How Improper Customs Planning Caused a 20 - Day Delay and €8,000 in Extra Costs
Initial Task
Our client from Tolyatti ordered the transportation of cargo from Turkey to Oryol. During the planning process, an agreement was reached that customs clearance would be carried out electronically along the route without the need to enter a temporary storage warehouse (TSW). This meant the goods could be unloaded immediately upon arrival, saving both time and money.
How Events Unfolded
After the vessel arrived at the port of Tuapse, the recipient’s broker informed them that electronic clearance was not possible – it was necessary to go through customs and unload at a TSW. An option via Novorossiysk was suggested, but it would have increased transportation costs by about $1,000. The recipient decided to go through customs in Oryol, where their company is located, counting on local connections with customs authorities for a quick cargo release.
What Went Wrong
Upon arrival in Oryol, it turned out that the recipient had no reliable customs contacts:
- After submitting the customs declaration, the cargo was placed under inspection;
- The declaration was rejected;
- A week later, it was decided to transfer the cargo to another TSW;
- The cargo was finally released only 20 days after arrival.
Consequences for the Client and Carrier
- The vehicle downtime lasted 20 days, resulting in additional costs of about €8,000;
- The carrier lost the opportunity to take return loads, and the driver had to stay in the truck all that time;
We did not handle customs clearance – this task was fully managed by the recipient. Our offers to work with trusted brokers were declined.
Key Lessons and Recommendations
- Customs clearance must be planned carefully in advance, with a full understanding of procedures and requirements, especially if clearance is planned “on your own territory”;
- When apparent savings on the route are tempting, it’s always important to consider the risks of delays and additional costs;
Our core expertise lies in working with reliable customs brokers and specialists, which helps minimize clearance times and avoid unforeseen expenses.
