Arrival of goods by ship or aircraft: temporary storage

1. What happens to the goods?

Once the goods have entered the EU, they are placed in a temporary storage facility under suspension of import duties and VAT. An authorisation from Customs is required for a temporary storage facility.

Goods may be stored in temporary storage for a maximum of 90 days. The goods must then be given a new destination. For example, the goods can be brought into free circulation, placed in a customs warehouse or re-exported.

2. Authorisation

Not every storage location can simply be a temporary storage facility and not every warehouse keeper can simply obtain a temporary storage authorisation. The storage location and the warehouse keeper must meet certain conditions. For example, a temporary storage authorisation can only be granted to persons established in the EU who ensure proper use of the procedure, keep proper records and provide security.

The temporary storage authorisation is subject to strict conditions. For example, the authorisation may not be used for retail trade. The goods may also only undergo limited handling while the goods are under the temporary storage. This handling may only take place with the permission and under the supervision of Customs. The authorisation holder is liable for all consequences, such as the incurrence of a customs debt.

A temporary storage authorisation is therefore not issued lightly. Many parties in the Dutch ports have a temporary storage authorisation. If you transport, import or export goods, you do not always need a temporary storage. Your logistics service provider or partner in the chain often has a temporary storage authorisation.

3. Temporary storage administration

A temporary storage authorisation holder requires certain data to keep proper records. The receipt, storage and removal of the goods must be fully traceable in the administration. In the seaports, ‘audit files’ are therefore used to demonstrate the progress within the administration. These audit files are submitted to Customs periodically, in principle monthly.

At Schiphol, the Paperless Goods Tracking System (PGTS) has been implemented. PGTS ensures that goods can be easily transported between first and second line warehouses. With PGTS, all companies at Schiphol are connected to a single system. This simplifies the transfer between different temporary storage facilities.

4. Temporary storage as a replacement for a customs warehouse

A temporary storage authorisation is not only reserved for companies in the ports. Companies in the hinterland can also apply for a temporary storage authorisation. Because the storage period in a temporary storage is a maximum of 90 days, a temporary storage authorisation is also attractive for companies that are not located in the port.

To store goods under customs supervision, it is also possible to apply for a customs warehouse authorisation. The major advantage is that there is then no maximum storage period. However, different and more far-reaching conditions apply to a customs warehouse than to a temporary storage authorisation. A major advantage of a temporary storage over a customs warehouse is the variety of goods that can be stored. Customs warehouses are often aimed at a specific range of goods. The authorisation then includes specific tariff headings of the goods that may be stored. The temporary storage is more generic in nature.

5. Subsequent procedure

The temporary storage is not for nothing called a ‘temporary’ storage facility. The goods are only stored temporarily and must be given a follow-up destination. In customs terms, they must be placed under a subsequent procedure. After removal from the temporary storage, the goods can, for example, be brought into free circulation or placed under transit. Storage of the goods after the maximum period of 90 days can be easily effected by removing the goods from the temporary storage and placing them in the customs warehouse. If both authorisations are held by the same person, this action can be limited to an administrative act.

The declaration for the subsequent procedure must refer to the storage in the temporary storage. This allows Customs to make a link between the temporary storage  administration and the subsequent procedure.

The temporary storage thus acts as a gateway before the goods from a ship or aircraft continue their journey inland. Would you like more information about how the temporary storage works or would you like to apply for a temporary storage authorisation? We are happy to help.

While every care has been taken in the preparation of this publication, Customs Knowledge accepts no liability for any errors or omissions, nor for their consequences. This article is not intended as specific advice. Please also refer to the General Terms and Conditions of Customs Knowledge BV.