Who Exactly Owns the Ownership of Goods in Entrepôt Trade? Come and Discuss Together!
Solved#Entrepot trade#
I've recently been studying knowledge related to entrepôt trade, and there's a question I just can't figure out, which is who exactly owns the ownership of goods in entrepôt trade? I understand that entrepôt trade involves multiple parties, and the goods are transported from the producing country to the transit country and then to the consuming country. During this period, the ownership of goods seems to change. Are there any experts who can explain to me in detail how the ownership of goods is determined at different stages? Thank you very much!
Professional consultant answers
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In entrepôt trade, the ownership of goods needs to be considered according to different situations. Generally speaking, when the goods leave the producing country and are transported to the transit country, if the buyer and the seller have signed a contract and completed the transaction process such as payment of the purchase price, the ownership of goods may be transferred to the entrepôt trader. For example, if an exporter reaches an agreement with an entrepôt trader and the entrepôt trader pays the purchase price, the ownership of goods will belong to the entrepôt trader.
When the goods arrive in the transit country, if the entrepôt trader stores the goods in a warehouse waiting for resale, the ownership of goods still remains with the entrepôt trader. If the entrepôt trader reaches a transaction with the buyer in the final consuming country and completes the delivery and relevant procedures, the ownership of goods will be transferred to the final buyer. Of course, the specific ownership of goods still depends on the contract terms signed by all parties. The contract will specify the time, conditions, etc. for the transfer of the ownership of goods. Therefore, to determine the ownership of goods in entrepôt trade, the key is to look at the specific agreement in the transaction contract.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
The ownership of goods in entrepôt trade usually depends on the direction of capital flow. Whoever pays the money, under the condition of complying with the contract provisions, the ownership of goods tends to belong to that party. For example, if an entrepôt trader pays the manufacturer, the ownership of goods most likely belongs to the entrepôt trader.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally, when the goods are stored in the transit country, as long as the entrepôt trader has not completed the transaction with the next party, the ownership of goods belongs to the entrepôt trader. Once the transaction is completed and the delivery conditions are met, the ownership of goods belongs to the buyer.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
If the producer and the entrepôt trader agree that the ownership of goods will be transferred only when the goods reach a specific location in the transit country, then the ownership of goods belongs to the producer before that, and it belongs to the entrepôt trader when it reaches the location.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Sometimes, it depends on the transport documents, such as the bill of lading. If it is an order bill of lading, the ownership of goods is transferred with the endorsement of the bill of lading. Whomever the bill of lading is endorsed to, the ownership of goods may belong to that party.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
If the entrepôt trader and the final buyer agree to pay a part of the deposit first, and the ownership of goods will be transferred only after the goods arrive at the port and pass the inspection and the balance is paid in full, then the ownership of goods still belongs to the entrepôt trader before the inspection is passed and the balance is paid in full.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
From the perspective of risk assumption, the party that assumes the risk of the goods often has the ownership of goods. For example, if the entrepôt trader assumes the risk during transportation, the ownership of goods may belong to the entrepôt trader.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
If the goods are processed and then re - exported in the transit country, and the entrepôt trader has invested processing costs, etc., the ownership of goods generally also belongs to the entrepôt trader at this time.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
There are also differences according to different trade terms. Under the FOB term, when the goods cross the ship's rail at the port of shipment, the ownership of goods is transferred from the producer to the entrepôt trader.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If bank financing is involved, when the bank has control over the goods, it will affect the ownership of goods to a certain extent until the financing issue is resolved.