Inclusion of Export Port Storage Fees in Customs Valuation Under EXW Terms Due to Vessel Delays Released

Overview of Customs Valuation and Price Actually Paid

Under the Customs Act, the customs value of imported goods is generally based on the Price Actually Paid or Payable (PAPP) by the buyer to the seller. When specific costs are excluded from this price, they must be added as "addition elements" to determine the final dutiable value.

In this case, under EXW (Ex Works) terms, the seller (S) fulfills their delivery obligation by making the goods available at their factory. Since the storage fees were paid by the buyer (B) to a warehouse operator after taking delivery, these expenses are not considered direct or indirect payments to the seller. From this perspective, the storage fees are not part of the PAPP.

Storage Fees as a Transport-Related Addition Element

However, customs valuation also considers costs incurred during the international transport process. Article 30, Paragraph 1, Item 6 of the Customs Act requires that freight, insurance, and other transport-related costs incurred until the goods arrive at the port of entry be added to the PAPP.

The term "transport-related costs" encompasses expenses for temporary storage incidental to transport. Regarding your situation:

• The storage fees incurred at the export port due to vessel delays are viewed as unavoidable costs incidental to international transport.
• Because these fees arise during the process of moving goods from the export country to the port of destination, they are deemed an extension of transport costs.
• Consequently, these fees are classified as addition elements that must be included in the customs value.

Application of EXW Terms in Customs Valuation

While EXW terms dictate that risk and ownership transfer at the seller's premises, customs valuation principles require all international transport-related costs incurred until the goods reach the port of entry to be included in the dutiable base. Therefore, even if the buyer is responsible for the goods at the export port, storage fees resulting from shipping delays are considered essential to the transport process and are subject to customs duty.

Conclusion and Professional Recommendation

In summary, storage fees paid to a third-party warehouse operator are distinct from the payment made to the seller, but they constitute transport-related expenses. To ensure compliance, it is critical to prove that these costs were:

• Temporary in nature and directly caused by transport issues (vessel delays).
• Not attributed to long-term storage or production-related delays.

We recommend preparing supporting documentation, such as correspondence regarding the vessel delay and storage invoices, to clearly demonstrate the necessity of these costs during the international transport phase when communicating with customs authorities.