As a U.S. Customs bonded warehouse, Lutheran Brothers and its operational area within the Port of Detroit make it advantageous for exporters and importers.
Importers and exporters looking to scale their businesses are turning to custom bonded warehouses that have immediate access to international waters. Using a bonded warehouse, like Lutheran Brothers, is an ideal solution for manufacturers and shippers who are looking to expand and keep costs and risks low.
What is a custom bonded warehouse?
Lutheran Brothers get asked this question all the time, and it explains that a bonded warehouse is a secure area or an entire building in which materials that carry duty fees can be stored or undergo additional manufacturing operations. When this takes place in a customs-bonded warehouse, the manufacturer can forgo the payment of duty for up to five years from the date the materials have been imported.
The owner of the goods only pays the duties when the merchandise is removed from the warehouse and is being used for consumption or further manufacture in the United States. When the merchandise is shipped out of the customs-bonded warehouse to a foreign country, there is no U.S. duty charged on the products. Bonded goods are also known as bonded cargo, and when they are held in a customs-bonded warehouse, the owner saves on taxes and other charges in addition to the assessed duties.
How does a bonded warehouse work?
- Your goods are imported and held in the bonded warehouse.
- They are received into the warehouse, and the warehouse owner incurs duty charges. Once the goods are moved, the duties are assessed by the manufacturer of the products.
- If the owner of the goods requires them to be sorted, repacked or cleaned, that must take place under the supervision of U.S. customs authority.
Why would a company use a bonded warehouse?
- If they’re importing large quantities of goods from foreign countries and need to defer the costs of duty.
- Using a bonded warehouse for storage gives the manufacturer of the products flexibility and more control over paying the duties because they can release products in smaller amounts at a time.
- Depending on the product, using a bonded warehouse can be a cost-effective, long-term storage solution.
What are the advantages of using Lutheran Brothers in Detroit, Michigan for your products?
- Goods may be exported from a zone free of duty and tax.
- Duty is not due/collected until the merchandise is withdrawn for consumption in the U.S. An importer, therefore, can better utilize those funds for normal operational costs.
When you’re looking for secure, easy-to-access, quality, experienced storage professionals, contact Lutheran Brothers.
If you are looking for clean, secure and economical warehouse space to lease and operate your business in with your own personnel, look no further than Lutheran Brothers in Detroit, Michigan.