Bonded Warehouse

A customs bonded warehouse is a secured facility, authorized by CBP, where imported goods can be stored for up to five years without paying duty until they are withdrawn for US consumption. If the goods are instead re-exported from the warehouse, no US duty is ever owed. Example: an importer lands seasonal goods, stores them in a bonded warehouse, and pays duty only on the portion actually released for sale — deferring the rest. It matters because it defers (or eliminates) duty and improves cash flow, and pairs with duty drawback for goods that are ultimately re-exported.