bonded warehousing

A bonded warehouse is a secure storage facility authorized by U.S. Customs and Border Protection (CBP) where imported goods can be stored without the immediate payment of duties or tariffs. Duties are only required when the goods are formally entered into U.S. commerce. If the goods are re-exported or otherwise removed from the warehouse under CBP supervision without entering U.S. commerce, no duties are paid at all.

Bonded warehouses are especially useful for companies that import goods but are uncertain whether they will sell those goods domestically or export them. This storage arrangement provides significant flexibility and cash flow advantages by deferring or eliminating duties based on the final disposition of the goods.