Warehousing Act

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The Warehousing Act of 1846 was a commercial law that allowed merchants to warehouse their imports into the United States and thus delay tariff payments on those goods until a buyer was found. It established the bonded warehousing system at American ports and spurred the influx of commerce, particularly in New York City.

The bonded warehousing system was advocated by Adam Smith and permits merchants to increase their shipping capabilities as they no longer had to carry large sums of cash on hand to make the revenue payments. Prior to the system, merchants often had to sell their cargo on short notice and at reduced prices to obtain the necessary funds for assessed duties.

The American Warehousing Act had as a direct model a similar system proposed in England by Sir Robert Walpole a century earlier and implemented in both London and Havana with much success in the early 19th century. Walpole's recommendation was rejected at the time but adopted into British law in 1803.

Adoption and implementation in the United States

United States Treasury Secretary