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Message |
David Axt, AIA, CCS, CSI
Senior Member
Username: david_axt
Post Number: 599
Registered: 03-2002
| | Posted on Wednesday, January 25, 2006 - 05:33 pm: |    |
What is a "bonded" warehouse as opposed to an "insured" warehouse? |
Doug Brinley AIA CSI CDT CCS
Senior Member
Username: dbrinley
Post Number: 158
Registered: 12-2002
| | Posted on Wednesday, January 25, 2006 - 05:39 pm: | |
Insured = Covered by a third party in the event of loss due to (balh, blah blah).
Bonded = Authorized by officials for the storage of goods without the payment of duties.
I understood that for domestic purposes, the 'bonded' warehouse meant that taxes are not levied until after the goods move out of the warehouse, hence 'bonded and insured warehouse' meant the goods were insured against loss, and that taxes were not levied during the period the goods are 'in transit'. The warehouse is merely a point along the route of transport, not a conversion of goods into a useful purpose, and not a final destination. |
Susan McClendon
Senior Member
Username: susan_mcclendon
Post Number: 38
Registered: 01-2005
| | Posted on Wednesday, January 25, 2006 - 05:48 pm: | |
Doug's definition of bonded warehouse is undoubtedly true, but there is another usage in specs. SpecLink says "Provide [bonded] off-site storage and protection when site does not permit on-site storage or protection." ...with "bonded" as an option. This also relates to whether the owner will pay for stored materials or not, which depends on whether they are likely to get lost, stolen, or diverted to another project. I honestly do not know what bonded really means in this context -- I always assumed it meant something more stringent than simply insured. David, is this what you were thinking of? |
Robert E. Woodburn
Senior Member
Username: bwoodburn
Post Number: 100
Registered: 01-2005
| | Posted on Wednesday, January 25, 2006 - 06:11 pm: | |
This is the storage equivalent of a CPA--a certified public warehouse. The name comes from the surety bond requirement. Here are excerpts from one state's requirements (in this case, Illinois):
This license is required before anyone may store goods for compensation, such as a moving van company, boat storage facility, commercial distribution center. The license permits a business to store for a fee, advertise, and solicit for business as a bonded warehouse.
Licensed warehousemen must use reasonable care and diligence to protect stored property from loss or damage by fire, theft, burglary or other similar causes; keep and maintain suitable premises for such storage purposes; keep records showing all property in storage, all warehouse receipts issued or canceled, and any other information necessary to the proper conduct of the business in accordance with the Act.
Records must be kept for one year after closing any storage transaction.
Warehouses that store liquor must have a certificate of registration from the Department of Revenue.
The warehouse must be accessible for inspection at any reasonable time.
The warehouseman shall file with the Department a surety bond, or a legal liability insurance policy on a form prescribed by the Department.
Numbered warehouse receipts must be printed
Negotiable warehouse receipts forms must be kept under lock and key at the warehouse office.
A register must be kept of each negotiable warehouse receipt issued.
The operator must keep a sign posted in a conspicuous place over the main entrance to each warehouse showing the name of the business and the license number issued by the Department. |
Doug Brinley AIA CSI CDT CCS
Senior Member
Username: dbrinley
Post Number: 159
Registered: 12-2002
| | Posted on Wednesday, January 25, 2006 - 07:10 pm: | |
Going back to Susan's reamrks, I think there can be a misunderstanding about warehouses havings 'bonding' in the same context as and 'bonding' of construction projects.
A bonded warehouse requirement is more strict, as it has a paperwork and legal process in place, that is acceptable to government, that controls/limits/monitors flow of goods in and out. |
Robert E. Woodburn
Senior Member
Username: bwoodburn
Post Number: 101
Registered: 01-2005
| | Posted on Thursday, January 26, 2006 - 10:38 am: | |
The confusion here might stem from an unfamiliarity with different types of bonds, since there are so many kinds, for so many different purposes: Besides the warehouse bond, we're perhaps most familiar with the bid bond, performance bond, and the payment bond--but there are other types, such as the surety bond, bail bond, fidelity bond, tax bond, tax-free municipal bond, customs bond (also mentioned above), treasury bond, savings bond, corporate bond, adhesive bond, common bond, offset bond, header bond, English bond, Flemish bond, cross bond, running bond, stack bond, Gold Bond, Ward Bond, James Bond... |
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