Entrepot trade refers to the buying and selling of imported and exported goods in international trade, which is not carried out directly between the producing country and the consuming country, but through a third country. The second situation you mentioned, where a Chinese merchant first sells the goods to a Singaporean merchant, who then sells to a Thai merchant with the goods being shipped directly from China to Thailand, belongs to entrepot trade. In this process, Singapore plays the role of entrepot. Although the goods do not pass through Singapore, the Singaporean merchant participates in the transfer of ownership of the goods.
As for the first situation, where a Chinese merchant sells the goods directly to a South Korean merchant and ships them directly to South Korea, this is direct trade and does not belong to entrepot trade. Common examples of entrepot trade also include, for example, a Japanese merchant selling goods to Zhongshitong, and Zhongshitong reselling to an Australian merchant with the goods being shipped directly from Japan to Australia. The key lies in the transfer of ownership of the goods through a third - country merchant.
Professional consultant answers
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Entrepot trade refers to the buying and selling of imported and exported goods in international trade, which is not carried out directly between the producing country and the consuming country, but through a third country. The second situation you mentioned, where a Chinese merchant first sells the goods to a Singaporean merchant, who then sells to a Thai merchant with the goods being shipped directly from China to Thailand, belongs to entrepot trade. In this process, Singapore plays the role of entrepot. Although the goods do not pass through Singapore, the Singaporean merchant participates in the transfer of ownership of the goods.
As for the first situation, where a Chinese merchant sells the goods directly to a South Korean merchant and ships them directly to South Korea, this is direct trade and does not belong to entrepot trade. Common examples of entrepot trade also include, for example, a Japanese merchant selling goods to Zhongshitong, and Zhongshitong reselling to an Australian merchant with the goods being shipped directly from Japan to Australia. The key lies in the transfer of ownership of the goods through a third - country merchant.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
For example, products produced in the United States are shipped to Hong Kong, and a Hong Kong trader then sells them to Vietnam, with the goods being shipped directly from the United States to Vietnam. This is also entrepot trade, and Hong Kong is the entrepot location.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
European goods are first sold to a trading company registered in Dubai, and this trading company then resells the goods to an Indian company, with the goods being shipped directly from Europe to India. This also belongs to entrepot trade, and the Dubai company acts as the entrepot.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If Brazilian coffee beans are first sold by a Brazilian company to a Panamanian trader, and the Panamanian trader then sells to a Chinese company, with the coffee beans being shipped directly from Brazil to China, and the Panamanian trader is involved, this constitutes entrepot trade.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
For Russian timber, a German trader buys it from Russia and then resells it to Turkey, with the timber being shipped directly from Russia to Turkey. The German trader plays the role of entrepot, and this belongs to entrepot trade.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Canadian electronic products are bought by a Mexican trading company and then resold to Argentina, with the goods being shipped directly from Canada to Argentina. The behavior of the Mexican company is entrepot trade.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
South African minerals are first sold by a South African company to a trading company registered in Mauritius, and then the trading company sells to Kenya, with the goods being shipped directly from South Africa to Kenya. This is entrepot trade.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Malaysian rubber is bought by a Singaporean trader and then resold to Indonesia, with the rubber being shipped directly from Malaysia to Indonesia. The operation of the Singaporean trader belongs to entrepot trade.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Thai rice is first sold by a Thai company to a trading company registered in Cambodia, and the Cambodian trading company then sells to the Philippines, with the rice being shipped directly from Thailand to the Philippines. This also belongs to entrepot trade.