What is a Bonded Warehouse?
A bonded warehouse is a secure area on the US soil, where dutiable goods can be stored, manipulated or undertake manufacturing operations without being subjected to duty. However, duty will be levied when the goods are moved from the warehouse for use or to be sold on the local market.
Typically, the bonded warehouse is under the supervision and control of the US customs authorities. For any goods to enter the warehouse, customs entry must be filed and they can be stored for a maximum of five years.