Advantages of free warehouses

9 Advantages of free warehouses

free warehouses are warehouses in which tax-free goods are kept awaiting sale or collection by owners

-Goods stored in these warehouses can be either locally produced, requiring no taxation or imported goods for which customs duties have already been paid.

9 Advantages of free warehouses

NOTE: i) All warehouses apart from bonded warehouses are free warehouses since goods held in them are not subject to control by customs authorities. This includes all private and public warehouses

  1. Locally produced goods are stored in free warehouses since no custom duties are paid for them.

    Advantages of free warehouses

  • Owners of goods stored need not to pay any taxes, thus the goods cannot be auctioned for failure to pay customs duties
  • It is cheaper to store goods in free warehouses as compared to bonded warehouses since there are no customs duties levied.
  • Clearence of the goods from the warehouse is simple since a “release warrant” to prove payments of duties is necessary
  • These warehouses are located at places that are convenient to users


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