Bonded warehouse in San Diego: store imports near the border and pay duties later

When you import goods, duties are normally paid when the merchandise is released by customs. But what if you do not know yet where the goods will be sold, or part of them will be exported again? A bonded warehouse gives you time.

The problem

Paying duties on every unit the day it arrives ties up cash, even for goods that will sit in storage for weeks or months, or that may leave the country again. For businesses that trade across the U.S.–Mexico border, that can be a real cost.

What a bonded warehouse is

A bonded warehouse is a facility approved by U.S. Customs where imported merchandise can be stored under bond without paying duties yet. Duties are paid when the goods are withdrawn for consumption in the United States. Under customs regulations, merchandise can generally stay in a bonded warehouse for up to five years from the date of importation.

When it makes sense

• You store inventory near the border and sell it over time.
• Part of your goods may be exported to Mexico or another country.
• You are waiting for a buyer, a decision or a change in your plans.
• You want to consolidate freight before distribution.

The solution, step by step

1. Talk to your customs broker about entering the goods into a bonded warehouse instead of paying duties at arrival.
2. Move the freight to the bonded facility under customs control.
3. Store, inspect and manage the inventory while it stays under bond.
4. Withdraw the goods when you are ready, paying duties only on what enters U.S. commerce, or export them.

Tip: a bonded warehouse near the border works well with cross-docking and in-bond moves into Mexico.

How IEL can help

IEL operates a 35,000 square foot bonded public warehouse at 7558 Panasonic Way in San Diego, minutes from the Otay Mesa port of entry. Because we are also a licensed customs broker, the entry, storage, inventory management, cross-docking and distribution are handled by one team, with one point of contact.