Paying duty on withdrawal, not arrival
A warehouse entry lets the importer put dutiable goods into bonded storage instead of paying at arrival. CBP rules require no deposit of estimated duties until the goods are withdrawn for consumption, and goods may stay up to five years from the date of importation. Meanwhile the importer can withdraw part of a lot for sale, export some, or transfer goods to another warehouse under bond. The arrangement suits goods whose final market or timing is not settled yet.
Warehouse classes in CBP rules
The regulations at 19 CFR 19.1 sort customs warehouses into classes, and the class decides what can happen inside. Not every cargo qualifies: perishable goods and explosives other than firecrackers cannot be entered for warehousing. Class 11 is the general order warehouse, which takes cargo that was not entered in time rather than goods an importer chose to store. Ask the operator for its class and approvals before routing freight there.
- Class 2: an importer's private warehouse for its own goods
- Class 3: a public bonded warehouse used by many importers
- Class 6: manufacturing in bond, solely for export
- Class 8: cleaning, sorting or repacking, but no manufacturing
From container to bonded storage
Getting goods into a bonded warehouse often starts with an in-bond move, for example an immediate transportation entry from the arrival port to a warehouse in another city. The container is unloaded there and the empty goes back to the carrier, which ends the container's part of the story. After that, the goods are followed through the warehouse's inventory records and CBP filings, not carrier milestones. Plan the dray and the empty return like any other import delivery.
Example
An importer moves a container of ceramic tile into a bonded warehouse in Houston and pays duty on each lot only when it is withdrawn for sale over the following months.
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Official sources
Questions
What does Bonded Warehouse mean?
A bonded warehouse is a CBP-approved facility where imported goods can be stored without depositing duty until they are withdrawn for U.S. consumption. Some classes also allow cleaning, sorting, repacking or manufacturing under customs supervision.
Is a bonded warehouse the same as a foreign-trade zone?
No, although both can defer duty. A foreign-trade zone is a separate program with its own rules on storage, processing and paperwork, so ask a customs broker which one fits the goods and the plan.
How long can goods stay in a bonded warehouse?
Up to five years from the date of importation under 19 CFR 144.5, unless CBP grants more time on request. Goods left after that period are disposed of under CBP's rules for unclaimed and general order merchandise.