Definition of Bonded

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TeachMeFinance.com - explain Bonded



Bonded -- (USA) This term refers to goods which are held, stored or transported under circumstances where applicable duty or taxes have not yet been definitely determined or paid, and admissibility has not yet been arranged. Bonds must be posted by those who are responsible for the goods during this period (the carriers, warehouses, and/or importers) to indemnify the government if the goods are released improperly.

historic definition...

Bonded -- Secured by a pledge of property or some other form of guaranty. A railroad is bonded for, say, $50,000,000 when its property has been mortgaged as security for an indebtedness of that amount and bonds have been issued under the mortgage to represent the indebtedness.



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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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