A Bonded Warehouse Entry is the entry type (Entry Type 21) used to admit imported merchandise into a customs bonded warehouse without payment of duties. The merchandise may remain in the warehouse for up to five years from the date of importation. Authorized by 19 U.S.C. § 1557 and administered under 19 CFR Part 19.
Procedure.
- Filed on CBP Form 7501 with Entry Type 21
- Importer or warehouseman posts a single transaction or continuous bond (typically the warehouse proprietor's continuous bond covers it)
- Goods are physically delivered to the bonded warehouse under CBP supervision
- No duties, MPF, or other taxes are due at the time of warehouse entry — they are deferred
Withdrawals. While in the warehouse, the importer may:
- Withdraw for consumption (Entry Type 22) — pay duties, taxes, and fees and release the goods into U.S. commerce
- Withdraw for exportation (Entry Type 31-33) — re-export the goods without paying duties
- Withdraw for transportation (Entry Type 22) — move the goods to another bonded warehouse
- Withdraw for manipulation — sort, clean, repack within the warehouse
- Destroy under supervision — destroy and avoid duties
Five-year limit. If goods remain in the warehouse beyond five years from the date of importation, they must be withdrawn (with duties paid), exported, or destroyed. Otherwise CBP will sell them at general order.
Comparison to FTZ. Foreign Trade Zones provide longer storage flexibility, broader manipulation rights, and manufacturing capability — but require zone designation and FTZ Board approval. Bonded warehouses are simpler to establish and used heavily for high-duty merchandise (wine, spirits, tobacco), high-quota merchandise, and goods awaiting marketing or quota windows.