Keeping your goods safe from excess duty
A customs bonded warehouse is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of customs duty.
The importer is not obligated to pay duty until merchandise is withdrawn from the warehouse. The goods can remain in the warehouse for up to five (5) years from the date of importation.
Importers who utilize bonded warehouses to store their imported merchandise enjoy some advantages over those who import their merchandise through the standard customs entry process. These advantages include:
- No payment of customs duty at the time of importation. Duty is payable when the merchandise is withdrawn from the bonded warehouse for consumption, including merchandise that has been manipulated in the warehouse. This gives the importer more financial control as far as the timing of duty payment is concerned.
- No payment of duty is required on merchandise that is exported. If the importer does not have a U.S. buyer for the imported merchandise, it can be exported from the bonded warehouse without any payment of customs duty.
Last modified: 03.09.2014