How to reduce storage costs at a temporary storage warehouse?

The storage clock starts when the cargo reaches the terminal, and after the free time it turns into cost — the importer notices it when the invoice arrives. The longer clearance drags on, the more these charges add up. Much of this cost can be cut before collection from the warehouse and delivery begins.

When does temporary storage begin?

Storage time does not depend on when you begin clearance: it runs from the moment the goods are placed in a temporary storage area at the terminal. The period and the counting rules are set by legislation.

a temporary storage declaration is submitted for the goods — by the declarant or a customs representative
the customs authority sets the storage period within the limit set by legislation and may extend it on application
before it expires the goods must go under another procedure or be re-exported

Three bills: warehouse charge, demurrage, detention

The cost of a delay has more than one source:

warehouse storage charge — at the terminal operator's tariff
demurrage — a shipping line charge for the container staying beyond the free time
detention — the same line's charge for returning the empty container late

No duty, VAT or excise applies during temporary storage — they arise when the goods go under another procedure. The storage charge follows the tariff of the terminal operator, or of a customs authority warehouse.

Why does cargo sit in the warehouse?

The reasons tend to repeat:

missing paperwork: invoice, transport document, power of attorney
waiting for a certificate or a permit
a dispute over classification or customs value
the red channel and a full customs examination

What can be done to reduce the cost?

Most of the work should be done while the cargo is in transit.

close the import document package in transit
submit the advance (entry summary) import declaration before the border
obtain advance rulings on classification and country of origin
start certification before the cargo reaches the port
hand over the power of attorney and the data for the customs declaration in time
set the Incoterms rule in the sales contract, the free time in the carriage contract

Collection from the warehouse and delivery

settling the customs fees and storage charge, taking the cargo from the terminal
returning the empty container on time — the detention charge stops accruing then
inland haulage and delivery to the address

Send us copies of the transport document, the invoice and the packing list — we will check them, establish the permits required and set the delivery schedule.