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.

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