intermediary trade, also known as transit trade (intermediary trade), refers to the import and export of goods in the world trade, not directly between the producing and consuming countries, but through a third country transshipment business. Such transactions are known as transshipment transactions for the transit countries. The traded goods may be transported from the exporting country to a third country, where they are not processed (conversion of packaging, classification, selection, pick up, etc.) and then sold to the consuming country; It can also be shipped directly from the producing country to the consuming country without passing through a third country, but there is no contact between the producing country and the consuming country, but the transit country is separated from the producing country and the consuming country. Because our country is suffering from anti-dumping in the world, so this way of trading, it has simply become one of the special ways to avoid trading sanctions.
The main characteristics of re-export trading are:
(1) Both sides are outside, that is, the domestic enterprise only acts as an intermediary, and both the seller and the buyer are outside the country;
(2) The flow of goods and capital flow do not match, that is, although the payment and ownership of the goods complete cross-border transfer, but the goods themselves do not necessarily enter or leave the country, there is no customs declaration or entry record list and other official information proof;
(3) The flow of funds a collection: after the return of funds can be sold again.
General process:
The process of traditional entrepot trading is described briefly: First, Chinese company A buys goods from overseas company B; Company A pays Company B and takes ownership of the goods from Company B. Company A then sells the goods to Company C outside the country and receives payment. Entities A, B and C are generally independent of each other. In the traditional entrepot trading, the profit of company A in China mainly comes from buying low and selling high, that is, the difference between selling to company C and buying to company B to gain profit.
