowed to keep general goods that are not liable to excise duties but to VAT and customs duties.
