Definition. Transit refers to movement of goods through Customs control from one Customs office to the other without paying import duties, domestic consumption taxes or other charges normally due on imports. This movement is subject to laws and regulations of the transit country and also bilateral or international agreements.

Overview. Transit most frequently refers to road transportation to and from landlocked countries. In fact, it can be national and international: National transit happens when goods are transferred within national borders, from the first point of entry in the country to a location where customs procedures are undertaken (e.g. dry ports). International transit refers to the procedure where national borders are crossed. In many landlocked developing countries both types of transit can be found: imported goods arrive at the national borders from the transit countries, and are most often shipped under national transit to the main economic centers. The basic Customs mechanisms are similar in both cases; however, the implementation is easier for the national transit link.

For developing countries, the most important case of transit is road/rail transportation to and from landlocked developing countries (LLDCs), most of which rely heavily on international maritime transport for their trading activities. Many international organizations and transportation fora have identified dysfunctional transit operations as a major cost increasing factor for LLDCs. These issues need to be addressed systematically to help LLDCs reach out to global markets. Those issues and a remedial action plan have been discussed extensively in the International Ministerial Conference of Landlocked and Transit Developing Countries and Donor Countries and International Financial and Development Institutions on Transit Transport Cooperation held at Almaty, Kazakhstan, from 28 to 29 August 2003. The Conference adopted the Almaty Programme of Action (APA): Addressing the Special Needs of Landlocked Developing Countries within the New Global Framework for Transit Cooperation for Landlocked and Transit Developing Countries, and the Almaty Declaration.

Transit procedures are intended to protect the revenues of the country of transit and to avoid the circumstance that goods intended for transit are leaked to the domestic market. Such transit procedures should be simple so as not to generate excessive delays and costs.

Core ingredients for a smooth transit include:

• adequate guarantee system
• effective customs control (seals) and enforcement
• efficient documentation flow (documentation)
• enabling bilateral and international agreements
• infrastructure and corridor institutions

Where to Start. Introduction to Transit issues. GFP Note on the Almaty Agenda. 

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