BONDED WAREHOUSE, a warehouse established by the state, or by private enterprise, in which goods liable to duty are lodged until the duty upon them has been paid. Previous to the establishment of bonded warehouses in England the payment of duties on imported goods had to be made at the time of importation, or a bond with security for future payment given to the revenue authorities. The inconveniences of this system were many; it was not always possible for the importer to find sureties, and he had often to make an immediate sale of the goods, in order to raise the duty, frequently selling when the market was depressed and prices low; the duty, having to be paid in a lump sum, raised the price of the goods by the amount of the interest on the capital required to pay the duty; competition was stifled from the fact that large capital was required for the importation of the more heavily taxed articles; there was also the difficulty of granting an exact equivalent drawback to the exporter, on goods which had already paid duty. To obviate these difficulties and to put a check upon frauds on the revenue, Sir Robert Walpole proposed in his "excise scheme" of 1733, the system of warehousing, so far as concerned tobacco and wine. The proposal, however, was very unpopular, and it was not till 1803 that the system was actually adopted. By an act of that year imported goods were to be placed in warehouses approved by the customs authorities, and importers were to give "bonds" for payment of duties when the goods were removed. It was from this that the warehouses received the name of "bonded" or "bonding." The Customs Consolidation Act 1853 dispensed with the giving of bonds, and laid down various provisions for securing the payment of customs duties on goods warehoused. These provisions are contained in the Customs Consolidation Act 1876, and the amending statutes, the Customs and Inland Revenue Act 1880, and the Revenue Act 1883. The warehouses are known as "king's warehouses," and by s. 284 of the act of 1876 are defined as "any place provided by the crown or approved by the commissioners of customs, for the deposit of goods for security thereof, and the duties due thereon." By s. 12 of the same act the treasury may appoint warehousing ports or places, and the commissioners of customs may from time to time approve and appoint warehouses in such ports or places where goods may be warehoused or kept, and fix the amount of rent payable in respect of the goods. The proprietor or occupier of every warehouse so approved (except existing warehouses of special security in respect of which security by bond has hitherto been dispensed with), or some one on his behalf, must, before any goods be warehoused therein, give security by bond, or such other security as the commissioners may approve of, for the payment of the full duties chargeable on any goods warehoused therein, or for the due exportation thereof (s. 13). All goods deposited