--- title: "What are the core potential risks of valve transshipment trade, and what are the inducing causes of various risks?" description: "Due to the EU's anti-dumping duties on valves from China，a medium-sized valve enterprise in Wenzhou plans to deliver an order of butterfly valves worth RMB 2.2 million through transshipment trade. It fell into anxiety after hearing that a peer suffered a loss of nearly RMB 1 million due to detained transshipped goods，and is eager to clarify the risks and inducing causes of transshipment trade. By exposing core misunderstandings such as fake certificates of origin，deducing chain negative reaction..." url: "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html" language: "en" type: "Q&A" category: "Entrepôt Trade Q&A" datePublished: "2026-10-21" dateModified: "2026-10-21" brand: "Zhongshen Trading China" answerCount: 9 --- # What are the core potential risks of valve transshipment trade, and what are the inducing causes of various risks? ## Question I am the foreign trade manager of a medium-sized valve manufacturer in Wenzhou, Zhejiang Province. Our long-standing German client recently strongly requested us to ship goods through transshipment trade due to the EU's anti-dumping duties on Chinese valves. I have never been exposed to the transshipment mode before. When I attended an industry salon last week, I heard from a Wenzhou peer that a batch of his gate valves was detained at a Malaysian transshipment port last year. He not only incurred more than RMB 100,000 of demurrage charges due to cargo detention, but also lost the customer order, suffering a total loss of nearly RMB 1 million. I am extremely anxious now. Our current shipment is butterfly valves worth RMB 2.2 million, and we need to arrange shipping space next week. I want to figure out thoroughly: Is there any risk in valve transshipment trade? Why do these risks occur? Can you explain the underlying reasons thoroughly from the core perspectives of compliance, logistics and title? If something goes wrong, not only will my monthly performance be affected, but the company will also bear huge losses. I can't even sleep well at night now. ## Answers ### Answer 1 — Best Answer When carrying out valve transshipment trade，many enterprises are most likely to fall into the **fake certificate of origin compliance pitfall**: they think that they can get away with buying a random third-party certificate of origin from a freight forwarder，but little do they know that the EU，the US and other regions have extremely strict review on certificates of origin for industrial products such as valves. Once a fake certificate is found，the goods will be directly detained at the transshipment port or the destination port，resulting in high demurrage and detention fees. In severe cases，the goods will be confiscated，and the enterprise will even be listed on the customs blacklist of the destination country，restricting all subsequent foreign trade business. The chain negative reactions of such risks will continue to ferment: For example，if the goods are detained at the port for more than 7 days，the customs of the transshipment port will start the auction process，and the customer will cancel the order because they cannot receive the goods. The enterprise will not only bear the cargo loss，but also pay liquidated damages to the customer. At the same time，the bank letter of credit may refuse to pay due to discrepant documents，leading to the rupture of the capital chain. Physical risk isolation measures can choose **warehousing in bonded zones of neutral transshipment ports**: Give priority to formal bonded zones in Singapore and Port Klang，Malaysia. After entering the bonded zone，the goods will not enter the domestic market of the transshipment port，and are under customs supervision throughout the whole process，avoiding cargo detention caused by changes in domestic policies of the transshipment country. Exclusive loss stopping tips: Sign a **title lock agreement** with the agency company in advance to clarify that the title of the goods belongs to the enterprise throughout the whole process. At the same time，purchase special cargo insurance for transshipment trade covering special risks such as cargo detention and port detention，and entrust a professional institution to pre-audit documents such as certificates of origin and packing lists in advance to ensure 100% compliance. **status:** accepted **Author:** Cindy Chen **Date:** 2026-10-21 ### Answer 2 The core customs declaration risk of valve transshipment trade lies in the consistent matching of HS codes and the linkage of declared values between the transshipment port and the destination port. Some enterprises intentionally underdeclare the value of valves or adjust the HS code without authorization to classify industrial valves as general hardware products, in order to reduce the customs declaration cost at the transshipment port. This operation will trigger a price verification warning from the customs of the transshipment port and lead to cargo detention for inspection. At the same time, the customs of the destination port will compare the customs declaration data of the transshipment port with the local declaration data. If the price difference exceeds 15% or the HS code does not match, it will be directly determined as suspected of evading anti-dumping duties, and an anti-circumvention investigation will be launched. The goods will not only be temporarily detained, but also be required to pay retroactive high anti-dumping duties and late fees, and even be fined 5% to 20% of the declared value. In addition, some transshipment