A Customs Bonded Warehouse (CBW) is a building or secured area licensed by CBP under 19 U.S.C. § 1555 (and 19 CFR Part 19) for the storage or processing of imported merchandise without payment of duties. Goods may remain in a bonded warehouse for up to five years from the date of importation.
The 11 classes. 19 CFR § 19.1 establishes 11 classes of bonded warehouses, each authorized for specific purposes:
- Class 1 — Premises owned by the U.S. government
- Class 2 — Importer's private bonded warehouse (single proprietor)
- Class 3 — Public bonded warehouse (multiple users)
- Class 4 — Bonded yard for bulky merchandise
- Class 5 — Bonded bins for grain
- Class 6 — Manufacturing warehouse (manufacturing for export only)
- Class 7 — Smelting and refining warehouse
- Class 8 — Bonded warehouse for the cleaning, sorting, repacking, or otherwise changing the condition of merchandise (but not manufacturing) — see manipulation
- Class 9 — Bonded duty-free store
- Class 10 — Bonded warehouse for international travel merchandise
- Class 11 — Bonded warehouse for general order, seized, or unclaimed merchandise
Bonded duty-free stores (Class 9). Located at international airports, seaports, and border crossings, Class 9 warehouses sell merchandise to outbound travelers without payment of U.S. duties — the goods are technically "exported" upon sale.
Surety bond. Every CBW operates under a bond (CBP Form 301) that covers the warehouse proprietor's responsibility for the merchandise and for compliance with all customs laws. Bond amounts vary by class but typically range from $25,000 to $200,000+.
Operations. Goods enter via warehouse entry (Type 21), can undergo manipulation, and exit via withdrawal entries (consumption, export, transportation, or destruction).