A location that is authorized by customs authorities to store goods that are either in transit or awaiting payment of customs duties. It is primarily available to defer payment of import duties for the period of time that the goods are in storage.

Bonded warehouses also free goods from trade policies, such as the presentation of import licenses, until they are cleared for free circulation or re-export.

Bonded warehouses allow the customs authorities to control the movement of dutiable goods and to safeguard customs revenue.