Will Terminal Handling Charges and Related Additional Surcharges Occur in Each Operation Link of the Whole Process of Transit Trade?

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  • Sep 20, 2026 at 05:08
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I am a foreign trade enterprise of outdoor leisure furniture based in Shanghai. Last week, I just shipped a container of goods worth 120,000 US dollars to Port Klang, Malaysia for transit, and delivered to Los Angeles, USA via transit trade channel. The lump-sum quotation provided by my previous freight forwarder did not mention terminal handling charges, but I suddenly received the terminal handling charge bill from the transit port yesterday, and I was completely caught off guard——I have never encountered this situation when doing direct trade before.

Now this fee has directly increased my cost by nearly 8%, and I am also worried that other hidden fees have been concealed. I am so anxious that I can't sleep. I am afraid of being overcharged by the freight forwarder, and I am also afraid of cargo detention and customs detention if I refuse to pay.

I want to figure out whether there is terminal handling charge for transit trade? Does it occur in all transit links? Should I or the freight forwarder bear this fee? Is there any way to avoid unreasonable terminal handling charges?

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Expert Q&A

Victor Sun
Victor SunYears of service：5Customer Rating：5.0

Trade Risk Control ManagerStart a Chat

First of all，we need to reveal a common misunderstanding in the industry: many cargo owners mistakenly believe that the lump-sum quotation of transit trade includes all transit link fees，ignoring that terminal handling charges at the transit port are independent port operation fees，which are regular expenditures in cross-border logistics.

Blind refusal to pay this fee will trigger a series of negative consequences: the transit port terminal will directly suspend the cargo transit operation，and detention charges and container detention fees will be incurred after the free storage period expires. If the payment is not settled within 7-10 days after overdue，the goods may be detained by the terminal，and even enter the auction process，and the cargo owner will face the risk of losing both goods and payment.

Physical risk isolation measures: Confirm the length of free storage period at the transit port with the freight forwarder in advance，require the freight forwarder to provide the detailed fee list of transit port operation to avoid hidden charges，meanwhile，before the goods are shipped，ask the freight forwarder to report the identity of transit trade to the transit port terminal in advance to enjoy the compliant operation rate.

Exclusive stop-loss tips: Clearly agree in the agency contract that the lump-sum price includes terminal handling charges at the transit port，if additional fees occur，it must be notified in writing 3 days in advance，and reserve 1-2% of emergency cost as risk reserve to avoid capital chain tension caused by unexpected fees.

Reference: Analysis on Operation Procedures and Compliance Key Points of Lianyungang Plastic Bag Transit Trade
Daniel Xu
Daniel XuYears of service：10Customer Rating：5.0

Director of Import & Export OperationsStart a Chat

Terminal handling charges for transit trade belong to port operation fees at the transit port, and are not part of the dutiable value of goods. Therefore, they do not need to be included in the dutiable value for customs declaration, and will not incur additional tariffs or value-added tax.

Cargo owners should note that if the terminal handling charge bill of the transit port is not clearly marked "Exclusive for Transit Trade", they should require the freight forwarder to provide the transit trade operation certificate issued by the terminal, so as to avoid being misjudged by the customs as the domestic value-added fee of the goods during subsequent customs declaration, which may lead to valuation disputes or declaration rejection and re-submission. In addition, the payment vouchers of terminal handling charges should be kept together with other transit trade documents as a compliance basis for subsequent customs verification, so as to ensure the logical closed-loop of the entire customs declaration process.

Cindy Chen
Cindy ChenYears of service：3Customer Rating：5.0

Key Account ManagerStart a Chat

Terminal handling charges in transit trade are generated in the container loading, unloading and storage links at the transit port. They are usually exempted within the 48-72 hours free storage period after the goods arrive at the port, and will be charged by day after the free storage period expires.

