The company plans to develop re-export trade business and has doubts about whether it qualifies for tax rebates. It asks if re-export trade can indeed get tax rebates, what conditions must be met if it can, and what the reasons are if it cannot. The best answer states that re-export trade generally does not qualify for tax rebates because tax rebates target the export of domestic goods. Re-export trade goods are not produced domestically and have not undergone substantial processing or value-addition. However, if goods enter the country's special customs supervision areas, they may, in some cases, be treated as exports and enjoy tax rebates, subject to local policy determination.
Re-export trade volume: which country should it be attributed to? Please help me answer!
Resolved
I am a staff member of a company engaged in re-export trade, and I recently encountered confusion while compiling trade data. Our company purchases goods from Country A, and without substantial processing, we directly transport them to Country B for sale. So, to which country's trade statistics should this re-export trade volume be attributed? Should it be the purchasing country A, the selling country B, or our country as the transit point? Are there any internationally common standards or rules to define this? I hope to get a professional answer.
Trade Expert Insights Answers
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Re-export trade volume is generally attributed to the trade statistics of the country of transit. This is because re-export trade refers to the buying and selling of goods between the country of production and the country of consumption, but carried out through a third country. In your case, your company, as the enterprise in the transit country, completed the purchase and sale of goods.
From the perspective of international common rules, in re-export trade, commercial activities such as the transfer of ownership occur in the transit country. Therefore, including it in the trade statistics of the transit country more accurately reflects the local trade scale and commercial activity. At the same time, goods in transit involve a series of procedures such as customs declaration, which also provides a basis for statistics on re-export trade volume.
For the purchasing country A and the selling country B, their trade statistics usually record the data of exports to the transit country (your country) and imports from the transit country (your country) respectively, rather than directly counting this re-export trade volume.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
In general, re-export trade volume is attributed to the transit country, mainly because the transit country plays a key connecting role in the entire trade process, and commercial activities such as the transfer of ownership of goods occur in the transit country, so attributing it to the transit country's trade volume can truthfully reflect its trade activities.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
The volume of re-export trade is counted towards the transit country. After all, the goods go through customs declaration and other processes in the transit country, and the sale and purchase transactions are completed here. From the perspective of practical operations and business, it is more reasonable to attribute it to the transit country.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
According to common statistical methods, it is attributed to the transit country. This type of statistical approach helps to accurately measure the transit country's position and role in international trade, as well as its contribution to the local economy.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Re-export trade volume is usually included in the trade volume of the transit country. This is because the transit country is involved in the flow of goods and commercial operations, and statistics here clearly reflect the region's trade contribution.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Generally, re-export trade volume is attributed to the transit country, which reflects the transit country's participation in the international trade chain and its trade service capabilities.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Re-export trade volume is mostly counted in the trade volume of the transit country, which is determined based on the fact that the key transaction links were completed in the transit country.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Re-export trade volume is generally attributed to the transit country, which is related to the trade process and the transfer of ownership, and can accurately present the trade scale of the transit country.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
It is usually attributed to the transit country. From the perspective of the trade process, the transit country has substantial trade operations, and attributing it can more reasonably demonstrate the trade situation.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Re-export trade volume is habitually attributed to the transit country, because the buying and selling of goods and related procedures take place in the transit country, making it easier to count the trade volume.