Is entrepot trade actually part of goods trade? Come and discuss together!
Solved#Entrepot trade#
Recently, I've been studying trade-related knowledge and got a bit confused about the concepts of entrepot trade and goods trade. I know that goods trade refers to the import and export of tangible commodities. What about entrepot trade? It involves the circulation of goods among different countries. Can this be considered as goods trade? Is there any professional who can help analyze whether entrepot trade is indeed goods trade and what the specific differences and connections between the two are?
Professional consultant answers
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Entrepot trade belongs to goods trade. Goods trade covers various cross-border transactions of tangible commodities. In entrepot trade, the goods actually undergo cross-border transportation and circulation, which conforms to the category of goods trade.
Entrepot trade means that the country of origin of the goods and the country of consumption of the goods do not directly trade the goods, but conduct the goods trade through a third country. In this process, the goods are transported from the country of origin to the third country and then from the third country to the country of consumption. For example, products from China are first exported to Singapore, and then Singapore resells them to the United States. The goods actually undergo cross-border movement.
Although entrepot trade involves the transit of goods in the third country, it is still essentially a trading activity of tangible goods, so it belongs to goods trade. However, the difference between entrepot trade and ordinary goods trade lies in that it has an additional transit link, the trading process is more complicated, and it involves more arrangements for transportation, warehousing, etc.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Entrepot trade is counted as goods trade because the goods are actually transported from one place to another, with physical goods involved, which conforms to the characteristics of goods trade. For example, some European countries resell goods to other regions through Dutch ports. The goods have actual movement, so it is goods trade.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Entrepot trade is goods trade. Goods trade focuses on the physical movement of goods. In entrepot trade, the goods are transferred among different countries. Just like some Southeast Asian countries resell the commodities imported from China to Oceanian countries. The goods undergo cross-border flow, so it belongs to goods trade.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
From the actual situation of trade, entrepot trade is goods trade. For example, Japan imports electronic parts from South Korea and then resells them to Vietnam. The goods actually exist and are transported across countries, which conforms to the definition of goods trade.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Entrepot trade is definitely goods trade. As long as there is cross-border movement of goods, it counts. For example, African countries resell goods to other regions through Dubai. The goods have a change in physical location and belong to the category of goods trade.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Entrepot trade belongs to goods trade. The difference between it and ordinary goods trade mainly lies in the process. Entrepot trade has an additional transit link, but both have the actual circulation of goods, so it is classified as goods trade.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
It is goods trade. Because in entrepot trade, the goods move from the country of origin to the country of consumption. No matter how many times they are transferred in the middle, there are physical goods moving internationally, which satisfies the conditions of goods trade.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Entrepot trade is goods trade. The goods actually flow among countries. For example, South American countries resell goods to other continents with the help of Panama. This is a form of goods trade.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
From the essence of trade, entrepot trade is goods trade. There is cross-border transfer of goods, which is similar to ordinary goods trade, except that entrepot trade has a special transit path arrangement.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Entrepot trade belongs to goods trade. As long as the goods have a physical transfer among different countries, it conforms to the definition of goods trade. The transit process only increases the complexity of the trade.