Freight glossaryCustomsWarehousing
Bonded Warehouse
Definition
A bonded warehouse is a CBP-approved facility where imported goods are stored under customs control before duty is paid; duty is due when goods are withdrawn for consumption.
What it means
The owner or lessee of a bonded warehouse must give a bond before goods are stored, and the goods sit in joint custody with Customs.[1] Goods may stay for up to five years from importation, and when withdrawn for consumption they pay duty at the rate in force on the date of withdrawal, not the date they arrived.[2] CBP regulations sort bonded warehouses into classes, from importers' private warehouses to Class 11 general order warehouses.[3]
A bonded warehouse defers duty; it does not freeze a rate or avoid it. How it compares with a foreign-trade zone and with plain duty-paid storage is covered in bonded warehouse vs. FTZ. RapidShips is not a bonded warehouse; its storage is for freight Customs has already released.
Related
Related terms
- Foreign-Trade ZoneA foreign-trade zone (FTZ) is a site licensed by the Foreign-Trade Zones Board where imported goods can be...Glossary
- General OrderGeneral order (GO) is CBP custody for imported cargo that was not entered or released in time; the cargo is...Glossary
- Customs BondA customs bond is a financial guarantee filed with CBP that the importer will pay duties, taxes and charges...Glossary
- Importer of RecordThe importer of record (IOR) is the party responsible for an import entry: making sure it is correct and that...Glossary
Related guides
- Bonded Warehouse vs FTZ vs Duty-Paid StorageTime limits, duty timing and FTZ 49, compared plainly.Guide
- General Order Warehouse and the 15-Day RuleWhat happens when cargo is not entered in time.Guide
- Section 301 Forced Labor Tariffs at the DockThe 2026 tariff timeline and what it changes operationally.Guide
Sources
- Legal Information Institute, Cornell Law School, “19 U.S. Code § 1555, Bonded warehouses,” Federal statute. Accessed September 2026.
- Legal Information Institute, Cornell Law School, “19 U.S. Code § 1557, Entry for warehouse,” Federal statute. Accessed September 2026.
- Legal Information Institute, Cornell Law School, “19 CFR § 19.1, Classes of customs warehouses,” Federal regulation. Accessed September 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.