GlossaryEN1 min readUpdated: Aug 25, 2026

Direct Transport Rule

A Swiss exporter ships preferential goods to China but has the container transhipped in Singapore on the way – whether the tariff preference survives is decided by the direct transport rule.

Quick Answer

Last updated: 25 August 2026

Source: Frachtportal-Artikel «Schweiz und China: 99,8 Prozent der Exporte sollen zollfrei werden» (23.08.2026)

Category

Logistics Concept

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1 min

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131

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Definition & Explanation

A Swiss exporter ships preferential goods to China but has the container transhipped in Singapore on the way – whether the tariff preference survives is decided by the direct transport rule. Classic free trade agreements require originating goods to move directly between the contracting parties. Passage through third countries is permitted only if the consignment remains under customs supervision there and nothing happens to it beyond transhipment, splitting of consignments and operations to preserve it in good condition. Proof is provided by transit documents, bills of lading or a certificate of non-manipulation. Newer agreements increasingly replace strict direct transport with more flexible non-alteration clauses that explicitly allow storage and logistics services in a third country. If the rule is breached, the preference is lost and the ordinary third-country duty rate applies.