Importers rush to LA bonded warehouses amid tariff pause with China

A sharp rise in tariffs sent U.S. importers racing to find storage, especially near the port of Los Angeles

Many importers turn to bonded warehouses to avoid paying tariffs up front

These are secure facilities approved by U.S. Customs where companies can store foreign goods for five years without immediately paying duties

Under federal law, those tariffs aren't charged until the goods enter U.S. commerce, not when they arrive

This timing gives businesses some breathing room. If tariff rates drop while the goods are in storage, they pay the lower rate

And if those products are re-exported to another country, they skip U.S. tariffs entirely

Demand for bonded space took off earlier this year after the U.S. imposed a 145 percent tariff on Chinese imports

That first wave filled up many of the bonded facilities in Southern California

Now a new wave is coming, this time in shipping. After a 90-day rollback went into effect and porters raced to get more inventory

Hapik-Lloyd reports bookings from China to the U.S. jumped more than 50 percent

while container tracking firm Vision saw a 277 percent spike in early May

But there's a limit to how much bonded space is available. Out of roughly 2 billion square feet of industrial space in the region, only a small slice is bonded

Getting a new facility certified takes time, usually three to four months, and involves fire safety upgrades, security reviews, and a six-figure customs bond

Port officials expect cargo arrivals to drop again after this rush, but right now, bonded warehouses are nearly full, and that's forcing importers into a tough spot

Either pay high tariffs up front or hold back shipments and risk empty shelves

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