A Bonded warehouse is a warehouse in which goods on which the duties are unpaid are stored under bond and in the joint custody of the importer, or his agent and Customs officers.
A variety of business can benefit from using a bonded warehousing. Most companies do not sell their goods within four weeks of receiving stock yet Duty have paid up front. This is money that they could have legally avoided paying for a considerably longer period of time.
Stock that is in bonded warehousing avoids this advance Duty Payment on goods, which may not have been sold yet and may reside in stock for months.
Customs bonded warehousing facilities provides the ideal opportunity to the traders who trade with other countries like Iraq and neighboring countries and wish to move the cargo as in transit.