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Get a quoteCustoms Bonded Warehouse Services
Hold imported goods without paying duty, withdraw what you sell, and export the rest without U.S. duty.
What a bonded warehouse service does for an importer
A bonded warehouse is a facility approved by U.S. Customs and Border Protection (CBP) where imported goods can be stored under bond with duties and taxes deferred. Under 19 U.S.C. 1557, merchandise may stay for up to five years from the date of importation. Duty is paid only on goods withdrawn for consumption, and goods withdrawn for export leave without paying U.S. duty.
Bonded warehousing turns duty from an arrival cost into a sales cost. Instead of paying duty on a full container the week it lands, the importer pays on each withdrawal as goods are sold. For high-duty goods, slow-moving inventory or freight that may be re-exported, import bonded storage can free up significant working capital, and that duty deferral is the main reason importers use it.
We operate a CBP customs-bonded warehouse in Long Beach and hold bonded carrier authority, so cargo can move from the terminal into bonded storage under our own bond. The rest of this page explains how the service works anywhere, how it is priced, and how to decide whether it fits your freight.
How bonded warehousing works from arrival to withdrawal
- 01Move the cargo in bond
The container leaves the port under an in-bond (usually an IT, ACE entry type 61) carried by a bonded carrier. See bonded drayage for the transport rules, including the two-business-day arrival report.
- 02File the warehouse entry
The importer's customs broker files a warehouse entry (ACE entry type 21). Within 15 calendar days of in-bond arrival the goods must be entered, exported or admitted to a foreign-trade zone, so the warehouse entry should be ready before the truck arrives.
- 03Receive and reconcile
The warehouse records each receipt against the entry number and reconciles counted quantities to the entry. Under 19 CFR 19.12(c), discrepancies are reported to the CBP port director.
- 04Store and track
Inventory is tracked by entry, with location, quantity and running balance. Proprietors must keep records that trace every unit from receipt to final disposition.
- 05Manipulate if needed
With a prior CBP permit on Form 3499, goods may be cleaned, sorted, repacked or otherwise changed in condition, but not manufactured (19 U.S.C. 1562; 19 CFR 19.11).
- 06Withdraw
For each warehouse withdrawal, the broker files a withdrawal for consumption (ACE type 31, or 32 for quota and 34 for antidumping or countervailing duty goods), a withdrawal for export, or a withdrawal for transportation to another bonded warehouse. Goods ship out in whatever lot sizes you choose.
Who uses bonded warehousing, and for what
Bonded warehousing serves a few recurring business situations. Each one uses a different withdrawal pattern.
- Seasonal retailers land holiday or summer inventory months ahead of selling season and withdraw by store wave, paying duty as each wave ships. See how we work with retailers.
- Distributors serving several countries hold one stock in the U.S. and decide later whether each lot is sold domestically (withdrawal for consumption) or shipped abroad (withdrawal for export).
- Importers with an entry problem move goods off the terminal while a classification ruling, a missing certificate of origin or a partner-agency document is sorted out, then enter when ready.
- Brands selling online stage inventory under bond and withdraw smaller lots to fulfillment centers as demand appears, which suits ecommerce sellers with unpredictable sell-through.
- Traders selling goods while in storage transfer the right to withdraw to a buyer, who files its own bond and pays duty on its own withdrawals.
- Importers that need goods reworked relabel, re-sort or repack under a CBP manipulation permit before the goods enter U.S. commerce, for example to correct country-of-origin marking.
Bonded warehouse vs. duty-paid warehouse vs. foreign-trade zone
Three ways to hold imported inventory near a port. The right choice depends on time horizon, whether you process goods, and how much volume justifies setup.
