Does your U.S. business import goods that will ultimately be exported to customers outside the United States? If yes, your business might be using a class 6 warehouse, also known as a “manufacturing warehouse” or “bonded manufacturing warehouse.” A class 6 manufacturing warehouse is a special type of bonded facility authorized by customs authorities that allows for the in-bond manufacturing or processing of goods using imported materials or materials subject to internal revenue taxes. These manufactured goods can then be exported or, in some cases, sold domestically under specific regulations.
The import/export benefits of using a class 6 manufacturing warehouse include:
- Reduced duty payments: Importers can defer or even avoid paying import duties on materials used in manufacturing until the finished product is exported. This can significantly improve cash flow and reduce upfront costs.
- Increased flexibility: Importers can adapt their products to different markets or customer specifications by modifying them within the warehouse.
- Improved logistics: By combining import and manufacturing in one location, importers can streamline their supply chain and simplify logistics.
- Enhanced competitiveness: By manufacturing goods closer to the target market, exporters can reduce transportation costs and offer more competitive prices.
- Increased control over quality: Exporters can ensure product quality by directly overseeing the manufacturing process within the warehouse.
- Access to new markets: Manufacturing in a bonded warehouse can help exporters comply with specific import regulations in certain countries, opening up new market opportunities.
It’s important to note that:
- Class 6 manufacturing warehouses have specific regulations and requirements established by customs authorities. Obtaining and maintaining a license can be complex (if needed, Logistics Plus can help).
- Not all types of goods are eligible for manufacturing in a class 6 warehouse (Logistics Plus can help you determine whether your goods are eligible).
- Recordkeeping and security protocols are stringent within these facilities (Again, Logistics Plus can help with some or all of this).
Overall, class 6 warehouses can offer significant benefits to importers and exporters seeking to optimize their supply chains, reduce costs, and access new markets. They also work well in tandem with class 3 warehouses.
Logistics Plus currently has a class 3 bonded warehouse in Strongsville, OH (Cleveland), with additional class 3 manufacturing warehouses available soon in Chicago, IL; Dallas, TX; Memphis, TN; and Phoenix, AZ. Logistics Plus can help import goods and store them at one of our class 3 bonded warehouses until they are ready to go to your class 6 warehouse for final manufacturing and export. If you currently don’t have a class 6 warehouse, Logistics Plus can help find or staff one for you.
Check out this U.S. CBP online guide to the various classes of bonded warehouses.
Contact Us to learn more about Logistics Plus warehouse solutions.
