Does entrepot trade count as an import? Come and help me answer this!
Solved#Entrepot trade#
I've been studying trade - related knowledge recently and have some doubts about whether entrepot trade counts as an import. I know that entrepot trade is a trade activity in which the country of production and the country of consumption trade through a third country. But from the perspective of import, for the final consuming country, can this really be considered an import? If it is an import, what are the differences between it and a general import? I hope friends who know the ropes can help answer this. Thank you!
Professional consultant answers
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Strictly speaking, entrepot trade doesn't count as an import for the final consuming country. Import refers to bringing goods from other countries into the customs territory of one's own country and going through the formalities of customs declaration and tax payment. In entrepot trade, goods usually don't enter the customs territory of the entrepot country but are only transshipped, stored, processed, etc. in the entrepot country before being shipped to the consuming country.
For example, if country A produces goods and resells them to country C through country B, the goods only transit through country B and don't really enter the domestic market of country B for sale and consumption, so country B doesn't count it as an import.
For country C, the way it obtains the goods is not a direct import from country A in the traditional sense but through entrepot trade from country B. From the perspective of country C, it is more regarded as a purchase from country B rather than an import from country A. Compared with a general import, it involves more intermediate links and factors of the third country.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
It doesn't count as an import. The goods in entrepot trade only pass through the third country, and the third country doesn't incorporate them into its domestic consumption and market system, which is different from the concept of import.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Entrepot trade doesn't count as an import. Import requires that goods actually enter the customs territory of one's own country and are used for domestic consumption, etc., and the goods in entrepot trade are not in this category.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
No. Entrepot trade mainly takes advantage of the geographical location and trade policies of the entrepot country to transit goods, not a real import.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Entrepot trade can't be considered an import because import emphasizes that goods enter the customs territory of one's own country and complete the customs clearance and other procedures for domestic use, and entrepot trade doesn't have this process.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Judging from the definition, import means goods enter the country for consumption, and the goods in entrepot trade don't enter the entrepot country for consumption, so it doesn't count as an import.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
It doesn't count as an import. The goods in entrepot trade only stay briefly in the entrepot country and are not carried out subsequent sales, etc. as imported goods in the entrepot country.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Entrepot trade doesn't count as an import. Import involves the actual absorption of goods by one's own country, and entrepot trade doesn't meet this characteristic.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
It can't be considered an import. The goods in entrepot trade don't enter the market of the entrepot country, which is different from imports for the domestic market.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
No. Entrepot trade just takes a detour through the third country, which is different in nature from imported goods entering the domestic consumption.