How long can goods stay in a bonded warehouse?

Up to 5 years from import in the US. The EU and UK set no limit, and Saudi Arabia allows three calendar years, renewable.

When is duty paid on goods in a bonded warehouse?

When they leave for the home market. In the US it is collected on withdrawal for consumption, at the rate that day; the UK uses the duty and exchange rates at the time of removal. Goods re-exported pay none.

What is the difference between a public and a private customs warehouse?

A public warehouse stores goods for anyone; a private one stores the authorisation holder's own goods. Dubai licenses both, at AED 150,000 for public and AED 25,000 for private.

Term

Bonded warehouse

A bonded warehouse, or customs warehouse, is a secured store where imported goods are held under customs control without paying duty until they leave for the home market — and goods re-exported from it pay none. The US allows up to 5 years from import; the EU and UK set no time limit.

Also called customs warehouse, bonded storage, customs warehousing, bonded zone, duty-free warehouseUpdated 13 October 2026

In the US

CBP describes a bonded warehouse as a building or other secured area where imported dutiable goods may be stored, manipulated or undergo manufacturing without payment of duty for up to 5 years from import. The proprietor takes on liability under a warehouse bond when goods come in, and duty is not collected until goods are withdrawn for consumption — at the rate in force on the date of withdrawal.

Class	What it is for
2	An importer's private warehouse, for its own goods
3	A public bonded warehouse, for anyone's imports
6	Manufacture in bond, solely for export
8	Cleaning, sorting, repacking — not manufacturing
9	Duty-free stores
11	General order goods

Selected US warehouse classes, 19 CFR 19.1

In the EU, UK and Gulf

An EU customs warehouse is public — available to anyone — or private, for the authorisation holder's own goods, and there is no limit to how long goods may stay. In the UK, depositors need not own the goods but take on liability for any duty and import VAT that becomes due, which is charged at the rates in force when goods are removed; HMRC suggests applying for an authorisation at least 2 months before you want to start. Dubai Customs licenses private warehouses for AED 25,000 and public ones for AED 150,000, with a cash or bank guarantee of AED 50,000 or AED 1,500,000. Saudi Arabia lets goods stay in bonded zones and warehouses for three calendar years, renewable.

Worked example: the cash-flow gain

$1,000,000 of cotton trousers at a 16.6% duty rate = $166,000 · withdrawn 25% a quarter → $41,500 paid each quarter instead of $166,000 on arrival · any trousers re-exported → $0

16.6% is the US general rate for HTS 6203.42.07, ignoring any additional duties. Each withdrawal pays the rate in force on that day — if the rate rises, so does the bill.

The mistake people make

Taking goods out before customs says so. In the UK, HMRC is explicit that you must not remove the goods until you have received a second message confirming they have cleared. In a US warehouse the proprietor carries liability under its warehouse bond from the moment goods come in, so its own records have to account for every withdrawal.

FAQ