Transit trade can be a complex concept for customers to comprehend in terms of logistics, as the billing conditions, processes, and procedures may differ significantly. In essence, transit trade refers to the act of selling a product that has been purchased from one country to another without being declared in the customs area of the seller's country.
If you are wondering how to do transit trade in bonded warehouses:
If we are to sell products acquired via transit trade to bonded warehouses within our country, and subsequently sell them to other countries, it is necessary to issue a warehousing declaration for accurate documentation purposes. In this scenario, the company in the country where the product was purchased will provide us with an invoice. We, in turn, will issue an invoice to the customer based in the country where the product will be sold.
To facilitate trade in transit from bonded warehouses in our country to foreign countries, customer invoices must be issued in English, and must not include VAT. Turkish invoices documenting our earnings in our country must also be issued, alongside the customer invoice. Notably, VAT is not included in the Turkish invoice. When purchasing a commercial product without VAT, invoices must be issued without VAT accounts.
Transit Trade is a way of trading that is used as a special method, free from the existing import and export procedures in countries. Transit trade is exempt from tax duties and no customs declaration is required for this method of trade.
When it comes to products shipped using Transit Trade, the shipping points themselves are of not important; what matters most instead is the shipping documents to be meticulously organized as per the regulations of the country of entry and exit of the shipment.
Transit trading does not differ from other trading in terms of payment methods. All forms of payment such as cash payment, letter of credit, LC payment, payment against documents used in import and export are also used in transit trade.
Payments made in commercial transit; Purchase-sale invoices must be presented, with written instructions by the bank, within one of the agreed payment methods.
Transit Trade with Neta Group
In our world, where understanding of the global market is developing rapidly, there are many intermediate producers and sellers. Especially the rapid growth of e-commerce has led thousands of people to experience fast purchasing processes through transit trade, without necessarily having to see each other in person... Global companies have emerged that have made great strides by organizing this trading method in many different ways.
Neta Group adopts the principle of carving out its place in the developing and ever-changing world and consistently, continues the search for solutions, especially to support local producers and sellers.
The Neta Group Field Team offers one-on-one training to its clients in the field of transit trade and foreign marketing. Establishing transit trade networks for small and medium-sized enterprises, both domestic and foreign origin, and providing comprehensive services, including necessary transportation, has become the most important transit trade solution we offer.
Neta Group, which successfully carries out field activities, also provides full support to its customers in tax trade and invoicing processes in transit.
As part of Neta Group's hosted financial advisory services, training and support is provided to its clients in all official transactions that occur in transit trading.
Aside from its transit trading services, Neta Group's financial advisory services also extend to the shipping and accounting of international cargo for customers undertaking regular business activities. Under this comprehensive service umbrella, Neta Group is able to offer a single source for all commercial and transit transportation transactions, and is equipped to take preventative measures against any potential issues that may arise.
For detailed information on the commercial transit service and financial advisory service provided by Neta Group, you can contact us from our communication section.