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What are the contents of the compliance operation process for foreign exchange accounting entry under transit trade?

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I am the financial staff of a foreign trade enterprise engaged in transit trade. In 2026, we will conduct three batches of transit business from Southeast Asia via Singapore.

Previously, due to the mismatch between documents and capital flow during accounting entry, two funds were placed on suspense account by the bank. Now the bank requires us to provide complete entry supporting documents within 15 days, otherwise our subsequent payment and receipt quota will be affected.

In terms of tax issues, we are not sure how to distinguish revenue and cost for transit trade, and whether value-added tax issues will be involved. We would like to consult about the specific entry operation procedures, required documents, and methods to avoid compliance risks, and request detailed guidance.

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Expert Answer

John
JohnYears of service：6Customer Rating：5.0

Export Tax Rebate AdvisorStart a Chat

Pre-document review shall focus on verifying the logical closed loop of three items: cargo right certificate，payment and receipt slip，and transit country trade contract，to ensure that the capital flow，document flow and cargo right flow of each entry are fully matched. The newly added transit country tariff paid certificate in 2026 shall be uploaded as an attachment to the Digital Foreign Exchange Management Platform of the State Administration of Foreign Exchange.

For core node connection，document sorting shall be completed within 10 days after the bank's suspense account warning，and filing shall be submitted through the cross-border payment and receipt monitoring system simultaneously，to avoid affecting the payment and receipt quota due to overdue processing.

For abnormal contingency plans，if documents are missing，supplementary trade certificates can be applied for from relevant institutions in the transit country，and a situation statement shall be submitted to the State Administration of Foreign Exchange. Unauthorized adjustment of accounting entry items is strictly prohibited.

For final compliance implementation，ensure that transit trade revenue is declared in the "Cross-border Service Tax Exemption" column of the value-added tax declaration form. The cost is confirmed based on the difference between the import value of goods in the transit country and the domestic procurement value. All documents shall be retained for at least 10 years for future inspection.

David
DavidYears of service：3Customer Rating：5.0

Business Development AdvisorStart a Chat

Verify that the trade method on the customs declaration is marked as transit trade. In 2026, the remark column of transit trade customs declarations at Shanghai Port must clearly state the name of the transit country, to ensure that the customs declaration information is consistent with the subject of payment and receipt.

If a suspense account occurs, immediately apply to the customs for reprinting the customs declaration with transit country remark, and submit it to the bank simultaneously for processing, to avoid prolonging the suspense account period due to document inconsistency.。

Robert
RobertYears of service：6Customer Rating：5.0

Warehouse Management AdvisorStart a Chat

Sort out the logistics path of transit trade, confirm that the consignee information of the transit country on the cargo right certificate is consistent with the payee of the payment and receipt. In 2026, all full-process logistics nodes shall be uploaded to the cross-border logistics supervision system, and the logistics track record shall be provided as auxiliary supporting document during entry.

If the cargo right transfer involves bill of lading endorsement, ensure that the interval between the endorsement date and the entry time complies with the regulations of the State Administration of Foreign Exchange.。

Emily
EmilyYears of service：3Customer Rating：5.0

Client Success AdvisorStart a Chat

Transit trade revenue shall be declared in accordance with the cross-border service tax exemption policy. The latest 2026 policy requires distinguishing value-added service links in the transit country, and only logistics, agency and other service fees generated in the transit country can be included in the tax exemption scope.

Domestic procurement cost and overseas procurement cost shall be strictly separated to avoid being identified as falsely increased cost by tax authorities.。

William
WilliamYears of service：10Customer Rating：5.0

International Logistics AdvisorStart a Chat

In accordance with the 2026 CIPS cross-border payment rules, the transaction remark shall be submitted through the declaration system for transit trade payment and receipt, clearly marked as "Transit Trade - (Name of Transit Country)".

Check the remark content of the SWIFT message during entry. If the remark is ambiguous, contact the remitting bank to resend the message to ensure payment and receipt compliance.。

Sophia
SophiaYears of service：7Customer Rating：5.0

Senior Customs AdvisorStart a Chat

Clarify the document requirements for accounting entry when formulating the transit trade contract, to avoid entry disputes caused by vague contract agreements. In 2026, international trade terms shall be adapted to the compliance requirements of digital documents, to ensure that electronic bills of lading, electronic customs declarations and other digital documents can be used as entry supporting documents, so as to avoid legal risks.。

Ella
EllaYears of service：10Customer Rating：5.0

Senior Financial AdvisorStart a Chat

If on-site inspection of transit trade goods is involved, explain the transit purpose of the goods to the inspectors, and provide the trade contract of the transit country as proof, to avoid document inconsistency caused by the goods being treated as ordinary imported goods during inspection, which will affect the entry progress.。

Daniel
DanielYears of service：8Customer Rating：5.0

Legal AdvisorStart a Chat

The packaging of transit trade goods shall conform to the transport standards of the transit country. In 2026, the packaging compliance requirement for cross-border logistics is included in the auxiliary entry supporting documents.

Non-compliant packaging may lead to port detention, which will affect the acquisition of cargo right certificates and further delay the accounting entry.。

Alexander
AlexanderYears of service：10Customer Rating：5.0

Senior Trade AdvisorStart a Chat

Transit trade does not fall into the category of export tax refund, so it shall be clearly marked as "Non-tax-refund" during declaration.

A new check item for transit trade is added in the tax refund system in 2026, to avoid tax verification letter inquiries caused by wrong selection of tax refund. All foreign exchange collection vouchers and cost documents shall be retained for inspection during accounting entry.。

Note: We respect all users' opinions and contributions. However, comments and answers reflect the views of their respective authors only.
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