Transit Trade

Transit trade refers to the trade activity where foreign goods are transported into a country's territory without being processed or altered, and then shipped onward to a third country (or region). Its core characteristic is that the goods only briefly stay or pass through the country's territory, ownership does not transfer, and the country does not participate in the transaction. It is commonly used in transit transportation, international logistics hubs, free trade zones, and bonded zones. Precautions include: complying with customs transit supervision regulations, completing transit customs declaration procedures, ensuring goods leave the territory within the prescribed time limit to avoid being levied tariffs or VAT; also note the difference between transit trade and re-export trade—in re-export trade, ownership of goods transfers, while in transit trade, goods only pass through physically. In addition, transit trade is not included in the country's import and export statistics, but must be included in customs supervision. Compared with indirect trade and direct trade, transit trade emphasizes geographical passage rather than transaction participation.