Cargo owners can shorten the residence time of goods at the transit port by choosing direct transit routes, so as to avoid overdue terminal handling charges; meanwhile, require the freight forwarder to adopt the "direct loading and direct unloading" operation mode at the transit port, that is, the goods are directly transferred to the second voyage ship after arriving at the port, without entering the terminal storage area, which can directly exempt terminal handling charges. In addition, the operation authority of the transit port should be clearly defined when endorsing the bill of lading, so as to avoid unnecessary fees caused by the freight forwarder arbitrarily extending the residence time of goods.

Andy Guo
Andy GuoYears of service：3Customer Rating：5.0

Supply Chain Management ExpertStart a Chat

Terminal handling charges in transit trade are necessary operation costs of cross-border logistics, which can be included in the foreign trade cost accounting of enterprises and deducted before corporate income tax. Cargo owners should note that if you pay terminal handling charges through an overseas offshore account, you need to keep payment vouchers, fee invoices from the transit port terminal, as well as transit trade contracts, bills of lading and other documents as compliance basis for corporate income tax final settlement.

In addition, if the cargo owner has an affiliated enterprise in the country or region where the transit port is located, terminal handling charges can be included in the cross-border cost allocation through reasonable related party transaction pricing, so as to reduce the overall tax cost, but it is necessary to ensure that the related party transaction pricing meets the BEPS compliance requirements to avoid triggering tax risks.

Grace Wang
Grace WangYears of service：10Customer Rating：5.0

Senior Foreign Trade ConsultantStart a Chat

Terminal handling charges in transit trade belong to cross-border logistics fees, which can be directly paid to the transit port terminal or freight forwarder through CIPS RMB cross-border payment system or SWIFT system, without export receipt verification operation. Cargo owners should note that when paying terminal handling charges, you need to clearly mark "Transit Trade Transit Port Terminal Handling Charges" in the SWIFT message or CIPS message, so as to avoid being misjudged as goods payment by the bank, which may lead to compliance review problems of receipt and payment.

In addition, if the freight forwarder requires to pay terminal handling charges together with the goods payment, you should require the freight forwarder to provide a detailed breakdown of fees, so as to ensure that the capital flow of receipt and payment is consistent with the goods flow and document flow, and avoid triggering the bank's anti-money laundering monitoring alarm.

Michael Zhang
Michael ZhangYears of service：6Customer Rating：5.0

Customs Declaration & Compliance ExpertStart a Chat

The responsible party of terminal handling charges in transit trade shall be clearly agreed in the agency contract or trade contract. If there is no clear agreement in the contract, according to international trade practice, terminal handling charges at the transit port are usually borne by the cargo owner. When signing the agency contract, the cargo owner should clearly agree on the scope of the lump-sum price, and clearly include "transit port terminal handling charges" in the lump-sum price list, so as to avoid the freight forwarder charging extra under the name of "additional fee" subsequently.

If the freight forwarder fails to inform terminal handling charges in advance, the cargo owner can require the freight forwarder to bear corresponding responsibilities according to the contract. However, if the goods have entered the transit port operation link, you need to advance the fee to avoid cargo detention, and then recover through legal channels; at the same time, you need to keep quotations, bills, communication records and other evidence as the basis for subsequent rights protection.

Eric Zhou
Eric ZhouYears of service：6Customer Rating：5.0

Senior Manager of Foreign Exchange & Tax RebatesStart a Chat

Terminal handling charges in transit trade are variable costs of cross-border logistics, which need to be included in the supply chain cost actuarial model for control. Cargo owners can optimize the selection of transit ports, and give priority to ports with longer free storage period and lower terminal handling charge rate, such as Port Klang (Malaysia), Singapore Port, etc., which can reduce terminal handling charge cost by about 5-10%; meanwhile, you can share terminal handling charge cost by combining transit goods and adopting LCL transit mode, which is especially suitable for small-batch cargo transit trade.

In addition, it is necessary to establish a supply chain cost early warning mechanism, and include the fluctuation of terminal handling charges into the cost early warning indicators. When the fee increase exceeds 5%, adjust the transit plan in time to ensure that the overall cost is controlled within the budget.

Note: We respect all users' expressions; however, user comments represent their personal views only.

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