ZIMRA's bonded warehouse at Chirundu Border Post. Image credit zimboguide.co.zw

ZIMRA’s bonded warehouse at Chirundu Border Post. Image credit zimboguide.co.zw

ZIMSEC O Level Commerce Notes: Bonded warehouses and International Trade

Why customs authorities control bonded warehouses

  • Bonded warehouses are used to store dutiable goods i.e. goods on which duty has not been paid.
  • Customs authorities control activities of these bonded warehouses in order.
  • Collect import duties before goods are released.
  • Ensure that goods in entrepot (re-export) trade are released without payment of duty.
  • To prevent smuggling of goods under bond.
  • To allow goods to be packed, branded, sampled and bottled.
  • To make possible the movement of goods between bonded warehouses.

Importance of bonded warehouse

Are used:

  • To keep dutiable goods or goods on which duty has not been paid.
  • To allow goods to be packed, branded, sampled, bottled or graded but goods cannot be manufactured in a bonded warehouse.
  • To enable government to raise revenue by collecting customs duties.
  • To allow goods to be removed in small quantities thus saving on working capital.
  • To allow certain goods to mature e.g wine.
  • To enable goods to be transferred from one bonded warehouse to another by a bonded carman. A warehouse warrant is a document of title that allows dutiable goods to be released.
  • To store goods for entrepot trade.
  • To enable goods to be sold whilst in bond thus allowing an importer to possibly avoid paying customs duty. A customs drawback refund on duty previously paid on goods meant for re-export trade.

To access more topics go to the Commerce Notes page.

- See latest Zimbabwe grocery prices -

Deals

SEE LATEST SUPERMARKET PRICES, SHOP FOR GROCERIES VIA WHATSAPP
SEE PRICES & NEWS
We publish the latest grocery prices from Zimbabwean supermarkets. We also deliver groceries online