Bonded Warehouse
A bonded warehouse is a CBP-authorized facility where imported goods can be stored without paying duty for up to five years from import, with duty due only when the goods are withdrawn for US consumption.
Why it matters for ecommerce brands
A bonded warehouse lets you hold off paying duty until goods are withdrawn for US sale, which frees cash and avoids duty entirely on goods you export or destroy under CBP supervision. Storage is limited to five years from import, and handling is limited to tasks such as cleaning, sorting, and repacking. For example, a brand importing $500,000 of goods at a 25% total duty rate would owe $125,000 at entry. In a bonded warehouse it pays only as it withdraws stock, at the duty rate in effect on the withdrawal date, which may be higher or lower.
Common questions
- What is the difference between a bonded warehouse and a foreign-trade zone?
- Both defer duty, but a bonded warehouse is mainly for storage with limited handling and a five-year limit. A foreign-trade zone allows more activity, such as assembly and repacking, has no time limit, and can offer other duty benefits.
- What can you do to goods in a bonded warehouse?
- You can store, clean, sort, repack, or otherwise manipulate goods under CBP supervision, but you cannot manufacture them except in a bonded manufacturing warehouse. Check with CBP or the warehouse operator before any processing.
- Can goods be re-exported from a bonded warehouse without paying duty?
- Yes. Goods withdrawn for export, or destroyed under CBP supervision, do not owe US duty. That makes bonded storage useful for inventory that may ship to Canada, Mexico, or other markets.