Planning to start a re-export trade business and want to know which places at home and abroad are suitable. The best answer recommends Hong Kong, due to its advantageous geographical location, relaxed policies, and developed logistics; Singapore, which guards key waterways and has a high degree of trade facilitation; and domestically, Shanghai, with its complete financial and logistics system. These places each have their own advantages in terms of policies and logistics, offering valuable references.
Does Indirect Trade Equal Re-export Trade? Let’s Discuss!
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I've recently been studying international trade-related knowledge and I'm a bit confused about the concepts of indirect trade and re-export trade. I'd like to ask, does indirect trade simply equal re-export trade? Are there really any differences between them? If so, what are the main aspects of these differences? I hope knowledgeable friends can help clarify this for me. Thanks a lot!
Trade Expert Insights Answers
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Indirect trade does not equal re-export trade. Indirect trade refers to trade conducted between the commodity-producing country and the commodity-consuming country through a third country, where the producing country is an indirect exporter and the consuming country is an "indirect importer." Re-export trade, on the other hand, refers to the buying and selling of import and export goods in international trade, which is not conducted directly between the producing country and the consuming country, but rather through a third country.
The main differences between the two are twofold. Firstly, the trading relationships differ. In indirect trade, the producing country and the consuming country may not necessarily be aware of each other's existence, as they each form separate buying and selling relationships with the third country. In re-export trade, the re-exporter knows the information of both the producing and consuming countries and facilitates the transaction between them. Secondly, the cargo flow differs. In indirect trade, goods can be shipped directly from the producing country to the consuming country. In re-export trade, goods must first be shipped to the re-exporting country and then transshipped to the consuming country.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Indirect trade and re-export trade are not the same. Indirect trade emphasizes conducting trade through a third party, while re-export trade not only involves a third party, but the goods must also physically pass through that third party. For example, if country A produces goods and country C consumes them, under indirect trade, goods can go directly from A to C; whereas in re-export trade, the goods first go to country B, and then to country C.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
These two are different. In re-export trade, the re-exporter is responsible for tasks such as cargo transportation and warehousing, profiting from the price difference. In indirect trade, the third country primarily acts as an intermediary for contact, possibly without physically handling the goods, and may earn income such as commissions.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
From a tax perspective, indirect trade involves different tax policies of the producing country, consuming country, and third country, mainly import and export tariffs. In re-export trade, within the re-exporting country, besides regular taxes, there may also be warehousing-related taxes and fees due to the goods' stay.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Regarding trade documents, indirect trade requires various trade contracts and documents among the producing country, the third country, and the consuming country. In addition to these, re-export trade in the re-exporting country will also involve extra documents related to cargo transit and warehousing.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Re-export trade has high demands on the re-exporting country's geographical location, port conditions, etc., requiring convenience for cargo distribution. Indirect trade relies relatively less on the third country's geographical conditions, mainly serving a role in trade communication and connection.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
In terms of risks, re-export trade, due to goods staying and transiting in the re-exporting country, may face risks such as transportation delays and warehousing risks. If goods in indirect trade are shipped directly, the risks in this regard are slightly lower.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Regarding statistical attribution, indirect trade is recorded as exports for the producing country and imports for the consuming country, while the third country records it under trade services-related items. Re-export trade in the re-exporting country is recorded under merchandise trade items.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
From the perspective of market expansion, indirect trade benefits producing and consuming countries by allowing them to open new markets through a third party. Re-export trade benefits the re-exporting country by allowing it to leverage its own advantages to develop trade, increasing trade volume and revenue.