ports require notarized documents such as the certificate of origin and commercial invoice of valves. If the enterprise does not prepare them in advance, it will lead to customs clearance delay and incur demurrage charges. **status:** suggested **Author:** Andy Guo **Date:** 2026-10-21 ### Answer 3 The logistics risks of valve transshipment trade are mainly concentrated in three aspects: title control during transshipment, cargo damage during transshipment and transshipment port connection. Some freight forwarders will mix valves with other heavy cargo to reduce costs, resulting in deformation of the valve body and valve stem due to extrusion, especially cast iron valves, which are very prone to cracking. If the enterprise does not specify packaging requirements and loss compensation standards in the logistics contract, it is difficult to claim compensation from the freight forwarder. In addition, the error in space connection at the transshipment port will also lead to cargo detention at the port. For example, if the second-feeder vessel at the transshipment port rolls the cargo, and the freight forwarder does not reserve spare space in advance, the cargo will be delayed for 10 to 15 days and miss the customer's delivery date. In terms of title control, if the enterprise endorses the bill of lading directly to the freight forwarder, the freight forwarder may resell the goods to a third party without authorization, resulting in the enterprise losing both money and goods. Therefore, the mode of "order bill of lading + telex release password" must be adopted to control the title of goods throughout the whole process. **status:** suggested **Author:** Linda Gao **Date:** 2026-10-21 ### Answer 4 The tax risks of valve transshipment trade mainly stem from the non-compliance of cross-border tax structure and unreasonable pricing of related party transactions. Some enterprises retain the profits of transshipment trade in offshore accounts and do not declare to the domestic tax authorities in order to avoid domestic value-added tax. This operation will be warned by the tax authorities through the cross-border capital monitoring system of the Golden Tax System Phase IV, triggering tax inspection, requiring the payment of value-added tax, enterprise income tax and late fees, and even being fined for tax evasion. In addition, if the enterprise carries out transshipment trade through related companies, and the pricing is obviously deviated from the market fair price, for example, the transshipment price of valves is set far lower than the market price, it will be identified as Base Erosion and Profit Shifting (BEPS) behavior, triggering anti-avoidance investigation, which will not only adjust the taxable income, but also require the payment of high interest. At the same time, some transshipment countries levy transit tax on transshipped goods. If the enterprise does not understand it in advance and include it in the cost accounting, it will lead to additional tax expenditure. **status:** suggested **Author:** Lucas Liu **Date:** 2026-10-21 ### Answer 5 The payment and receipt compliance risk of valve transshipment trade is mainly concentrated on the traceability of the capital chain and document consistency. Some enterprises use underground banks for payment and receipt to avoid foreign exchange supervision, which will lead to the freezing of funds, and even be listed on the "watch list" by the State Administration of Foreign Exchange, restricting the subsequent foreign exchange purchase and settlement quotas. In addition, if the SWIFT message is not filled in accordance with the requirements, for example, the word "transshipment trade" is not clearly marked, or the content of the message is inconsistent with the information on the commercial invoice and bill of lading, the bank will refuse to pay or delay the arrival of funds, affecting the capital turnover of the enterprise. If the enterprise adopts RMB cross-border payment (CIPS), it is necessary to ensure that the agency company at the transshipment port is registered in the CIPS system, and the payment and receipt path of funds is clear, so as to avoid being identified as illegal fund transfer due to vague capital chain. At the same time, enterprises need to keep all documents of transshipment trade, including bills of lading, certificates of origin, commercial invoices, etc., for the inspection of the State Administration of Foreign Exchange. **status:** suggested **Author:** Daniel Xu **Date:** 2026-10-21 ### Answer 6 The legal risks of valve transshipment trade mainly stem from imperfect contract terms and soft clause traps of letters of credit. When signing contracts with transshipment freight forwarders, some enterprises do not specify core terms such as ownership of goods, compensation standards for cargo damage, and the party bearing demurrage charges. Once problems such as cargo detention and cargo damage occur, it is difficult to safeguard rights through legal channels. In addition, if the letter of credit issued by the customer contains soft clauses such as "a certificate of non-entry into the domestic market issued by the customs of the transshipment country is required", and the customs of the transshipment country cannot issue such a certificate, the enterprise will fail to meet the requirements of the letter of credit, and the bank will refuse to pay. In terms of title transfer, if the enterprise does not adopt an "order bill of lading" but a "straight bill of lading", it is difficult to recover the goods once they are controlled by the transshipment freight forwarder. Therefore, it is necessary to