Which country should be filled in as the trading country in entrepot trade? Come and give me some ideas!
Solved#Entrepot trade#
Our company is conducting entrepot trade. Goods are purchased from country A, transshipped through our country, and then sold to country B. When filling in relevant trade documents, I don't know which country to fill in as the trading country. Should it be country A where the goods are purchased, country B where the goods are sold, or our country? Does this have an impact on subsequent processes such as customs declaration and taxation? I hope that friends who know the ropes can tell me which country is the most appropriate to fill in as the trading country.
Professional consultant answers
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
In entrepot trade, the filling of the trading country needs to be determined based on the essence of the trade and relevant regulations. Usually, the trading country refers to the country that has a direct trade relationship with our country. In your case, if you sign a purchase contract with the supplier in country A in the name of your domestic company and sign a sales contract with the customer in country B in the name of your domestic company, then from the trade process, both country A and country B are trading countries.
During customs declaration, the import - related information with country A and the export - related information with country B will usually be reflected separately. Regarding the tax aspect, different countries have different tax policies, and generally, the relevant taxes and fees are calculated according to the transaction amount and nature with the actual trading countries (country A and country B). In short, it is recommended to truthfully fill in country A and country B, which have direct trade with your domestic company, as the trading countries to ensure that the trade documents are consistent with the actual trade situation and avoid problems in subsequent customs declaration, tax, and other links.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Generally speaking, the trading countries are filled in as the country of origin and the final consumption country of the goods, that is, country A and country B. This can clearly show the flow path of goods in the customs clearance and other links, facilitate the inspection by regulatory authorities, and reduce unnecessary troubles.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
From the perspective of actual business, since it is entrepot trade involving both the procurement and sales ends, it is more appropriate to fill in country A and country B, which can fully reflect the overall picture of the trade. This is how it is operated in many entrepot trade cases.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Filling in country A and country B is more beneficial to the tax process. Tax accounting can correspond to the import and export transactions, which is convenient for accurately calculating various taxes and fees such as tariffs and value - added taxes.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The usual practice is to fill in country A where the goods come from and country B where the goods are sold. This is in line with international practices and also meets the statistical and regulatory needs of departments such as the customs.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Filling in country A and country B as the trading countries and keeping them consistent in trade documents such as bills of lading and invoices helps the smooth progress of the entire trade process and prevents problems in logistics and settlement caused by chaotic filling.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
To clearly reflect the trade process, it is recommended to fill in country A and country B. When handling various trade procedures later, relevant departments can quickly understand the business situation and reduce the review time.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In entrepot trade, filling in country A and country B as the trading countries can make the trade chain clear at a glance and avoid misunderstandings caused by filling in only one party or the transit country.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
From a compliance perspective, filling in country A and country B as the trading countries is more in line with international trade rules and domestic regulatory requirements, reducing potential risks.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Filling in country A and country B can make the transaction records clear. Whether it is for internal financial accounting or for dealing with external audits, it is easier to clarify the business, so it is more appropriate to fill in these two countries.