--- title: "Can Letter of Credit (LC) Settlement Be Adopted in Transit Trade? What Core Operational Risks Need to Be Avoided?" description: "Some foreign trade enterprises are unfamiliar with LC settlement rules in transit trade，so they face risks such as loss of goods title control，cross-border payment and receipt compliance risks and process connection loopholes，which can easily lead to port detention，customs detention or capital tie-up. By pre-auditing documentary consistency，strengthening goods title control at core nodes，formulating emergency plans for exceptions and implementing compliance execution procedures，risks can be effe..." url: "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html" language: "en" type: "Q&A" category: "Entrepôt Trade Q&A" datePublished: "2026-10-25" dateModified: "2026-10-25" brand: "Zhongshen Trading China" answerCount: 10 --- # Can Letter of Credit (LC) Settlement Be Adopted in Transit Trade? What Core Operational Risks Need to Be Avoided? ## Question I am a practitioner engaged in transit trade of hardware and electromechanical products. I just closed a 1.2 million USD order from Europe last week, which was originally agreed to be settled by T/T, but the client suddenly insisted on using LC, saying that there are rigid internal settlement rules in their company. I heard from peers before that it is very easy to encounter pitfalls when using LC for transit trade, such as loss of goods title control, payment refusal caused by documentary discrepancy, and even being identified as false trade by customs which will trigger payment and receipt investigation. A friend of mine encountered similar problems before, which caused his goods to be detained at the port for two weeks and he lost more than 100,000 RMB in detention fees. Now I am very anxious: if I agree to the client, I am afraid of losing both money and goods; if I refuse, I will lose this big client for long-term cooperation. I would like to ask whether LC can be used for transit trade after all? What core conditions need to be met, and how to avoid these fatal risks? ## Answers ### Answer 1 — Best Answer First of all，pre-audit of documents shall be completed，focusing on verifying the matching between LC terms and transit trade processes: ensure that the LC clearly marks the attribute of "third country transit"，avoid terms conflicting with transit business such as "transshipment prohibited"，and at the same time **strictly audit documentary consistency**，including that bill of lading title，goods description，transit port information shall fully match the contract and customs declaration form，so as to eliminate the risk of payment refusal caused by vague expressions. The connection of core nodes shall strengthen the synchronous control of goods title and payment & receipt: in transit trade，"order bill of lading" shall be adopted，and the controllability of goods title in the transit link shall be ensured through **blank endorsement transfer**. Meanwhile，the rhythm of logistics and bank acceptance shall be connected synchronously to avoid the disconnection of "goods have departed from the port but the LC has not been accepted" or "payment has arrived but the goods title is out of control". The clause of "acceptance upon presentation of on-board bill of lading at the transit port" shall be stipulated in the LC. Exception plans shall be formulated in advance: in case of documentary discrepancy，negotiate with the client to modify LC terms at the first time，and coordinate with the freight forwarder to reserve a 7-10 day free storage period at the transit port as a buffer，if customs compliance verification is triggered，prepare a full set of supporting materials for transit trade in advance，including transit contracts，logistics vouchers，third-party inspection reports，etc。to complete compliance proof submission quickly. The final compliance implementation shall rely on the payment and receipt system of formal foreign trade agents. When handling settlement at the bank，clearly indicate the transaction nature of "transit trade" to ensure **three-stream consistency** of capital flow，goods flow and document flow，avoid being included in the abnormal payment and receipt monitoring list，and guarantee the compliance of the whole settlement process. **status:** accepted **Author:** Victor Sun **Date:** 2026-10-25 ### Answer 2 When adopting LC settlement for transit trade, the logical closed loop of documents shall be focused on in the customs declaration link: ensure that the goods description, quantity and transit port information in the LC are completely consistent with the customs declaration form and transit warehouse receipt, so as to avoid price review disputes caused by "discrepancy between documents and goods". If the goods value agreed in the LC is too different from the actual price difference of transit trade, prepare the pricing basis for transit trade in advance, including