Import and Re-export Trade: The "Unspoken Rules" of Global Trade You Don't Know

Mr. Zhang recently discovered an interesting phenomenon: The Japanese electronic products he purchased have "Made in China" printed on the packaging, and the French red wine purchased by Ms. Li is shipped from the port of Belgium. Behind this lies a huge but little-known trade mode - Import and Re-export Trade. Today, we will uncover the mystery of this "Invisible Promoter".

Import and re-export trade refers to the trade form in which goods are imported from the producing country and then resold to a third country without substantial processing. This mode is like a "transfer station" in international logistics, allowing goods to reach the final consumers in the most efficient way.

• Reduce Costs: By choosing the optimal tariff path, enterprises can save 15-30% of the trade costs
• Avoid Barriers: Some goods can bypass trade restrictions by transiting through specific countries
• Improve Efficiency: Utilize global logistics hubs to shorten the delivery cycle

1. Bonded Area Re-export: When goods enter the bonded area, they are regarded as "within the territory but outside the customs area" and can enjoy the tariff suspension policy. According to data from Zhongshitong, the annual re-export trade volume of the Shanghai Yangshan Port Bonded Area has exceeded 100 billion yuan.

2. Off-shore Trade: The goods do not actually enter the country, and only the ownership is transferred. This "paper trade" accounts for 35% of the total international trade volume in Singapore.

3. Triangular Trade: The buyer and the seller complete the transaction through a third party, which is common in the flow of goods involving sensitive technologies.

The blockchain technology is reshaping the trust mechanism of import and re-export trade. Through smart contracts, processes such as the automatic execution of re-export document verification and payment settlement are carried out. The document review that traditionally takes 5-7 days now only takes 2 hours.

However, challenges also follow:

• The customs supervision standards of various countries are not uniform
• The value-added tax treatment in the transit country is complex
• Pricing risks brought by exchange rate fluctuations

With the entry into force of regional agreements such as RCEP, import and re-export trade will usher in a golden decade. Small and medium-sized enterprises can through:

• Pay attention to the policy dividends of free trade pilot zones
• Establish a multi-language compliance team
• Use trade big data analysis tools