‘Customs warehousing’ means that non-Union goods may be stored in any premises authorized by the customs authorities (‘customs warehouses’). The storage may be for unlimited periods, unless the nature of the goods means that they could pose a threat to health or to the environment if stored for a long term.
The great thing about Customs bonded warehousing is that it saves money. When goods are imported and stored at a Customs bonded warehouse, the duties are deferred until the goods leave the warehouse.
Goods can be stored at the warehouse until there is an increase in demand for the goods, at which point the importer will pay duties on the goods as they are delivered to their destination within the country of holding. The goods do not need to be imported all at once.
When the consolidated goods are exported out of the country of holding, the importer isn’t charged duty fees because the goods stayed under the surveillance of Customs—this prevents double taxation.