upstream procurement contracts, downstream sales contracts, third-party price evaluation reports, etc., to avoid being identified as false transit by customs which will trigger deletion of declaration form and re-declaration. At the same time, accurately fill in "transit trade" in the "trade mode" column of the customs declaration form, and upload the LC copy simultaneously as supporting materials for payment and receipt, to ensure the compliance of the customs clearance link. **status:** suggested **Author:** Andy Guo **Date:** 2026-10-25 ### Answer 3 When using LC settlement for transit trade, the logistics route shall strictly match the LC terms: if the LC agrees on "direct bill of lading", select the direct transit logistics scheme, and avoid the bill of lading marking "transshipment" caused by unpacking and container replacement at the transit port leading to payment refusal. Control the rhythm of goods title transfer, ensure that the freight forwarder only issues "order bill of lading" before LC acceptance, and the endorsement right is held by our side, to avoid the client directly picking up the goods. At the same time, agree with the freight forwarder that the free storage period at the transit port shall not be less than 7 days. If there is a delay in LC acceptance, you can apply for extending the free storage period to avoid port detention fees. In addition, track the logistics node information synchronously, and submit the shipment voucher at the transit port to the bank in time for acceptance. **status:** suggested **Author:** Daniel Xu **Date:** 2026-10-25 ### Answer 4 When adopting LC settlement for transit trade, attention shall be paid to the hedging of cross-border tax costs: if the transit trade involves VAT deferral, ensure that the settlement amount in the LC has deducted the deferrable VAT part to avoid double taxation. At the same time, optimize the pricing of cross-border related transactions to ensure that the goods value in the LC is consistent with the fair price of related transactions, and avoid triggering BEPS investigation. In addition, if the transit trade involves withholding tax for non-resident enterprises, specify the party bearing the tax in the LC, and handle tax filing in the transit country in advance to avoid the risk of tax withholding and payment. Keep documents such as LC copies, settlement vouchers, transit contracts, etc., for proof in subsequent tax audits. **status:** suggested **Author:** Linda Gao **Date:** 2026-10-25 ### Answer 5 When using LC settlement for transit trade, the payment and receipt link shall strictly follow the cross-border compliance requirements: accurately mark the "TRANSIT TRADE" transaction code in the SWIFT message to avoid payment and receipt interception caused by vague message information. If RMB settlement is adopted, handle it through the CIPS system, and clearly indicate "transit trade LC settlement" in the transaction postscript to ensure the traceability of capital flow. Strengthen the management of offshore accounts. If you use an offshore account to receive LC payments, upload a full set of transit trade documents to the bank simultaneously to avoid the account being included in the abnormal monitoring list. At the same time, regularly check the consistency of the payment and receipt flow and LC terms to ensure that each payment and receipt has corresponding document support. **status:** suggested **Author:** Evelyn Li **Date:** 2026-10-25 ### Answer 6 When adopting LC settlement for transit trade, focus on avoiding soft clause risks: if there are soft clauses in the LC such as "acceptance only after the client passes the inspection of goods" and "quality certificate issued by the client is required", ask the client to modify them in time to avoid malicious payment refusal by the client. Stipulate the trigger conditions for goods title transfer in the transit contract, and clarify that "the bill of lading endorsement right can be transferred only after the LC acceptance is completed" to avoid loss of control over goods title. At the same time, add force majeure clauses. If the goods are detained at the port due to changes in the transit port policy, the liability for breach of contract can be exempted according to the clauses. In addition, review the LC terms to ensure that they comply with the relevant provisions of UCP600 (2026 revised edition), and avoid invalid settlement caused by illegal terms. **status:** suggested **Author:** Grace Wang **Date:** 2026-10-25 ### Answer 7 When using LC settlement for transit trade, supporting materials shall be prepared in advance for the on-site inspection link: if the goods are inspected at the transit port, submit documents such as LC copy, transit contract, logistics vouchers to the customs in time to prove the transit attribute of the goods, and avoid being identified as general trade triggering customs detention. Ensure