< Back to Logistics Glossary

What Is a Bonded Warehouse?

Understand how Bonded Warehouses fit into the supply chain

A bonded warehouse is a secure warehouse where imported goods or goods intended for export can be stored, manipulated or manufactured before payment of duty. The benefit of a bonded warehouse is that inventory can be stored closer to foreign customers, which means faster delivery once an item is purchased. Once the goods are ordered and released for shipping, the duty payment is paid for customs. The warehouse owner is typically liable for the goods stored within the warehouse before they are purchased or shipped out.