Bonded Warehouse
A bonded warehouse is a customs-controlled facility where imported goods can be stored — and sometimes manipulated or processed — with duty and import taxes suspended. The liability sits "in bond" until the goods are withdrawn: cleared for home use (duty is paid) or re-exported (no duty is due).
Bonded warehouses run under a customs bond and are widely used as regional distribution and re-export hubs, letting operators hold stock close to market without paying duty on goods that may never enter it.
Bonded storage is a cash-flow tool. It defers duty until goods are actually sold into the local market — and avoids it entirely on goods that are re-exported — freeing working capital and making a country viable as a distribution or re-export hub.
(duty suspended)
or re-export (no duty)
What is the difference between a bonded warehouse and a free trade zone?
Both defer duty, but an FTZ is a designated area treated as outside the customs territory with broader manufacturing and trade freedoms, while a bonded warehouse is a specific licensed facility mainly for duty-suspended storage.
How long can goods stay in a bonded warehouse?
It varies by country — often up to several years — after which the goods must be cleared for home use or re-exported.