International brands with complex supply chains are likely always on the lookout for ways to streamline operations and reduce costs. One often-overlooked solution that can provide a distinct competitive advantage is the strategic utilisation of ETSF (External Temporary Storage Facilities). By leveraging an ETSF for temporary storage, you can defer or even eliminate the import duties and taxes on the goods you transport and store – a significant financial benefit that can give you an edge over your competitors.
ETSF offer a distinct advantage by allowing the temporary storage of goods without paying customs duties and taxes until the moment the goods are released into free circulation (customs cleared) or re-exported outside the EU customs territory. This deferment of duties and taxes presents an immediate financial benefit. By delaying these payments until the goods are removed from the ETSF, you effectively optimise your cash flow.
The postponement of customs duty payments enables you to allocate your financial resources more efficiently. Instead of upfront payments, these funds can be redirected toward activities that support critical operational needs as well as sales and marketing plans that can generate business growth.
Deferred import duty and duty savings The cost-savings potential of an ETSF lies in the following two benefits that authorised license holders have access to: duty deferment and duty savings.
It’s important to note that ETSF are designed for temporary storage only. They are not suitable for long-term storage of goods. Businesses should plan their customs and logistics strategies accordingly, utilizing ETSF for the temporary deferment of duties and taxes while relying on other facilities for longer-term storage needs.
Investing increased cash flow in growth
Deferred duty payments and savings translate to improved cash flow, which can be leveraged in strategic financial planning aimed at growth. It enables you to allocate more funds to revenue generating activities and investment opportunities. Investing in process automation and digitalisation of ETSF processes can further maximise the cost-savings potential of an ETSF. Customs warehouse software is a common and customs-recommended solution that helps businesses comply with customs formalities and manage inventory in an ETSF. These automation benefits will in turn result in both operational and cost efficiencies.
Partnering with an ETSF Provider
With state-of-the-art facilities, Ziegler’s ETSF offerings provide businesses the opportunity to leverage the significant duty deferment and savings benefits of an ETSF, while also benefiting from excellent connectivity, advanced infrastructure, and proximity to major consumer markets. Take the first step towards unlocking the strategic advantages of an ETSF.
Contact Ziegler today to learn more about how our ETSF can help you defer import duties, save on customs costs, and accelerate your growth in the global marketplace, positioning your business for long-term success in the global trade arena. Email us at sales.enquiries@zieglergroup.com
