This article provides a comprehensive explanation of CFS, including the Container Freight Station, Certificate of Free Sale (CFS), associated costs, and the operational procedures of CFS warehouses in the global supply chain
“What is CFS?” – This is a common question in the logistics and import-export industry, especially for newcomers working with LCL (Less than Container Load) shipments. This article provides a comprehensive explanation of CFS, including the Container Freight Station, Certificate of Free Sale (CFS), associated costs, and the operational procedures of CFS warehouses in the global supply chain.
1. Common Definitions of CFS
CFS may refer to different concepts depending on context, including location (warehouses), documents (certificates), or fees. All are commonly used in international trade operations. Below are the most popular definitions you should know.
1.1 What is a CFS Warehouse?
CFS stands for Container Freight Station. In Vietnam, it is often referred to as the LCL cargo handling point. A CFS warehouse is a designated facility used for consolidating and deconsolidating LCL shipments. In other words, it gathers smaller shipments from various shippers and groups them into a single container for export or separates them upon import.
CFS warehouses are typically located near seaports, ICDs (Inland Container Depots), industrial zones, or logistics hubs.
Because each LCL shipment is usually too small to fill a full container, it must be routed through a CFS for consolidation. This process helps businesses save costs and increase transport efficiency.
According to Article 61 of Vietnam’s Customs Law, cargo stored in a CFS beyond the allowed period (typically 90 days) must be cleared or moved. CFS operations are strictly supervised by customs authorities.
CFS stands for Container Freight Station
See more: What are CO CQ? Understanding the difference between CO and CQ
1.2 What is the CFS Fee?
CFS fees are charged for handling cargo at the warehouse before being loaded into a container or after being unloaded. These fees typically cover services such as cargo handling, storage, customs clearance, and are charged by the service operator at the warehouse.
Fees usually range from USD 15–18, but this may vary depending on the carrier and the service provider.
The CFS fee process is as follows:
Port staff collects the CFS fee directly from the forwarder.
The forwarder then bills the shipper/exporter based on the type and volume of cargo.
As CFS warehouses are managed by the port, the port authority is the initial fee collector.
1.3 What is a Certificate of Free Sale (CFS)?
CFS also stands for Certificate of Free Sale, a document issued by competent government authorities, certifying that a product is legally sold or distributed in the domestic market and is eligible for export.
This certificate does not validate product quality, but confirms that the item is not prohibited and is legally circulating in the country of origin.
Who needs a CFS certificate?
Exporters may require a CFS when shipping goods to countries that demand this certificate, including:
Africa
South America
Middle East
Certain Asian and Eastern European nations
Products commonly requiring CFS:
Cosmetics
Functional foods
Medical devices
Consumer goods
Industrial supplies
CFS Issuing Authorities in Vietnam:
Ministry of Industry and Trade – For industrial and consumer goods
Ministry of Health – For cosmetics, pharmaceuticals, dietary supplements
Ministry of Agriculture and Rural Development – For agricultural and aquatic products
Ministry of Science and Technology – For technical equipment
Exporters may require a CFS when shipping goods to countries that demand this certificate
CFS plays a vital role in global logistics, especially for businesses dealing with LCL shipments. We hope this guide helps you understand the full concept of CFS, how it functions, and how to optimize your operations.
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