Is Peanut Transit Trade Allowed? What Are the Compliance Requirements

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I am a foreign trade salesperson with 5 years of experience, previously focusing on transit trade of electronic components. Now an old client has asked me to handle a batch of peanut transit business: loaded and shipped from Shandong to Thailand for transshipment, then delivered to Germany. I never encountered issues related to phytosanitary inspection when dealing with electronic products, so I am very worried now. I heard that the EU will significantly tighten inspection of imported agricultural products in 2026, and will domestic export customs declaration be different from that of ordinary goods?

If the goods are detained at the transshipment port due to incomplete documents, I will not only have to pay liquidated damages to the client, but also bear a large amount of port detention fees. In addition, I do not understand how to calculate the taxes and duties for transit trade, and can I apply for VAT deferral as I did for previous European routes? I am really afraid of making mistakes, can you help me sort out whether this business is feasible?

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Expert Answer

Sarah
SarahYears of service:3Customer Rating:5.0

Foreign Exchange AdvisorStart a Chat

Peanut transit trade is completely allowed,but it must strictly comply with the new global trade compliance regulations introduced in 2026,and three core links must be focused on throughout the entire chain.

First is Pre-document review: you need to prepare the Chinese export customs declaration form,transit filing certificate of the Thai transshipment port,phytosanitary certificate (issued by the Thai agricultural authority),full set of ocean bills of lading (requiring blank endorsement) in advance. If the EU market is involved,you also need to supplement the EU CBAM carbon footprint declaration documents. Starting from 2026,the EU has included some agricultural products in the CBAM supervision scope,and failure to declare will lead to direct customs detention.

Second is Connection of core nodes: transshipment ports with high compliance such as Singapore or Rotterdam should be prioritized,and ports in sanctioned regions should be avoided. The transfer of cargo ownership shall be completed through bill of lading endorsement,and the cargo ownership shall be locked through title documents throughout the whole process to prevent mid-way cargo ownership disputes. For the logistics link,shipping lines with agricultural product transportation qualification should be selected to avoid cargo damage caused by non-compliant packaging.

Last is Abnormal contingency plan and compliance implementation: in case of customs inspection,you shall provide the full set of original documents as soon as possible and cooperate with the customs to complete the phytosanitary re-inspection. In terms of taxes and duties,only port miscellaneous fees of the transshipment port are required for transit trade. VAT deferral requires import filing in the transshipment country,and you must ensure that the goods do not enter the EU consumer market. All logistics and document records shall be kept throughout the process for subsequent tax verification.

Robert
RobertYears of service:6Customer Rating:5.0

Warehouse Management AdvisorStart a Chat

Document review for peanut transit trade shall focus on phytosanitary related documents. For agricultural product transit between RCEP member states in 2026, the rules of origin accumulation can be enjoyed, but it is necessary to ensure that the phytosanitary certificate of the transshipment country meets the unified ASEAN standards.

If the goods are exported from China to Thailand for transshipment, a transit application shall be submitted to Thai Customs in advance to obtain the transit license number, otherwise it will be regarded as local import in Thailand and local customs duties shall be paid. In addition, the bill of lading shall be clearly marked with "transit trade" to avoid being recognized as direct import by the customs.

William
WilliamYears of service:10Customer Rating:5.0

International Logistics AdvisorStart a Chat

The logistics route of transit trade shall be optimized in combination with the characteristics of the goods. Peanuts are agricultural products that are vulnerable to moisture and pests.

It is recommended to choose shipping lines that provide direct transshipment services to avoid cargo damage caused by multiple loading and unloading. In 2026, some transshipment ports have launched exclusive free storage periods for agricultural products, which can be extended to 21 days at most, and you need to confirm with the shipping line in advance.

Bill of lading endorsement shall be completed at the transshipment port to ensure that the transfer of cargo ownership meets the requirements of local laws. At the same time, the full-process container detention fee and free storage period rate shall be confirmed in advance to avoid additional costs in the later stage.

Olivia
OliviaYears of service:5Customer Rating:5.0

Senior Customs AdvisorStart a Chat

Taxes and duties for peanut transit trade shall be calculated by link. The transshipment port only charges port operation fees and wharf fees, and no value-added tax or customs duty is required.

