Is a Through B/L Sufficient to Prove FTA Direct Transport if Container/Seal Numbers Change During Transshipment? Released

The Direct Transport Principle is one of the most fundamental and critical requirements for applying FTA preferential tariff rates. Most agreements, including the Korea-Turkey (Türkiye) FTA, require originating goods to be transported directly from the exporting party to the importing party. However, due to geographical or logistical reasons, goods are frequently routed through or transshipped in a third country. In such cases, the importer must prove that the shipment meets the criteria for an exception to the direct transport rule.

Typically, for transshipped cargo, direct transport is proven by submitting a Through Bill of Lading (Through B/L), which shows the entire transport route from the point of origin to the final destination. However, as in your case, if the container number or Seal number changes at an intermediate port like Malaysia, the evidentiary link confirming the identity of the goods is considered broken. Therefore, a Through B/L alone may be insufficient to satisfy customs authorities.

Reasons Why Changes in Container Information Require Additional Evidence

The core objective of the direct transport principle is to verify that the goods shipped from the exporting country reached the importing country without undergoing any processing or commercial transactions in a third country. Container and seal numbers are unique identification data symbolizing the security and integrity of the cargo. A change in this information implies that the container was opened or the cargo was reloaded at an intermediate stage.

Consequently, customs authorities will closely examine whether the goods remained under customs supervision in the non-party country and whether any unauthorized processing took place. According to the Korea-Turkey FTA and related regulations, goods transshipped or temporarily stored in a non-party country must remain under the surveillance of the local customs authorities, and it must be proven that no operations were performed other than unloading, reloading, or operations to preserve the goods in good condition. If only a Through B/L is provided when container numbers differ, customs cannot be certain of the consistency between the documented goods and the arrived goods, leading to a request for supplementary data.

Recommended Solutions: Certificate of Non-Manipulation and Supporting Documents

To fully substantiate compliance with direct transport requirements and secure preferential tariff treatment, we recommend preparing the following additional documentation:

• Certificate of Non-Manipulation (CNM): This is an official document issued by the customs authorities of the transshipment port (e.g., Malaysia). It certifies that the goods were under customs control during transshipment and that no manipulation occurred other than allowed operations. This is the strongest form of evidence.
• Cargo Transfer and Operation Records: Obtain a work confirmation report or history from the shipping line or freight forwarder that details the circumstances of the change (e.g., container replacement due to damage) during transshipment.
• Cargo Manifests: Compare the export manifest from the country of origin with the import/export manifests of the transshipment country to demonstrate that the weight, quantity, and description of the goods remain consistent.

Ultimately, the determination of whether direct transport requirements are met is made by the Customs Office of Import after a comprehensive review of all submitted documents. It is crucial to consult with a Customs Broker before filing the import declaration to secure as much documentation as possible from the transshipment site. Please be aware that if the evidence is deemed insufficient, the FTA rate may be denied, resulting in high basic duty rates. The burden of proof lies with the importer, so thorough preparation is essential.