Bonded Warehouse (Customs Glossary)

This article is part of the Customs Glossary Guide

In-bond shipments may move to a bonded warehouse or continue on for export from the United States.

In North American trade, a Bonded Warehouse is a facility authorized by customs authorities to store imported goods or other controlled merchandise under bond. Duties and taxes are generally deferred while the goods remain under customs control and become payable when the goods are released for domestic consumption. If the goods are exported instead, duties may not become payable in the country where the bonded storage occurred.

Bonded warehouses are used to support import, export, inventory, and logistics workflows where goods must remain under customs control before final release or export. CBP explains that bonded warehouses provide storage facilities for imported cargo pending importation into or exportation from the United States.

Common Uses

Scenario	Use of Bonded Warehouse
Import for Re-Exportation	Goods are stored under bond and later exported without entering domestic commerce.
Deferred Duty Payment	Duties and taxes are deferred until goods are withdrawn for domestic consumption.
Inventory Flexibility	Goods can be stored until market demand, production timing, or customer instructions determine when they should be released.
Perishable or Specialized Storage	Goods may be stored in facilities equipped for required handling or temperature controls.
Trade Shows or Temporary Movements	Goods may be temporarily stored under customs control before being re-exported or otherwise accounted for.

Permitted Activities

Bonded warehouses are not always limited to static storage. Customs rules may allow certain handling or manipulation activities while goods remain under bond.

Activity	Description
Cleaning, Sorting, or Grading	Goods may be prepared or organized for later release or export when permitted by customs rules.
Repacking or Relabeling	Goods may be repacked, marked, or labeled when allowed by the warehouse program.
Display Preparation	Goods may be prepared for display or inspection in limited circumstances.

The allowed activities depend on the country, warehouse licence, and customs program. Goods generally cannot be substantially altered unless the applicable program specifically allows it.

Canada: Customs Bonded Warehouses

In Canada, a Customs Bonded Warehouse (CBW) is licensed by the CBSA. CBSA Memorandum D7-4-4 outlines the procedures for applying for a CBW licence and the conditions under which a CBW must be operated.

CBSA guidance on storage of goods states that customs bonded warehouses are used for long-term storage of imported goods and are part of the Duty Deferral Program. CBSA Memorandum D7-4-4 states that goods may generally remain in a customs bonded warehouse for up to four years, subject to the applicable rules and exceptions.

CBSA distinguishes Customs Bonded Warehouses from sufferance warehouses. Sufferance warehouses are used for the short-term storage and control of unreleased imported goods, while customs bonded warehouses are used for longer-term storage under the CBW program.

United States: Bonded Warehouses

In the United States, bonded warehouses are authorized by CBP and are used to store imported merchandise under customs control. CBP describes bonded warehouses as facilities for imported cargo pending importation into or exportation from the United States.

CBP's Bonded Warehouse Manual is a guide for CBP officers and bonded warehouse proprietors and brings together references to laws, regulations, agency guidance, rulings, and bonded warehouse operating procedures. U.S. bonded warehouse rules include multiple warehouse classes and procedures, so users should consult CBP's bonded warehouse guidance for the specific warehouse type and activity.

Usage in BorderConnect

Moving goods to a bonded warehouse usually requires the correct in-bond or eManifest workflow.

• United States (ACE): a carrier may need a QP in-bond movement in BorderConnect U.S. In-Bond Manager, with the bonded warehouse or facility identified by the appropriate destination information, such as a FIRMS code.
• Canada (ACI): a carrier may need a BorderConnect ACI eManifest with the correct release type, destination sub-location, warehouse code, or cargo control document for the movement.

Bonded vs. Sufferance Warehouse

Warehouse Type	Main Purpose	Typical Use
Bonded Warehouse	Longer-term storage of imported goods under customs control.	Used when duties and taxes are deferred until release for domestic consumption, or when goods may later be exported.
Sufferance Warehouse	Short-term control of unreleased imported goods.	Used for goods awaiting CBSA release, examination, transfer, or other customs processing after arrival.

See also

• Bonded Highway Carrier
• Sufferance Warehouse
• In-Bond Shipment
• BorderConnect U.S. In-Bond Manager
• BorderConnect ACI eManifest Guide
• FIRMS Code

Official Resources

• CBP: Bonded Warehouse Manual for CBP Officers and Bonded Warehouse Proprietors
• CBP: CBP Issues Updated Bonded Warehouse Manual
• CBSA Memorandum D7-4-4: Customs Bonded Warehouses
• CBSA Memorandum D4-1-5: Storage of Goods
• CBSA Memorandum D4-1-4: Customs Sufferance Warehouses