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
| Feature | Transit Trade | Re-Export |
|---|---|---|
| Physical entry | May not enter or may transit | Enters Turkey, stored in warehouse |
| Customs regime | Transit regime | Exit from warehouse regime |
| Nationalization | No | No |
| Tax burden | Zero | Zero |
| Storage | Limited | Unlimited (in warehouse) |
| Handling | No | Yes (labeling, packaging, etc.) |
| Value addition | Limited | Possible (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
Trabzon's Re-Export Advantage
| Target Market | Distance from Trabzon | Transit Time |
|---|---|---|
| Georgia (Batumi) | ~250 km | 1 day (road) |
| Russia (Sochi) | By sea | 1-2 days |
| Iran (Tabriz) | ~800 km | 2 days (road) |
| Azerbaijan (Baku) | ~1,200 km | 2-3 days |
| Turkmenistan | Middle Corridor | 4-5 days |
| Kazakhstan | Middle Corridor | 5-7 days |
How Does the Re-Export Process Work?
Critical point: Throughout this process, goods do not enter free circulation in Turkey and no import taxes are paid.
Tax Advantages of Re-Export
Concrete Example
| Scenario | Normal Import + Export | Re-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?
Which Sectors Benefit Most from Re-Export?
Strengthen Your Re-Export Operations with Ak Bonded Warehouse
Ak Bonded Warehouse offers ideal infrastructure for re-export operations in Trabzon's strategic location:
Want to leverage Trabzon's advantages for your re-export operations? Contact us.