Bonded Warehouses

There are several classes of bonded warehouses: Class 1 (government-owned, operated by CBP); Class 2 (private, importer-owned); Class 3 (public, for storing goods for any importer); Class 4 (bonded yards/sheds for heavy/bulky goods); Class 5 (bonded bins for grain); and others. Class 2 and Class 3 are the most commonly encountered in practice.

Merchandise may be stored in a bonded warehouse for up to five years from the date of importation. After five years, the goods must be either entered for consumption (with duty payment), exported, or destroyed. If not, the goods are considered abandoned to the government and may be sold at public auction.