Transit trade doesn't completely dispense with customs declaration. In transit trade, the goods are shipped from the producing country to the transit country and then from the transit country to the consuming country. When the goods are in the transit country, if they are stored in specific areas such as the bonded area and bonded warehouse and are not subject to substantial processing and do not enter the domestic market of the transit country for circulation, they may not be declared as ordinary imports and exports of goods.
This is because the bonded area has the characteristic of "inside the territory but outside the customs territory". The goods are under the special supervision of the customs and formal import and export customs declaration procedures are not processed for the time being. Only a simple filing registration with the customs is required, which facilitates the rapid transfer of the goods and reduces the logistics and time costs of enterprises. However, if the goods leave the bonded area and enter the domestic market of the transit country, then formal customs declaration procedures must be processed in accordance with the relevant regulations of the transit country. Therefore, the statement that transit trade doesn't require customs declaration is inaccurate. The customs declaration situation needs to be judged according to the specific state and flow direction of the goods in the transit country.
Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Transit trade doesn't completely dispense with customs declaration. In transit trade, the goods are shipped from the producing country to the transit country and then from the transit country to the consuming country. When the goods are in the transit country, if they are stored in specific areas such as the bonded area and bonded warehouse and are not subject to substantial processing and do not enter the domestic market of the transit country for circulation, they may not be declared as ordinary imports and exports of goods.
This is because the bonded area has the characteristic of "inside the territory but outside the customs territory". The goods are under the special supervision of the customs and formal import and export customs declaration procedures are not processed for the time being. Only a simple filing registration with the customs is required, which facilitates the rapid transfer of the goods and reduces the logistics and time costs of enterprises. However, if the goods leave the bonded area and enter the domestic market of the transit country, then formal customs declaration procedures must be processed in accordance with the relevant regulations of the transit country. Therefore, the statement that transit trade doesn't require customs declaration is inaccurate. The customs declaration situation needs to be judged according to the specific state and flow direction of the goods in the transit country.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
When the goods of transit trade are in special supervision areas, the customs management methods are different. A simple filing is sufficient and there is no need to declare customs as in the case of regular imports and exports. This is mainly to accelerate the logistics efficiency.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
The policies of the transit country towards areas such as the bonded area are lenient. The goods only stay temporarily in these areas waiting for transshipment and do not involve domestic sales and other links. Therefore, the process is simplified and there is no need for regular customs declaration.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
When the goods of transit trade are in the bonded area and do not declare customs, it can reduce the occupation of enterprise funds because there is no need to pay tariffs and other taxes immediately. The relevant customs declaration and tax payment procedures are only processed when the goods actually leave the area for sales.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
From the perspective of international practice, the goods of transit trade are not consumed in the transit country. To encourage the development of transit trade, many countries adopt special customs declaration policies for the goods in the bonded area to promote trade facilitation.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the goods are in the non-bonded area of the transit country, then customs declaration is definitely required. It is only in the bonded area that there is special treatment to make the transit trade process smoother.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
When the goods of transit trade are in the bonded area, the customs focuses on supervising the entry and exit of the goods in the area rather than comprehensively supervising the customs declaration as in the case of general trade. The supervision methods are different.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The "no" in "transit trade does not declare customs" means that it does not declare customs as in regular trade. There is a simple customs declaration mode specifically for transit trade in specific areas.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Transit trade takes advantage of the policies of the bonded area to reduce the cumbersome procedures of customs declaration, enables the rapid transit of goods and enhances the trade competitiveness of enterprises.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
In the bonded area, the state of the goods is similar to temporary storage abroad. Therefore, the requirements for customs declaration are different from those of regular imports and exports and a management method more suitable for transit trade is adopted.