Bonded Warehouse Strategies
Defer duty payments and gain flexibility by storing imports in bonded warehouses before entering US commerce
- Bonded Warehouse Strategies
- Choosing Between Public and Private Bonded Warehouses
- Manipulation in Bond
Bonded Warehouse Strategies#
Bonded warehouses let you import goods without paying duty until you withdraw them for consumption. Maximum storage: 5 years. Benefits: cash flow improvement (defer duty 6-24 months), flexibility to re-export duty-free, and ability to wait for favorable exchange rates or market conditions before paying.
Choosing Between Public and Private Bonded Warehouses#
Public bonded warehouses serve multiple importers — lower cost, less control. Private warehouses serve one company — higher cost, full control. Decision: if your bonded inventory exceeds $5M, a private warehouse usually saves money. Below $2M, public is more cost-effective. Between $2-5M, compare operator quotes.
You can clean, sort, repack, and relabel goods in a bonded warehouse without triggering duty.
Manipulation in Bond#
You can clean, sort, repack, and relabel goods in a bonded warehouse without triggering duty. You can even destroy damaged goods and avoid paying duty entirely. However, manufacturing in bond requires FTZ status. Know the line between permissible manipulation and prohibited manufacturing.
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- Defer duty payments and gain flexibility by storing imports in bonded warehouses before entering US commerce
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What is the business impact of bonded warehouse strategies?
Defer duty payments and gain flexibility by storing imports in bonded warehouses before entering US commerce
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