Bonded warehouse is a facility used to store goods on which the goods’ owner must pay the government a tax or duty. Warehouse operators bond themselves through a bonding company to guarantee the government that this payment will be made before the goods are released from storage. The use of a bonded warehouse permits an owner of goods to store them without paying the entire tax or duty at once. The owner pays part of the tax or duty only as the goods are withdrawn from storage. A bonded warehouse is privately owned and bonded in part or in whole. It operates under government supervision. Goods are said to be in bond while they are in storage.
