Do you know which of the following belongs to entrepot trade? Come and learn together!
Solved#Entrepot trade#
I've been learning about international trade related knowledge recently, and I'm not quite clear about entrepot trade. I'd like to ask, which of the following situations belong to entrepot trade? For example, goods are transported from Country A to Country B, but transshipped at the port of Country C; or the country first imports a batch of goods and then exports them to other countries; or two countries directly trade, the goods don't pass through the country, but the country participates in the trade process, etc. Which ones exactly are considered entrepot trade? I hope to get a professional answer.
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Entrepot trade, also known as transit trade, refers to the business of importing and exporting goods in international trade. It is not directly carried out between the producing country and the consuming country, but through the hands of a third country. If goods are transported from Country A to Country B and transshipped at the port of Country C, and if the traders of Country C participate in the trade process, such as purchasing the goods in their own name and then reselling them to customers in Country B, this belongs to entrepot trade. If the country first imports a batch of goods and then exports them to other countries, and if the domestic traders assume commercial roles such as purchasing and selling in this process, it also belongs to entrepot trade. However, if two countries directly trade, the goods don't pass through the country, and the country only participates in part of the process, such as only providing services like document processing, it generally does not belong to entrepot trade. Only when the domestic traders actually control the ownership of the goods and complete the transaction does it meet the definition of entrepot trade.
In short, the key to judgment lies in whether the traders of the third country have substantial commercial actions and control the ownership of the goods in the process of buying and selling the goods.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
When goods are transshipped through a third country and at the same time the traders of the third country carry out operations such as pricing and selling the goods, this is the typical form of entrepot trade. In some trade-developed areas in Southeast Asia, they often take advantage of their geographical advantages to conduct entrepot trade.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If the country purchases goods from abroad, stores them in the bonded area, and then sells them to other countries, this also belongs to entrepot trade. In this situation, the country plays the role of goods transit and trade operation.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
When an enterprise in the international market first buys goods from a supplier and then resells them to a buyer in another country, even if the goods do not pass through the country, as long as the enterprise has operations such as changing the ownership of the goods, it is also considered entrepot trade.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
For example, Country A produces goods, and traders in Country B buy them and resell them to Country C. The goods are directly shipped from Country A to Country C. Although Country B does not handle the goods physically, it has completed the trade process, and this is entrepot trade.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
In a free port, traders gather goods from different places of origin and then sell them to other countries. This belongs to entrepot trade because the traders have realized the reselling of the goods in the middle.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If a domestic enterprise signs a purchase contract with a foreign supplier and also signs a sales contract with another foreign customer, and the goods are directly sent from the supplier to the customer, and the domestic enterprise participates in pricing, etc., this is also entrepot trade.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
When goods are purchased from overseas and stored in a bonded warehouse and then sold to customers in a third country, and the goods do not enter the domestic market, and the domestic enterprise completes the reselling process, this is entrepot trade.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
When an intermediary facilitates transactions between the supply and demand sides in different countries, has a certain degree of control over the goods and makes a profit from it, even if the goods do not pass through the country where the intermediary is located, it is also considered entrepot trade.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Some trading companies purchase characteristic goods from different countries, integrate them and then sell them to other countries. Even if the goods do not pass through the country, as long as the company has substantial trade operations, it is entrepot trade.