Transit Zone

Summary of Transit Zone

An entry point established by a coastal state for the benefit of a neighboring nation that is landlocked or lacking adequate port facilities for its own trade. Generally a transit zone is cordoned off from the main port facility, and goods passing through the zone are usually exempt from the customs jurisdiction of the nation operating the zone, except as may be required to preserve local security. Goods pass to and from the zone under customs bond to the recipient country.

(Main Author: William J. Miller)

Transit Zone in International Trade

Meaning of Transit Zone, according to the Dictionary of International Trade (Global Negotiator): The area surrounding a port of entry in a coastal country that serves as a storage and distribution center for the convenience of a neighbouring country – a landlocked country, for example – lacking adequate port facilities or access to the sea. A transit zone is administered so the goods in transit to and from the neighbouring country are not subject to customs duties, import controls or many of the entry and exit formalities of the host country. See dry port.