Once goods have landed in the Republic, the importer / owner may choose to delay the payment of duties. Such goods are placed in a Customs controlled bonded warehouse for a specified period which is currently a maximum of two years.

Such warehouses may be licensed either for the storage of dutiable goods (known as customs and excise warehouses) or for the manufacture of dutiable goods (known as customs and excise manufacturing warehouses. Although these warehouses are not owned by Customs, the goods deposited therein are strictly controlled by Customs.

Duties and VAT must be paid prior to removal of such goods from these warehouses. The goods may also be exported from such warehouses. An example of this would be a duty free shop. The Customs warehousing procedure is to a large extent designed to facilitate trade.

• Customs furthermore provides for rebate stores these stores may only store goods which have been entered under rebate of duty under the provisions of Schedules No. 3; 4 and 6 and are regularly inspected by Customs. The reason for such inspections is to monitor the use of the rebated goods that are imported subject to certain conditions, e.g. materials in rolls for the manufacture of infants’ garments. All or part of the duties is not payable provided the conditions of the rebate item are adhered to.

The State Warehouse which (means any premises provided by the State for the deposit of goods for the security thereof and of the duties due thereon or pending compliance with the provisions of any law in respect of such goods) is managed by Customs. Goods are placed therein if uncleared; prohibited; seized, detained or abandoned. States warehouse rent is payable by the client for the storage of these goods[2].