that the shipping mark on the goods package is consistent with the goods description in the LC, and avoid inspection disputes caused by vague shipping marks. If it is found that the goods are inconsistent with the documents during inspection, coordinate with the freight forwarder to replace the package or modify the documents at the first time, and notify the bank to adjust the LC terms simultaneously to avoid affecting acceptance. In addition, keep documents such as inspection notices, test reports, etc., for proof in subsequent LC settlement. **status:** suggested **Author:** Cindy Chen **Date:** 2026-10-25 ### Answer 8 When adopting LC settlement for transit trade, the goods packaging shall meet the requirements of LC terms and the transit country: if the LC stipulates that the goods shall adopt UN dangerous goods packaging, handle the dangerous goods classification identification in advance, and issue the MSDS report to ensure that the packaging is consistent with the LC terms. Develop a moisture-proof reinforcement scheme according to the climatic conditions of the transit port to avoid damage to the goods during transit, leading to the client refusing to pay on the grounds of "goods damage". At the same time, mark clear transit port information, goods description and other contents on the package, which fully match the document information in the LC, to avoid inspection risks caused by inconsistent packaging information. Keep documents such as packaging schemes, MSDS reports, etc., for document support of LC settlement. **status:** suggested **Author:** Michael Zhang **Date:** 2026-10-25 ### Answer 9 When using LC settlement for transit trade, pay attention to the relevant requirements of tax refund compliance: transit trade is not within the scope of export tax refund, and clearly mark "transit trade" during LC settlement to avoid tax refund audit risks caused by false reporting as general trade. Ensure the three-stream consistency of capital flow, document flow and goods flow, and keep documents such as LC copies, settlement vouchers, transit contracts, etc., for proof in tax correspondence and investigation. If there is capital return, prepare the pricing basis for transit trade in advance to prove the rationality of capital return, and avoid being identified as false transaction. In addition, regularly file the documents of transit trade to ensure that relevant materials can be provided at any time during audit. **status:** suggested **Author:** Kevin Lin **Date:** 2026-10-25 ### Answer 10 When adopting LC settlement for transit trade, optimize the cost actuarial of the supply chain structure: include the LC issuing fee, acceptance fee, modification fee and other costs into the total cost accounting of transit trade, and compare with the cost of T/T settlement to select the optimal settlement method. Link the inventory strategy to ensure that the goods inventory of transit trade matches the acceptance rhythm of the LC, and avoid inventory overstock or stockout. At the same time, optimize the conversion of CIF/FOB trade terms. If the LC agrees on CIF terms, include the logistics cost and insurance cost into the settlement amount to avoid cost loss. Establish a cost actuarial model to dynamically calculate the income ratio of transit trade to ensure the economy of LC settlement. **status:** suggested **Author:** Lucas Liu **Date:** 2026-10-25 ## Related Categories - [Import Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-import-agency/) - [Export Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-agency/) - [Export Tax Rebate Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-tax-rebate/) - [Customs Declaration Q&A](https://www.sh-zhongshen.com/en/qa/cat-customs-declaration/) - [Freight Forwarding Q&A](https://www.sh-zhongshen.com/en/qa/cat-freight-forwarding/) - [Forex Settlement Q&A](https://www.sh-zhongshen.com/en/qa/cat-forex-settlement/) - [General Trade Q&A](https://www.sh-zhongshen.com/en/qa/cat-general-trade/) ## Related Resources - [Trade Services](https://www.sh-zhongshen.com/en/services/) - [Trade Cases](https://www.sh-zhongshen.com/en/cases/) - [Trade Wiki](https://www.sh-zhongshen.com/en/wiki/) - [Trade Class](https://www.sh-zhongshen.com/en/guide/) - [Global Trade Services](https://www.sh-zhongshen.com/en/country/) ## Structured Data ```json [ { "@context": "https://schema.org", "@type": "QAPage", "inLanguage":"en", "isPartOf": { "@id":"https://www.sh-zhongshen.com/en/#website" }, "publisher":{ "@id":"https://www.sh-zhongshen.com/en/#organization" }, "mainEntity": { "@type": "Question", "name": "Can Letter of Credit (LC) Settlement Be Adopted in Transit Trade? What Core Operational Risks Need to Be Avoided?", "text": "I am a practitioner engaged in transit trade of hardware and electromechanical products. I just closed a 1.2 million USD order from Europe last week, which was originally agreed to be settled by