2026 Compliance Practical Guide for Domestic Enterprises' Transit Trade at Shanghai Port

Core Business Models and Compliance Premises of Transit Trade for Domestic Enterprises

In 2026,the global trade environment remains complex,with frequent anti-dumping duties and tariff barriers in major markets like Europe and the US.Many domestic enterprises choose transit trade to avoid risks,but most are unclear about the compliance requirements and operational details of this model.Transit trade refers to a trade model where goods are exported from the producing country,do not pass through the consuming country,and are sold to the consuming country after transshipment via a third country/region.The core premise for domestic enterprises to conduct this business is that they have no overseas entities and need to rely on professional foreign trade agents to complete the full-link operations.

Comparison of Three Basic Transit Trade Models

Core Compliance Points for Domestic Enterprises’ Transit Trade in 2026

In 2026,the General Administration of Customs upgraded the price assessment and control model for transit trade goods.Domestic enterprises need to focus on three compliance dimensions:

• Accurate HS Code Classification: Incorrect coding directly leads to invalid certificates of origin,supplementary tariff payment,or even customs inspection.In 2025,we handled a case where a hardware enterprise in Shanghai classified electric wrenches under HS code 85081900,but the correct code was 85081100,leading to customs control and inspection,resulting in 3 days of port detention and 21,000 yuan in detention fees.Our operation logic is to conduct pre-classification with the local customs in advance,confirm the code based on the product’s material,function,and purpose,to avoid subsequent risks.
• Compliant Application of Certificate of Origin: Third-country certificate of origin is the core document for transit trade.In 2026,the audit requirements for certificates of origin in RCEP member countries are stricter,requiring the provision of purchase vouchers from upstream factories and production process records.Domestic enterprises cannot randomly find third parties to handle the application; they need to choose institutions with a global agency network to ensure the documents meet the requirements of the target country’s customs.
• Compliance of Foreign Exchange Settlement: Foreign exchange for transit trade of domestic enterprises must be settled through current account,and it is strictly prohibited to use personal accounts for foreign exchange collection.In 2026,the State Administration of Foreign Exchange upgraded the foreign exchange monitoring system for transit trade.If the time difference between foreign exchange collection and payment exceeds 90 days,an early warning will be triggered.We will coordinate the rhythm of collection and payment in advance to ensure compliance with regulatory requirements.

Common Risks and Avoidance Suggestions for Domestic Enterprises’ Transit Trade

Transit trade involves multi-link operations,and domestic enterprises often face three core risks.We provide avoidance solutions based on frontline practical experience:

• Failure to Avoid Anti-Dumping Duties: Some enterprises choose transit countries that have not signed free trade agreements with the target country,leading to inability to enjoy tariff preferences.In 2026,the US anti-dumping duty on Chinese photovoltaic products is 255%.We will prioritize countries like Thailand and Malaysia that have signed free trade agreements with the US as transit countries,which can reduce tariffs to within 1.5% and save enterprises a lot of costs.
• Port Detention Fee and Document Exchange Fee Traps: Some freight forwarders charge high document exchange fees during transit.In 2026,the normal document exchange fee at Shanghai Port is $150 per shipment,but some small freight forwarders charge more than $500.We will lock in freight forwarder fees in advance and sign a lump-sum agreement to avoid hidden costs.
• Risk of Loss of Goods Ownership Control: In transit trade,goods are shipped from China to a third country for transshipment.If problems occur with the third-party warehousing enterprise,the goods may be detained.We will cooperate with the world’s top 20 warehousing enterprises and sign a goods ownership locking agreement to ensure full control of the goods throughout the process.

Practical Case: Compliance Implementation of Transit Trade for a Domestic Hardware Enterprise

At the end of 2025,the US imposed a 230% anti-dumping duty on Chinese hand tools.A domestic hardware enterprise in Shanghai had its $1.2 million order canceled and urgently needed a transit trade solution.Our execution process is as follows:

• Pre-classification of HS code: Confirm the correct code for hand tools is 82054000 to avoid customs price assessment doubts;
• Select transit country: Determine Thailand as the transit country and apply for a Thai certificate of origin;
• Full-link logistics arrangement: Coordinate with the agent at Shenzhen Port to arrange the shipment of goods from Shanghai to Laem Chabang Port in Thailand,then transship to Los Angeles in the US,taking 28 days in total;
• Document review: Confirm customs clearance documents with the US consignee in advance to ensure the certificate of origin meets the requirements of the US Customs and Border Protection (CBP).

Finally,the goods were delivered on time,the tariff was reduced from 230% to 1.2%,saving the enterprise about $1.2 million in tariff costs,with no compliance issues.

Full-Link Service Advantages of Transit Trade for Domestic Enterprises

As a senior foreign trade agent at Shanghai Port,we have the ability to declare at different ports across the country,covering major ports like Shanghai,Shenzhen,and Ningbo.At the same time,we have an agency network in 32 countries worldwide,providing one-stop transit trade services for domestic enterprises,including customs declaration,logistics,foreign exchange settlement,certificate of origin application,and other full-link operations.Enterprises do not need to connect with multiple service providers on their own,saving communication costs.

In 2026,the compliance requirements for transit trade are getting higher.Domestic enterprises need to rely on the experience of professional institutions to avoid risks.We will control every operation node throughout the process to ensure the compliance and efficient implementation of transit trade.