Entrepot Trade is not only possible through transit. Entrepot Trade refers to the buying and selling of imported and exported goods in international trade. It is not carried out directly between the producing country and the consuming country, but through a third country.
One situation is the actual transit of goods. For example, goods produced in Country A are resold to Country C via Country B. The goods are shipped from Country A to Country B and then transshipped to Country C. Country B plays the role of an entrepot.
The other situation is that the goods do not actually transit, that is, the "Documentary Processing Trade". The goods are shipped directly from the producing country to the consuming country, but the buyer on the documents is a trading company in the country where the entrepot trader is located. The entrepot trader obtains the price difference by handling documents. For example, products produced in China are shipped directly to the United States, but a trading company in the United Kingdom acts as an intermediate entrepot trader and completes the transaction by signing contracts, handling bills of lading and other documents. Therefore, Entrepot Trade has two forms: with and without the transit of goods.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Entrepot Trade is not only possible through transit. Entrepot Trade refers to the buying and selling of imported and exported goods in international trade. It is not carried out directly between the producing country and the consuming country, but through a third country.
One situation is the actual transit of goods. For example, goods produced in Country A are resold to Country C via Country B. The goods are shipped from Country A to Country B and then transshipped to Country C. Country B plays the role of an entrepot.
The other situation is that the goods do not actually transit, that is, the "Documentary Processing Trade". The goods are shipped directly from the producing country to the consuming country, but the buyer on the documents is a trading company in the country where the entrepot trader is located. The entrepot trader obtains the price difference by handling documents. For example, products produced in China are shipped directly to the United States, but a trading company in the United Kingdom acts as an intermediate entrepot trader and completes the transaction by signing contracts, handling bills of lading and other documents. Therefore, Entrepot Trade has two forms: with and without the transit of goods.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
No, Entrepot Trade has two forms: with the actual transit of goods and without it. The form without transit is somewhat like getting something for nothing. For example, between a Chinese supplier and an American purchaser, there is a Singaporean trader. The goods are shipped directly from China to the United States, but the Singaporean trader signs contracts and handles documents to make money.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Entrepot Trade is not limited to transit. For some electronic products, for example, the place of production is Japan, and they are to be sold to Germany. The entrepot trader is in South Korea. The goods can be shipped directly from Japan to Germany, and the South Korean entrepot trader makes a profit by handling trade documents.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Of course not only through transit. For example, when French wine is to be sold to Canada and a Swiss entrepot trader is involved, the wine is shipped directly from France to Canada, and the Swiss entrepot trader completes the Entrepot Trade by handling trade documents to obtain profits.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Entrepot Trade is not only possible through the transit of goods. Taking the clothing industry as an example, China produces clothing, and an Italian entrepot trader sells it to Brazil. The goods can be shipped directly from China to Brazil, and the Italian entrepot trader completes the Entrepot Trade through trade operations and the circulation of documents.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Not only through transit. For example, when Australian milk powder is to be sold to Hong Kong, China, and a New Zealand entrepot trader is involved, the milk powder is shipped directly from Australia to Hong Kong, and the New Zealand entrepot trader completes the Entrepot Trade by handling trade contracts and other documents.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
There are situations in Entrepot Trade where the goods do not transit. For example, when Indian spices are to be exported to Russia and an Emirati entrepot trader is involved, the goods are shipped directly from India to Russia, and the Emirati entrepot trader completes the Entrepot Trade by handling documents.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
It's not the case. For example, when African mineral products are to be sold to Europe and a Dubai entrepot trader is in the middle, the goods can be shipped directly from Africa to Europe, and the Dubai entrepot trader completes the Entrepot Trade by handling transaction documents. It's not necessary for the goods to transit.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
There are situations in Entrepot Trade where the goods do not transit. For example, when Thai fruits are to be sold to Russia and a Malaysian entrepot trader is involved, the fruits are shipped directly from Thailand to Russia, and the Malaysian entrepot trader makes a profit by handling documents to complete the Entrepot Trade.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Not only through transit. For example, when Chinese furniture is to be sold to Australia and a Singaporean entrepot trader is in the middle, the goods are shipped directly from China to Australia, and the Singaporean entrepot trader completes the Entrepot Trade by handling bills of lading and other documents.