What is entrepot trade?
Entrepot trade, also known as transit trade or re-export trade, traditionally refers to international trade in which the import and export of goods is not conducted directly between the producing country and the consuming country, but is transferred through a third country. The characteristics of re-export trade are that the two ends are abroad and the three flows are separated: the buyer and the seller are abroad, the middleman is within the country, and the flow of goods, capital flow and order flow are not unified.
What is the operation process of entrepot trade?
1. The exporter and the foreign buyer confirm the sales contract in writing, and the goods are shipped from China to a third country, and then transported from the third country to the final destination by our company. The terms are usually CFR or CIF DESTINATION PORT.
It is recommended that exporters and customers sign a trade contract and explain in it the details of the goods being transferred through a third country, the shipping time of the third country's export, the type of certificate of origin, whether the document is endorsed, the timeline for collecting the balance based on the first leg shipping or the third country's bill of lading, etc.
2. Confirm the departure date of the first leg and the second leg abroad with the logistics company, and book the space and do customs clearance 7 days in advance before the departure of the first leg. When loading the cabinet, take photos for record.
3. The logistics company and the overseas branch will complete the pre-customs clearance within 3 days before the first leg of the ship arrives at the port. The container can be picked up and the container exchange operation can be carried out on the same day or the next day after the ship arrives at the port. When changing cabinets, we will take photos for record.
4. Import customs clearance, container change and connection with the second leg of the ship are usually completed within 3 working days. It usually takes 7 working days from the arrival of the import container to the departure of the second-leg vessel.
5. The original bill of lading will be issued within 2 working days after the second leg of the vessel departs. Certificate of origin, export declaration, packing list, invoice and other documents are completed within 4 to 5 working days.
6. Third country documents can be delivered to Chinese exporters from our company in Malaysia, Indonesia, Thailand, and Hong Kong within 2 to 3 working days (limited to places where DHL can reach)
This is the end of the knowledge about re-export trade in this issue. If you want to get more knowledge about re-export trade, please pay attention and we will continue to answer your questions~
