What is an advantage of using a bonded warehouse?

Using a bonded warehouse offers the significant advantage of deferred duties while keeping goods stored. When goods are placed in a bonded warehouse, they are not immediately subject to customs duties and taxes. This means that businesses can store imported goods without paying those expenses until they are officially released from the warehouse for sale or distribution.

This arrangement allows companies to better manage their cash flow and defer costs, which can be particularly advantageous for businesses that do not need immediate access to their imported goods or are waiting for favorable market conditions. By utilizing a bonded warehouse, companies can maintain inventory without the immediate financial burden of customs duties, which can also give them greater flexibility in their operations and potentially lead to increased profitability.

The other options do not reflect the features of a bonded warehouse accurately, while the deferred duties aspect highlights a key operational strategy for businesses engaged in international trade.