Entrepot trade belongs to merchandise trade. Merchandise trade refers to the import and export trade of tangible goods, covering various buying and selling activities of physical goods. In entrepot trade, the goods are transported from the producing country to a third country and then resold by the third country to the final consuming country. The ownership of the goods is transferred, and it is the actual goods flowing between different countries, which conforms to the characteristics of merchandise trade.
For example, electronic products produced in Country A are first transported to Country B, and then the merchants in Country B resell them to Country C. During this period, the ownership of the electronic products as a commodity is transferred from the producers in Country A through the merchants in Country B to the purchasers in Country C, and the whole process revolves around the goods.
Unlike general merchandise trade, in entrepot trade, the place of production and the place of consumption of the goods do not trade directly but are resold through a third country. However, in essence, it is still the buying and selling of goods internationally, so it belongs to merchandise trade.
Professional consultant answers
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Entrepot trade belongs to merchandise trade. Merchandise trade refers to the import and export trade of tangible goods, covering various buying and selling activities of physical goods. In entrepot trade, the goods are transported from the producing country to a third country and then resold by the third country to the final consuming country. The ownership of the goods is transferred, and it is the actual goods flowing between different countries, which conforms to the characteristics of merchandise trade.
For example, electronic products produced in Country A are first transported to Country B, and then the merchants in Country B resell them to Country C. During this period, the ownership of the electronic products as a commodity is transferred from the producers in Country A through the merchants in Country B to the purchasers in Country C, and the whole process revolves around the goods.
Unlike general merchandise trade, in entrepot trade, the place of production and the place of consumption of the goods do not trade directly but are resold through a third country. However, in essence, it is still the buying and selling of goods internationally, so it belongs to merchandise trade.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Entrepot trade is a type of merchandise trade. Because merchandise trade emphasizes the transfer of ownership of goods and cross-border transactions, and in entrepot trade, the goods cross borders and the ownership changes. For example, our country imports soybeans from Brazil and then resells them to Japan. Soybeans are commodities, which conforms to the definition of merchandise trade.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Of course it belongs. Entrepot trade has the actual flow of goods. Although there is an additional transit link, it is the same as directly importing and exporting goods in that it involves the buying and selling of goods, only the route is a bit more complicated. So it belongs to the category of merchandise trade.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Entrepot trade definitely counts as merchandise trade. Merchandise trade focuses on goods, and entrepot trade is also a trade activity revolving around goods. The goods are transported from the producing country to a third country and then to the consuming country, and the whole process reflects the characteristics of merchandise trade.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
It belongs. Entrepot trade has the actual flow of goods and transactions occur between different entities, satisfying the basic elements of merchandise trade. For example, the timber from Southeast Asia is resold to Europe through our country, which is a form of merchandise trade.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
From the perspective of the essence of trade, entrepot trade involves the cross-border transactions of goods, and merchandise trade is the cross-border buying and selling of goods. Naturally, entrepot trade belongs to merchandise trade, only the trade process is a bit more complicated.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Entrepot trade belongs to the category of merchandise trade. Because in its operation process, the goods move from one place to another through transit, which is the movement and transaction of goods internationally, conforming to the definition of merchandise trade.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
It belongs to merchandise trade. Entrepot trade uses goods as a carrier to conduct international sales activities. It is consistent with general merchandise trade in the core of goods buying and selling, only an additional reselling link is added.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Entrepot trade undoubtedly belongs to merchandise trade. Merchandise trade focuses on the circulation of goods in the international market, and the goods in entrepot trade flow and are traded between different countries, conforming to this characteristic.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
It belongs to merchandise trade. In entrepot trade, the goods actually flow between different countries and complete the transactions, which is in line with the concept of merchandise trade, only an additional step of reselling through a third country is added.