Does entrepot trade count as export trade? Come and discuss it together!
Solved#Entrepot trade#
I'm engaged in foreign trade business and have been a bit confused about the definition of entrepot trade and export trade recently. I wonder if entrepot trade counts as export trade. I know that export trade generally refers to selling goods produced or processed in one's own country to foreign markets. But entrepot trade involves goods transiting in one's own country and then being transported to a third country after simple processing. This situation is a bit complicated. I hope everyone can help analyze it so that I can figure out the relationship between the two.
Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Strictly speaking, entrepot trade is not a traditional export trade. Export trade is to directly sell products produced or processed in one's own country to foreign countries. In entrepot trade, although the goods pass through one's own country, these goods are not produced in one's own country. One's own country mainly plays the role of a logistics transit and trade operation.
In entrepot trade, domestic enterprises first import goods from the producing country, and then export them to a third country without substantial processing (just simple classification, packaging, etc.). For example, Zhongshitong buys a certain electronic product from country A, just repackages it, and then sells it to country B. During this process, the ownership of the product changes, but it is not made in one's own country.
However, in statistics, the goods in entrepot trade are shipped from one's own country. In terms of customs statistics, they may be included in the export data, but the essence and the economic significance of regular export trade are different. Therefore, from the perspective of the nature of trade, entrepot trade does not count as export trade, but it has different manifestations at specific levels such as customs statistics.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
No, it doesn't. Export trade emphasizes that the products are the achievements of one's own country, while entrepot trade just uses one's own country as a transit route. The goods are actually not produced in one's own country. It's like the goods only stay in one's own country briefly and then go to other countries, which is different from the concept of domestic products being exported to foreign countries.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Entrepot trade cannot be simply regarded as export trade. Entrepot trade is more about traders using their own channel advantages to allocate goods among different countries, while the core of export trade is that domestic manufactured products enter the international market.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Entrepot trade does not count as export trade. Export trade is based on domestic production. The source of goods in entrepot trade is other countries, and they are only transshipped through one's own country. There is an essential difference between the two.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
No. Entrepot trade mainly relies on trade operations and logistics advantages, while export trade depends on domestic production capacity and product competitiveness. The nature is obviously different.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
From the perspective of actual production, entrepot trade does not count as export trade. Export trade has domestic production value added, while the value added of entrepot trade is mostly in the trade link rather than the production link.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Entrepot trade is not a real export trade. Export trade revolves around domestic production, while the production of goods in entrepot trade is not in one's own country, and they just pass through one's own country.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Entrepot trade cannot be equated with export trade. Export trade is the sale of domestic manufactured products abroad, while entrepot trade is the resale of products from other countries through one's own country. Their operations and natures are different.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
No, export trade reflects the manufacturing strength of one's own country, while entrepot trade is a form of trade intermediary that uses geographical location or trade advantages to transit goods.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Entrepot trade does not count as export trade. Export trade emphasizes domestic products, while the goods in entrepot trade come from other countries, and one's own country is just a transit hub.