add a force majeure clause as the bottom agreement in the contract to clarify the responsibility division for policy changes at the transshipment port, customs cargo detention and other situations, and entrust a professional institution to review the letter of credit terms to eliminate soft clauses. **status:** suggested **Author:** Michael Zhang **Date:** 2026-10-21 ### Answer 7 The on-site inspection risk of valve transshipment trade is mainly concentrated in three aspects: devanning inspection at the transshipment port, authenticity identification of seals and cargo laboratory testing. The customs of some transshipment ports will conduct key inspections on industrial valves, especially for goods suspected of fake certificates of origin, and will directly launch devanning inspection. If the packaging of the enterprise does not meet the requirements, for example, no moisture-proof reinforcement is done, the sealing parts of the valve will rust due to moisture, affecting the quality of the goods, and even be judged as unqualified goods and prohibited from being transshipped. In addition, the authenticity of the seal is the core content of customs inspection. If the freight forwarder uses a fake seal, it will be identified by the customs as suspected of title tampering, the goods will be temporarily detained, and the investigation process will be launched. If the customs requires laboratory testing on the material and performance of the valve, the enterprise needs to prepare the Material Safety Data Sheet (MSDS), material certificate and other documents of the valve in advance, otherwise it will lead to delay in the testing process and incur high demurrage charges. At the same time, the enterprise should require the freight forwarder to take videos and keep records when replacing the seal to ensure the authenticity of the seal. **status:** suggested **Author:** Jason Wu **Date:** 2026-10-21 ### Answer 8 The packaging risk of valve transshipment trade mainly stems from insufficient packaging compliance and physical protection. Some valves are pressure-bearing industrial products. If the packaging is not buffered and reinforced, the valve body and valve stem will be deformed due to bumps and extrusion during transshipment, especially for high-pressure valves, damage to sealing parts will lead to scrap of the goods. In addition, some valves containing lubricating oil are dangerous goods, which need to be packaged in accordance with UN dangerous goods packaging standards. If the enterprise does not handle the dangerous goods classification appraisal or use compliant UN packaging, the goods will be detained by the customs of the transshipment port or destination port and prohibited from being transshipped. At the same time, if the preparation of the MSDS report does not meet the requirements, for example, the material, storage requirements and other information of the valve are not clearly marked, it will be judged by the customs as not meeting the compliance requirements, triggering inspection. Therefore, corresponding buffer packaging materials should be selected for valves of different materials. For example, cast iron valves are reinforced with foam pads + wooden frames, valves containing lubricating oil need to use UN certified sealed packaging, and compliant MSDS reports should be prepared in advance. **status:** suggested **Author:** Eric Zhou **Date:** 2026-10-21 ### Answer 9 The export tax refund risk of valve transshipment trade mainly stems from the inconsistency of the four flows (cargo flow, capital flow, invoice flow, information flow) and non-standard document filing. Some enterprises disguise transshipment trade as direct export trade and forge exit certificates of goods in order to enjoy export tax refund. This operation will be warned by the tax authorities through big data analysis of the Golden Tax System Phase IV, triggering tax correspondence investigation, requiring the enterprise to provide all documents of transshipment trade, including bills of lading at the transshipment port, certificates of origin, warehousing agreements, etc. If they cannot be provided, it will be identified as export tax refund fraud, not only the already refunded tax will be recovered, but also a fine of 50% to 5 times the amount will be imposed, and even criminal responsibility will be investigated. In addition, if the enterprise does not keep the documents of transshipment trade as required, such as bills of lading, commercial invoices, certificates of origin, etc., the export tax refund declaration will be rejected, affecting the arrival time of the tax refund. Therefore, enterprises should ensure the consistency of the four flows, the information of all documents is completely matched, and strictly carry out document filing in accordance with the requirements of the tax authorities, with the retention period of no less than 5 years. **status:** suggested **Author:** Kevin Lin **Date:** 2026-10-21 ## 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": "What are the core potential risks of valve transshipment trade, and what are the inducing causes of various risks?", "text": "I am the foreign trade manager of a medium-sized valve manufacturer in Wenzhou, Zhejiang Province. Our long-standing German client recently strongly requested us to ship goods through transshipment trade due to the EU's anti-dumping duties on Chinese valves. I have never been exposed to the transshipment mode before. When I attended an industry salon last week, I heard from a Wenzhou peer that a batch of his gate valves was detained at a Malaysian transshipment port last year. He not