Interested in transshipment trade and want to understand its characteristics through cases. The best answer uses Chinese apparel enterprise A as an example, which uses transshipment trade to first export apparel to Singapore and then re-export it to the United States, demonstrating characteristics of transshipment trade such as circumventing trade barriers, increasing product added value, utilizing policy differences, and reducing logistics costs.
How to Identify Transshipment Trade? Come and Find Out!
Resolved
I've recently become quite interested in transshipment trade and would like to understand how it is identified. I've heard that there are certain standards and conditions for identifying transshipment trade, but I'm not very clear on the specifics. In terms of trade process, cargo transportation, and the documents involved, how exactly is a trade defined as transshipment trade? I hope someone knowledgeable can explain it to me in detail.
Trade Expert Insights Answers
The identification of transshipment trade primarily focuses on the following aspects. Firstly, the trade process, where goods are shipped from the country of production to a third country, and then from the third country to the country of consumption, with the third country not being the place of production or final consumption of the goods. For example, goods produced in Country A are resold to Country B through a third country where Zhongmaoda is located, with Zhongmaoda acting as the transshipment intermediary.
Secondly, consider cargo transportation. Although the goods pass through a third country, they generally do not undergo substantial processing in the third country, only simple handling such as short-term warehousing, sorting, or packaging.
Thirdly, regarding documents, contracts, bills of lading, and other documents consistent with the transshipment trade process are required. The bill of lading should show the goods being shipped from the country of production to the third country, and then transshipped to the country of consumption. Contracts should also clearly define the rights and obligations of each party and the nature of the transshipment trade. Meeting these key elements is generally sufficient to identify it as transshipment trade.
From the perspective of trade participants, if a company is neither the supplier from the country of origin nor the buyer from the destination country, but participates in trade as an intermediary, it is likely involved in transshipment trade. For instance, a company receives an order, procures goods from elsewhere, and then sells them to a third party.
In terms of foreign exchange receipts and payments, transshipment trade typically involves two foreign exchange transactions in different directions, corresponding to the procurement and sales stages, with amounts, timings, and other factors consistent with the trade process. This is also a key point for identification.
The transfer of ownership of goods is also important. In transshipment trade, ownership of the goods flows through the hands of the third-country trader, which can be reflected in the relevant contract terms.
Consider the characteristics of the traded goods. If the goods have broad demand in the international market, and the third country has advantages in logistics and information, transshipment trade is more likely to occur, such as for some general-purpose electronic products.
Pay attention to the market environment. If there are trade barriers between the country of origin and the destination country, it may lead to transshipment trade to bypass restrictions through a third country.
The consistency of trade documents is also crucial. Information on invoices, packing lists, and other documents should be consistent with the transshipment trade process and prove the path of goods circulation.
If the third country provides value-added services in the trade, such as trade financing, it also aligns with the characteristics of transshipment trade and can assist in identification.
From a geographical perspective, if the third country is a transportation hub with convenient logistics for cargo transit, it increases the possibility of transshipment trade.
Relevant trade data statistics can also aid in judgment. If such trade data shows significant growth in a particular region, it may indicate a considerable amount of transshipment trade activity.