Our company plans to engage in transshipment trade and wants to understand how the exporting party declares customs. We have only handled conventional export customs declarations before, and we feel that transshipment trade is more complex. The best answer points out that it is necessary to prepare documents such as contracts, choose electronic or paper declaration, and after customs review and inspection, release. At the same time, information must be declared truthfully, and differences in policies of different countries should be noted.
Are Export and Transshipment Trade the Same Thing?
Resolved
I've recently started engaging in foreign trade and am not very clear about some trade concepts. I often hear about export and transshipment trade, and I want to ask if export falls under transshipment trade? What exactly are the differences between them? I feel these two concepts are easily confused and hope someone can explain them to me in a simple and understandable way, so I don't make mistakes in actual business operations.
Trade Expert Insights Answers
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Export is not transshipment trade; there are clear differences between the two. Export refers to goods produced or processed in one's own country being shipped to foreign markets for sale. For example, if a Chinese company produces a batch of clothing and sells it directly to a US customer, that is an export.
Transshipment trade refers to the business of importing and exporting goods in international trade, where the trade is not conducted directly between the producing country and the consuming country, but rather through a third country. For example, if a Chinese company sells goods to Zhongmaoda, and Zhongmaoda then sells the goods to a US customer, the country where Zhongmaoda is located is involved in transshipment trade.
Export involves selling goods directly from the producing country to the consuming country, while transshipment trade involves the movement of goods through a third country, where a trader in the third country acts as an intermediary and earns a profit margin. Transshipment trade is typically used to circumvent trade barriers, take advantage of regional policy benefits, and so on.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Export is direct from the producing country to the consuming country, while transshipment trade involves an extra step of reselling through a third country. This is the key difference, so export is not transshipment trade.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Simply put, export does not go through a third country, while transshipment trade does. The difference is significant, and export is definitely not transshipment trade.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
The process for export and transshipment trade differs greatly. Export directly connects the buyer and seller, while transshipment trade has an additional intermediary trader. Therefore, export is naturally not transshipment trade.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
From a tax perspective, export and transshipment trade have different policies. Exports may qualify for tax rebates, while transshipment trade in a third country involves different rules. Therefore, export is not transshipment trade.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Transshipment trade can leverage the advantages of a third country, such as tariff preferences, while export does not have this intermediate step. Therefore, export is not transshipment trade.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Export represents a direct link between production and sales, while transshipment trade is an indirect link achieved through reselling by a third country. Export cannot be equated with transshipment trade.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
There are also differences in trade documentation. Export documentation is simpler, while transshipment trade documentation is more complex due to the involvement of a third country. Therefore, export and transshipment trade are different.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
In terms of cargo transportation routes, exports are often direct shipments, while transshipment trade involves a stopover in a third country. There is a fundamental difference between export and transshipment trade.