Bonded cargo is cargo for which duty has not been paid. It is still under customs control and has to be moved to a bonded .warehouse

A bonded warehouse can hold goods that have not yet cleared through customs. Their function can be to hold goods that are pending clearance or used as a place to unload goods from one mode of transportation and reload them onto another without having to clear the goods through customs. for example freight that is offloaded on the east coast can be shipped "in bond" by bonded carriers to a bonded warehouse on the west coast and then cleared through customs there.

Warehousing is an integral part of conducting business. Every business has different warehouse requirements, which is why various formats of warehousing have been developed to meet the needs of every business. Warehouse Receipt Law and Bonded Warehousing are two of the most common types.

Bonded warehouses are those warehouse facilities that are strictly operated and regulated by customs authorities. Imported goods that have to be further exported after carrying out some manipulation work are stored in these bonded warehouses. Manipulation work includes any process, including repackaging and assembling, which does not qualify as manufacturing. Bonded warehousing allows businesses to store imported goods for a while without paying customs duty on those which are to be exported. Any goods which are brought inside the country beyond the confines of a bonded warehouse will be charged with duties.

Warehouses Receipt, on the other hand, is simply a written or electronically printed acknowledgment that the goods stored in a warehouse, under the vigilance of the warehouse operator or his representative, belong to the business owner and not to the warehouse owner or the representative. This is used by multiple businesses, primarily domestic businesses that use warehousing facilities to store goods before distribution and sale.

If you are interested in establishing a bonded warehouse, you should first decide the type or class of warehouse you are interested in. There are nine different types or classes of Customs bonded warehouses authorized in Customs and Border Protection (CBP) Regulations (19 CFR 19.1).

To apply, an owner or lessee must construct a written application and address it to the local CBP Port Director describing their premises, giving the location, and stating the class of warehouse they wish to establish.

The application must be accompanied by a certificate signed by the president or a secretary of a board of fire underwriters certifying that the building is suitable for a warehouse and acceptable for fire-insurance purposes, and a blueprint showing measurements to be bonded.

A prerequisite to operating a Customs warehouse is being bonded. The Port Director determines the bond amount based on the purpose for the bond. The bond can not be less than $25,000 on each building or area covered by the bond. You can obtain a Customs bond from a Treasury licensed surety company. A list of sureties is available on the U.S. Department of the Treasury Web site.

For additional information, please reference our publication U.S. Customs and Border Protection Bonded Warehouse .

Warehousing is an integral part of conducting business. Every business has different warehouse requirements, which is why various formats of warehousing have been developed to meet the needs of every business. Warehouse Receipt Law and Bonded Warehousing are two of the most common types.

Bonded warehouses are those warehouse facilities that are strictly operated and regulated by customs authorities. Imported goods that have to be further exported after carrying out some manipulation work are stored in these bonded warehouses. Manipulation work includes any process, including repackaging and assembling, which does not qualify as manufacturing. Bonded warehousing allows businesses to store imported goods for a while without paying customs duty on those which are to be exported. Any goods which are brought inside the country beyond the confines of a bonded warehouse will be charged with duties.

Warehouses Receipt, on the other hand, is simply a written or electronically printed acknowledgment that the goods stored in a warehouse, under the vigilance of the warehouse operator or his representative, belong to the business owner and not to the warehouse owner or the representative. This is used by multiple businesses, primarily domestic businesses that use warehousing facilities to store goods before distribution and sale.