State four advantages of a bonded warehouse

Advantages of a bonded warehouse.

• Goods can be prepared for sale while in bond
• If goods are sold on bond, the duty passes to the buyer
• The owner can look for market first before paying the duty
• Some goods lose weight so the duty paid becomes lower if its based on weight
• Ensures that no duty is evaded since the goods cant be released without payment
• Enables the government to check on prohibited goods and smuggling.