Shenzhen Sparkway Logistics co.,ltd

What kind of products are suitable for entrepot trade

2017-03-17handler3197

Not all products need to do the third country entrepot trade, nor does the product encounter anti-dumping necessarily need to use the entrepot transportation to avoid taxes for foreign importers. Whether the export products need to do entrepot trade transport, the general comprehensive consideration of factors are: whether the need for quota, value, anti-dumping rate, product category and entrepot transport increased costs, etc.

Under normal circumstances, the following six situations should be considered for which kinds of products need to be transshipment trade and transit transportation:

1. The export of products requiring quotas and relatively high quota prices, such as clothing export needs quotas in the era, the third country transfer mode, matching the third country certificate of origin and a full set of relevant export documents, can save considerable costs. Now the daily ceramic export to Turkey also need quota, this kind of products can be considered to do the third country entrepot trade.

2, the value of the product itself is higher anti-dumping products, although the foreign anti-dumping duty rate is not too high, but because the tax base is relatively large, it is also suitable for the third country transit way. For example, the anti-dumping duty on stainless steel fasteners is not high (11.4%), but the anti-dumping duty on a 20-foot container has reached $100,000, and the anti-dumping duty has exceeded $10,000. Export by re-export means has a great advantage in customs clearance cost.

3, the product value is not high, but the anti-dumping duty rate is quite high products. For example, the value of a 20-foot container of malleable steel pipe fittings is only about $30,000, but Argentina has imposed an anti-dumping duty rate of 118% on this kind of product from China. Another example of glass fiber mesh cloth, a 40 feet container of goods value is about 30,000, the EU anti-dumping duty rate is as high as 57.7%, in this case of high tariff barriers, importers can not import normally, leading to the loss of customers of Chinese foreign trade enterprises, in this case, the best way is to choose transit transport export is better.

4. Daily necessities or food products with large shipments, average value, but high anti-dumping duty, such as: The value of a 40HQ bee product is about tens of thousands of dollars, but the United States imposes tariffs of 60 to 100 percent on it. Under the sanction of such high tariff barriers, American businessmen cannot normally cooperate with our Chinese enterprises to purchase products, so they can avoid this problem by transshipment.

5. When exporting products without anti-dumping, the destination country normally imposes a high import tariff on such products from China, for example: The value of a 40HQ textile fabric can reach more than 300,000 US dollars. The import tariff of Turkey from China is much higher than that of Indonesia and Bangladesh, so many Turkish buyers will reduce the import tariff by re-exporting from Indonesia and Bangladesh.

6. Goods exported to Egypt and Iran need to do CIQ, which is difficult to do. Transshipment through Hong Kong or Malaysia can avoid doing CIQ.