Question

Distinguish between Public Warehouses and Bonded Warehouses.

Answer 1

1. Public Warehouses: These warehouses are meant for use by businessmen in general. Any businessman can store his goods in these warehouses for some charge. Public warehouses may be owned by the government, public trusts and other public authorities. The owner of a public warehouse serves as an agent for the owner of the goods. He is expected to take due care of the goods and return them to the owner. He enjoys a lien on the goods for these charges.
2. Bonded Warehouses: A bonded warehouse is established under a bond with the customs authorities for the storage of dutiable goods until the payment of import duty. The owner of a bonded warehouse gives an undertaking not to release the goods until the customs duty is paid. Bonded warehouses are located in port towns and are licenced by the government. These warehouses operate under the vigilance of customs officials. Bonded warehouses accept imported goods for storage before the payment of customs duty. Once the duty is paid, goods are released on the authority of a warrant issued by the customs authorities.