only incurred more than RMB 100,000 of demurrage charges due to cargo detention, but also lost the customer order, suffering a total loss of nearly RMB 1 million. I am extremely anxious now. Our current shipment is butterfly valves worth RMB 2.2 million, and we need to arrange shipping space next week. I want to figure out thoroughly: Is there any risk in valve transshipment trade? Why do these risks occur? Can you explain the underlying reasons thoroughly from the core perspectives of compliance, logistics and title? If something goes wrong, not only will my monthly performance be affected, but the company will also bear huge losses. I can't even sleep well at night now.", "answerCount": 9, "upvoteCount": 4, "datePublished": "2026-10-21T17:18:28Z", "dateModified": "2026-10-21T17:19:34Z", "author": { "@type": "Person", "name": "Zhongshen Trading China", "url": "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html" } ,"acceptedAnswer": { "@type": "Answer", "text": "When carrying out valve transshipment trade，many enterprises are most likely to fall into the fake certificate of origin compliance pitfall : they think that they can get away with buying a random third-party certificate of origin from a freight forwarder，but little do they know that the EU，the US and other regions have extremely strict review on certificates of origin for industrial products such as valves. Once a fake certificate is found，the goods will be directly detained at the transshipment port or the destination port，resulting in high demurrage and detention fees. In severe cases，the goods will be confiscated，and the enterprise will even be listed on the customs blacklist of the destination country，restricting all subsequent foreign trade business. The chain negative reactions of such risks will continue to ferment: For example，if the goods are detained at the port for more than 7 days，the customs of the transshipment port will start the auction process，and the customer will cancel the order because they cannot receive the goods. The enterprise will not only bear the cargo loss，but also pay liquidated damages to the customer. At the same time，the bank letter of credit may refuse to pay due to discrepant documents，leading to the rupture of the capital chain. Physical risk isolation measures can choose warehousing in bonded zones of neutral transshipment ports : Give priority to formal bonded zones in Singapore and Port Klang，Malaysia. After entering the bonded zone，the goods will not enter the domestic market of the transshipment port，and are under customs supervision throughout the whole process，avoiding cargo detention caused by changes in domestic policies of the transshipment country. Exclusive loss stopping tips: Sign a title lock agreement with the agency company in advance to clarify that the title of the goods belongs to the enterprise throughout the whole process. At the same time，purchase special cargo insurance for transshipment trade covering special risks such as cargo detention and port detention，and entrust a professional institution to pre-audit documents such as certificates of origin and packing lists in advance to ensure 100% compliance.", "upvoteCount": 4, "url": "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html#acceptedAnswer", "datePublished": "2026-10-21T18:10:13Z", "author": {"@type": "Person","name": "Cindy Chen","url": "https://www.sh-zhongshen.com/en/team/cindy-chen/"} } ,"suggestedAnswer": [ { "@type": "Answer", "text": "The core customs declaration risk of valve transshipment trade lies in the consistent matching of HS codes and the linkage of declared values between the transshipment port and the destination port. Some enterprises intentionally underdeclare the value of valves or adjust the HS code without authorization to classify industrial valves as general hardware products, in order to reduce the customs declaration cost at the transshipment port. This operation will trigger a price verification warning from the customs of the transshipment port and lead to cargo detention for inspection. At the same time, the customs of the destination port will compare the customs declaration data of the transshipment port with the local declaration data. If the price difference exceeds 15% or the HS code does not match, it will be directly determined as suspected of evading anti-dumping duties, and an anti-circumvention investigation will be launched. The goods will not only be temporarily detained, but also be required to pay retroactive high anti-dumping duties and late fees, and even be fined 5% to 20% of the declared value. In addition, some transshipment ports require notarized documents such as the certificate of origin and commercial invoice of valves. If the enterprise does not prepare them in advance, it will lead to customs clearance delay and incur demurrage charges.