Lineage is a leading bonded warehouse company that works in the bonded warehousing sector with state-of-the-art facilities near borders, ports, and airports in the USA. It helps the importers store their products under custom-regulated storage and follow the compliance of U.S. Customs and Border Protection (CPB). It also saves the cost during the off-season amid tariff and quota compliance.
Strategic Bonded Network
Lineage has a network of 9 strategically located bonded warehouse facilities across the US which are located near key ports and trade hubs. These warehouses are located in California, Delaware, Florida, Maryland, Pennsylvania, Texas, and Virginia, meaning this strategic network can help ensure fast, efficient, and compliant access to major markets across the country.
What are ‘Bonded Ware House’?
Bonded Warehouses are an integral part of international trade and supply chain management. These are like parking lots where ‘Imported Goods’ are parked (stored) instead of vehicles. These warehouses provide a secure space for imported goods to be stored under customs supervision. Here they will be properly inspected to ensure compliance and are free from duty and tariff payments until the products enter the market.
Need of Bonded Warehouse
International trade follows the policies of different governments that are involved in the import and export. The policy change causes fluctuations in product import quotas, shifting tariffs, and diverse regulatory requirements. Bonded warehouses help investors to save costs and comply with the regulatory norms of the respective governments. They offer secure, customs-regulated storage, allowing goods to be held until tariffs are paid or national import quotas reset. This flexibility is essential when navigating the complexities of global markets.
Quota-Limited Imports
Products with strict yearly quota caps, like Brazilian beef in the US, benefit from bonded storage, allowing businesses to store the product until quotas reset.
Seasonal Strategy
Bonded warehouses are perfect for seasonal goods, like seafood or fresh produce, where they can be safely and securely stored until peak demand.
Navigating Regulations
Products like imported meat, which are subject to strict customs inspections and regulations, benefit from bonded storage, where they can be stored and inspected before going to market.
Significance of the Bonded Warehouse
Secure Storage
Bonded warehouses provide a secure environment to store imported goods. They also ensure meeting the strict customs compliance requirements for importing goods.
Cost Savings on Tariffs
Businesses don’t have to pay duties or tariffs on goods stored in bonded warehouses until they are released to the market. Hence, these warehouses save the cost of tariffs until the goods are sold in the market.
Strategic Market Entry
As soon as the tariffs are decreased, quotas are reset in a particular market, or peak demand season arrives bonded warehouses provide importers flexibility to enter the market.
Lineage’s Approach to Bonded Warehousing
Case Study: Brazilian Beef in the US Market
For products like Brazilian beef, there is a yearly quota cap in the USA. Hence, Storing Brazilian beef in a bonded warehouse in the US allows for the business to be prepared to go to market as soon as the quotas reset. Hence, it provides flexibility to importers to enter the market when the time is right.
Imagine a Brazilian beef importer navigating a tough situation. Their shipment arrives in December, just before the annual US quota of 65,005 tons is reset, but they’re in a bit of limbo. They need to wait to go to market once the quota resets in January, and they need to act fast because those quotas can be filled as early as mid-January. Without a bonded warehouse, their products would arrive in December and then need to be immediately inspected and released to the market, triggering steep tariffs that could slash their potential profits. Fortunately, they’re utilizing Lineage’s bonded warehouse space.
How Does Lineage Provide a Seamless Solution?
Bonded Storage
The beef is stored in a Lineage bonded warehouse near a major port, minimizing transit time and maintaining product quality.
Compliance Expertise
Lineage helps ensure that all Customs Border Protection (CBP) requirements are met, including secure storage, precise documentation, and efficient inspections.
Market Timing
The beef remains in bond at Lineage’s facility until the January quota reset. It allows it to enter the market at the reduced tariff or zero-tariff rate agreed upon within the quota.
Benefit
The importer benefits from Lineage’s bonded network and expertise. It helps to avoid higher tariff costs, help ensure regulatory compliance, and time their entry to the market perfectly.