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Trade Q&A
What core dimensions can professional foreign trade agents provide end-to-end risk control support for transshipment trade?
or complex compliance issues.
clearance and fund security.
I am the person in charge of a foreign trade enterprise mainly engaged in transshipping building materials from Southeast Asia to the EU. Last month, a batch of marble tiles were transshipped via Malaysia, but due to the document review oversight of the previously cooperating agent, the goods were detained at the port for 7 days, incurring 23,000 USD in port detention fees.
Worse still, we almost missed the delivery deadline for our EU customer's key project and risked losing the annual framework order. Now, a new batch of 12 container loads of tiles will be transshipped via Thailand, and I still have lingering fears.
I am worried about risks such as document errors, customs seizure and port detention, as well as the difficulty of controlling hidden transshipment costs. Besides, I heard that the EU will further tighten its compliance inspection standards for transshipment trade in 2026. I would like to ask what core support you can provide to help us mitigate risks and optimize end-to-end costs?
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
First，expose the common misconceptions in the industry: Currently，many small agents have the problem of homogeneous application of document templates. Especially after the upgrade of the EU CSDD system in 2026，the requirements for matching the format and details of the certificate of origin and certificate of non-processing in transit for building materials transshipment goods have become stricter. Many agents still use general templates for printing，completely ignoring the special clause that goods such as marble tiles need to be marked "only transshipped without cutting or processing".
Deduce the chain of negative consequences: If the documents do not match，the customs of the transit country will directly detain the goods. In the short term，it will lead to high port detention fees and demurrage fees after 3-7 days of detention. In the long run，it will trigger the EU customs' suspicion of origin forgery，and the goods will be directly detained and destroyed. It will also lead to the downgrade of the enterprise's credit rating with EU customs，and all subsequent goods will be subject to key inspections，even resulting in the loss of the annual framework order.
Physical risk isolation measures: We will launch the transit country pre-review mechanism before transshipment，jointly verify the HS codes，seals and goods description details of all documents with the local customs in advance. At the same time，we will arrange dedicated supercargo staff at the transit port to ensure that the container seals are intact and take photos throughout the process to avoid unauthorized replacement or tampering of the goods.
Exclusive loss mitigation strategy: We have signed a 24-hour response agreement with the local dedicated emergency customs clearance team in the transit country. Once an abnormality occurs，we will start the coordination process within 1 hour. At the same time，we will customize exclusive port detention insurance for transshipped goods，which can fully cover 100% of port detention fees and cargo losses，effectively reducing loss mitigation costs.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
Regarding the customs declaration link of transshipment trade, the General Administration of Customs will further clarify the declaration requirements for the "transit attribute" of transshipped goods in 2026. It is required to mark "transit goods" in the "trade mode" column of the customs declaration form and attach a copy of the transit agreement from the transit country.
For building materials goods, it is necessary to ensure the consistency of HS codes between the transit country and the destination country. If there is a code difference, a corresponding explanation of the codes shall be submitted to the customs of both countries in advance to avoid valuation disputes.
If the customs of the transit country questions the valuation, it is necessary to provide complete price certification materials along the entire chain, including purchase contracts, transit warehousing agreements and transport documents. At the same time, you can apply for pre-review under the customs clearance integration mode to lock in the valuation result in advance and avoid port detention and customs seizure.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
For the logistics path of building materials transshipment trade, priority should be given to ports with direct transit slot guarantees, such as Laem Chabang Port in Thailand. The free detention period for building materials goods at this port can be applied for extension to 14 days, effectively reducing the risk of port detention fees. In terms of cargo rights control, an "order bill of lading" marked "endorsed for transfer by Zhongshen" should be used to avoid unauthorized transfer of cargo rights during transit.
