Operating an import company, importing goods from abroad for domestic sales, after learning about transshipment trade, asking if import companies can engage in transshipment trade and what to pay attention to during operation. The best answer states that import companies can engage in transshipment trade, leveraging their own advantages. During operation, attention should be paid to cargo transportation, document processing, and trade and tariff policies of the destination country.
Can transshipment trade obtain export tax rebates? How to operate?
Resolved
Our company plans to develop transshipment trade business recently. We heard that general trade exports can get tax rebates, but we are not quite clear about the situation of transshipment trade. We want to ask how transshipment trade can get export tax rebates? If it cannot be rebated, what is the reason? We hope to get a detailed and easy-to-understand answer, thank you!
Trade Expert Insights Answers
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Transshipment trade usually cannot get export tax rebates. The reason is that export tax rebates mainly target situations where domestic goods are actually exported and there are production, processing, and value-added links in the country. Transshipment trade refers to trade carried out by merchants from a third country who respectively sign import and export contracts between the country of production and the country of consumption. The goods do not pass through the home country, and the home country enterprise only acts as an intermediary, without actual production or processing activities occurring in the country.
For example, country A produces goods, country C needs the goods, and an enterprise in the home country purchases them from country A and sells them directly to country C. The goods are shipped directly from country A to country C and are not declared for export in the home country. In this case, it does not meet the requirements for export tax rebates. However, if the goods enter a special supervised area such as a bonded zone in the home country, and after completing a series of procedures such as customs declaration and export, they are then exported, export tax rebates can be applied for in accordance with regulations if conditions are met. Specific operations should be carried out according to local tax and customs regulations.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Transshipment trade involves three parties, and the goods do not pass through the home country. Generally, it does not involve the payment and refund of circulation taxes such as domestic value-added tax, so the export tax rebate policy is not applicable. If enterprises want to enjoy similar preferential policies, they can consider importing goods into special supervised areas in the home country and then exporting them, which may meet the conditions for tax rebates.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Transshipment trade goods are not processed or produced domestically, lacking domestic value-added links, which does not meet the basis for export tax rebates. If an enterprise conducts transshipment trade and also performs simple processing on the goods, it can consult the local tax authorities to see if partial tax rebates can be obtained.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Transshipment trade cannot get export tax rebates because its essence is intermediary trade. The goods go directly from the country of origin to the country of consumption, and an effective export chain is not formed in the home country. However, if the enterprise has related processing business and can provide complete documents, there may be a turn of events, and it is necessary to communicate with the tax authorities in a timely manner.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
General transshipment trade cannot get tax rebates because export tax rebates are for goods that are actually exported from the home country and processed and value-added domestically. However, if the goods are temporarily stored in the home country and undergo substantive processing, they may meet the conditions for tax rebates, and specific analysis is required.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Transshipment trade cannot get export tax rebates because the goods are not produced and value-added in the home country. If the goods pass through special supervised areas in the home country and go through relevant export procedures, there may be an opportunity for tax rebates, and materials should be prepared according to regulations.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Most transshipment trade cannot get tax rebates because there is no process of domestic production and value-added. However, if the goods undergo simple processing such as packaging and sorting in the home country, it may be possible to strive for partial tax rebate qualifications, and local tax authorities can be consulted.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Transshipment trade usually does not get tax rebates because the goods do not go through the actual export process of the home country. However, if the enterprise can prove that it has made substantial changes to the goods in the home country, such as processing technology, it may try to apply for tax rebates.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Transshipment trade generally does not meet the conditions for export tax rebates because there is no domestic production value-added. If the goods enter bonded port areas, etc., in the home country and are operated in accordance with regulations, there may be a possibility of tax rebates, and policy details should be noted.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Transshipment trade cannot get tax rebates because the goods do not generate value-added in the domestic production link. If the enterprise can integrate relevant processes to make the goods meet the domestic export tax rebate standards, there may be opportunities, and the key is to comply with policy requirements.