on 05-08-2006 6:32 AM
Hi all,
In so many forums, i had read about Bonded Warehouse. Can anyone tell me, what is the concept of bonded warehouse.
thanx and regards,
Sheo Anand Singh
A bonded warehouse is a warehouse where goods on which excise duty is payable can be warehoused before such duty is payable. If goods are destined for the domestic market, duty must be paid before or at the time when the goods leave the warehouse. If, however, goods are only destined for another bonded warehouse whether in the United Kingdom or elsewhere in the European Community, duty is not payable since it is expected that duty will be paid before, or at the time when, the goods leave that other bonded warehouse. Bonded warehouses are so called because the warehouse keeper, who is himself liable for any duty payable on goods leaving his warehouse, provides a bond to HM Customs promising that duty will be paid. The bond is typically backed by a guarantee from a bank or insurance company limited to an amount which may or may not be equivalent to the amount of duty payable by a warehouse keeper on all the stock warehoused at any one time.
Having read that back, it looks a little wordy but hope it helps.
Regards
Ian
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Hi Ian,
Thanx alot for your explanation, now the concept is clear to me.
I had created one plant as a bonded warehouse where goods are stored. Later i want this to move it in my production plant. but before transfering this stock, i hv to pay excise duty on it. Is their any provision in STO's for this.
STEPs that i m following are like
- I had Created STO to tfr goods from bonded plant to production plant.
- I had booked the CVD through MIRO Invoicing.
- Now when i m trying to capture the Excise Invoice against STO, it says "No Selectable item in PO ####".
Pls suggest wht could be the reason. or else i m doing it in the wrng way.
thnx n regards,
Sheo Anand Singh
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