SOLO’s Bonded Certification: All the Benefits of a Bonded Warehouse for Your Supply Chain
At SOLO World Partners, we are committed to providing the best possible solutions for our customers’ supply chain needs. As part of that commitment, we are proud to announce that, through our Foreign Trade Zone (FTZ) certification, SOLO is also certified with all the benefits of a bonded warehouse.
But what exactly does that mean for you? Let’s break it down.
What is a Bonded Warehouse?
A bonded warehouse is a secure facility authorized by U.S. Customs and Border Protection (CBP) where imported goods can be stored without immediate payment of duties or taxes. Duties are only paid when the goods are withdrawn for domestic consumption, and if they are re-exported, no duties are due at all.
Bonded warehouses offer critical advantages, including:
✅ Duty Deferral – Importers can store goods duty-free until they are sold or distributed, improving cash flow.
✅ Duty Elimination for Exports – If goods are exported directly from a bonded warehouse, no duties or taxes are paid in the U.S.
✅ Long-Term Storage – Imported goods can be stored in a bonded warehouse for up to five years without penalties or interest.
✅ Improved Inventory Control – Businesses can consolidate shipments, manage inventory more efficiently, and avoid unnecessary customs fees.
✅ Better Supply Chain Flexibility – Companies can hold inventory closer to customers while deferring duties, allowing for more strategic distribution.
SOLO’s FTZ Certification: Maximizing Your Supply Chain Benefits
As an FTZ-certified operator, SOLO provides all of these same advantages, with even greater flexibility. FTZs function similarly to bonded warehouses but offer additional benefits, such as:
🔹 No Time Limits – Unlike bonded warehouses, goods stored in an FTZ can remain indefinitely, eliminating concerns about expiration periods.
🔹 Lower Customs Fees – FTZs allow businesses to avoid duties on waste, scrap, or re-exported goods while also reducing fees through consolidated weekly entries.
🔹 Production Benefits – Unlike bonded warehouses, FTZs allow for manufacturing and assembly operations, meaning businesses can add value to goods before duties are assessed.
🔹 Increased Security & Compliance – FTZs operate under strict CBP oversight, ensuring the highest standards of security and compliance while streamlining customs procedures.
How This Helps SOLO’s Customers
By leveraging our FTZ certification, SOLO offers all the cost-saving and operational advantages of a bonded warehouse, plus additional FTZ benefits that enhance supply chain efficiency. This means:
✔ Lower landed costs and improved cash flow for importers
✔ More strategic inventory management for businesses with international suppliers
✔ Simplified customs procedures, reducing delays and administrative burdens
✔ A competitive edge in global trade by minimizing duty exposure
If you’re looking to optimize your import/export operations, reduce costs, and streamline your supply chain, SOLO is your ideal partner.
Get in touch with us today to learn how our FTZ-certified solutions can give your business a powerful advantage in the global marketplace!
