You probably already know what a warehouse is – storage space you own or lease.  But what is a Customs Bonded Warehouse, and how can it be beneficial to your business?  Let’s have a look.

The United States Customs Bureau is at liberty to impose a variety of duties, excise taxes, and quota charges on goods brought into this country.  This is where the “Customs” in Customs Bonded Warehouse comes in.  These fees must be paid before you may take possession of the shipment if your goods are bound for a private or public warehouse.  That can be some big dollars.

Among many other requirements to attain accreditation, a Customs Bonded Warehouse has to provide a bond.  That is simply a guarantee to the government that duties on the goods will be paid.  That “insurance policy” is the “bonded” in Customs Bonded Warehouse.

In return for that assurance, the government allows you to defer or avoid fees by moving the cargo through a warehouse certified by the U.S. Customs Bureau (Challenge has this honor).  Simply put, it works like this:

• Defer payment of fees until items are sold.  Bring a shipment into the U.S. and pay duties incrementally, as you sell the product to your customers.  Your goods are safely stored and your cash remains available for investment or other uses, meanwhile.
• Avoid excise tax on re-exports.  Bring goods into the U.S. and store them at Challenge before reshipping to other countries.  You eliminate paying tax altogether, since the government knows that the goods will not be sold here.
• Consolidation.  We take your shipments from multiple countries and combine them into new configurations before re-exportation.  Again, no duties!
• Savings on documentation.  Requirements for clearance paperwork on goods brought into a Customs Bonded Warehouse are reduced, and we handle what is necessary for you.

Read more about our Customs Bonded facility at Customs Bonded Warehouse.  Then contact Challenge to learn more about how Customs Bonded Warehousing can help maximize your profits.