Bonded warehouses and foreign trade zones have the effect of allowing domestic importers to postpone and prorate over time their import duty obligations.

Question

Quizplus · Accepted Answer

Bonded warehouses and foreign trade zones are facilities that allow businesses to store imported goods without paying import duties immediately. This allows importers to postpone their duty obligations until the goods are sold or used, and also gives them the flexibility to only pay duties on the goods that are actually imported into the domestic market, rather than on the entire shipment.

Bonded Warehouses and Foreign Trade Zones Have the Effect of Allowing