What are CFS warehousing and what kinds of goods can be stored at a CFS warehouse?

What does CFS stand for? It is Container Freight Station. In Vietnam, people often call CFS for short a retail collection point or consolidation area. CFS warehouse could be commonly understood as warehouse and yard system used to collect and classify goods that are Less than container load (LCL). As you know, each shipment is usually transported by container via airways, seaways, roadway, etc. However, all the containers are not really always full, or many individuals who want to deliver small quantities of goods cannot fill the whole container. CFS warehouse model was born to reduce logistics costs by consolidating single goods from different sources into a full container before moving. Not only that, but this concept also helps businesses to transport cargo more efficiently. 

1. What kinds of goods can be stored at a CFS warehouse

Goods stored in a CFS warehouse are various, like other specialized warehouses. However, according to Vietnamese laws, it is not allowed to store imitation goods, counterfeit goods, banned goods, and dangerous goods.

Under Clause 3, Article 61 of the Customs Law 2014, cargo that could be stored in a CFS warehouse are: 

• Uncustoms clearance imported goods
• Exported goods have completed customs procedures or customs declaration registration. Then, they will be moved into CFS warehouses for physical inspection.

2. Time limitation in a CFS warehouse

According to regulations, the maximum time limit for storing and handling goods in a consolidation area is 90 days from when they are moved in. However, if there is a legitimate reason and approval from the Customs Sub-Department's director, the extension could be considered once with a period of fewer than 90 days. 

In case there is no recipient or no one is responsible for handling beyond time limitation, the customs office will announce a public notice. Within 60 days from the announcement, the owner of the goods can still carry out customs procedures within sanction according to regulations. Otherwise, the goods will be liquidated according to Clause 6, Article 58 of the Customs Law.

3. Activities inside the CFS warehouse

Activities inside a CFS warehouse are performed such as: 

• Packing, sorting, or repacking and rearranging goods awaiting export.
• Unconsolidating or consolidating transit goods. These goods will be unconsolidated or combined with Vietnamese goods for export.
• Classifying imported goods to wait for import procedures into the Vietnamese market.
• Container consolidating to export to a third country with others.
• Changing the ownership of goods in stock.

4. CFS warehousing process

There are 4 basic steps of CFS warehousing concept, which includes: 

• Consolidators receive shipments from many different sources
• Consolidator sorting, gathering odd goods, conducting customs inspection, and packing into containers at CFS warehouse
• Consolidator transport containers to a destination by a suitable vehicle (plane, trucks, etc.)
• At the destination, the consolidator's agent will receive these containers, unload and deliver them to the consignees

To know more about CFS warehousing in Vietnam, you can contact us at hotline 19003133 or email contact@als.com.vn and share your inquiries with us.

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