Function |
Bonded
Warehouse |
Zone |
| Customs
Entry |
A bonded warehouse is within U.S. Customs territory;
therefore, a Customs Entry must be filed to enter
goods into the warehouse. |
A zone is not considered within Customs territory.
Customs entry is, therefore, not required until
removed from a zone. |
| Permissible
Cargo |
Only foreign merchandise may be placed in a bonded
warehouse |
All merchandise, whether domestic or foreign,
may be placed in a zone |
| Customs
Bonds |
Each entry must be covered by either a single
entry, term bond or general term bond. |
No bond is required for merchandise in a zone. |
| Payment
of duty |
Duties are due prior to release from bonded warehouses. |
Duties are due only upon entry into U.S. territory. |
| Manufacture
of goods |
Manufacturing is prohibited. |
Manufacturing is permitted with duty payable at
the time the goods leave the Zone for U.S. consumption.
Duty is payable on either the imported components
or the finished product, whichever carries a lower
rate. No duty on waste material or on value added
in manufacturing, such as labor, overhead and
profit. No duty paid on goods exported from a
zone. |
| Appraisal
and Classification |
Immediately. |
Tariff rate and value may be determined either
at the time of admission into a zone or when goods
leave a zone, at your discretion. |
| Storage
periods |
Not to exceed 5 years. |
Unlimited. |
| Operations
on merchandise destined for domestic consumption |
Only cleaning, repackaging and sorting may take
place and under Customs supervision. |
Sort, destroy, clean, grade, mix with foreign
or domestic goods, label, assemble, manufacture,
exhibit, sell, repack. |
| Customs
Entry Regulations |
Apply fully |
Only applicable to goods actually removed from
a zone for U.S. consumption. |
| Jurisdiction
of other federal agencies |
Applies to all foreign merchandise. |
Application of Federal regulations depends on
products and agency. |
