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What Is Transit Trade and Re-Export? A Guide to Tax-Free Re-Exportation from Turkey

June 10, 20264 min942 words

From transit trade and re-export concepts to tax-free re-exportation processes through Turkey — we examine the strategic role of the bonded warehouse regime in international trade in detail.

What Is Transit Trade?

Transit trade is a transaction where a company based in one country purchases goods from abroad and sells them to another country without importing them into its own territory or without nationalizing them. Turkey's geographic position makes this trade model extremely advantageous.

For example: A Turkish company can sell electronic products purchased from China to Georgia or Russia through Trabzon Port — in this process, goods are not nationalized in Turkey and no import taxes are paid.

What Is Re-Export?

Re-export is the exportation of previously imported goods or goods stored in a bonded warehouse, without releasing them into free circulation in Turkey. Unlike transit trade, the goods have physically entered Turkey and been stored in the warehouse.

Differences Between Transit Trade and Re-Export

FeatureTransit TradeRe-Export

Physical entryMay not enter or may transitEnters Turkey, stored in warehouse
Customs regimeTransit regimeExit from warehouse regime
NationalizationNoNo
Tax burdenZeroZero
StorageLimitedUnlimited (in warehouse)
HandlingNoYes (labeling, packaging, etc.)
Value additionLimitedPossible (in-warehouse operations)

Factors Making Turkey a Re-Export Hub

Turkey is ideal for re-export operations due to its geography and infrastructure:

Geographic Advantages

  • • Europe-Asia bridge: Unique position connecting two continents

  • • Black Sea access: Direct maritime connection to Russia, Ukraine, Georgia

  • • Middle Corridor: On the trade route extending from China to Europe

  • • Middle East proximity: Road access to Iran, Iraq, and Gulf countries

    • Trabzon's Re-Export Advantage

    Target MarketDistance from TrabzonTransit Time

    Georgia (Batumi)~250 km1 day (road)
    Russia (Sochi)By sea1-2 days
    Iran (Tabriz)~800 km2 days (road)
    Azerbaijan (Baku)~1,200 km2-3 days
    TurkmenistanMiddle Corridor4-5 days
    KazakhstanMiddle Corridor5-7 days

    How Does the Re-Export Process Work?

  • Goods are imported — Arrive in Turkey by sea, road, or air

  • Warehouse declaration filed — Goods placed in bonded warehouse

  • Storage and handling — Labeling, packaging, quality control as needed

  • Buyer identified — International buyer agreement reached while goods are warehoused

  • Export declaration — Filed without nationalizing the goods

  • Shipment — Goods sent directly from warehouse to destination country

    • Critical point: Throughout this process, goods do not enter free circulation in Turkey and no import taxes are paid.

    Tax Advantages of Re-Export

  • • Customs Duty: 0% — No customs duty as goods are not nationalized

  • • VAT: 0% — No import VAT assessed

  • • Excise Tax: 0% — No excise tax applied

    • Concrete Example

    ScenarioNormal Import + ExportRe-Export

    CIF Value$1,000,000$1,000,000
    Customs Duty (8%)$80,000$0
    VAT (20%)$216,000$0
    Total Tax$296,000~$0
    Tax Savings—$296,000 saved

    Which Operations Can Be Performed Before Re-Export?

  • • Labeling: Adding labels and barcodes for target market

  • • Repackaging: Packaging in different unit sizes

  • • Quality control: Inspection, sampling, testing

  • • Lot splitting: Breaking large shipments into smaller orders

  • • Consolidation: Combining goods from different sources into single shipments

    • Which Sectors Benefit Most from Re-Export?

  • Electronics and technology: From China to CIS countries

  • Textiles and apparel: From Far East to Russia and Central Asia

  • Food and agriculture: From various countries to regional markets

  • Automotive parts: From Europe to Middle East and Caucasus

  • Construction materials: From global supply to regional projects

  • Machinery and equipment: Industrial trade routes

    • Strengthen Your Re-Export Operations with Ak Bonded Warehouse

    Ak Bonded Warehouse offers ideal infrastructure for re-export operations in Trabzon's strategic location:

  • • Proximity to Black Sea, Caucasus, and Central Asian markets

  • • Flexible storage and handling with Type A public warehouse

  • • Fast declaration processes with experienced customs brokerage

  • • Digital inventory and operations management through BİLGE system

  • • Access to multiple transport modes (sea, road)

    • Want to leverage Trabzon's advantages for your re-export operations? Contact us.

    Discover Ak Bonded Warehouse Services →
    Contact Us →

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