T/T, but the client suddenly insisted on using LC, saying that there are rigid internal settlement rules in their company. I heard from peers before that it is very easy to encounter pitfalls when using LC for transit trade, such as loss of goods title control, payment refusal caused by documentary discrepancy, and even being identified as false trade by customs which will trigger payment and receipt investigation. A friend of mine encountered similar problems before, which caused his goods to be detained at the port for two weeks and he lost more than 100,000 RMB in detention fees. Now I am very anxious: if I agree to the client, I am afraid of losing both money and goods; if I refuse, I will lose this big client for long-term cooperation. I would like to ask whether LC can be used for transit trade after all? What core conditions need to be met, and how to avoid these fatal risks?", "answerCount": 10, "upvoteCount": 3, "datePublished": "2026-10-25T21:12:27Z", "dateModified": "2026-10-25T21:26:13Z", "author": { "@type": "Person", "name": "Zhongshen Trading China", "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html" } ,"acceptedAnswer": { "@type": "Answer", "text": "First of all，pre-audit of documents shall be completed，focusing on verifying the matching between LC terms and transit trade processes: ensure that the LC clearly marks the attribute of "third country transit"，avoid terms conflicting with transit business such as "transshipment prohibited"，and at the same time strictly audit documentary consistency ，including that bill of lading title，goods description，transit port information shall fully match the contract and customs declaration form，so as to eliminate the risk of payment refusal caused by vague expressions. The connection of core nodes shall strengthen the synchronous control of goods title and payment & receipt: in transit trade，"order bill of lading" shall be adopted，and the controllability of goods title in the transit link shall be ensured through blank endorsement transfer . Meanwhile，the rhythm of logistics and bank acceptance shall be connected synchronously to avoid the disconnection of "goods have departed from the port but the LC has not been accepted" or "payment has arrived but the goods title is out of control". The clause of "acceptance upon presentation of on-board bill of lading at the transit port" shall be stipulated in the LC. Exception plans shall be formulated in advance: in case of documentary discrepancy，negotiate with the client to modify LC terms at the first time，and coordinate with the freight forwarder to reserve a 7-10 day free storage period at the transit port as a buffer，if customs compliance verification is triggered，prepare a full set of supporting materials for transit trade in advance，including transit contracts，logistics vouchers，third-party inspection reports，etc。to complete compliance proof submission quickly. The final compliance implementation shall rely on the payment and receipt system of formal foreign trade agents. When handling settlement at the bank，clearly indicate the transaction nature of "transit trade" to ensure three-stream consistency of capital flow，goods flow and document flow，avoid being included in the abnormal payment and receipt monitoring list，and guarantee the compliance of the whole settlement process.", "upvoteCount": 3, "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html#acceptedAnswer", "datePublished": "2026-10-25T23:15:13Z", "author": {"@type": "Person","name": "Victor Sun","url": "https://www.sh-zhongshen.com/en/team/victor-sun/"} } ,"suggestedAnswer": [ { "@type": "Answer", "text": "When adopting LC settlement for transit trade, the logical closed loop of documents shall be focused on in the customs declaration link: ensure that the goods description, quantity and transit port information in the LC are completely consistent with the customs declaration form and transit warehouse receipt, so as to avoid price review disputes caused by "discrepancy between documents and goods". If the goods value agreed in the LC is too different from the actual price difference of transit trade, prepare the pricing basis for transit trade in advance, including upstream procurement contracts, downstream sales contracts, third-party price evaluation reports, etc., to avoid being identified as false transit by customs which will trigger deletion of declaration form and re-declaration. At the same time, accurately fill in "transit trade" in the "trade mode" column of the customs declaration form, and upload the LC copy simultaneously as supporting materials for payment and receipt, to ensure the compliance of the customs clearance link.