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# Warehouse System

# Definition

A storage and distribution arrangement where imported goods are held in
bonded warehouses under government supervision, allowing for temporary
storage before re-exportation without payment of import duties.

## Source Chapter

Book IV, Chapter 5

## Context

Smith mentions the warehouse system as a mechanism that facilitates the
carrying trade by allowing merchants to store goods duty-free while
arranging for their re-exportation to other markets.

## Economic Domain

Exchange

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