A Cash Flow Tool Most Importers Overlook
A bonded warehouse allows imported goods to be stored without duty payment for up to five years. Duties are only owed upon withdrawal for domestic consumption. If goods are exported, no duties are owed at all.
How Bonded Warehouses Work
Several classes exist for different activities. When goods enter, a warehouse entry is filed but duties are not assessed. Withdrawals can be for consumption, export, or transfer to another bonded facility.
Financial Benefits
Duty deferral improves cash flow. Duty elimination on exports provides permanent savings. Merchandise processing fees may also be reduced. For businesses exporting 30 percent or more of imports, bonded warehousing often delivers greater savings than any other single strategy.
Compliance Requirements
Perpetual inventory system, security requirements, customs bond maintenance, and periodic CBP audits. For most businesses, these are manageable and analogous to existing practices.
Ready to Take Action?
Peacock Tariff Consulting helps you evaluate feasibility and maximize the value of bonded storage. Contact us today.
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