How the Temporary Storage Warehouse works

Temporary storage warehouses, also known by the simplified acronym TSW, are enclosures that offer interesting advantages for companies dedicated to the import of goods. If you are curious about them, then read on. In this article, we explain their function in detail.

Temporary Storage Warehouse, what is it?

Temporary Storage Warehouse (TSW) is a space permitted to store products imported directly from abroad before they are dispatched and before they receive a customs destination.

Legally, a TSW is a customs establishment under customs control and surveillance that is managed by logistics operators authorised by the Administration.

How an ADT works?

Although it is a space, usually a bonded warehouse, goods cannot remain stored for an unlimited period of time. According to Article 149 Regulation (EU) No 952/2013, which establishes the Union Customs Code, the time limit that an TSW may hold goods transported by both by sea and by all other means cannot exceed 90 days.

The regulation is strict in this regard, so the goods must be placed under a customs procedure before the expiry of this period. Otherwise, there is a risk that the goods will be considered abandoned.

With this in mind, as long as the regulations in force are complied with, it is possible to store any type of goods in an TSW, both on part of the premises and on part of the goods. This includes dangerous good such as hazardous materials, explosives, flammable products, corrosives, etc. In these special cases, the premises must be prepared, conditioned and authorised for storage of such products, and the goods themselves must receive the relevant authorisations from the regulators.

Advantages and disadvantages of using a Temporary Storage Warehouse

The main benefit of an TSW for importing companies is that it allows them to suspend the payment of customs duties for a few weeks. With the right strategy, this added flexibility in their operation makes it possible to reduce the costs derived from import and export transactions. In addition, while in the temporary bonded warehouse, the goods are not subject to trade policy measures or payment of internal taxes such as excise duties or VAT.

As a result, the use of an TSW allows importers to manage purchases more efficiently, reduce time-to-market and streamline the supply chain through to final delivery. In short, it offers greater security in the goods movement processes.

What about the disadvantages? The truth is that as long as we respect the deadlines of Article 149 Regulation (EU) 952/2013, using an TSW presents few to no disadvantages. It is an ideal place to store imported goods for a short period of time and thus take advantage of all the tariff suspension benefits they offer.