Our company is engaged in transit trade and has recently faced some sanction pressures. We heard that it can be dealt with through Vietnam. We would like to know how to avoid sanctions through Vietnam in transit trade? What are the specific operation steps and precautions? We hope to get a detailed and practical answer. Thank you!
While studying international trade knowledge, I couldn't clearly distinguish between entrepot trade and transit trade. I want to understand their differences in operational processes, trade risks, applicable scenarios, etc. The best answer explains that entrepot trade involves goods being resold through a third country with transfer of ownership, complex operations, risks concentrated on the entrepot trader, and is suitable for bypassing trade barriers. Transit trade refers to foreign goods passing through domestic territory without ownership change, simple operations, risks in transportation, and is suitable for geographically advantageous locations.
I'm interested in transit trade. I heard that transit trade can't be done and I want to know the specific reasons. The best answer points out that transit trade is not absolutely impossible to do, but there are risks of policies and regulations. Changes in trade policies can easily lead to obstacles in the import and export of goods; the operation is complex and errors are prone to occur in multiple links; there are large capital risks, with a long cycle, long occupation of funds and losses due to exchange rate fluctuations, etc., which may make people feel that it can't be done.
When learning about international trade knowledge, I was confused about transit trade and entrepot trade. I asked whether transit trade is the same as entrepot trade and hoped to clearly understand the differences between them with practical examples. The best answer pointed out that transit trade means goods pass through other countries without processing and are directly transported to the consumer country. For example, Chinese toys are transported to the UK via Singapore. Entrepot trade is trading through a third country. For example, American electronic products are resold to India via Hong Kong. The two are essentially different.
Considering starting a trading business, there are doubts about whether the third - country transit trade in Thailand is reliable. Worries include issues such as goods being detained and difficult customs clearance. The best answer states that this trading method is feasible, but its reliability is affected by various factors. Although it can avoid trade barriers, there are still risks of goods being detained and difficult customs clearance. Finding a professional agent like Zhongshitong and understanding relevant policies can reduce risks.
Engaged in transit trade business and wondering about the implications of skipping customs clearance. The best answer indicates that without customs clearance in transit trade, goods cannot circulate legally, leading to storage with high fees, penalties for violating customs regulations, and potential seizure of goods. Subsequent processes are also affected, with destination country clearance, inability to obtain clearance documents impacting payment settlement. Strict compliance is essential.
When researching international trade, one may want to understand methods for investigating transit trade, such as examining the scale of transit trade in a specific region and the main types of commodities involved. The best answer suggests that transit trade information can be obtained through various channels, including government websites like the official site of the General Administration of Customs for import and export data; utilizing databases from international organizations; accessing professional trade databases and information platforms like Zhongshitong; and reviewing reports from industry research institutions.
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Professional consultant answers
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
To avoid sanctions with the help of Vietnam in transit trade, first of all, the goods transportation route should be planned well. The goods are first transported to Vietnamese ports, and operations such as container replacement and repackaging are carried out in Vietnamese bonded areas or warehouses to remove the markings that can show the original place of production. Then they are exported to the target customers in the name of local Vietnamese companies.
Document handling is also crucial. A full set of documents such as local Vietnamese commercial invoices, packing lists, and bills of lading need to be prepared, and the document information should match the actual situation of the goods and the transportation arrangements. Find a professional freight forwarder company, like Zhongshitong, which can assist in handling complex logistics and document matters.
At the same time, attention should be paid to compliance. There are relevant trade regulations in Vietnam, and illegal behaviors such as false declarations to avoid sanctions are not allowed. Also, pay attention to the diplomatic and trade relations between Vietnam and the sanction-initiating countries to avoid the plan being blocked due to changes in the relationship.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Selecting an appropriate Vietnamese transshipment port is very important. Ports such as Ho Chi Minh Port have complete logistics facilities and rich experience in handling transshipment business. They can complete the goods transshipment operations more efficiently and reduce the goods detention time.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Establishing a good cooperative relationship with local Vietnamese suppliers is also helpful. They are familiar with the local situation and can assist in handling some unexpected problems and can also provide convenience in document preparation, customs clearance, etc.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Setting up an office in Vietnam or entrusting a reliable agent can follow up the situation of the goods more timely, ensure the smooth progress of the transit process, and respond and solve problems quickly when encountering them.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Pay attention to the details of the goods packaging replacement. The new packaging should not reveal the information of the original producing country. Labels, shipping marks, etc. should all be redesigned to meet the Vietnamese export specifications.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
It is necessary to understand in advance the key points and procedures of the inspection of transit goods by the Vietnamese customs, prepare relevant materials, and avoid delaying time and increasing costs due to customs inspection.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Closely monitor the international situation and the dynamics of sanction policies. Once the sanction policies change, adjust the transit trade plan in a timely manner to prevent being affected more seriously.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
When selecting Vietnamese partners, it is necessary to conduct background investigations to ensure their good reputation and avoid bad situations such as fraud in the cooperation.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Transit trade involves multiple transports and loadings and unloadings. It is necessary to do a good job in goods insurance to ensure the safety of the goods during the transportation process and reduce the risk of losses.