Bonded warehouse (customs warehouse): duty deferral in the US and EU

A bonded warehouse, called a customs warehouse in the EU, lets imported goods be stored without paying import duty until they are released into the local market. If they are re-exported instead, no import duty is paid at all. It helps importers who sell gradually, re-export part of the stock, or are not yet sure where the goods will go.

Checked against official sources: 2026-10

At a glance

US time limitGenerally up to 5 years from the date of importation

US dutyPaid on withdrawal for consumption, generally at the rate in effect on the withdrawal date

US exportGoods withdrawn for export leave without paying US duty

US classes19 CFR 19.1 lists warehouse classes, such as Class 2 private, Class 3 public and Class 8 for cleaning, sorting and repacking

EU procedureCustoms warehousing: non-Union goods stored in premises authorised by customs

EU dutiesNo import duties or other charges while stored; VAT and excise are also deferred

EU time limitUnlimited, unless the goods could pose a threat to health or the environment

EU typesPublic warehouses for any person; private warehouses for one authorised person

United States: bonded warehouses

US bonded warehouses are regulated under 19 CFR Part 19. Goods can generally stay up to five years from the date of importation. When they are withdrawn for consumption, the duty is paid at that point, generally at the rate in effect on the withdrawal date, so a tariff increase during storage applies to the goods withdrawn. Goods withdrawn for export leave without paying US duty. With CBP permission, goods may be cleaned, sorted or repacked, depending on the warehouse class; a bonded warehouse should not be assumed to shelter goods from a particular special tariff, whose treatment must be checked first.

US warehouse classes (19 CFR 19.1)

Class 1: government premises for goods under examination, seizure or pending release.
Class 2: importers' private bonded warehouses for their own goods.
Class 3: public bonded warehouses for imported goods.
Class 4: yards, pens and tanks for bulky goods, animals and liquids.
Class 5: bins or elevators for grain.
Class 6: manufacturing warehouses using imported materials.
Class 7: smelting and refining of imported metal-bearing materials.
Class 8: cleaning, sorting, repacking or otherwise changing the condition of goods, but not manufacturing.
Class 9: duty-free stores for departing travellers.
Class 11: general order warehouses.

European Union: customs warehousing

In the EU, customs warehousing means storing non-Union goods in premises authorised by customs. While stored, the goods are not subject to import duties or other charges, and VAT and excise are deferred until they leave. Storage may be for an unlimited period unless the goods could pose a threat to health or the environment. Public customs warehouses can be used by any person, private ones only by the authorised holder, who must be established in the EU customs territory and provide a guarantee where a customs debt or other charges may arise. Goods leave by release for free circulation, by being placed under another procedure such as inward processing or end-use, or by re-export.

Step by step

Decide whether you will sell the goods locally, re-export them, or both.
Find a public bonded or customs warehouse, or apply for your own authorisation.
Agree with your customs broker how the goods will be entered into the warehouse.
Withdraw goods for consumption as you sell them and pay duty at that point.
Withdraw goods for export when they go to another country, without paying import duty.
Watch the time limit: generally 5 years in the US.

Documents you usually need

Warehouse entry (US) or customs warehousing declaration (EU)
Commercial invoice and packing list
Bill of lading or air waybill
Withdrawal entries for consumption or export
Customs bond or guarantee

Common problems and how to avoid them

US duty rates rose while the goods were in a bonded warehouse.

What to do: Duty on withdrawal for consumption is generally assessed at the rate in effect when the goods are withdrawn, so the higher rate applies.

Goods stayed in a US bonded warehouse for more than 5 years.

What to do: The general limit is 5 years from importation; plan withdrawals or re-export before then.

An importer assumed a bonded warehouse avoids a special tariff.

What to do: Do not assume that; check how the specific tariff treats warehoused goods before relying on it.

An EU business wants to run its own customs warehouse.

What to do: It needs customs authorisation, must be established in the EU customs territory and must provide a guarantee where required.

Sources

Customs warehousing European Commission
19 CFR 19.1: Classes of customs warehouses U.S. Government Publishing Office
The bonded warehouse strategy: buying time on duty (14 July 2026) Great Lakes Customs Law

Rules change often. This note is practical guidance based on the sources above, not legal advice. Confirm current requirements with the authority, your importer or a licensed customs broker before you ship.

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Trade notes

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Common questions

What is a bonded warehouse?

A warehouse where imported goods are stored under customs control without paying import duty until they are released for local sale; goods re-exported from it pay no import duty.

How long can goods stay in a US bonded warehouse?

Generally up to 5 years from the date of importation.

Which duty rate applies when goods leave a US bonded warehouse?

Generally the rate in effect on the date the goods are withdrawn for consumption.

Is there a time limit for EU customs warehousing?

No, storage may be unlimited unless the goods could pose a threat to health or the environment.

Is VAT paid when goods enter an EU customs warehouse?

No. Import duties are suspended and VAT and excise are deferred until the goods leave the warehouse.

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