A bonded warehouse is a secure customs-controlled facility where imported goods can be stored, handled, processed, or prepared without immediate payment of duties and taxes. The goods remain under customs supervision until they are released for domestic consumption, exported, moved under another customs procedure, or otherwise cleared. Bonded warehouses help importers defer duty payments, manage inventory, support re-export operations, and improve cash flow while keeping goods compliant with customs requirements. In the U.S., bonded warehouses are CBP-licensed, and imported goods can be stored there for up to five years without paying duties.
Types
- Class 2: private warehouse for one importer
- Class 3: public warehouse open to any importer
- Class 7: manufacturing bonded warehouse for processing before entry
- Class 9: duty-free stores at airports and border crossings
Benefits
- Defer duty payment to improve cash flow
- Re-export without paying duty
- Manipulate, sort, or repack goods before consumption entry
Related terms: Bonded Goods, Customs Bond, FTZ, In-Bond Shipment.
