Does entrepot trade belong to merchandise trade? Come and chat!
Solved#Entrepot trade#
I've recently been studying knowledge related to international trade and am a bit confused about the relationship between entrepot trade and merchandise trade. Entrepot trade means that the country of production and the country of consumption of goods do not directly buy and sell goods, but do so through a third country. Merchandise trade refers to the import and export of tangible goods. So, does entrepot trade belong to merchandise trade? I hope friends who know the ropes can help answer this. Thank you!
Professional consultant answers
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Essentially, entrepot trade belongs to the category of merchandise trade. Merchandise trade focuses on the cross - border flow of tangible goods. In entrepot trade, goods actually flow from the producing country to the consuming country via a third country. This process involves the cross - border transfer of tangible goods, which conforms to the basic characteristics of merchandise trade.
Entrepot trade has its unique features. In entrepot trade, the merchants of the third country play a key intermediary role and earn the price difference from reselling the goods. Compared with general merchandise trade, it involves three parties and a more complex trade process. But from the perspective of the trade object, it is still real goods, so it should be classified as merchandise trade.
In actual trade statistics, the import and export data of entrepot trade goods are also included in the merchandise trade statistics of the relevant countries.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Entrepot trade is considered merchandise trade. After all, there are physical goods being transferred between different countries. It's just that the transaction process is a bit more circuitous, going through a third - party transfer, but the core is still the movement of goods, so it belongs to merchandise trade.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
It belongs. Merchandise trade covers the cross - border transfer of goods, and entrepot trade meets this condition. Even if the transaction path is complex and involves multiple parties, the physical transfer of goods is the key, so it belongs to merchandise trade.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Entrepot trade definitely belongs to merchandise trade. Judging from the trade object, it is real goods. Although the trade method is special, it still revolves around goods, so it can be regarded as merchandise trade.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
From the perspective of the essence of trade, entrepot trade belongs to merchandise trade. Because it has the cross - border movement of goods. Although a third party is involved, it cannot change the fact that goods are transferred between countries, so it should be classified as merchandise trade.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Entrepot trade belongs to merchandise trade. Entrepot trade has the actual flow of goods, which is in line with the characteristics of merchandise trade. Even if it involves intermediate transfers, it does not affect its classification as merchandise trade.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
It belongs to merchandise trade. In entrepot trade, goods are transported from the producing country to the consuming country. Although it passes through a third country, the focus of merchandise trade is the cross - border movement of goods, so it conforms to the definition of merchandise trade.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Entrepot trade should be classified as merchandise trade. Because merchandise trade is the import and export of tangible goods, and entrepot trade has tangible goods flowing through a third country, so it belongs to the category of merchandise trade.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Entrepot trade is merchandise trade. As long as there are goods being transferred between countries, no matter how complex the process is and how many countries it passes through, it meets the requirements of merchandise trade and thus belongs to merchandise trade.