Intermediary trade

Intermediary trade

Re-export trade is also called transit trade. Re-export trade refers to the sale and purchase of imported and exported goods in international trade. It is not conducted directly between the producing country and the consuming country, but is carried out through a third country. This kind of trade is re-export trade for transit countries. The goods traded can be shipped from the exporting country to a third country, and then sold to the consuming country without being processed in the third country (changing packaging, classification, selection, sorting, etc. are not considered processing); they can also be shipped directly from the producing country without going through a third country. Consumer countries, but there is no trading relationship between the producing country and the consuming country. Instead, the transit country conducts transactions with the producing country and the consuming country respectively.

Since China is the country that encounters the most anti-dumping in the world, this form of trade has almost become one of the exclusive ways to avoid trade sanctions. There are mainly two types of re-export trade through China. One is that the goods are shipped from the producing country to China's bonded area and then exported to the consuming country. The other is that China exports to a transit port in a third country and then enters the third country.

The producing country transports it to China's bonded area and then exports it to the consuming country.

China Bonded Zone Operation Procedure:

1. The goods are transported from the producing country to China by air/sea/land transportation

2. After the goods arrive in China, they must be transported from the terminal (airport) to the bonded area by a customs-supervised vehicle.

3. The consignee must provide complete customs declaration information for entry declaration.

4. Customs will review and release the goods

5. The consignee must provide complete customs declaration information for exit declaration

6. Customs will review and stamp the document to allow release.

7. Replace containers in the bonded area

8. The goods are transported by customs-supervised vehicles from the bonded area to the terminal (airport) and then exported to the consumer country.

China's exports are sent to the transit port of the consuming country and then enter the consuming country.

Example:

1】For products that are exported for counter-selling, the destination country has relatively high import tariffs on such products from China. For example: a 40HQ textile fabric can have a value of more than 300,000 US dollars. However, the tariffs imported from China are higher than those imported from Indonesia. Import tariffs from Bangladesh are much higher, so many Turkish buyers will reduce import tariffs by re-exporting from Indonesia and Bangladesh.

2】Goods exported to Egypt and Iran require CIQ, which is more difficult to do. CIQ can be avoided by re-exporting through Hong Kong or Malaysia.

3】On December 30, 2020, the Ministry of Commerce and Industry of India issued an announcement stating that it would make a final affirmative anti-dumping ruling on viscose spun yarn originating in or imported from China, Indonesia and Vietnam, and recommended that the products involved in the above countries be Anti-dumping duties are levied with a validity period of 5 years, including:

1. China is 0.41~0.80 US dollars/kg,

2. Indonesia is 0.25~0.44 US dollars/kg

3. Vietnam is US$0.41/kg

VIPUTRANS's process for handling third-country re-export trade is as follows:

First leg sea freight

a) The goods are first sent from the port in China to the transit port in a third country (Malaysia, Thailand, Singapore, Sri Lanka, etc.), and the exporter can refund the tax normally (the exporter only needs to prepare normal export documents).

b) After the goods arrive at the transit port in the third country (Malaysia, Thailand, Singapore, Sri Lanka, etc.), we arrange customs clearance and cabinet change in the third country (take photos and videos throughout the cabinet change process)

c) Apply for a complete set of documents from a third country (certificate of origin, bill of lading, packing list, invoice) and then re-declare to the export destination port

Second leg sea freight
The third country's transit port sends the goods to the destination port. After the goods arrive at the customer's designated port, the customer takes a full set of documents issued by the third country for customs clearance (certificate of origin, bill of lading, packing list, invoice) to avoid the anti-dumping duties imposed by the destination port on China.

VIPUTRANS international re-export trade services provide export enterprises with five layers of security:
1. Cargo safety: full-process photo monitoring is provided during the transshipment process to ensure that the cargo is not contaminated or damaged during the transshipment process;

2. Guarantee of goods rights: Sign a legally efficient re-export contract to ensure that the goods rights belong to the exporter from beginning to end;

3. Collection security: Customers can directly collect payments from guests at the destination port through their own offshore accounts, or they can entrust our company to collect payments as an agent;

4. Guarantee customer privacy: Sign a formal agreement and contract, guarantee not to disclose information about exporters and their buyers to third parties, and never participate in any trading activities. We solemnly promise that we will only strive to become the most professional re-export trade in the country. , transshipment logistics supplier;

5. Customs clearance security: The customs at the destination port cannot trace the origin of the goods to China. Our company guarantees the authenticity of the customs clearance documents.

If you have any question about Intermediary trade please feel free to consult Viputrans  Lora Yang E-mail: sales02@viputrans.com

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