+90 530 051 29 90
EN
Request a quote

Transit trade

Goods move directly from one country to another. The trade is managed from Istanbul.

Transit trade means buying goods from a foreign country and selling them to another country without importing them into Türkiye. The purchase and sales contracts, payment and documents are managed from Istanbul, while the goods are shipped from the country of manufacture to the country of destination.

Supplier countryManufacturer or stockist
HERMETEK · IstanbulContract · payment · documents
Buyer countryFactory, contractor, distributor
Flow of goods (direct)Flow of documents and payment

How the model works

HERMETEK buys the goods from the supplier and sells the same goods to the buyer. There are two separate contracts: one with the supplier and one with the buyer. The goods are shipped from the loading point in the supplier's country to the destination in the buyer's country.

The transport document (bill of lading, air waybill or CMR) is issued in the buyer's name or to order, and the invoice and other documents are presented to the buyer by HERMETEK. This way, the buyer works with a single seller, and the supplier with a single buyer.

Who it is for

It suits manufacturers that want to buy a machine, part or material not available in their own country from abroad, contractors that source project materials from several suppliers, and distributors looking to expand their product range.

On the supplier side, it makes sense for manufacturers that want to enter a new market through an intermediary who knows that market and manages payment and documentation risk.

Free zones and bonded warehouses

Some deals require the goods to be consolidated, repacked or relabeled. In that case, the goods can be taken into a free zone or bonded warehouse in Türkiye under customs supervision and re-shipped without being imported.

This option is often used for project work where parts from several suppliers need to be combined into a single shipment.

Documents

The document file for a transit shipment

  • PI

    Proforma invoice and contract

    Product description, quantity, unit price, delivery terms, payment terms and validity period.

  • CI

    Commercial invoice

    Issued separately for the purchase and the sale; the description of goods, HS code and amounts match the letter of credit wording exactly.

  • PL

    Packing list

    Gross and net weights, dimensions and marks per carton, pallet or crate.

  • B/L

    Bill of lading / transport document

    Bill of lading for sea freight, AWB for air, CMR for road and CIM consignment note for rail.

  • CO

    Certificate of origin

    Shows the country where the goods were made; usually issued by the competent chamber in the supplier's country.

  • INS

    Insurance policy or certificate

    Mandatory under CIF and CIP, recommended for other terms; the scope of cover is stated in the contract.

  • IC

    Inspection and test report

    Pre-shipment check of quantity, quality and packaging; carried out by an independent inspection company if the buyer requests it.

Delivery terms

The Incoterms 2020 rules we use

  1. EXW

    Goods are delivered at the supplier's premises; loading and transport are the buyer's responsibility.

  2. FCA

    Goods are handed over to the carrier nominated by the buyer in the country of loading.

  3. FOB

    Risk passes to the buyer once the goods are loaded on board the vessel at the port of loading.

  4. CFR

    The seller pays the freight; risk passes at the port of loading and insurance is the buyer's responsibility.

  5. CIF

    The seller pays freight and marine insurance; risk passes at the port of loading.

  6. CIP

    The seller pays carriage and insurance; usable with any mode of transport.

  7. DAP

    Goods are delivered ready for unloading at the named place in the buyer's country; customs clearance is the buyer's responsibility.

Payment

Payment structures

  • Letter of credit (L/C)

    The buyer's bank undertakes to pay once compliant documents are presented. It is the safest structure for high-value deals and new relationships.

  • Documents against payment (D/P)

    Documents are sent through the banks; the buyer receives the documents, and therefore the goods, once payment is made.

  • Advance and balance

    An advance payment on order confirmation and the balance against shipping documents. Common in established relationships.

  • Back-to-back letter of credit

    Based on the letter of credit opened by the buyer, a second letter of credit can be opened in favor of the supplier; the payment risk of each side is managed separately.

Transit trade transactions are carried out within the framework of foreign exchange regulations, banking practice and the foreign trade rules of the countries involved. The document and payment structure of each deal is agreed with the parties at the contract stage.

Request a quote for this group

Tell us the product name or model, technical specifications, quantity and destination country. We will send you suitable sourcing and delivery options.

Request a quote +90 530 051 29 90