As steep tariffs on imports throw Los Angeles-area ports into turmoil and chill industrial property leasing, one rare type of building is suddenly in hot demand – bonded warehouses where goods can be stored without paying tariffs until they are removed.
Key personnel at bonded warehouses have to undergo background checks and the operator must put up a bond to protect potential government duty revenue. The customs bond typically starts at about $100,000.
Tariffs are otherwise assessed as soon as imported products touch American soil and the current 145% tariff rate on Chinese goods and the 10% across-the-board tariffs that apply to nearly all nations are expected to dramatically reduce imports at the ports of Los Angeles and Long Beach over the next few weeks…