0:00
A sharp rise in tariffs sent U.S. importers racing to find storage, especially near the port of Los Angeles
0:08
Many importers turn to bonded warehouses to avoid paying tariffs up front
0:14
These are secure facilities approved by U.S. Customs where companies can store foreign goods for five years without immediately paying duties
0:22
Under federal law, those tariffs aren't charged until the goods enter U.S. commerce, not when they arrive
0:29
This timing gives businesses some breathing room. If tariff rates drop while the goods are in storage, they pay the lower rate
0:36
And if those products are re-exported to another country, they skip U.S. tariffs entirely
0:41
Demand for bonded space took off earlier this year after the U.S. imposed a 145 percent tariff on Chinese imports
0:49
That first wave filled up many of the bonded facilities in Southern California
0:53
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
1:02
Hapik-Lloyd reports bookings from China to the U.S. jumped more than 50 percent
1:07
while container tracking firm Vision saw a 277 percent spike in early May
1:12
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
1:22
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
1:33
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
1:43
Either pay high tariffs up front or hold back shipments and risk empty shelves
1:47
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