Warehouses, that are licensed by the government to accept imported goods prior to payment of tax and customs duty, are called?

Correct option is D

The type of warehouse described in the question is one where imported goods can be stored before payment of customs duty and taxes. Such warehouses are known as Bonded Warehouses.
Key characteristics of bonded warehouses include:
· They are licensed by the government or operated under customs authority.
· Imported goods can be stored without immediate payment of import duty.
· Duties are paid only when the goods are removed for domestic use.
· They help importers manage cash flows by allowing duty payments to be deferred.
· Ideal for storing bulk imported items until needed in the market or production.
Since the definition clearly matches that of bonded warehouses, the correct answer is (d).
Information Booster
1. Bonded warehouses reduce the financial burden on importers by deferring customs duty.
2. They are secure facilities monitored by customs officials.
3. Useful for businesses dealing in large or seasonal imports.
4. Goods can also be re-exported from bonded warehouses without paying duty.
5. Bonded warehouses are crucial in international trade logistics and supply chain optimisation.
Additional Information
· (a) Private warehouses – Incorrect; owned by individuals or companies for their own use, not for storing duty-unpaid imported goods.
· (b) Public warehouses – Incorrect; open for use by the general public but not specifically licensed to store imported goods without duty.
· (c) Government warehouses – Incorrect; run by the government but are not necessarily bonded or meant specifically for duty-unpaid imported goods.