Individual businesses can engage in entrepot trade. Entrepot trade refers to the trade carried out by traders of a third country through signing import contracts and export contracts respectively between the country of origin of the goods and the country of consumption of the goods, or between the country of supply of the goods and the country of demand of the goods.
For individual businesses to engage in entrepot trade, first of all, they need to have the right to engage in import and export operations, which can be obtained by going through relevant industrial and commercial registration and customs filing. Meanwhile, they need to have good international business channels and stable supplier and customer resources.
In terms of the process, generally, a purchase contract is signed with the supplier first, and then a sales contract is signed with foreign customers. The transportation arrangements of the goods need to be done through professional freight forwarders, etc. However, entrepot trade also has risks, such as risks of goods transportation, exchange rate fluctuation risks, risks of changes in trade policies, etc. Therefore, it is necessary to fully understand the market and policies and do a good job in risk prevention and control.
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Individual businesses can engage in entrepot trade. Entrepot trade refers to the trade carried out by traders of a third country through signing import contracts and export contracts respectively between the country of origin of the goods and the country of consumption of the goods, or between the country of supply of the goods and the country of demand of the goods.
For individual businesses to engage in entrepot trade, first of all, they need to have the right to engage in import and export operations, which can be obtained by going through relevant industrial and commercial registration and customs filing. Meanwhile, they need to have good international business channels and stable supplier and customer resources.
In terms of the process, generally, a purchase contract is signed with the supplier first, and then a sales contract is signed with foreign customers. The transportation arrangements of the goods need to be done through professional freight forwarders, etc. However, entrepot trade also has risks, such as risks of goods transportation, exchange rate fluctuation risks, risks of changes in trade policies, etc. Therefore, it is necessary to fully understand the market and policies and do a good job in risk prevention and control.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
When individual businesses engage in entrepot trade, the capital flow should be well planned; otherwise, it is easy to have a situation where the capital chain is broken because there may be a time lag from procurement to the recovery of sales proceeds.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
It should be noted that entrepot trade involves laws and policies of different countries, and relevant preparations should be made in advance. Otherwise, it will be troublesome if the goods are stuck at the customs.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
It is also necessary to have reliable logistics partners. The safety and on-time delivery of the goods during transportation are very important; otherwise, it will affect the customer experience and subsequent business may be difficult to do.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
When engaging in entrepot trade, it is necessary to keep a close eye on the price fluctuations in the international market. If the price is not well grasped, the profit margin will be compressed.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Language communication skills are also very important. After all, it is necessary to communicate with foreign customers and suppliers, and information should be accurately conveyed.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Care should be taken in handling documents. All kinds of documents such as bills of lading and invoices should be accurate; otherwise, it will affect customs clearance.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Building a good reputation is very important. Whether it is for suppliers or customers, only by operating with integrity can the entrepot trade business develop for a long time.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
The management of exchange rate risks cannot be ignored. Some financial instruments can be considered to lock the exchange rate to avoid losses caused by exchange rate changes.