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English definition of “bonded factory”

bonded factory

noun [C]
 
 
PRODUCTION
a factory approved by a government where imported materials can be used to produce goods before any import tax has to be paid. The import tax is only charged when the finished goods leave the factory: Customs authorities check the import and export containers going to and from the bonded factory.
(Definition of bonded factory from the Cambridge Business English Dictionary © Cambridge University Press)
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