Bonded Warehousing
Last updated: June 14, 2026
- Bonded warehousing allows imported goods to be stored without paying customs duties until released for domestic sale
- If goods are re-exported from the bonded warehouse, no customs duties are ever paid
- China allows up to 3 years of bonded storage; JIT distribution from bonded warehouses defers duties to point of sale
Bonded Warehousing is a customs-supervised storage facility where imported goods can be stored without paying customs duties until they are released for domestic sale. If goods are re-exported from the bonded warehouse, no duties are ever paid. In China, the maximum bonded storage period is 3 years, and bonded warehouses can support JIT (Just-In-Time) distribution to domestic customers.
Chinese: 保税仓储 (Bǎoshuì cāngchǔ)
Bonded Warehousing vs. FTZ
Bonded warehousing is for duty-deferred storage only — goods cannot be substantially processed or manufactured. FTZ (Free Trade Zone) allows both storage and value-added processing (assembly, manufacturing, transformation). Bonded warehouses are smaller-scale, single-facility operations; FTZs are designated zones with multiple facilities and companies. Both offer the core benefit: customs duties are deferred until goods enter the domestic market — and if goods are re-exported, no duties are ever paid.
Practical Example
A European automotive parts supplier imports 500 pallets of brake components into Great Hensen's bonded warehouse in Qingdao. The supplier does not pay Chinese customs duties (15%) on import — saving $150,000 in upfront duty costs on $1M worth of goods. Chinese auto manufacturers place orders throughout the year, and each week Great Hensen clears the exact quantity ordered through customs, pays the duty on that quantity only, and delivers JIT to the factory. Unsold inventory is never taxed. After 3 years, remaining stock is either cleared or re-exported to Vietnam.
Related Terms
- FTZ (Free Trade Zone) — allows both storage and value-added processing
- T1 Transit Document — used for bonded transit between customs territories
- DDP — seller pays duties; bonded warehousing helps defer those costs
Frequently Asked Questions
How long can goods stay in a bonded warehouse in China?
Under Chinese customs regulations, goods can be stored in a bonded warehouse for up to 3 years. After 3 years, goods must be cleared (duties paid), re-exported, or transferred to a Free Trade Zone. If no action is taken, customs may classify goods as abandoned and auction them.
What is the difference between bonded warehousing and a Free Trade Zone?
Bonded warehousing allows duty-deferred storage only. FTZ allows duty-deferred storage PLUS value-added processing — goods can be manufactured, assembled, or transformed without paying duties. FTZs are larger and offer more operational flexibility. See our bonded warehousing service.
Can I distribute goods directly from a bonded warehouse?
Yes — JIT (Just-In-Time) distribution from bonded warehousing defers duty payment until a domestic customer orders, reducing inventory carrying costs. We operate bonded warehousing with JIT in Qingdao. See our bonded warehousing FAQ for more details.
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We operate bonded warehousing with JIT distribution in Qingdao. Defer duties, reduce inventory costs.
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