Advantages of a Customs Bonded Warehouse
Each type of warehouse has advantages. Some businesses choose a Customs bonded warehouse because goods stored there can move between other bonded warehouses. Further, goods can also move into free trade zones for export, deconstruction or permanent storage of the product.
Another advantage to Customs bonded warehouses is associated with increased storage times. Some countries allow unlimited storage time. In the U.S., however, imported goods are allowed to be stored for up to five years. This creates an opportunity to delay the introduction of a product to market until there is greater demand.
Because no duty is collected until the product is withdrawn for consumption, importers have greater control over their finances. Lastly, if an importer is unable to find a buyer in the U.S., the goods can be exported without paying duty.