THE European Parliaments has turned down a proposal from the European Commission (EC) to massively cut the time allocation for the temporary storage of goods in EU ports from 90 days to three days, in a widely expected move that followed stiff opposition from across the container shipping supply chain.

The European Parliament's Internal Market Committee adopted its reform of the Union Customs Code (UCC), core economic legislation that determines the efficiency, resilience and competitiveness of the EU's external border for trade without reducing the port storage time.

Trade associations from across the European container supply chain welcomed the decision in a joint statement, reports New York's Journal of Commerce.

"The EC proposal to slash the maximum duration of temporary storage from 90 days to three days is impractical for shipping, imposing significant administrative burdens and reducing the efficiency of EU ports to handle, import, export and transship cargo," the groups wrote.

The trade groups signing onto the statement included the European Community Association of Ship Brokers and Agents (ECSABA), the European Community Shipowners Associations (ECSA), the European Shippers Council (ESC), the European Sea Ports Organization (ESPO), the Federation of European Private Port Companies and Terminals (FEPORT), and the World Shipping Council (WSC).

All goods imported into the EU are held in temporary customs-controlled storage from when they arrive until they clear customs or are re-exported, a process that must be completed within 90 days.

However, in a May 2023 customs reform proposal, the EC wanted the temporary storage to be cut to three days. The proposed reform was in response to the growing pressures under which EU Customs operates, including a huge increase in trade volume, especially in e-commerce. The growing number of EU standards that need to be checked at the border, as well as shifting geopolitical realities, were also reasons behind the attempted change.