Warehousing

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30 March 2012 What do we mean by "warehousing station" and what are public and private warehouses therein, under the customs??

30 March 2012 Also, why DOUBLE duty bond is needed for warehousing??

30 March 2012 A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns and villages. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing, or commerce.

for more info:

http://www.eximguru.com/exim/indian-customs/customs-manual/warehousing.aspx

30 March 2012 Dear sir, thanks for your reply, but I want to know about "warehousing stations". I think these are the places nearby custom stations, where a lot of warehouses owned by customs are situated.
And I think private warehouses are those for which a license is obtained by a person (e.g. Mr. A) and in such case, he only store his goods in that warehouse and no other can.
Please clarify whether I am right or wrong.

30 March 2012 Types of Warehouses : Private Warehouses

These warehouses are owned and operated by big manufacturers and merchants to fulfil their own storage needs. Big business firms which need large storage capacity on a regular basis and who can afford money, construction and maintain their private warehouses. A big manufacturer or wholesaler may have a network of his own warehouses in different parts of the country. The private warehouses are licenced to private persons and only the goods imported by or on behalf of the licensee are stored in such warehouse.

Public Warehouses

These warehouses are a specialised business establishment that provide storage facilities to the general public for a certain charge. It may be owned and operated by an individual or a cooperative society. It works under a licence from the government. They are generally located near the junctions of railways, highways and waterways. They therefore provide excellent facilities for the easy receipt, despatch, loading and unloading of goods. They are very important in the marketing of agricultural products. A public warehouse is also known as 'duty paid warehouse'.

Public warehouses are very useful to the business community as they can meet their storage needs easily and economically by making use of the public warehouse,without heavy investment. Such warehouses provide storage facilities to small manufacturers and traders at low costs. They provide facilities for the inspection of goods by prospective buyers. They also permit packaging and grading of goods. The public warehouses receipts are good collateral securities for borrowings.

Bonded Warehouses

These warehouses are licenced by the Government to accept imported goods for storage until the payment of customs duty. They are located near the ports. They are either operated by the Government or work under the control of customs authorities. The warehouse is required to give an undertaking or 'Bond' that it will not allow the goods to be removed without the consent of the custom authorities. The goods are held in bond and cannot be withdrawn without paying the customs duty. Such warehouses are very helpful to importers and exporters. If an importer is unable to pay customs duty immediately after the arrival of goods he can store the goods in a bonded warehouse. He can withdraw the goods in installments by paying the customs duty proportionately. Goods lying in a bonded warehouse can be packaged,graded and branded for the purpose of sale. Central Warehousing Corporation operates 75 Custom Bonded Warehouses with a total operated capacity of nearly 0.5 million Mts.


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Warehouse is a storage structure constructed for the protection of the quality and quantity of the stored produce. The need for a warehouse arises due to the time gap between production and consumption of products. Warehousing or storage refers to the holding and preservation of goods until they are despatched to the consumers. By bridging this gap, storage creates time utility. There is a need for storing the goods so as to make them available to buyers as and when required. Storage enables a firm to carry on production in anticipation of demand in future. Warehouses enables the businessmen to carry on production throughout the year and sell their products, whenever there is adequate demand. Need for warehouses arises also because some goods are produced only in a particular season but are demanded throughout the year. Similarly, certain products are produced throughout the year but demanded only during a particular season.

Types of Warehouses : Private Warehouses

These warehouses are owned and operated by big manufacturers and merchants to fulfil their own storage needs. Big business firms which need large storage capacity on a regular basis and who can afford money, construction and maintain their private warehouses. A big manufacturer or wholesaler may have a network of his own warehouses in different parts of the country. The private warehouses are licenced to private persons and only the goods imported by or on behalf of the licensee are stored in such warehouse.

Public Warehouses

These warehouses are a specialised business establishment that provide storage facilities to the general public for a certain charge. It may be owned and operated by an individual or a cooperative society. It works under a licence from the government. They are generally located near the junctions of railways, highways and waterways. They therefore provide excellent facilities for the easy receipt, despatch, loading and unloading of goods. They are very important in the marketing of agricultural products. A public warehouse is also known as 'duty paid warehouse'.

Public warehouses are very useful to the business community as they can meet their storage needs easily and economically by making use of the public warehouse,without heavy investment. Such warehouses provide storage facilities to small manufacturers and traders at low costs. They provide facilities for the inspection of goods by prospective buyers. They also permit packaging and grading of goods. The public warehouses receipts are good collateral securities for borrowings.

Bonded Warehouses

These warehouses are licenced by the Government to accept imported goods for storage until the payment of customs duty. They are located near the ports. They are either operated by the Government or work under the control of customs authorities. The warehouse is required to give an undertaking or 'Bond' that it will not allow the goods to be removed without the consent of the custom authorities. The goods are held in bond and cannot be withdrawn without paying the customs duty. Such warehouses are very helpful to importers and exporters. If an importer is unable to pay customs duty immediately after the arrival of goods he can store the goods in a bonded warehouse. He can withdraw the goods in installments by paying the customs duty proportionately. Goods lying in a bonded warehouse can be packaged,graded and branded for the purpose of sale. Central Warehousing Corporation operates 75 Custom Bonded Warehouses with a total operated capacity of nearly 0.5 million Mts.
Benefits of Warehousing

* Warehouses enable storage of goods when their supply exceeds demand and by releasing them when the demand is more than immediate productions. This on one hand ensures a regular supply of goods in the market and on the other hand it helps to stabilize prices by matching supply with demand.

* Warehouses provide for safe custody of goods. Businessmen can thus minimize the risks to goods from loss,damage,fire,theft etc. Perishable products can be preserved in cold storage. Also,the goods kept in a warehouse are generally insured.

* A warehouse provides facilities for processing, packing, blending, grading etc, of the goods for the purpose of sale. The prospective buyers can inspect the goods kept in a warehouse.

* Warehouses provide a receipt to the owner of goods for the goods kept in the warehouse. The owner can borrow money against the security of goods by making an endorsement on the warehouse receipt. By keeping the imported goods in a bonded warehouse, a businessman can pay customs duty in installments.

for put up any query , pls read the above said and below mentioned link

http://www.helplinelaw.com/docs/CUSTOMS%20ACT,%201962/CHAPTER%20III%20APPOINTMENT%20OF%20CUSTOMS%20PORTS,%20AIRPORTS,%20WAREHOUSING%20STATIONS,%20ETC.


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