A common model of entrepot trade involves shipping goods from the producing country to a third country before reselling them to the consuming country. For instance, Chinese garment manufacturers producing clothing may face high tariffs when exporting directly to the U.S. In this case, the garments can first be exported to Singapore, where they undergo simple repackaging or sorting before being shipped to the U.S., leveraging the trade agreement between Singapore and the U.S. to reduce tariff costs.
Another example is high-end Japanese electronics transshipped through Hong Kong to Europe. The products are first shipped to Hong Kong, which, as a trade hub, utilizes its robust logistics and financial services to reorganize and categorize the products before distributing them to various European countries, meeting diverse customer needs while Hong Kong profits from the entrepot trade.
These examples illustrate how entrepot trade capitalizes on regional policy differences and the advantages of trade hubs.
Professional consultant answers
Joseph ZhouYears of service:10Customer Rating:5.0
Senior foreign trade managerConsult
A common model of entrepot trade involves shipping goods from the producing country to a third country before reselling them to the consuming country. For instance, Chinese garment manufacturers producing clothing may face high tariffs when exporting directly to the U.S. In this case, the garments can first be exported to Singapore, where they undergo simple repackaging or sorting before being shipped to the U.S., leveraging the trade agreement between Singapore and the U.S. to reduce tariff costs.
Another example is high-end Japanese electronics transshipped through Hong Kong to Europe. The products are first shipped to Hong Kong, which, as a trade hub, utilizes its robust logistics and financial services to reorganize and categorize the products before distributing them to various European countries, meeting diverse customer needs while Hong Kong profits from the entrepot trade.
These examples illustrate how entrepot trade capitalizes on regional policy differences and the advantages of trade hubs.
Emily LiuYears of service:10Customer Rating:5.0
Settlement and payment expertConsult
For instance, a batch of cosmetics from South Korea cannot be directly exported to Russia due to certain restrictions. Through entrepot trade, the cosmetics are first shipped to Malaysia, where they are relabeled or undergo minor processing before being sent to Russia, successfully entering the Russian market via Malaysia's trade channels.
Robert ChenYears of service:6Customer Rating:5.0
Customer service consultantConsult
Coffee beans from Brazil, originally destined for Europe, are first shipped to the Port of Rotterdam in the Netherlands due to transportation routes or trade barriers. After quality inspections and repackaging in Rotterdam, they are then distributed to other European countries, with Rotterdam serving as a key node in entrepot trade due to its superior port facilities.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
Fruits from Thailand are first exported to Hong Kong to meet varying packaging and freshness requirements. Hong Kong's advanced cold chain and packaging facilities allow for repackaging and preservation before the fruits are resold to mainland China, adding value through entrepot trade.
James LiuYears of service:10Customer Rating:5.0
Foreign trade tax refund consultantConsult
Textiles from India are first shipped to the UAE to bypass specific trade restrictions. After being categorized by style and optimized for packaging in the UAE, they are then sold to African countries, leveraging the UAE's trade prominence in the Middle East to expand the market.
William YangYears of service:5Customer Rating:5.0
International logistics consultantConsult
Furniture from Vietnam is first shipped to Singapore to comply with environmental standards in European and American markets. After undergoing environmental testing and minor modifications in Singapore, it is then exported to Europe and the U.S., utilizing Singapore's testing technologies and international recognition to complete the entrepot trade.
Jennifer WangYears of service:4Customer Rating:5.0
Market development consultantConsult
Milk powder from Australia is first shipped to New Zealand to quickly respond to Chinese market demand and optimize logistics costs. After storage consolidation in New Zealand, it is then shipped to China, leveraging New Zealand's logistics hub advantages for entrepot trade.
Michelle ChenYears of service:3Customer Rating:5.0
Business coordination consultantConsult
German automotive parts are first shipped to Belgium due to differences in intra-European trade policies. After assembly and preparation in Belgium, they are distributed to other European countries, utilizing Belgium's trade coordination advantages for entrepot trade.
Sarah ZhangYears of service:8Customer Rating:5.0
Document expertConsult
Rubber products from Indonesia are first shipped to South Korea to meet Japan's refined market requirements. After quality enhancement and precision processing in South Korea, they are then exported to Japan, completing the entrepot trade through South Korea's processing expertise.
Andrew HuangYears of service:7Customer Rating:5.0
Supply chain optimization expertConsult
Diamonds from South Africa are first shipped to India to fulfill diverse cutting and design needs. India's mature diamond processing industry cuts and designs the diamonds before they are sold globally, adding value through entrepot trade.