Is entrepot trade actually considered as export? Please help me answer this question!
Solved#Entrepot trade#
I'm a bit confused about the concepts in trade and would like to ask everyone, does entrepot trade belong to export? I know that export refers to selling the goods of one's own country abroad, while entrepot trade is the trade conducted between the producing country and the consuming country through a third country. So, can this situation of entrepot trade actually be counted as export? I hope friends who are knowledgeable in this area can explain it to me in detail. Thanks in advance!
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Strictly speaking, entrepot trade does not belong to the traditional concept of export. Export usually means that the producing country directly sells goods to the consuming country. In entrepot trade, the producing country of the goods first transports the goods to a third country, and then the third country sells the goods to the consuming country. In this process, for the third country, the goods are not produced by itself but just transacted through it. From the perspective of the third country, the circulation of goods in entrepot trade cannot be simply equated to the export of its own products. For example, a batch of goods from China is first transported to Singapore, and then Singapore resells them to the United States. For Singapore, this is entrepot trade, not the export of its own products. However, in trade statistics, the amount of entrepot trade of the third country will be separately listed for statistics and distinguished from the export data of its own products.
Therefore, entrepot trade and export have essential differences and should not be simply classified as an export category.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Entrepot trade is not counted as export. Export means directly selling the products of one's own country abroad, while entrepot trade means the products of other countries are resold to other countries through one's own country. One's own country is not the producer but only plays a transit role and cannot be counted as export.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Entrepot trade does not belong to export. Export emphasizes the foreign sales of the goods produced by one's own country. In entrepot trade, one's own country does not participate in the production but only provides trade services and logistics transit and cannot be equated with export.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Entrepot trade cannot be regarded as export. Export means directly exporting the products of one's own country. The source of the goods in entrepot trade is from other countries and there is no substantial production and processing in one's own country, so it cannot be counted as export.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Entrepot trade is not export. Export products are those that are produced and manufactured in one's own country and then sold abroad. In entrepot trade, the goods only pass through one's own country and one's own country does not actually produce the goods and cannot be called export.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Entrepot trade does not belong to the category of export. Export means the goods produced in one's own country are sold abroad. In entrepot trade, one's own country does not participate in the production of the goods but is only an intermediate reselling link and is different from export.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Entrepot trade is not counted as export. Export means the outward transportation of the goods manufactured in one's own country. The production of the goods in entrepot trade is not in one's own country but only resold through one's own country and is essentially different from export.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
From the definition, entrepot trade does not belong to export. Export means the foreign sales of the products of one's own country. In entrepot trade, one's own country is not the country of origin of the goods but only plays a trade bridge role, so it is not counted as export.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Entrepot trade is different from export and cannot be classified as export. Export means the foreign sales of the goods produced in one's own country. The goods in entrepot trade are not produced in one's own country, so it does not belong to export.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Entrepot trade cannot be called export. Export means the foreign sales of the manufactured products of one's own country. In entrepot trade, one's own country does not manufacture the goods but only is responsible for reselling, so it is not counted as export.