Santos Quoted as Businesses Rush to Remove Goods From Bonded Warehouses Ahead of Tariff Deadlines

Bonded warehouses, which allow foreign companies to store products in the United States without immediately paying tariffs, have traditionally provided flexibility by deferring duty payments until goods are released for sale or delivery. Many companies had hoped to use these facilities to wait out the tariffs, anticipating that rates may decrease. With the announcement of a new trade deal deadline, numerous businesses opted to expedite the withdrawal of their inventory to avoid the risk of even steeper tariffs, according to legal and customs experts.

“We have seen demand skyrocket from our clients since the implementation of the tariffs,” Angela said. “They just wanted some kind of solution where they could either just manage cash flow, or have a holding pattern to decide what to do next.”

Companies hoped tariffs would be lowered before having to pull their inventory out. Angela explained, “We’ve all come to the unfortunate conclusion that that’s not going to happen, and nobody’s going to be at zero.” She added, “The best trade deals they’ve been waving around are at 10 percent.”

US Customs and Border Protection did not immediately provide data on the number of bonded warehouses in the country or the volume of goods currently stored within them.

The surge in demand for bonded warehouse space has led to higher storage costs and a shortage of available facilities. Angela said that one client recently sought her assistance after being unable to secure duty-free storage independently. “Usually, you don’t use your lawyers to find you a bonded warehouse,” she said, “but they were having such problems that they were having to use our network.”

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