Bonded warehouse
A bonded warehouse is a storage facility authorized by US Customs and Border Protection where imported goods can be held without paying duties and taxes until they are withdrawn for domestic sale, re exported, or otherwise released. Duty is paid when the goods leave, at the rate in effect that day, and goods may stay in a US bonded warehouse for up to five years from the date of importation.
Why it matters
Deferring duty until goods are sold keeps cash in the business and lets an importer re export unsold stock without ever paying US duty on it. It also allows importers to wait out a tariff change. The cost is that a bonded warehouse is a customs controlled space with its own recordkeeping, and it is not a fulfillment center: goods generally have to be withdrawn and duty paid before they ship to a domestic customer.
When to use it
Use a bonded warehouse when a meaningful share of imports will be re exported, when duty deferral matters to cash flow, or when a tariff rate is expected to change. Use a domestic fulfillment center once goods have cleared and duty is paid, which is when they can ship to customers.
How Warp thinks about it
Warp's four fulfillment centers are not bonded warehouses. Where Warp comes in is the US leg after a container clears customs: the pallets ride Warp LTL or truckload from the port into the Los Angeles or New Jersey center, and out to customers from there. The importers page describes that leg; this entry exists so the two are not confused.
Bonded warehouse versus fulfillment center
A bonded warehouse holds goods that have not cleared customs and cannot ship to a domestic customer until duty is paid. A fulfillment center holds goods that have cleared and ships them to customers one order at a time. Importers often use both in sequence: bonded storage at or near the port while duty is deferred, then a domestic fulfillment center once the goods are entered.
Frequently asked questions about bonded warehouse
What is bonded warehouse?
A bonded warehouse is a storage facility authorized by US Customs and Border Protection where imported goods can be held without paying duties and taxes until they are withdrawn for domestic sale, re exported, or otherwise released. Duty is paid when the goods leave, at the rate in effect that day, and goods may stay in a US bonded warehouse for up to five years from the date of importation.
Why does bonded warehouse matter in freight?
Deferring duty until goods are sold keeps cash in the business and lets an importer re export unsold stock without ever paying US duty on it. It also allows importers to wait out a tariff change. The cost is that a bonded warehouse is a customs controlled space with its own recordkeeping, and it is not a fulfillment center: goods generally have to be withdrawn and duty paid before they ship to a domestic customer.
When should you use bonded warehouse?
Use a bonded warehouse when a meaningful share of imports will be re exported, when duty deferral matters to cash flow, or when a tariff rate is expected to change. Use a domestic fulfillment center once goods have cleared and duty is paid, which is when they can ship to customers.
How does Warp handle bonded warehouse?
Warp's four fulfillment centers are not bonded warehouses. Where Warp comes in is the US leg after a container clears customs: the pallets ride Warp LTL or truckload from the port into the Los Angeles or New Jersey center, and out to customers from there. The importers page describes that leg; this entry exists so the two are not confused.
What is a bonded warehouse?
A customs authorized storage facility where imported goods sit without duties and taxes paid until they are withdrawn for domestic sale or re exported. Duty is paid at withdrawal, at that day's rate, and in the United States goods may remain in bonded storage for up to five years from the date of importation.
How long can goods stay in a bonded warehouse?
In the United States, up to five years from the date of importation. Within that window they can be withdrawn for consumption with duty paid, re exported without US duty, or moved to another bonded facility. After it, they must be entered or exported.