BONDED CARRIER Meaning and
Definition
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A bonded carrier refers to a transportation company or carrier that has been authorized and approved by the government or a regulatory agency to transport and handle goods that are under bond or in bond. This term is commonly used in the context of international trade and customs regulations.
When goods are imported into a country, they often need to first go through customs procedures and pay import duties or taxes. However, in certain cases, it is possible to defer these payments by placing the goods in a bonded warehouse or facility. This is known as being "in bond." Bonded carriers are then responsible for the transportation of these goods from the port of entry to the bonded warehouse or facility, ensuring they remain under bond throughout the journey.
The authorization and approval granted to bonded carriers require them to meet specific criteria, adhere to certain regulations, and maintain the necessary licenses or permits. They must have the capacity to securely handle and transport goods, take appropriate measures to safeguard the shipments, and comply with all customs procedures and requirements.
In summary, a bonded carrier is a licensed transportation company authorized to transport goods that are under bond or in bond, ensuring compliance with customs regulations and facilitating the movement of goods across international borders.
Etymology of BONDED CARRIER
The etymology of the term "bonded carrier" can be understood by breaking it down into its constituent parts.
1. Bonded: The word "bonded" comes from the Middle English word "bounden", derived from the Old English word "būgan", meaning "to bend". Over time, "bounden" came to refer to something that is bound, secured, or tied. In the context of a bonded carrier, it refers to a transportation company that has met specific legal requirements and has posted a bond to guarantee the delivery of goods in a regulated and secure manner.
2. Carrier: The word "carrier" is derived from the Middle English word "carien", which comes from the Old North French word "carier", meaning "to carry". It denotes a person or entity responsible for transporting or conveying goods or people from one place to another.
