What is a bonded warehouse?

What will be an ideal response?

Bonded warehouses are analogous to free zone but somewhat different. These facilities are found at the ports of entry of most countries. Privately owned and operated by transportation firms, they provide a place where shippers can store goods from the time of their arrival from overseas to the time they clear customs and are taken away by importers. They are not intended to be places for trade or business, but address a problem that customs authorities would otherwise have if they had to provide storage and access to foreign goods while they were being processed for entry into the country. An importer who uses a bonded warehouse cannot avoid tariffs, quotas, or any other form of regulation. Customs forms have to be filled out when goods enter the warehouse and when they leave, and the goods are maintained under guard while they are there. Goods can be stored only for a limited time, and permission from the customs authorities has to be obtained before they can be cleaned, packaged, sorted, labeled, repaired, or destroyed. No manufacturing activities are allowed inside bonded warehouses.