If you’re going to import goods into the country and you may export those to other countries in the future, that’s where you would want to use a custom bonded warehouse. You can bring goods into a custom bonded warehouse and they’re not cleared until they leave that warehouse. So you can delay paying tariffs if they’re ultimately imported into the US or if the goods are later shipped out of the US to another country you don’t pay any tariffs on those goods while they’re residing in the custom bonded warehouse.
Randall Tucker— President, Hawthorne Global Logistics
Are you looking to expand your business around the world? If so, you might be concerned about finding a smooth and efficient solution to importing and exporting goods.
One of the best solutions is using a customs bonded warehouse.
A customs bonded warehouse is a secure storage facility used by customs to hold imported goods until duties and taxes are paid. A customs bonded warehouse is a secure warehouse must get approval from the U.S. Customs and Border Protection (CBP) to store imported goods until they are ready for export. Products can be stored for a maximum of five years from the importation date.
Why You Want To Use A Customs Bonded Warehouse
Using a customs bonded warehouse is a helpful way for businesses to cut costs on import fees. It can also help businesses avoid some delays in getting clearance for goods upon entry to the country. If issues exist with documentation or paperwork—they can be worked out at the warehouse later, before delivery to retailers. their goods cleared for entry into the country. If there are any issues with the paperwork or documentation related to the import, those can be sorted out at the warehouse before the goods are released for delivery. This can help ensure that shipments arrive on time and without any delays at the most critical moments.The Other Advantages It Brings
In fact, there are quite a few advantages to using a customs bonded warehouse to store your imported goods including:- Duty And Tax Deferrment— As mentioned the duties and taxes you would normally pay upfront can be deferred until you are ready to export them. This can help ease the impact on cash flow as well as save you money on interest and financing costs. Duty reduction is only available when importing raw materials and components to be used to manufacture finished products for export.
- Lower Transportation Costs— Bonded warehouses are almost always close to the ports, this translates into lower transportation costs—it’s a win-win.
- Deferred CBP Inspection— Goods stored in a bonded warehouse are not subject to CBP inspection until they are removed for export, which can save you time and hassle.
- Highly Secured Storage— To secure bonding, customs bonded warehouses must have excellent security features and protocols. You can be assured that your products are in the safest storage possible.
- Deferred Liability—Once your goods enter the warehouse facility, they assume liability for the good until
- Exported
- Withdrawn for supplies to a vessel or airplane
- Destroyed under CBP supervision
- Withdrawn for U.S. consumption after duty payment
- Guaranteed Payment Of Duties & Taxes — One of the biggest problems importers and exporters run into is organizing their duty and tax payments on goods. Since a customs bonded warehouse posts a bond with CBP, the warehouse guarantees those duties and taxes will be paid on your behalf. As mentioned, those can be postponed for up to five years or until exported or released for consumption stateside. This releases crucial cash flow businesses need to operate efficiently.
Factors to Consider Before Choosing a Facility
There are several key factors to consider before picking the right customs bonded warehouse for your business Here are just some of the top ones to keep in mind:- Location Matters: The location of the facility is absolutely critical to keep transportation costs at a minimum and ensure expediency. Most warehouses are near ports and other districts where import/export takes place. The closer it is to the ports, the more efficiently your products will move.
- Storage Capacity & Capability: The storage capacity of the warehouse you choose has to match your needs. For example, if you are importing fresh seafood, you’ll need a warehouse equipped with cold storage. Not all warehouses have the same capabilities or available square footage.
- Security: The level of security in the customs bonded warehouse you consider is critical. Goods, especially heavily regulated goods such as ammunition, need to be secured properly against both theft and damage
- Accessibility: Business can be unpredictable, you need to be able to get access to your goods with ease whenever you need them—sometimes at a moment’s notice.
- Cost: As with other business expenses, cost is a major factor to consider. You need to make sure that the cost of storage is within your operating budget and not negating your profit.