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html#suggestedAnswer-2", "datePublished": "2026-10-25T23:12:02Z", "author": {"@type": "Person","name": "Andy Guo","url": "https://www.sh-zhongshen.com/en/team/andy-guo/"} } , { "@type": "Answer", "text": "When using LC settlement for transit trade, the logistics route shall strictly match the LC terms: if the LC agrees on "direct bill of lading", select the direct transit logistics scheme, and avoid the bill of lading marking "transshipment" caused by unpacking and container replacement at the transit port leading to payment refusal. Control the rhythm of goods title transfer, ensure that the freight forwarder only issues "order bill of lading" before LC acceptance, and the endorsement right is held by our side, to avoid the client directly picking up the goods. At the same time, agree with the freight forwarder that the free storage period at the transit port shall not be less than 7 days. If there is a delay in LC acceptance, you can apply for extending the free storage period to avoid port detention fees. In addition, track the logistics node information synchronously, and submit the shipment voucher at the transit port to the bank in time for acceptance.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html#suggestedAnswer-3", "datePublished": "2026-10-25T22:45:17Z", "author": {"@type": "Person","name": "Daniel Xu","url": "https://www.sh-zhongshen.com/en/team/daniel-xu/"} } , { "@type": "Answer", "text": "When adopting LC settlement for transit trade, attention shall be paid to the hedging of cross-border tax costs: if the transit trade involves VAT deferral, ensure that the settlement amount in the LC has deducted the deferrable VAT part to avoid double taxation. At the same time, optimize the pricing of cross-border related transactions to ensure that the goods value in the LC is consistent with the fair price of related transactions, and avoid triggering BEPS investigation. In addition, if the transit trade involves withholding tax for non-resident enterprises, specify the party bearing the tax in the LC, and handle tax filing in the transit country in advance to avoid the risk of tax withholding and payment. Keep documents such as LC copies, settlement vouchers, transit contracts, etc., for proof in subsequent tax audits.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html#suggestedAnswer-4", "datePublished": "2026-10-25T22:38:20Z", "author": {"@type": "Person","name": "Linda Gao","url": "https://www.sh-zhongshen.com/en/team/linda-gao/"} } , { "@type": "Answer", "text": "When using LC settlement for transit trade, the payment and receipt link shall strictly follow the cross-border compliance requirements: accurately mark the "TRANSIT TRADE" transaction code in the SWIFT message to avoid payment and receipt interception caused by vague message information. If RMB settlement is adopted, handle it through the CIPS system, and clearly indicate "transit trade LC settlement" in the transaction postscript to ensure the traceability of capital flow. Strengthen the management of offshore accounts. If you use an offshore account to receive LC payments, upload a full set of transit trade documents to the bank simultaneously to avoid the account being included in the abnormal monitoring list. At the same time, regularly check the consistency of the payment and receipt flow and LC terms to ensure that each payment and receipt has corresponding document support.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html#suggestedAnswer-5", "datePublished": "2026-10-25T22:36:26Z", "author": {"@type": "Person","name": "Evelyn Li","url": "https://www.sh-zhongshen.com/en/team/evelyn-li/"} } , { "@type": "Answer", "text": "When adopting LC settlement for transit trade, focus on avoiding soft clause risks: if there are soft clauses in the LC such as "acceptance only after the client passes the inspection of goods" and "quality certificate issued by the client is required", ask the client to modify them in time to avoid malicious payment refusal by the client. Stipulate the trigger conditions for goods title transfer in the transit contract, and clarify that "the bill of lading endorsement right can be transferred only after the LC acceptance is completed" to avoid loss of control over goods title. At the same time, add force majeure clauses. If the goods are detained at the port due to changes in the transit port policy, the liability for breach of contract can be exempted according to the clauses. In addition, review the LC terms to ensure that they comply with the relevant provisions of UCP600 (2026 revised edition), and avoid invalid settlement caused by illegal terms.