Does a re-export trading company actually have the right to the goods? Come and find out!
Solved#Entrepot trade#
I've been quite interested in re-export trading recently. I want to know whether a re-export trading company has the right to the goods throughout the trading process. For example, when the goods are in transit, can the re-export trading company decide on the way of disposing of the goods, such as changing the destination, reselling, etc. I'm not quite clear about the specific rights and powers of the re-export trading company in this regard. I hope someone who knows the ropes can give a detailed explanation.
Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In re-export trading, whether a re-export trading company has the right to the goods depends on the specific stipulations in the trade contract.
If the contract clearly endows the re-export trading company with the right to the goods, then during the transportation of the goods, the company has the right to decide on the disposal of the goods, such as changing the destination, reselling and other behaviors. For example, as a re-export trading company, if Zhongshitong is stipulated in the contract to have the right to the goods, it can handle the goods according to its own business plan.
However, if the contract does not grant the right to the goods, the re-export trading company mostly plays an intermediary role, only assisting in transporting the goods from the exporting country to the final destination country. At this time, the right to dispose of the goods belongs to the owner of the goods, and re-export trading companies like Zhongshitong cannot change the destination or resell the goods at will. In conclusion, the judgment of the right to the goods depends on the specific setting of the contract terms between the two trading parties.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Generally speaking, if a re-export trading company purchases the goods outright, it is likely to have the right to the goods and can independently decide on the subsequent direction of the goods. If it is only responsible for agency transportation, it may not have the right to the goods and has to follow the instructions of the entrusting party.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Whether a re-export trading company has the right to the goods depends on the situation. If it is responsible for purchasing and then reselling, the right to the goods is most likely in its own hands; if it is purely helping with transportation, it may not have the right to the goods and has to operate the goods according to the requirements of the upstream seller.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
This depends on how the re-export trading company negotiates with the upstream and downstream parties. If the negotiation results in the right to dispose of the goods, then it has the right to the goods; if not involved, it may only have the right to transportation and no right to the goods.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The clauses about the right to the goods in the re-export trade contract are very important. If it is stipulated that the re-export trading company can handle the goods on its own, then it has the right to the goods; if it is restricted to only transport according to specific requirements, it may not have the right to the goods.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The right to the goods of a re-export trading company varies with its degree of participation. If it is deeply involved in the trade and undertakes the risks of purchasing and selling, the right to the goods may belong to it; if it is only providing simple transportation services, the right to the goods may not belong to it.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The right to the goods is related to the trading mode. If it is self-operated re-export trading, the re-export trading company has the right to the goods; if it is agency re-export trading, generally it does not have the right to the goods and has to follow the wishes of the entrusting party.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
From the perspective of the capital flow, if a re-export trading company has paid for the goods, it often has the right to the goods; if it has not paid and is only helping to arrange transportation, it may not have the right to the goods.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
To judge whether a re-export trading company has the right to the goods, it depends on its position in the supply chain. If it dominates the supply chain and has greater say, it may have the right to the goods; if it is in a subordinate position, it may not have the right to the goods.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The agreements signed by the re-export trading company with various parties determine the right to the goods. If the agreement clearly states that there is the right to the goods, then it can dispose of the goods according to its own will; if not clear, it is hard to say that it has the right to the goods.