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html#suggestedAnswer-2", "datePublished": "2026-10-21T18:07:41Z", "author": {"@type": "Person","name": "Andy Guo","url": "https://www.sh-zhongshen.com/en/team/andy-guo/"} } , { "@type": "Answer", "text": "The logistics risks of valve transshipment trade are mainly concentrated in three aspects: title control during transshipment, cargo damage during transshipment and transshipment port connection. Some freight forwarders will mix valves with other heavy cargo to reduce costs, resulting in deformation of the valve body and valve stem due to extrusion, especially cast iron valves, which are very prone to cracking. If the enterprise does not specify packaging requirements and loss compensation standards in the logistics contract, it is difficult to claim compensation from the freight forwarder. In addition, the error in space connection at the transshipment port will also lead to cargo detention at the port. For example, if the second-feeder vessel at the transshipment port rolls the cargo, and the freight forwarder does not reserve spare space in advance, the cargo will be delayed for 10 to 15 days and miss the customer's delivery date. In terms of title control, if the enterprise endorses the bill of lading directly to the freight forwarder, the freight forwarder may resell the goods to a third party without authorization, resulting in the enterprise losing both money and goods. Therefore, the mode of "order bill of lading + telex release password" must be adopted to control the title of goods throughout the whole process.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html#suggestedAnswer-3", "datePublished": "2026-10-21T17:54:24Z", "author": {"@type": "Person","name": "Linda Gao","url": "https://www.sh-zhongshen.com/en/team/linda-gao/"} } , { "@type": "Answer", "text": "The tax risks of valve transshipment trade mainly stem from the non-compliance of cross-border tax structure and unreasonable pricing of related party transactions. Some enterprises retain the profits of transshipment trade in offshore accounts and do not declare to the domestic tax authorities in order to avoid domestic value-added tax. This operation will be warned by the tax authorities through the cross-border capital monitoring system of the Golden Tax System Phase IV, triggering tax inspection, requiring the payment of value-added tax, enterprise income tax and late fees, and even being fined for tax evasion. In addition, if the enterprise carries out transshipment trade through related companies, and the pricing is obviously deviated from the market fair price, for example, the transshipment price of valves is set far lower than the market price, it will be identified as Base Erosion and Profit Shifting (BEPS) behavior, triggering anti-avoidance investigation, which will not only adjust the taxable income, but also require the payment of high interest. At the same time, some transshipment countries levy transit tax on transshipped goods. If the enterprise does not understand it in advance and include it in the cost accounting, it will lead to additional tax expenditure.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html#suggestedAnswer-4", "datePublished": "2026-10-21T17:47:35Z", "author": {"@type": "Person","name": "Lucas Liu","url": "https://www.sh-zhongshen.com/en/team/lucas-liu/"} } , { "@type": "Answer", "text": "The payment and receipt compliance risk of valve transshipment trade is mainly concentrated on the traceability of the capital chain and document consistency. Some enterprises use underground banks for payment and receipt to avoid foreign exchange supervision, which will lead to the freezing of funds, and even be listed on the "watch list" by the State Administration of Foreign Exchange, restricting the subsequent foreign exchange purchase and settlement quotas. In addition, if the SWIFT message is not filled in accordance with the requirements, for example, the word "transshipment trade" is not clearly marked, or the content of the message is inconsistent with the information on the commercial invoice and bill of lading, the bank will refuse to pay or delay the arrival of funds, affecting the capital turnover of the enterprise. If the enterprise adopts RMB cross-border payment (CIPS), it is necessary to ensure that the agency company at the transshipment port is registered in the CIPS system, and the payment and receipt path of funds is clear, so as to avoid being identified as illegal fund transfer due to vague capital chain. At the same time, enterprises need to keep all documents of transshipment trade, including bills of lading, certificates of origin, commercial invoices, etc., for the inspection of the State Administration of Foreign Exchange.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html#suggestedAnswer-5", "datePublished": "2026-10-21T17:34:16Z", "author": {"@type": "Person","name": "Daniel Xu","url": "https://www.sh-zhongshen.com/en/team/daniel-xu/"} } , { "@type": "Answer", "text": "The legal risks of valve transshipment trade mainly stem from imperfect contract terms and soft clause traps of letters of credit. When signing contracts with transshipment freight forwarders, some enterprises do not specify core terms such as ownership of goods, compensation standards for cargo damage, and the party bearing demurrage charges. Once problems such as cargo detention and cargo damage occur, it is difficult to safeguard rights through legal channels. In addition, if the letter of credit issued by the customer contains soft clauses such as "a certificate of non-entry into the domestic market issued by the customs of the transshipment country is required", and the customs of the transshipment country cannot issue such a certificate, the enterprise will fail to meet the requirements of the letter of credit, and the bank will refuse to pay. In terms of title transfer, if the enterprise does not adopt an "order bill of lading" but a "straight bill of lading", it is difficult to recover the goods once they are controlled by the transshipment freight forwarder. Therefore, it is necessary to add a force majeure clause as the bottom agreement in the contract to clarify the responsibility division for policy changes at the transshipment port, customs cargo detention and other situations, and entrust a professional institution to review the letter of credit terms to eliminate soft clauses.