Bonded warehouse

A bonded warehouse, also called a customs warehouse, is a secure facility approved by customs where imported goods are stored under duty and tax suspension until they are entered for home use, re-exported, or otherwise disposed of. Duties and import VAT become payable only on removal for free circulation, which gives importers a cash-flow benefit and lets re-exported goods leave without ever paying domestic charges. Operation requires a customs authorization and usually a guarantee covering the suspended liability. In the EU the regime sits in the Union Customs Code; in the US it is the bonded warehouse under 19 CFR Part 19, with public (Class 2) and private (Class 3) types.