What Are Transitted and Transhipped Goods?

Among the provisions on transportation, the provisions on transitted goods and transhipped goods are engaging to explore. This is because the terms are less familiar to most people.

As such, what exactly are transitted goods and transhipped goods or commonly referred to transit or transhipment?

Transitted goods are goods that are transported by a means of transport through the customs office without prior unloading (Article 10A of the Customs Law paragraph (7); Article 8 paragraph (2) of the Excise Law; Article 1 number 10 of MoF Reg. No. 216/PMK.04/2019).

The said means of transport are vehicles/transportation by sea, air or land used to transport goods and/or people. Unloading, on the other hand, refers to the activity to unload goods from the means of transport.

The term transitted implies that the means of transport carrying a freight transits at a port within the customs area. However, the means of transport is anchored for other purposes, such as refueling, drinking water or other purposes.

Although the means of transport passes the port where the customs office is located, there is no prior unloading of the loaded goods. In addition, no costs are incurred, thereby, they cannot be used as a component of calculating the transaction price.

On the other hand, transhipped goods are goods that are transported by a means of transport through the customs office with prior unloading (Article 10A of the Customs Law paragraph (7); Article 8 paragraph (2) of the Excise Law; Article 1 number 11 of MoF Reg. No. 216/PMK.04/2019).

Transhipped goods imply that they are transported through the customs office and unloaded in advance. However, not all transported goods may be unloaded and some packaging may be left, thereby, it is necessary to prepare a transhipment manifest (list of goods).

In this respect, there is a temporary transfer of the transported goods. In the on-field practice, this transfer will be subject to terminal handling costs (Purwito and Indriani, 2015).

Thus, the transhipment may affect the transaction price because there are additional terminal handling costs. As is known, the value of the transaction constitutes one of the bases for determining the customs value. Check out “What Is Customs Value?”

To discover other taxation terms more conveniently, you can visit the Tax Glossary channel on the Perpajakan DDTC webpage. Through these channels, you can search for tax terms that have been arranged alphabetically.

Each term in the channel is accompanied by a definition and a link that contains the elaboration or elucidation. The provided links lead to a regulation or DDTCNews webpage relevant to the terms in the Tax Glossary. (rig)