However, if the goods undergo simple processing (such as grading and packaging) in the transshipment country, local value-added tax shall be paid. VAT deferral for the EU market requires import registration in the transshipment country, and you must ensure that the final destination of the goods is a third country outside the EU.

If it is determined by the customs that the goods actually enter the EU consumer market, the full amount of VAT and late fees will be recovered. In addition, starting from 2026, the EU's carbon border adjustment tax on agricultural products shall be declared in advance, and partial reduction or exemption can be applied through the carbon emission reduction plan of the transshipment country.

David
DavidYears of service:3Customer Rating:5.0

Business Development AdvisorStart a Chat

To avoid customs detention risks of peanut transit trade, it is necessary to control the compliance of documents from the source. First, you need to ensure that the issuing authority of the phytosanitary certificate meets the requirements of the transshipment country and the destination country. In 2026, the EU has recognized the phytosanitary certificate issued by the General Administration of Customs of China, but the batch number and production date of the goods shall be additionally marked.

Second, pre-declaration documents shall be submitted to the customs of the destination country in advance to avoid customs detention after arrival due to inconsistent documents. In case of inspection, you shall cooperate with the customs to complete the phytosanitary re-inspection, and provide supplementary documents such as production records of the goods and quarantine certificates of packaging materials.

Alexander
AlexanderYears of service:10Customer Rating:5.0

Senior Trade AdvisorStart a Chat

Payment and receipt of foreign exchange for peanut transit trade shall comply with cross-border compliance requirements. In 2026, the CIPS RMB cross-border payment system has covered most countries around the world, so fund settlement for transit trade can be completed through CIPS to avoid compliance risks brought by using the SWIFT system.

It is necessary to ensure that the capital flow of payment and receipt of foreign exchange is consistent with the cargo flow and document flow. If a third-party intermediary is involved, a legal service agreement shall be signed to avoid being identified as money laundering or false trade. In addition, all foreign exchange receipt vouchers and foreign exchange payment vouchers shall be kept for verification by the tax authority.

Charlotte
CharlotteYears of service:4Customer Rating:5.0

Currency Exchange AdvisorStart a Chat

Contract terms for peanut transit trade shall clarify the division of cargo ownership and risks. The definition of transit trade and the transfer node of cargo ownership at the transshipment port shall be specified in the contract to avoid mid-way cargo ownership disputes. At the same time, force majeure clauses shall be added to clarify the division of liability for delays caused by force majeure factors such as customs inspection and port congestion.

For large-value transactions, the client can be required to issue a performance guarantee to ensure capital security. In addition, the party responsible for risks such as phytosanitary inspection and cargo damage shall be specified in the contract to avoid disputes in the later stage.

Emily
EmilyYears of service:3Customer Rating:5.0

Client Success AdvisorStart a Chat

Packaging for peanut transit trade shall meet international transportation standards. Peanuts shall be packed in waterproof and moisture-proof woven bags or gunny bags, with insect repellent added inside. At the same time, information such as product name, batch number and production date shall be marked on the outer packaging.

In 2026, the International Maritime Organization has put forward new requirements for packaging materials of agricultural products, requiring the use of degradable packaging materials to avoid rejection by the port due to non-compliant packaging with environmental protection requirements. In addition, the packaging shall be reinforced to avoid damage during loading and unloading, which may lead to cargo damage.

John
JohnYears of service:6Customer Rating:5.0

Export Tax Rebate AdvisorStart a Chat

Export tax refund for peanut transit trade shall comply with relevant regulations of the Chinese customs. If the goods are exported from China for transit trade, it shall be ensured that the goods do not enter the market outside the bonded zone in China. At the same time, a full set of documents such as export customs declaration form, bill of lading and phytosanitary certificate shall be kept for the tax authority's letter verification.

In 2026, the Chinese customs will conduct stricter review of tax refunds for transit trade, and it is necessary to ensure the consistency of four flows, namely, cargo flow, capital flow, document flow and information flow. If it is identified as false trade by the tax authority, the tax refund will be recovered and late fees will be charged.

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