| Factor | Duty-paid warehouse | Bonded warehouse | Foreign-trade zone |
|---|---|---|---|
| When duty is paid | At entry, before goods leave the port | On each withdrawal for consumption | When goods are entered for consumption from the zone |
| Duty rate applied | Rate in effect at entry | Rate in effect on the date of withdrawal (19 U.S.C. 1557) | Depends on the zone status elected |
| Time limit | None | 5 years from importation, extendable only for good cause | No time limit |
| Re-export without U.S. duty | No, refund only through drawback | Yes, by withdrawal for export | Yes |
| Processing allowed | Anything | Cleaning, sorting, repacking under permit; no manufacturing | Production with advance FTZ Board approval |
| Setup for the importer | None | Use an existing bonded facility; broker files entries | Zone or subzone activation; heavier compliance program |
| Best fit | Fast-turning goods with low duty | Medium-term storage, partial withdrawals, possible re-export | Long-term programs and production |
Decision framework: is customs bonded storage worth it?
| If this is true | Bonded storage usually | Reason |
|---|---|---|
| Duty is a large share of landed cost | Pays | Deferring a large duty bill matters more than added handling |
| Goods sell over several months | Pays | Each withdrawal triggers duty only on what ships |
| Some goods may be exported to another country | Pays | Export withdrawals avoid U.S. duty without a drawback claim |
| Entry is held up by documents or classification | Often pays | Goods leave the terminal and stop demurrage while the broker works |
| Duty rate is expected to rise soon | Usually does not help | Duty is assessed at the rate in effect on the withdrawal date |
| Goods turn in days and duty is low | Rarely pays | Handling and entry costs outweigh the cash-flow benefit |
| Goods are perishable or explosive | Not eligible | 19 U.S.C. 1557 excludes perishables and explosives other than firecrackers |
Example: what deferral is worth
Example with hypothetical round numbers: an importer brings in goods with $100,000 in duty and sells them evenly over ten months. Paying at entry means that, on average over those ten months, about $50,000 of duty has been paid on goods not yet sold. With bonded warehousing and monthly withdrawals of about $10,000 in duty each, duty is paid roughly as goods ship. At a 10% annual cost of capital, carrying $50,000 for ten months is worth about $4,000, which is then weighed against storage, handling and extra entry filing costs.
What drives bonded warehouse cost
Bonded storage costs more than general warehousing because of CBP recordkeeping, inventory controls and the proprietor's bond liability. Compare quotes on these components.
| Cost component | What it covers | What to ask |
|---|---|---|
| Receiving or handling in | Unloading, counting, labeling and reconciling to the entry | Is it per container, per pallet or per carton? |
| Storage | Space for the goods while under bond | Is it billed per pallet per month or by square foot, and what is the minimum? |
| Handling out per withdrawal | Picking, staging and loading each withdrawal | Is there a charge per withdrawal in addition to per-unit handling? |
| Bonded administration | Entry-level recordkeeping, permit files and CBP reporting | Is it per entry, per month or built into storage? |
| Manipulation labor | Repacking, relabeling or sorting under a Form 3499 permit | Who prepares the permit request and how is labor billed? |
| Transportation | In-bond pickup at the port and delivery of withdrawals | Can the warehouse move in-bond cargo under its own bond? |
Documents and data for bonded warehousing
- In-bond number and type, with the warehouse's FIRMS code as the destination
- Warehouse entry number (type 21) and entry summary data from your broker
- Commercial invoice and packing list detailed enough to reconcile cartons and SKUs
- Bill of lading, container and seal numbers
- For manipulation: a CBP Form 3499 application describing the work in enough detail for CBP to confirm it is not manufacturing
- For each withdrawal: the withdrawal entry number and type, quantities, and the outbound carrier
- For transfers of ownership: the transferee's bond, since the right to withdraw can be transferred under 19 U.S.C. 1557(b) only if the transferee files a bond
How to choose a bonded warehouse provider
- Can it pick up in-bond cargo under its own bond? One party from terminal to shelf means one in-bond, one arrival report and one liability chain.
- How does it track inventory by entry? Ask to see how its warehouse management system ties lots, SKUs and locations to entry numbers, and how it handles FIFO for fungible goods.
- How does it report shortages and overages? Under 19 CFR 19.12(d), theft and extraordinary shortages must be reported to CBP immediately, with written confirmation within five business days.
- Is it current on annual CBP filings? Proprietors prepare an annual CBP Form 300 or reconciliation within 45 or 90 days after year end, depending on the method. A provider should explain its process without hesitation.