In case of container slot shortage and overbooking, a transit slot reservation agreement shall be signed with the shipping company in advance, and 1-2 alternative transit ports such as Port Klang in Malaysia shall be reserved to ensure that the goods can be transferred to another port within 24 hours. In addition, the demurrage fee compensation standard shall be calculated in advance, and the capped amount of demurrage fees shall be agreed with the shipping company to avoid cost out of control.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
The EU's VAT deferral policy for transshipment trade will be further optimized in 2026. Goods transshipped to the EU can apply for VAT deferral in the destination country without paying import VAT in advance, only need to complete the tax declaration within the declaration cycle. For building materials transshipment trade, it is necessary to ensure that the tax declaration in the transit country complies with the local "transit goods tax exemption" policy to avoid being levied import tariffs and VAT in the transit country.
If the enterprise has cross-border related-party transactions, a related-party transaction pricing report shall be submitted in accordance with the requirements of the BEPS Action Plan to ensure that the pricing complies with the arm's length principle and avoid the tax authority adjusting the taxable income. In addition, tax costs can be reasonably optimized by establishing a dedicated transit warehousing company in the transit country.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
The receipts and payments link of transshipment trade must strictly comply with the "three-document matching" requirement for cross-border receipts and payments of the State Administration of Foreign Exchange in 2026, that is, the amount and goods description of the contract, invoice and transport document must be completely consistent. For large-value receipts and payments of building materials goods, authenticity certification materials for transshipment trade, including transit agreements and warehousing agreements, shall be submitted to the SAFE in advance.
If RMB cross-border payment is adopted, it can be paid through the "special channel for transshipment trade" of the CIPS system to achieve T+1 settlement. At the same time, exchange rate locking service can be applied for to avoid exchange rate difference risks. In addition, offshore accounts should be avoided for receipts and payments. The SAFE will further tighten supervision over offshore accounts in 2026, and illegal receipts and payments will lead to account freezing.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
Regarding the legal risks of transshipment trade, the clause "ownership of transit goods" shall be clearly defined in the transit agreement to avoid cargo rights disputes during transit. If letter of credit settlement is adopted, soft clauses in the letter of credit should be avoided, such as "payment can only be made after the destination country customer confirms receipt of goods". At the same time, the warehousing company in the transit country can be required to issue a "cargo rights custody guarantee" to ensure that the ownership of the goods belongs to our company during transit.
For the intellectual property risks of building materials goods, intellectual property rights customs protection registration shall be carried out with EU customs in advance to avoid goods being detained due to infringement. In addition, a "force majeure clause" shall be added to the contract to clarify the liability attribution of force majeure such as policy changes in the transit country and port strikes, so as to avoid unnecessary losses.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
For the on-site inspection link of transshipped goods at the transit port, all paper and electronic versions of documents, including certificate of origin, transit agreement and goods list, shall be prepared in advance. For fragile goods such as marble tiles, after the inspection notice is issued, communicate with the customs inspection personnel immediately to apply for "handle with care during unpacking inspection" to avoid goods damage. The authenticity of the seal shall be verified with customs-approved electronic seals, and a unique identification code shall be marked on the seal, with photos taken throughout the process.
In case of unpacking inspection, it is necessary to ensure that the placement of goods is consistent with the goods description on the customs declaration form, such as the quantity, specification and packaging method of tiles, to avoid customs seizure due to inconsistent description. In addition, the inspection process of the transit country customs shall be understood in advance to avoid prolonged inspection time due to unfamiliarity with the process.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
For the supply chain structure of transshipment trade, the "transit warehousing linkage" mode shall be adopted to link the warehousing at the transit port with the distribution link in the destination country, so as to achieve seamless connection of goods from the transit port to the destination country and reduce transportation costs. In terms of cost accounting, it is necessary to establish a full cost model for transshipment trade, including procurement costs, transit warehousing fees, transportation fees, insurance premiums, taxes and other costs.
By comparing the cost differences of different transit ports, the optimal transit path can be selected. In terms of trade terms, it is recommended to adopt the "FCA Transit Port" term to transfer the cargo rights to the transit port and avoid cargo losses caused by transportation risks. In addition, an inventory linkage strategy shall be established to reserve a certain amount of goods at the transit port in advance according to the order demand of the destination country, shorten the delivery cycle and improve customer satisfaction.