Bonded Warehouse

A bonded warehouse is a secure storage facility authorized by customs where imported goods can be stored without immediate payment of import duties and taxes until they are withdrawn for domestic sale or consumption. It allows importers to defer duties, process or repackage goods under customs control, or re-export merchandise without ever paying duties. Example: an importer stores 10,000 electronic components in a bonded warehouse to delay duty payment until units are released for sale—if some units are re-exported directly from the warehouse, no import duty is charged.