Do you pay duty if a product stays in a customs bonded warehouse for less than five years?

When goods are stored in a customs bonded warehouse, they are considered to be under customs supervision until they are either exported or released for consumption. During the time that these goods remain in the bonded warehouse, no duty is assessed. This means that as long as the items are kept in the bonded warehouse, and you choose to export them directly from that location, you will not incur any duty charges.

This framework is designed to facilitate international trade by allowing businesses to defer payments of duties and taxes until the goods leave the warehouse for domestic sale or consumption. Therefore, the answer correctly reflects that no duty is due as long as the product stays in the bonded warehouse and is ultimately exported from there without being cleared for sale.

The other options present scenarios that do not align with the established customs regulations regarding bonded warehouses. These regulations emphasize the duty-free status of goods stored in customs-bonded facilities, provided they are not brought into the domestic market.