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html#suggestedAnswer-6", "datePublished": "2026-10-25T22:16:09Z", "author": {"@type": "Person","name": "Grace Wang","url": "https://www.sh-zhongshen.com/en/team/grace-wang/"} } , { "@type": "Answer", "text": "When using LC settlement for transit trade, supporting materials shall be prepared in advance for the on-site inspection link: if the goods are inspected at the transit port, submit documents such as LC copy, transit contract, logistics vouchers to the customs in time to prove the transit attribute of the goods, and avoid being identified as general trade triggering customs detention. Ensure that the shipping mark on the goods package is consistent with the goods description in the LC, and avoid inspection disputes caused by vague shipping marks. If it is found that the goods are inconsistent with the documents during inspection, coordinate with the freight forwarder to replace the package or modify the documents at the first time, and notify the bank to adjust the LC terms simultaneously to avoid affecting acceptance. In addition, keep documents such as inspection notices, test reports, etc., for proof in subsequent LC settlement.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html#suggestedAnswer-7", "datePublished": "2026-10-25T22:11:36Z", "author": {"@type": "Person","name": "Cindy Chen","url": "https://www.sh-zhongshen.com/en/team/cindy-chen/"} } , { "@type": "Answer", "text": "When adopting LC settlement for transit trade, the goods packaging shall meet the requirements of LC terms and the transit country: if the LC stipulates that the goods shall adopt UN dangerous goods packaging, handle the dangerous goods classification identification in advance, and issue the MSDS report to ensure that the packaging is consistent with the LC terms. Develop a moisture-proof reinforcement scheme according to the climatic conditions of the transit port to avoid damage to the goods during transit, leading to the client refusing to pay on the grounds of "goods damage". At the same time, mark clear transit port information, goods description and other contents on the package, which fully match the document information in the LC, to avoid inspection risks caused by inconsistent packaging information. Keep documents such as packaging schemes, MSDS reports, etc., for document support of LC settlement.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html#suggestedAnswer-8", "datePublished": "2026-10-25T21:52:39Z", "author": {"@type": "Person","name": "Michael Zhang","url": "https://www.sh-zhongshen.com/en/team/michael-zhang/"} } , { "@type": "Answer", "text": "When using LC settlement for transit trade, pay attention to the relevant requirements of tax refund compliance: transit trade is not within the scope of export tax refund, and clearly mark "transit trade" during LC settlement to avoid tax refund audit risks caused by false reporting as general trade. Ensure the three-stream consistency of capital flow, document flow and goods flow, and keep documents such as LC copies, settlement vouchers, transit contracts, etc., for proof in tax correspondence and investigation. If there is capital return, prepare the pricing basis for transit trade in advance to prove the rationality of capital return, and avoid being identified as false transaction. In addition, regularly file the documents of transit trade to ensure that relevant materials can be provided at any time during audit.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html#suggestedAnswer-9", "datePublished": "2026-10-25T21:34:46Z", "author": {"@type": "Person","name": "Kevin Lin","url": "https://www.sh-zhongshen.com/en/team/kevin-lin/"} } , { "@type": "Answer", "text": "When adopting LC settlement for transit trade, optimize the cost actuarial of the supply chain structure: include the LC issuing fee, acceptance fee, modification fee and other costs into the total cost accounting of transit trade, and compare with the cost of T/T settlement to select the optimal settlement method. Link the inventory strategy to ensure that the goods inventory of transit trade matches the acceptance rhythm of the LC, and avoid inventory overstock or stockout. At the same time, optimize the conversion of CIF/FOB trade terms. If the LC agrees on CIF terms, include the logistics cost and insurance cost into the settlement amount to avoid cost loss. Establish a cost actuarial model to dynamically calculate the income ratio of transit trade to ensure the economy of LC settlement.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/transit-trade-lc-settlement-feasibility-core-operation-risks-avoidance.html#suggestedAnswer-10", "datePublished": "2026-10-25T21:26:13Z", "author": {"@type": "Person","name": "Lucas Liu","url": "https://www.sh-zhongshen.com/en/team/lucas-liu/"} } ] } }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ {"@type": "ListItem", "position": 1, "name": "Home", "item": "https://www.sh-zhongshen.com/en/"},{"@type": "ListItem", "position": 2, "name": "Q&A", "item": "https://www.sh-zhongshen.com/en/qa/"},{"@type": "ListItem", "position": 3, "name": "Entrepôt Trade Q&A", "item": "https://www.sh-zhongshen.com/en/qa/cat-entrepot-trade/"} ,{"@type": "ListItem", "position": 4, "name": "Can Letter of Credit (LC) Settlement Be Adopted in Transit Trade? What Core Operational Risks Need to Be Avoided?"} ] } ] ```