Customs and Compliance

What is transit trade? How it is done

Short answer

Transit trade is the purchase of goods from abroad and their sale back abroad, without the goods being put into free circulation within the country. The goods may physically pass through Türkiye or go directly to the third country without touching it at all. No import duty arises. It differs from the transit regime: one is a customs regime, the other is a form of trade.

Updated: August 24, 20263 min read

What transit trade is

Transit trade is the purchase of goods from abroad and their sale back abroad. The goods are not put into free circulation within the country, so no import duty arises.

The Turkish company is the commercial party here: it buys and sells. Where the goods physically pass through is a separate question.

Two ways of doing it

The goods never touch Türkiye at all. They go directly from the selling country to the buying country. The Turkish company is involved only through invoices and documents. This is the simplest and fastest form.

The goods pass through Türkiye but are not put into free circulation. They are taken into a bonded warehouse or a free zone, wait there, are handled if needed, and re-exported. This route is used when storage, consolidation, or split shipment is required.

Do not confuse it with the transit regime

Because the names sound similar, the two are often mixed up.

Transit regime Transit trade
What it is A customs regime A form of trade
What it governs Movement of goods with duties suspended Buying and selling of goods
Its document T1/T2 declaration, TIR carnet Two separate invoices (purchase and sale)
Who is involved The carrier and customs The commercial parties

Both can occur within the same shipment: the goods of a company doing transit trade may be carried through Türkiye under the transit regime.

Document flow

The process consists of two separate commercial transactions:

  1. Purchase — the invoice received from the supplier
  2. Sale — the invoice issued to the buyer

Transport documents, and any bonded-warehouse or free-zone transaction documents, are added to these.

The critical point is this: the supplier’s identity can be exposed in the document chain. The actual supplier appears as sender on the bill of lading; once the buyer sees the document, they learn the source and may cut out the intermediary on the next order.

Switch bill of lading

The way to manage this risk is a switch bill of lading: the sender information on the original bill of lading is replaced with your own company’s details, and a new set is issued.

The process is carried out with the carrier’s approval and under certain conditions; the new set is not issued until the original set has been surrendered. It carries an additional fee, and not every line accepts it — this should be asked about at the booking stage.

Who it suits

  • Companies handling regional distribution and selling to neighboring countries
  • Intermediaries trading between third countries
  • Trading companies wanting to protect their source of supply
  • Traders dealing in products with no domestic demand

Common mistakes

Confusing transit trade with re-export. In re-export, the goods have typically already been imported and are then exported; in transit trade, they never enter free circulation at all.

Realizing the need for a switch bill of lading too late. When requested after loading, it is not always possible.

Not checking whether the supplier’s identity is exposed in the document chain. The source can also appear on the invoice, the packing list, and the certificate of origin.

Not factoring in bonded warehouse and free zone costs. If the goods are to pass through Türkiye, storage and handling line items are added.

This page is general information, not legal advice. Regulations change; confirm the current position before acting.

FAQ

  • Are transit trade and the transit regime the same thing?

    No. The transit regime is a customs regime governing the movement of goods, with duties suspended, from one customs office to another. Transit trade is a form of trade: buying goods and selling them abroad. The two can occur together within the same shipment.

  • Can it be done without the goods passing through Türkiye at all?

    Yes. The goods can go directly from the selling country to the buying country; the Turkish company is involved only as the commercial party. If the goods are to pass through Türkiye, a bonded warehouse or free zone is used, and they are not put into free circulation.

  • Why is a switch bill of lading needed?

    If you do not want the buyer to see who the actual supplier is. The sender information on the original bill of lading is replaced with your own company's details, and a new set is issued. The process requires the carrier's approval and is subject to certain conditions.

  • Does transit trade give rise to tax?

    Because the goods are not put into free circulation, import duties do not arise. Taxation of the profit is a separate matter and is subject to the general corporate tax provisions.

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