GlossaryEN1 min readUpdated: Jun 25, 2026

Intercompany Cargo Transfers

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Last updated: 25 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Intercompany_transaction

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Definition & Explanation

When a corporate group ships components from a parent plant to a subsidiary's assembly facility in another country, that movement constitutes an intercompany cargo transfer: the physical transport of goods between legally distinct entities belonging to the same group. The purpose is to supply production and distribution sites across the group efficiently, often making use of captive transport capacity. For tax purposes, cross-border movements are subject to the arm's length principle, as authorities scrutinize transfer prices for market conformity. From a customs perspective, the intragroup nature changes nothing: import declarations, certificates of origin, and any applicable preference documents remain mandatory just as in third-party transactions. This concept should not be confused with intercompany service charges, which involve no physical movement of goods.

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Intercompany Cargo Transfers

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Related Terms

Landside Cargo Transfer

Inter-Vessel Cargo Transfer

Interline Cargo Transfer Points

At-Sea Cargo Transfer Solutions

Transfer costs

End-to-End Cargo Security Chain of Custody

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