Bonded warehouse Duty paid Warehouse

Sr.
No.
Basis of Difference
Bonded warehouse
Duty paid Warehouse

1.

Meaning
Bonded warehouse is the warehouse where imported goods on which duty is not paid are stored.
Duty paid warehouse is the warehouse where imported goods on which duty is already paid are stored.

2.

Location
They are located within the dock area.
They are located in a port-town outside the dock area.

3.

Markets
The imported goods stored here are mostly re-exported.
The imported goods stored here are mostly for the domestic markets.

4.

supervision
The customs authority closely supervises the working of these warehouses.
These warehouses are not supervised by the customs authority. They are supervised by port authority.

5.


Delivery
Delivery of goods is done after payment of import duty. In case of re-export, the import duty need not be paid, only rent and service charges need to be paid.
Delivery of goods can be obtained after payment of the rent charges of the warehouse.

6.

Purpose
Main purpose would be either the importer needs to re-export the goods or the importer may not be in a position to pay import duty.
Main purpose would be that the importer does not have suitable warehousing facility. Also, he may not require immediate delivery of goods.

7.
ownership
Such warehouses may be owned by private or dock authorities.
Such warehouses are owned by public authorities.