What is transit?

28 June, 2022 |

marathon DAF truck

A concept closely related to the TSL industry, i.e. transport, forwarding and logistics, is transit. As it turns out – in the industry we can distinguish several types of it. In the following article, we explain what a transit procedure is and what it is, and discuss its different types.

Transit – definition

You already know that transit is the basic element of TSL. When is transit involved? When the transport passes through the territory of the State where there is no loading or unloading point. For example, the transport of goods from Poland to France is referred to as transit through Germany.

Importantly, although transit transport is regulated by such international agreements as the Convention and the Statute on Freedom of Transit and the Convention on Transit Trade in Landlocked Countries, it is used for transporting loads that are not subject to commercial policy and are exempt from customs duties. .

Quite a lot of freedom is true in the transit procedure and the release from the need to complete many formalities is the result of the lifting of customs barriers in the European Union and the implementation of its provisions. It is worth remembering that the process is part of the transport of cargo from one foreign country to another, and the very definition of transit only determines the route traveled in the territory of one country in between.

Direct and indirect transit of goods

The most popular division of the transit procedure is the distinction between direct and indirect transport. How are they different from each other? Let’s start with direct transit – the definition explains that it takes place when the transported goods travels the route through a given country without interruptions for reloading, storage or changing the means of transport. Everything takes place in the country of transit, i.e. the country through which the transit is carried out. In short – the cargo is delivered directly from point A to point B.

The second type is indirect transit. In such situations, the transported goods may be stored for a certain time in a selected place in the transit country for various reasons. Most often it is a change of the means of transport, e.g. from a truck to a railroad or ship, and the division of the cargo into smaller parts, which will then be delivered to different destinations.

Internal and external transit

The division of transit into direct and indirect is not the only way to distinguish between types of transport. We can also distinguish internal and external transit. The first category covers the transport of cargo from one place to another only within the customs territory of the European Union, but the route passes through another country. Importantly, the country through which the goods are transported belongs to the Community, and thus it does not affect the change of the customs status of the cargo. Such transit transport is carried out on the basis of a single customs document and security.

On the other hand, the external transit procedure is a bit more complicated. This category includes the transport of goods not only within the European Union, but also in countries that do not belong to the Community, which in turn causes a change in the customs status of the transported goods. This is due to the different trade policies and customs duties imposed by a given country. In such situations, transit must be preceded by the completion of the appropriate customs formalities.