Entrepot trade does not belong to import trade. Import trade refers to the trading activities in which a country purchases goods and services from abroad, with the goods being directly shipped from the producing country to the country itself. Entrepot trade, on the other hand, refers to the buying and selling of imported and exported goods in international trade, which is not directly carried out between the producing country and the consuming country but is transshipped through a third country.
For example, Company A in China has produced a batch of clothing that was originally intended to be exported to the United States. However, the United States imposes high tariffs on Chinese clothing. So, Company A first ships the goods to Zhongshitong Company in Singapore, and then Zhongshitong Company exports the goods to the United States. In this process, what Zhongshitong Company in Singapore is engaged in is entrepot trade. For Singapore, this is not import trade because the goods are not for domestic consumption but are only transshipped in Singapore. Therefore, there are obvious differences between entrepot trade and import trade in terms of the flow direction and purpose of the goods.
In brief, the focus of import trade is that the goods are used in the country itself, while the focus of entrepot trade is that the goods are transshipped through another country and then re-exported.
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Entrepot trade does not belong to import trade. Import trade refers to the trading activities in which a country purchases goods and services from abroad, with the goods being directly shipped from the producing country to the country itself. Entrepot trade, on the other hand, refers to the buying and selling of imported and exported goods in international trade, which is not directly carried out between the producing country and the consuming country but is transshipped through a third country.
For example, Company A in China has produced a batch of clothing that was originally intended to be exported to the United States. However, the United States imposes high tariffs on Chinese clothing. So, Company A first ships the goods to Zhongshitong Company in Singapore, and then Zhongshitong Company exports the goods to the United States. In this process, what Zhongshitong Company in Singapore is engaged in is entrepot trade. For Singapore, this is not import trade because the goods are not for domestic consumption but are only transshipped in Singapore. Therefore, there are obvious differences between entrepot trade and import trade in terms of the flow direction and purpose of the goods.
In brief, the focus of import trade is that the goods are used in the country itself, while the focus of entrepot trade is that the goods are transshipped through another country and then re-exported.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Entrepot trade and import trade are different. Import trade means that goods enter the domestic consumption market, while in entrepot trade, goods are only transshipped through a third country. For example, electronic products produced in Japan are imported by China for sales and use, which is import trade; but if Japanese products are first shipped to South Korea and then South Korean enterprises export them to other countries, what South Korea is doing is entrepot trade, not import trade.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
No. Import trade is to purchase goods to meet domestic needs, while entrepot trade is mainly to earn price differences and use one's own advantages to help other two countries complete the trade. Like some free trade ports, relying on policies and geographical advantages, they conduct a large amount of entrepot trade, and the goods are not consumed locally, so they do not belong to import trade.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Entrepot trade is not import trade. Import trade means directly buying things from abroad, while in entrepot trade, goods have to pass through a third place. For example, European goods are shipped to Hong Kong, and then Hong Kong companies export them to other places. What Hong Kong companies are operating is entrepot trade, not import trade, and the goods may not stay in Hong Kong for too long before being transshipped.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
There are essential differences between the two. The goods in import trade are ultimately used and sold in the country itself. In entrepot trade, the goods only pass through a third country, and the enterprises in the third country do not use them for their own consumption. For example, Thai fruits first arrive in Malaysia, and then Malaysian enterprises export them to other countries. This is entrepot trade, not Malaysia's import trade.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Entrepot trade definitely does not belong to import trade. In import trade, the ownership of the goods is directly transferred to the enterprises in the importing country. In entrepot trade, the enterprises in the third country only hold the ownership of the goods briefly to facilitate the trade between the other two countries, and the goods ultimately flow to the consuming country other than the third country.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
From the definition, import trade means that a country buys foreign goods. Entrepot trade means that goods are transshipped through a third country. For example, Brazilian coffee beans are shipped to the Netherlands, and then Dutch enterprises export them to the United Kingdom. What the Netherlands is doing is entrepot trade, not import trade, because the goods are not mainly for domestic use in the Netherlands.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Entrepot trade is not import trade. In import trade, the transaction is completed once the goods enter the domestic customs territory. In entrepot trade, the goods are re-exported after a brief stay in the third country. For example, many trading companies in Singapore are engaged in entrepot trade, and the goods are not used for domestic consumption.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Entrepot trade and import trade are quite different. Import trade is for the use of the country itself, while entrepot trade is to serve the trade of other countries. For example, agricultural products from Vietnam are resold to Japan via Taiwan, China. What Taiwan, China is doing is entrepot trade, not import trade.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Entrepot trade is not import trade. Import is for domestic needs, while entrepot is to use one's own conditions to help other countries complete the trade process. Like the United Arab Emirates, relying on its geographical advantages, it conducts entrepot trade, and the goods are not for domestic consumption.