There are differences between entrepot trade and general trade, processing trade in many aspects.
In terms of operation procedures, general trade is direct import and export, and the goods are directly transported from the place of production to the place of consumption; processing trade involves the import of raw materials, processing and production, and then export; while in entrepot trade, the goods are transported from the country of production to the transit country and then transshipped to the country of consumption, and the goods may not be processed in the transit country.
In terms of tax policies, general trade is taxed according to the regulations such as import and export tariffs; processing trade has a bonded policy for imported materials and parts; in entrepot trade, if the goods do not enter the domestic market in the transit country, import tariffs, etc. are usually not levied.
In terms of risks, the risks of general trade are relatively direct, such as market risks and transportation risks; processing trade has the risks of the processing link; entrepot trade faces the risks of policy changes in the transit country and the storage of goods in the transit place, etc. In conclusion, it is necessary to select an appropriate trade method based on the overall business situation.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
There are differences between entrepot trade and general trade, processing trade in many aspects.
In terms of operation procedures, general trade is direct import and export, and the goods are directly transported from the place of production to the place of consumption; processing trade involves the import of raw materials, processing and production, and then export; while in entrepot trade, the goods are transported from the country of production to the transit country and then transshipped to the country of consumption, and the goods may not be processed in the transit country.
In terms of tax policies, general trade is taxed according to the regulations such as import and export tariffs; processing trade has a bonded policy for imported materials and parts; in entrepot trade, if the goods do not enter the domestic market in the transit country, import tariffs, etc. are usually not levied.
In terms of risks, the risks of general trade are relatively direct, such as market risks and transportation risks; processing trade has the risks of the processing link; entrepot trade faces the risks of policy changes in the transit country and the storage of goods in the transit place, etc. In conclusion, it is necessary to select an appropriate trade method based on the overall business situation.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
From the perspective of the ownership of goods, the ownership of goods in general trade is with the importers and exporters; the ownership of processing trade is with the entrusting party; the goods in entrepot trade are transferred in the hands of the entrepot traders.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Entrepot trade can avoid some trade restrictions, which is difficult for general trade to do. The focus of processing trade is on value-added through processing, and entrepot trade focuses on making profits by taking advantage of the advantages of the transit place.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
General trade focuses on the direct transaction of products, and processing trade emphasizes production capacity. Entrepot trade requires a better understanding of the policies and logistics of the transit place and has high requirements for channel control.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The capital flow of entrepot trade is more complex, involving multi-party receipts and payments; general trade is relatively simple, and the capital of processing trade revolves around the processing link.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
The documents of general trade are mostly conventional import and export documents; processing trade has specific documents such as processing manuals; entrepot trade may require relevant certificates of the transit country.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The transportation route of entrepot trade is long, increasing the transportation time cost; the route of general trade is direct, and the transportation route of processing trade is mainly between the processing place and the import and export places.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Processing trade requires processing and production conditions, and general trade only requires import and export qualifications. Entrepot trade has high requirements for the ability to integrate trade resources.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
General trade is easily affected by bilateral trade relations, and entrepot trade can buffer to a certain extent. Processing trade is greatly affected by the supply of raw materials and processing costs.