What is a bonded warehouse?
• A bonded warehouse is a warehouse that carries a special Customs bond and that is used to legally defer duty payment. There are specific types or “classes” of warehouses, and what can be done to the goods while in the warehouse is limited by the “class”. Included among bonded warehouse classes are: (a) Class 1- These are warehouses owned or leased by the government; (b) Class 2 – An importer can establish this type of warehouse for his/her own merchandise. It is exclusively for storage, however; no processing of the goods is allowed; (c) Class 3 – These “public bonded warehouses” are for the storage of anyone’s imported goods; and (d) Class 4-These are bonded yards or sheds for storage of heavy or bulky items; stables, corrals and pens for livestock; and large tanks for storing bulk liquids.
