Does entrepot trade belong to general trade? Come and help me solve my confusion!
Solved#Entrepot trade#
I have recently been learning trade - related knowledge and am a bit confused about the concepts of entrepot trade and general trade. Entrepot trade means that the country of origin and the country of consumption of goods do not buy and sell goods directly, but through a third country. General trade refers to either exporting after purchasing raw materials domestically for processing or directly importing for sale. So, does entrepot trade belong to general trade? I hope someone can explain it to me in detail. Thank you!
Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Entrepot trade does not belong to general trade. In general trade, the buying and selling of goods is carried out domestically. Whether it is importing for sale or exporting after processing, the transfer of ownership of goods usually occurs between domestic enterprises, and the goods directly enter and exit the customs territory of the country. In entrepot trade, goods are resold between the producing country and the consuming country through a third country. The goods may not actually enter the entrepot country. Even if they do, they are usually in a bonded state under customs supervision and do not enter the domestic market circulation of the entrepot country.
For example, Company A in China exports goods to Company B in the United States. The goods are first shipped to Company C in Singapore, and then Company C resells them to Company B in the United States. The goods may be stored in a bonded warehouse in Singapore and do not enter the domestic market of Singapore for trading. This is entrepot trade. It has obvious differences from general trade in terms of transaction paths, the flow of goods, and the relevance to the domestic market.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
There is a big difference between entrepot trade and general trade. General trade involves domestic production and sales links, while entrepot trade is more like a middle - man making a profit. The goods may not even enter the regular trade process of the entrepot country, so it does not belong to general trade.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
From the perspective of the trade process, general trade is a direct import - export transaction, while there is a third - party intervention in entrepot trade. This essential difference determines that entrepot trade does not belong to general trade.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Entrepot trade does not belong to general trade. General trade is a regular direct import - export, and there is a reselling link in entrepot trade. Also, the goods in entrepot trade do not participate in the domestic economic cycle in the entrepot country. The two are obviously different.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The two have different concepts. Goods in general trade directly enter and exit the domestic market, while goods in entrepot trade are mostly transshipped through the entrepot country. So, entrepot trade does not belong to general trade.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
General trade is when domestic enterprises directly participate in import and export, while entrepot trade is reselling through a third country. Obviously, entrepot trade does not fall within the scope of general trade.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The goods in entrepot trade do not go through the domestic production and processing links, which is different from general trade, so it does not belong to general trade.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Entrepot trade involves three - party trading entities, which is different from the direct buying and selling in general trade. Therefore, it does not belong to general trade.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
The goods in entrepot trade do not enter the domestic consumption of the entrepot country, which is different from general trade, so it does not belong to general trade.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
General trade completes the transaction of goods in the domestic market, while entrepot trade is resold through a third country. Entrepot trade does not belong to general trade.