Our company recently plans to carry out entrepot trade business. I heard that some trade activities may involve stamp duty. I'd like to ask everyone, is stamp duty required for entrepot trade in this case? If so, what are the payment standards? I hope friends who know about this can help answer this question. Thank you!
I'm interested in Malaysia's entrepot trade and want to know where the goods are transshipped from and to. The best answer is that the common sources of goods are Asian countries such as China and India, and the destinations are mainly in Europe, the United States, and the Middle East. Chinese products take advantage of Malaysia's geographical and policy advantages. There is a large demand in the European and American markets, and the demand for building materials, etc. in the Middle East is growing. Malaysia realizes entrepot trade through its ports and logistics network.
A staff member of a trading company asked whether, when the company purchases goods from Country A, transports them to Country B and then resells them to Country C, this situation of entrepot trade counts as an export figure and whether it has an impact on the company's export performance statistics. The best answer is that entrepot trade does not count as a regular export figure. Export refers to the sale of domestically produced goods abroad. The goods in entrepot trade are not produced domestically and are generally not included in the export statistics. However, some regions may have different considerations from the perspectives of trade services, etc. The company can also set its own rules for performance statistics.
Our company engaged in export trade has encountered an anti-dumping investigation and is asking about how to avoid it through entrepot trade. The best answer points out that one can choose a suitable entrepot country, find a professional agent like Zhongshitong, optimize the supply chain layout, and at the same time pay attention to key points such as document handling, warehouse management, and trade relations. Through these methods, one can effectively avoid anti-dumping and help expand overseas markets.
Said that when coming into contact with entrepot trade business, there were doubts about the name for customs declaration, and wanted to know whether it was declared in the name of the shipper, the consignee or other names, hoping for an explanation with examples. The best answer pointed out that the name for customs declaration depends on the trade contract agreement and business process. It is commonly in the name of the entrepot trader. For example, if Zhongshitong, as an entrepot trader, purchases goods from Country A and resells them to Country B, it will declare the goods in its own name; it may also be determined according to the negotiation between the shipper and the consignee, etc. Making it clear in advance can avoid disputes.
I want to understand what the form of entrepot trade is, its actual operation process and the differences from the general form of trade. The best answer states that the form of entrepot trade is that the sale of goods is transacted through a third country. The process is that the goods from the producing country are transported to the third country, undergo simple handling there, and then are sold to the consuming country. Compared with general trade, it involves three parties and at least two transports, and can take advantage of the advantages of the third country to reduce costs and avoid barriers.
Our company is involved in entrepot trade and is unclear about bill of lading issuance. We want to understand the process, key points, and differences from general trade bill of lading issuance. The best answer indicates that it can be issued by a freight forwarder or NVOCC. The process involves the shipper providing information, the freight forwarder creating a draft for confirmation before issuance. Key points include accurate consignee/shipper information and cargo description. The difference from general trade bills lies in confidentiality and flexibility.
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Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Whether stamp duty is required for entrepot trade depends on the specific circumstances. Firstly, if a purchase and sale contract is signed for the entrepot trade, according to the Interim Regulations of the People's Republic of China on Stamp Duty, the purchase and sale contract belongs to the taxable vouchers of stamp duty and stamp duty should be paid. The tax calculation basis is the amount stated in the contract, and the tax rate is three ten-thousandths.
However, if in the entrepot trade, no relevant contract is signed and only orders, purchase requisitions, etc. are used as contracts, stamp duty should also be paid according to the regulations.
Nevertheless, if the entrepot trade is purely an oral transaction without any written vouchers, then usually no stamp duty is required in this case. Enterprises should pay attention to retaining relevant transaction materials so as to accurately judge and deal with tax inspections.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Generally speaking, as long as it involves legally valid vouchers, such as contracts, etc., stamp duty is required for entrepot trade. If there is no contract, it depends on whether there are files with similar contract functions. If there are, stamp duty is also required.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If there is a written contract for the entrepot trade, stamp duty should be paid. But if it is just a simple transaction without forming a written contract, theoretically stamp duty may not be required. However, the specific implementation still depends on the regulations of the local tax department.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
It depends on the operation mode of the entrepot trade. If there is a formal trade contract, stamp duty must be paid. If it is just some simple transaction records without forming files of a contract nature, perhaps stamp duty may not be required.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
To judge whether stamp duty is required for the entrepot trade, the key is to see whether there are vouchers that fall within the taxable scope of stamp duty. If there are clear contracts or agreements similar to contracts, stamp duty should be paid according to the regulations.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the relevant business of the entrepot trade forms files of a contract nature, even if they are not contracts in the traditional sense, stamp duty may also be required. Specific inquiries should be made to the local tax authorities.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Whether stamp duty is required for the entrepot trade mainly depends on whether there are written transaction vouchers. If there are, it is highly likely that stamp duty is required; if there are not, generally stamp duty is not required, but it is subject to the local tax policies.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
In the entrepot trade, if a contract that clearly defines the rights and obligations is signed, stamp duty is required, and the tax is affixed at the rate of three ten-thousandths of the purchase and sale amount. If there is no contract, it may not be required.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Whether stamp duty is required for the entrepot trade depends first on whether a contract is signed. If a contract is signed, usually stamp duty is required; if not, if the tax authorities determine that there is taxable behavior, they may also require payment.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
For the entrepot trade, if there are taxable vouchers such as written contracts, stamp duty is required. If there are no relevant vouchers, no stamp duty is required. For specific details, you can consult Zhongshitong.