Hong Kong environmental protection recycling and destruction, the storage fees for goods remaining in the port keep accumulating! How to quickly and compliantly dispose of and reduce the losses of the overstocked goods in the bonded area?

Demurrage Fees Keep Accumulating! How to Quickly and Compliantly Dispose of Bonded Unsold Inventory to Stop Losses?

Foreign trade, cross-border e-commerce, and processing trade companies often encounter a thorny problem: large quantities of unsold, near-expiry, or defective bonded goods are left stranded at ports/bonded warehouses for extended periods. Daily storage fees, demurrage fees, and late declaration fees accumulate, and the longer the delay, the greater the losses. If no declaration is made within three months, the goods will be legally sold by customs, resulting in a complete loss of the goods' value and initial investment.

Many companies struggle with the inability to sell their goods domestically and the high costs of returning them overseas, unable to find a quick and effective disposal channel. This article, based on current customs regulations, objectively outlines four compliant disposal paths, clearly comparing their timeliness, cost, and applicable scenarios to help companies quickly select suitable solutions and promptly cut off the continuously increasing demurrage costs.

I. First, clarify: Why do demurrage fees increase losses the longer they are delayed?

1. Fees accumulate daily with no cap.

Once goods exceed the free storage period at the port or bonded warehouse, storage fees, container demurrage fees, and customs late declaration fees are charged daily. The larger the inventory, the higher the daily expenditure. After several months of stockpiling, the storage cost can easily exceed the residual value of the goods.

2. Risk of mandatory customs disposal after exceeding the time limit.

According to the Customs Law, if imported goods are not declared and disposed of within three months of arrival at the port, customs has the right to sell the goods. After deducting transportation, storage, and taxes, the remaining amount will be turned over to the national treasury. Enterprises cannot recover the value of the goods, and this will also affect the enterprise's customs credit rating.

3. Long-term outstanding inventory in ledgers affects subsequent business.

Unwritten off slow-moving inventory in processing trade manuals and cross-border e-commerce bonded ledgers will restrict new order filings and import/export declarations, causing business stagnation.

II. Four Rapid Disposal Options (Unbiased and Objective)

Option 1: On-site Destruction by a Qualified Domestic Agency (Fastest Loss Prevention, Shortest Cycle)

Applicable Scenarios

Near-expiry cosmetics, damaged packaging, brand-prohibited for domestic sale, and bonded inventory with no resale value; for those seeking to quickly clear goods and stop incurring demurrage fees.

Processing Time

With complete documentation, the entire destruction process will be completed within 60 days of customs approval. In urgent cases, a short extension can be applied for according to regulations. No cross-border logistics is required throughout the process, making it the simplest procedure.

Policy Basis and Key Points

According to General Administration of Customs Announcement No. 79 of 2025, bonded unsold goods that meet the conditions for non-domestic sale can submit a destruction application to the competent customs authority, fill out a special declaration form, and entrust an agency with the corresponding category of disposal qualifications for harmless treatment.

Required Basic Documents: Company authorization statement, inventory details, explanation of the unsaleable goods, destruction agency qualification documents, and disposal entrustment contract.

Within 15 working days of completion of the operation, submit on-site images and destruction certificates to customs to complete the accounting verification and terminate all warehousing charges.

Advantages and Limitations

Advantages: Eliminates cross-border customs declaration and sea freight, resulting in the shortest overall processing time and immediate cessation of demurrage fees; lower overall disposal costs.

Limitations: The entire process is handled domestically. This method is not suitable for some foreign brands due to intellectual property control or overseas group audit requirements.

Option 2: Return to Hong Kong for Environmentally Friendly Destruction (Suitable for Brand Compliance and Complete Traceability Documents)

Applicable Scenarios

Defective products from processing trade, brand-recalled goods, and slow-moving imported goods from cross-border e-commerce; where the group requires that defective goods not enter the mainland market and a complete set of overseas destruction documents is needed for ESG audits and financial loss accounting.

Processing Time

Includes the entire process of customs declaration and export, cross-border transportation, on-site destruction in Hong Kong, and document return verification. The overall cycle is moderate, and shipments can be distributed in batches to gradually stop demurrage fees.

Key Points for Processing:

1. For processing trade goods, declare the materials for re-export according to the corresponding regulatory code; for cross-border e-commerce bonded goods, declare them as returned goods.

2. Confirm in advance that the Hong Kong disposal agency possesses a valid disposal license from the Environmental Protection Department. Electronic, chemical, and cosmetic products require matching specific qualifications.

3. Sign a disposal agreement, clearly stating that the goods are only to be destroyed and prohibited from returning to the mainland; record the entire destruction process, and issue a stamped destruction report and video archive as verification documents for mainland customs.

Advantages and Limitations:

Advantages: Completely isolates defective goods from domestic circulation; a complete set of compliant overseas documents meets the audit requirements of overseas headquarters; suitable for various processing trade and cross-border bonded inventory.

Limitations: Incurs customs declaration, cross-border shipping, and Hong Kong local disposal costs; more steps than domestic destruction.

Option 3: Resell goods overseas/to a third country (can recover some value)

Applicable Scenarios:

Goods are intact, not expired, and in complete packaging, but cannot be sold domestically due to market stagnation or channel adjustments; overseas procurement channels exist.

Processing Time

Depends on the progress of negotiations, booking, and customs clearance with overseas buyers. If a consignee is found quickly, the goods can be picked up from the port and billing can stop. If there is no stable customer base, the processing time is unpredictable.

Advantages and Limitations

Advantages: Can recover part of the value of the goods, minimizing losses; normal export customs clearance, does not affect accounting and reconciliation.

Limitations: Relies on overseas buyer resources; near-expiry, damaged, or defective goods are basically impossible to resell, not suitable for quick loss mitigation needs.

Option 4: Domestic Sales Taxation After Bonded Warehouse Rectification (Goods have domestic sales qualifications)

Applicable Scenarios

Inventory quality is intact; only packaging and labeling do not meet domestic standards. After rectification, it can be legally put on the shelves for sale.

Processing Time

After completing label rectification and paying import taxes, the goods can be released normally, clearing out port-held inventory in a short time.

Advantages and Limitations

Advantages: Goods can be sold normally, fully retaining the value of the goods.

Limitations: Customs duties and value-added tax must be paid; rectification incurs labor and material costs; near-expiry, damaged, or brand-restricted goods cannot be used.

Hong Kong Phone: 852-52664790. Liang Kee Recycling Limited is certified to international standards such as Quality Management (ISO 9001), Environmental Management (ISO 14001), and Information Security Management (ISO 27001), ensuring safety, legitimacy, and professionalism. We offer a one-stop service for returning goods to Hong Kong for recycling and disposal. We look forward to your call and together we can usher in a new chapter of environmental protection and value!