Is Entrepot Trade Included in Reselling? Let's Find Out!
Solved#Entrepot trade#
I've been researching trade-related knowledge recently and I'm a bit confused about the two concepts of entrepot trade and reselling. I'd like to know if entrepot trade includes reselling? I understand that entrepot trade is a trade activity carried out by the country of origin of the goods and the country of consumption of the goods through a third country. So how is reselling manifested in this process? If it is included, how exactly does it work? I hope a professional can help answer this, thank you.
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Entrepot trade does include reselling. In entrepot trade, the goods are shipped from the country of production to a third country. The traders in the third country do not carry out substantial processing on the goods but only re-export the goods to the country of consumption by means of reselling. For example, products are produced in Country A. Traders in Country B import the goods from Country A and store them in a bonded area, and then resell them to Country C. The goods may be shipped directly from Country A to Country C without passing through Country B. This reselling behavior is part of the entrepot trade.
From the perspective of the trade process, reselling is an important means of realizing entrepot trade. Entrepot traders build bridges between the supply and demand of different countries by virtue of their own trade channels and information advantages and obtain profits through reselling. Therefore, reselling is a common and crucial operational link in entrepot trade, and the two are closely linked.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Entrepot trade includes reselling. Briefly speaking, entrepot trade involves the transshipment of goods through a third country, and reselling means that in this transshipment process, the traders in the third country sell the goods to customers in other countries to complete the entrepot trade process.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Yes, it does. Reselling is quite common in entrepot trade. When the goods arrive in the transshipment country, the trader finds a buyer and directly resells the goods to the other party. This is how reselling is manifested in entrepot trade.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Entrepot trade does include reselling. For example, domestic traders purchase goods from abroad, store them in a bonded warehouse, and then sell them to other foreign customers. This reselling behavior is reselling and also a form of entrepot trade.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Of course it does. The reselling operation in entrepot trade is flexible. The goods can be temporarily stored in the bonded area, and the trader can resell them to other countries at any time to complete the entrepot trade process.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
There is reselling behavior in entrepot trade. For example, when the goods arrive at the port of the transshipment country, the trader arranges to resell the goods to another country, and the goods do not enter the market of the transshipment country. This is reselling.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Entrepot trade includes reselling. The traders in the transshipment country use their own resources to resell the received goods to the target market to realize the profit of entrepot trade.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Reselling belongs to the category of entrepot trade. For example, some commodities are stored in the warehouse of a third country, and the trader resells them after finding a buyer to complete the entrepot trade process.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Entrepot trade indeed includes reselling. When the goods arrive in the third country, the trader resells them to other countries according to the market demand to complete the entrepot trade.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
It includes reselling. Reselling is an important part in entrepot trade. The traders in the third country purchase the goods and then resell them to promote the goods to reach the country of consumption.