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BONDED WAREHOUSE

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Originally appearing in Volume V04, Page 200 of the 1911 Encyclopedia Britannica.
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BONDED WAREHOUSE , a warehouse established by the See also:

state, or by private enterprise, in which goods liable to See also:duty are lodged until the duty upon them has been paid. Previous to the See also:establishment of bonded warehouses in See also:England the See also:payment of duties on imported goods had to be made at the See also:time of importation, or a See also:bond with See also:security for future payment given to the See also:revenue authorities. The inconveniences of this See also:system were many; it was not always possible for the importer to find sureties, and he had often to make an immediate See also:sale of the goods, in See also:order to raise the duty, frequently selling when the See also:market was depressed and prices See also:low; the duty, having to be paid in a lump sum, raised the See also:price of the goods by the amount of the See also:interest on the See also:capital required to pay the duty; competition was stifled from the fact that large capital was required for the importation of the more heavily taxed articles; there was also the difficulty of granting an exact See also:equivalent See also:drawback to the exporter, on goods which had already paid duty. To obviate these difficulties and to put a check upon frauds on the revenue, See also:Sir See also:Robert See also:Walpole proposed in his " See also:excise See also:scheme " of 1733, the system of warehousing, so far as concerned See also:tobacco and See also:wine. The proposal, however, was very unpopular, and it was not till 1803 that the system was actually adopted. By an See also:act of that See also:year imported goods were to be placed in warehouses approved by the customs authorities, and importers were to give " bonds " for payment of duties when the goods were removed. It was from this that the warehouses received the name of " bonded " or " bonding." The Customs Consolidation Act 1853 dispensed with the giving of bonds, and laid down various provisions for securing the payment of customs duties on goods warehoused. These provisions are contained in the Customs Consolidation Act 1876, and the amending statutes, the Customs and Inland Revenue Act 188o, and the Revenue Act 1883. The warehouses are known as " See also:king's warehouses," and by s. 284 of the act of 1876 are defined as " any See also:place provided by the See also:crown or approved by the commissioners of customs, for the See also:deposit of goods for security thereof, and the duties due thereon." By s. 12 of the same act the See also:treasury may appoint warehousing ports or places, and the commissioners of customs may from time to time approve and appoint See also:ware-houses in such ports or places where goods may be warehoused or kept, and See also:fix the amount of See also:rent payable in respect of the goods. The proprietor or occupier of every warehouse so approved(except existing warehouses of See also:special security in respect of which security by bond has hitherto been dispensed with), or some one on his behalf, must, before any goods be warehoused therein, give security by bond, or such other security as the commissioners may approve of, for the payment of the full duties chargeable on any goods warehoused therein, or for the due exportation thereof (s.

13). All goods deposited in a ware-See also:

house, without payment of duty on the first importation, upon being entered for See also:home See also:consumption, are chargeable with existing duties on like goods under any customs acts in force at the time of passing such entry (s. 19). The act also prescribes various rules for the unshipping, landing, examination, ware-See also:housing and custody of goods, and the penalties on See also:breach. The system of warehousing has proved of See also:great See also:advantage both to importers and purchasers, as the payment of duty is deferred until the goods are required, while the See also:title-deeds, or warrants, are transferable by endorsement. While the goods are in the warehouse (" in bond") the owner may subject them to various processes necessary to See also:fit them for the market, such as the repacking and mixing of See also:tea, the racking, vatting, mixing and bottling of wines and See also:spirits, the roasting of See also:coffee, the manufacture of certain kinds of tobacco, &c., and certain specific allowances are made in respect of See also:waste arising from such processes or from leakage, evaporation and the like.

End of Article: BONDED WAREHOUSE

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