How exactly is the shipment value of entrepot trade calculated? Please teach me!
Solved#Entrepot trade#
I'm new to entrepot trade and not very clear about how to calculate shipment value. Could someone explain how entrepot trade shipment value is calculated? Is it simply based on the export value from our country, or should we also consider other factors like the original import cost of the goods? Are there any specific calculation formulas or important points to note? I'd appreciate detailed explanations from experienced colleagues. Thanks!
Professional consultant answers
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The shipment value in entrepot trade is generally calculated based on the re-export value of transshipped goods. This value is typically determined by the amount declared on the export customs declaration. Note that this isn't simply equal to the original import cost plus some profit. If value-added activities like processing or packaging occur in the entrepot location, these increments should be included in the shipment value. For example, if imported raw materials worth 1 million yuan are processed into finished products in the entrepot location and re-exported at 1.5 million yuan, the shipment value would be 1.5 million yuan. Meanwhile, transportation and storage costs usually aren't directly included in the shipment value but affect profit calculations. Additionally, exchange rate fluctuations may impact the shipment value, which should be calculated using the exchange rate at customs declaration.
In summary, accurate shipment value calculation depends on determining the actual re-export value of goods while considering value-added components and exchange rate factors.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
For entrepot trade shipment value, it mainly depends on the contract amount agreed with the end buyer. This represents the final resale value of goods and isn't directly related to import costs, which are used for profit calculation.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The shipment value in entrepot trade is generally based on the invoice amount for final export to third parties. As long as this matches the customs declaration amount, it can confirm the shipment value. Ensure invoice details are accurate.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In entrepot trade, shipment value essentially means the goods' transfer value. If goods aren't processed, calculate based on import cost plus expected profit. If processed, use the post-processing market value.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
To calculate entrepot trade shipment value, refer to both the export contract amount and customs declaration amount. These usually match; if not, determine which better reflects the actual shipment value.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Besides the customs declaration amount, pay attention to trade terms when calculating entrepot trade shipment value. For instance, FOB excludes freight/insurance, while CIF includes them—this distinction matters.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
For shipment value calculation, first determine the resale price as the primary basis. If there's damage during transit, consider the goods' actual post-damage value.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Entrepot trade shipment value depends on the goods' value when finally leaving the country, as reflected in export documents. Use the documented amount for calculation.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
When calculating entrepot trade shipment value, focus on the goods' re-export value. For special fees like customized packaging that can be allocated to goods, consider including them appropriately.