- What handling can it do? Relabeling, sorting and repacking need a prior permit and supervision rules. Ask what it does routinely.
- How fast can withdrawals ship? Ask about cutoff times for releases and whether it can load FTL, LTL or local deliveries from the same dock.
Common bonded warehouse mistakes
| Mistake | What goes wrong | How to avoid it |
|---|---|---|
| Using bonded storage to wait out a tariff increase | Duty is assessed at the rate in effect at withdrawal, so a higher rate still applies | Model duty at the expected withdrawal date, not at arrival |
| Letting goods age past five years | 19 CFR 144.5 says goods must not remain beyond the period unless CBP grants more time | Track entry dates and request any extension from CBP early, with good cause |
| Relabeling or kitting without a permit | Unapproved manipulation is a compliance violation for the proprietor and importer | Submit Form 3499 first; use a blanket permit for repetitive work |
| Withdrawing partial packages after repacking | Withdrawals of manipulated goods must cover at least one entire repacked package | Plan repack sizes around expected order quantities |
| Arriving in bond with no warehouse entry ready | The 15-day destination clock runs and goods risk general order | Have the broker prepare the type 21 entry before pickup |
| Assuming exports to Canada or Mexico are always duty-free | USMCA rules can limit duty-free treatment for some goods withdrawn for export to those countries | Have your broker check USMCA drawback limits before planning North American re-exports |
Where we operate our bonded warehouse
Our customs-bonded warehouse is in Long Beach, close to both San Pedro Bay ports. The Long Beach bonded warehouse page describes our receiving, storage and withdrawal process in detail, and importers using the other side of the harbor can read about bonded storage for Port of Los Angeles cargo.
Bonded goods that are released can move straight into our general warehousing, cross-docking or transloading programs without another pickup. For the full legal background, read our guide what is a bonded warehouse.
Frequently asked questions
How long can goods stay in a bonded warehouse?
Up to five years from the date of importation under 19 U.S.C. 1557 and 19 CFR 144.5. CBP may allow a longer period on a proper request showing good cause.
What duty rate applies when goods are withdrawn?
The rate in effect on the date of withdrawal for consumption, not the rate on the arrival date. That can work for or against the importer if rates change while goods are in storage.
Can goods be relabeled or repacked in a bonded warehouse?
Yes, with a prior permit from CBP on Form 3499. Goods may be cleaned, sorted, repacked or otherwise changed in condition, but not manufactured. CBP can approve a blanket permit for up to one year for repetitive work.
Who files the paperwork?
A licensed customs broker usually files the warehouse entry and each withdrawal. The warehouse proprietor receives, stores, reconciles and releases the goods and keeps the CBP-required inventory records.
Can I sell goods while they are in bonded storage?
Yes. The right to withdraw can be transferred to a buyer under 19 U.S.C. 1557(b), provided the buyer files a bond covering the duties. The transfer is irrevocable, and the buyer then withdraws the goods.
Is a bonded warehouse the same as a foreign-trade zone?
No. Both defer duty, but a bonded warehouse has a five-year limit and allows only manipulation, while a foreign-trade zone has no time limit and can authorize production with FTZ Board approval.
Can any goods go into a bonded warehouse?
Most dutiable goods can. 19 U.S.C. 1557 excludes perishable articles and explosives other than firecrackers. Goods under certain other agency rules may need additional approvals, so confirm with your broker.
Does moving goods into bonded storage stop demurrage?
Terminal demurrage stops once the container leaves the terminal under an in-bond. Detention on the ocean carrier's container continues until the empty is returned, so unload promptly at the warehouse. Our guide to demurrage and detention explains the difference.
Do I need my own customs bond to use a bonded warehouse?
The importer of record generally needs a customs bond to file entries, including warehouse entries and withdrawals; ask your broker which bond type and amount fit your volume. The warehouse proprietor carries its own separate bond as a condition of CBP approval of the facility.
What records does a bonded warehouse keep for CBP?
Under 19 CFR 19.12, the proprietor keeps an inventory system that ties each receipt and withdrawal to an entry, shows location and running balance, includes an annual physical inventory or cycle counts, and supports an annual CBP Form 300 or reconciliation report kept for five years.