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html#suggestedAnswer-6", "datePublished": "2026-10-21T17:32:25Z", "author": {"@type": "Person","name": "Michael Zhang","url": "https://www.sh-zhongshen.com/en/team/michael-zhang/"} } , { "@type": "Answer", "text": "The on-site inspection risk of valve transshipment trade is mainly concentrated in three aspects: devanning inspection at the transshipment port, authenticity identification of seals and cargo laboratory testing. The customs of some transshipment ports will conduct key inspections on industrial valves, especially for goods suspected of fake certificates of origin, and will directly launch devanning inspection. If the packaging of the enterprise does not meet the requirements, for example, no moisture-proof reinforcement is done, the sealing parts of the valve will rust due to moisture, affecting the quality of the goods, and even be judged as unqualified goods and prohibited from being transshipped. In addition, the authenticity of the seal is the core content of customs inspection. If the freight forwarder uses a fake seal, it will be identified by the customs as suspected of title tampering, the goods will be temporarily detained, and the investigation process will be launched. If the customs requires laboratory testing on the material and performance of the valve, the enterprise needs to prepare the Material Safety Data Sheet (MSDS), material certificate and other documents of the valve in advance, otherwise it will lead to delay in the testing process and incur high demurrage charges. At the same time, the enterprise should require the freight forwarder to take videos and keep records when replacing the seal to ensure the authenticity of the seal.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html#suggestedAnswer-7", "datePublished": "2026-10-21T17:25:01Z", "author": {"@type": "Person","name": "Jason Wu","url": "https://www.sh-zhongshen.com/en/team/jason-wu/"} } , { "@type": "Answer", "text": "The packaging risk of valve transshipment trade mainly stems from insufficient packaging compliance and physical protection. Some valves are pressure-bearing industrial products. If the packaging is not buffered and reinforced, the valve body and valve stem will be deformed due to bumps and extrusion during transshipment, especially for high-pressure valves, damage to sealing parts will lead to scrap of the goods. In addition, some valves containing lubricating oil are dangerous goods, which need to be packaged in accordance with UN dangerous goods packaging standards. If the enterprise does not handle the dangerous goods classification appraisal or use compliant UN packaging, the goods will be detained by the customs of the transshipment port or destination port and prohibited from being transshipped. At the same time, if the preparation of the MSDS report does not meet the requirements, for example, the material, storage requirements and other information of the valve are not clearly marked, it will be judged by the customs as not meeting the compliance requirements, triggering inspection. Therefore, corresponding buffer packaging materials should be selected for valves of different materials. For example, cast iron valves are reinforced with foam pads + wooden frames, valves containing lubricating oil need to use UN certified sealed packaging, and compliant MSDS reports should be prepared in advance.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html#suggestedAnswer-8", "datePublished": "2026-10-21T17:23:33Z", "author": {"@type": "Person","name": "Eric Zhou","url": "https://www.sh-zhongshen.com/en/team/eric-zhou/"} } , { "@type": "Answer", "text": "The export tax refund risk of valve transshipment trade mainly stems from the inconsistency of the four flows (cargo flow, capital flow, invoice flow, information flow) and non-standard document filing. Some enterprises disguise transshipment trade as direct export trade and forge exit certificates of goods in order to enjoy export tax refund. This operation will be warned by the tax authorities through big data analysis of the Golden Tax System Phase IV, triggering tax correspondence investigation, requiring the enterprise to provide all documents of transshipment trade, including bills of lading at the transshipment port, certificates of origin, warehousing agreements, etc. If they cannot be provided, it will be identified as export tax refund fraud, not only the already refunded tax will be recovered, but also a fine of 50% to 5 times the amount will be imposed, and even criminal responsibility will be investigated. In addition, if the enterprise does not keep the documents of transshipment trade as required, such as bills of lading, commercial invoices, certificates of origin, etc., the export tax refund declaration will be rejected, affecting the arrival time of the tax refund. Therefore, enterprises should ensure the consistency of the four flows, the information of all documents is completely matched, and strictly carry out document filing in accordance with the requirements of the tax authorities, with the retention period of no less than 5 years.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/valve-transshipment-trade-core-potential-risks-and-their-causes.html#suggestedAnswer-9", "datePublished": "2026-10-21T17:19:34Z", "author": {"@type": "Person","name": "Kevin Lin","url": "https://www.sh-zhongshen.com/en/team/kevin-lin/"} } ] } }, { "@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": "What are the core potential risks of valve transshipment trade, and what are the inducing causes of various risks?"} ] } ] ```