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Warehousing
Contents
- What is a CBP bonded warehouse?
- What are the advantages of using a CBP bonded warehouse?
- Who provides CBP bonded warehousing in the Port area?
Warehousing Information
What is a CBP bonded warehouse?
CBP defines this general term and outlines the 9 types of bonded warehouses at this link at the CBP website.
As defined by CBP:
A CBP bonded warehouse is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.
Upon entry of goods into the warehouse, the importer and warehouse proprietor incur liability under a bond. This liability is canceled when the goods are:
- exported
- withdrawn for supplies to a vessel or aircraft in international traffic
- destroyed under CBP supervision
- withdrawn for consumption within the United States after payment of duty
What are the advantages of using a CBP bonded warehouse?
As defined by CBP:
No duty is collected until merchandise is withdrawn for consumption. An importer, therefore, has control over use of money until the duty is paid upon withdrawal of merchandise from the bonded warehouse. If no domestic buyer is found for the imported articles, the importer can sell merchandise for exportation, thereby canceling his obligation to pay duty. The merchandise can remain in a bonded warehouse for up to five years.
Many items subject to quota or other restrictions may be stored in a bonded warehouse. Check with the nearest CBP office before assuming that such merchandise may be placed in a bonded warehouse.
Duties owed on articles that have been manipulated are determined at the time of withdrawal from the CBP bonded warehouse.
Who provides CBP bonded warehousing in the Port area?