Skip to content
Tariffi
Entry Types

What is Warehouse Entry?

A customs entry filed when imported goods are placed into a bonded warehouse, deferring duty payment until withdrawal. In the context of U.S. customs and tariff recovery, understanding warehouse entry is essential for navigating the CAPE refund process and ensuring accurate duty assessment.

Definition

A warehouse entry is a customs entry filed when imported goods are placed into a CBP-bonded warehouse rather than entering the U.S. for immediate consumption. Duty payment is deferred until the goods are withdrawn for domestic use. The warehouse entry allows importers to store goods for up to 5 years, during which time they can be manipulated, repackaged, or tested without triggering duty assessment. If goods are exported directly from the warehouse, no U.S. duties are owed. Warehouse entries require a bonded warehouse operator with an active CBP permit.

How Warehouse Entry Relates to Tariff Refunds

Warehouse entries defer duty payment. If tariff rates change while goods are in the bonded warehouse, the importer pays the rate in effect at the time of withdrawal, not the rate at the time of warehouse entry. This can eliminate the need for a CAPE refund entirely — the importer simply waits for the lower rate before withdrawing goods for consumption.

Example

An importer places $1 million of Chinese goods in a bonded warehouse while IEEPA tariff rates are under negotiation. Three months later, the rate drops from 25% to 10%. The importer withdraws the goods and pays 10% ($100,000) instead of 25% ($250,000), saving $150,000 without needing a CAPE refund.

Frequently Asked Questions

What is the advantage of a warehouse entry over consumption entry?
Warehouse entries defer duty payment and allow the importer to wait for favorable rate changes, re-export without paying duties, or hold inventory without tying up capital in duty payments.
Can any warehouse accept a warehouse entry?
No. Only CBP-bonded warehouses with an active permit can accept warehouse entries. The warehouse operator must meet CBP security and record-keeping requirements.

Related Terms

Bonded WarehouseA secured facility where imported goods can be stored without paying duties until withdrawn for consumption.Consumption EntryThe most common type of customs entry, filed when goods enter the U.S. for domestic use.DutyA tax imposed by the government on imported goods, based on the HTS classification and country of origin.Foreign Trade ZoneA designated area within the U.S. where imported goods can be stored, assembled, or manufactured without paying duties until entering domestic commerce.EntryThe formal process of declaring imported goods to CBP, triggering duty assessment and release.

Legal References

  • 19 U.S.C. § 1557 — Warehouse Entry
  • 19 CFR Part 144 — Warehouse Entries

Ready to recover your tariff overpayments?

Upload your ES-003 and see how much you could recover — no advance fees, no commitment.

Start your claim

Questions? support@tariffi.io