A Bonded CFS Warehouse is a bonded facility that is used as transitory storage for imported and exported goods. Bonded means that the CFS has the authority from the Customs & Border Protection Agency to receive shipments that are under a customs bond.
The shipment may be stored at the CFS warehouse before customs clearance and since they are transported while under customs bond fees and duties may be deferred. Depending on the type of bonded CFS warehouse, the customs fees may be deferred by up to five years as long as the shipment is still in the CFS warehouse.
They are different from the Free Trade Zone (FTZ) warehouses where goods in transit may be stored for longer periods of time. CFS warehouses are critical in both ocean and air freight.