How does transit trade work?
In transit trade, goods are bought from one country and sold to a buyer in a third country without entering Turkey. The transaction is managed from Istanbul, while the cargo travels by the shortest route.
- FOB
- CFR
- CIF
- FCA
- CPT
- DAP
Definition
Two contracts, one shipment.
ROTA GROUP signs a purchase contract with the manufacturer or supplier and a separate sales contract with the buyer. The goods are loaded in the country of origin and shipped directly to the country of destination.
In Turkey, transit trade is carried out within the framework of the Ministry of Trade's export regulations and foreign exchange rules. Monitoring of purchase and sale proceeds through banking channels is part of this structure.
Process
Steps of a transit trade transaction
Inquiry and specification
We obtain the product, quantity, technical specifications, destination and preferred delivery terms from the buyer.
Supplier selection
Suitable manufacturers are researched, and offers are compared for technical compliance, lead time and price.
Sales offer
The buyer receives an offer stating the delivery terms (Incoterms), payment method and estimated shipment date.
Contracts
Purchase and sales contracts are signed, and the payment structure (letter of credit, cash against documents, advance payment) is set up on both sides.
Production and inspection
Production is monitored and, if requested, a pre-shipment inspection is arranged with an independent inspection company.
Shipment
The cargo is loaded at the port or border of departure, the transport document is issued and the shipment is tracked.
Document delivery
The invoice, packing list, bill of lading and certificate of origin are delivered to the buyer or the bank.
Delivery and closing
The goods reach the buyer, payments are completed and the transaction file is closed.
Delivery terms
Incoterms 2020 rules we use most often
- FOB
Free On Board
The seller loads the goods onto the buyer's vessel at the port of shipment. Freight and insurance are for the buyer's account.
- CFR
Cost and Freight
The seller pays the freight to the port of destination; risk passes to the buyer once the goods are loaded on board.
- CIF
Cost, Insurance and Freight
As with CFR, but the seller also arranges cargo insurance.
- FCA
Free Carrier
The seller hands the goods over to the buyer's carrier at the agreed place. Common in container and road transport.
- CPT
Carriage Paid To
The seller pays for carriage to the place of destination; risk passes on delivery to the first carrier.
- DAP
Delivered at Place
The seller delivers the goods at the place of destination, ready for unloading. Import duties are for the buyer's account.
Payment structures
Payment methods chosen to suit each transaction
- 01
Letter of credit (L/C)
A payment method backed by a bank's undertaking to pay, subject to the documents complying with the stated terms. Preferred for large and first-time transactions.
- 02
Cash against documents (CAD)
The documents are released to the buyer through a bank against payment.
- 03
Advance and partial advance payment (T/T)
An advance on order confirmation, with the balance paid before shipment or against documents.
Who it suits
- Buyers who want to choose between manufacturers in different countries for the same product
- Businesses that want to buy items from several manufacturers under one contract and through one point of contact
- Buyers who want their international payment and documentation process managed by a single party
- Distributors looking for fast, direct supply to their region without holding stock in Turkey
Let's chart your route together.
Tell us the product you need and the destination country. We will get back to you with sourcing and shipping options.