Confused whether exclusive distributorship counts as parallel import. Defines exclusive distributorship as an agent having exclusive sales rights in a specific region, and parallel import as importing and selling goods with a trademark without the trademark owner’s authorization. The best answer points out they are not the same. Exclusive distributorship is legal cooperation based on an authorization agreement, while parallel import may carry legal risks. For example, if Zhongmaoda is an exclusive distributor, other merchants importing and selling without authorization constitutes parallel import and infringes on its rights.
What exactly is the relationship between re-export trade and indirect trade? Is re-export trade considered indirect trade?
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I've recently been studying international trade knowledge, and I'm a bit confused about the concepts of re-export trade and indirect trade. I want to ask if re-export trade is indirect trade. What are the differences and connections between them? I hope for a simple and easy-to-understand explanation so I can better understand these two forms of trade and accurately distinguish and apply them in practical trade operations.
Trade Expert Insights Answers
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Re-export trade is not equivalent to indirect trade. Indirect trade refers to the buying and selling of goods between a producing country and a consuming country via a third country; it is an indirect export for the producing country and an indirect import for the consuming country. 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 difference is that indirect trade emphasizes the buying and selling of goods through a third country, and does not necessarily involve the physical transportation of goods through that third country. In re-export trade, while the physical transportation of goods may not pass through the third country, the third-country re-exporter must have ownership of the goods, purchasing them from the producing country in their own name and then selling them to the consuming country.
The connection is that both involve a third country, and both, to some extent, leverage the advantages of a third country to promote trade, such as geographical location, trade policies, etc.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Simply put, in re-export trade, goods transportation does not necessarily have to pass through a third country, but the third-country merchant must have ownership of the goods; indirect trade focuses more on the buying and selling occurring via a third country, while transportation does not necessarily. Therefore, re-export trade cannot be simply categorized as indirect trade.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
In re-export trade, the third-country merchant actively participates in buying and selling to earn a price difference; in indirect trade, the third country may not necessarily participate in buying and selling, it might merely provide trade services. Therefore, re-export trade is not indirect trade.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
From the perspective of the trade process, indirect trade focuses on the buying and selling relationship passing through a third country, while re-export trade focuses on the transfer of ownership of goods within the third country. Thus, re-export trade and indirect trade have clear differences.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Re-export trade involves the transfer of goods ownership, while indirect trade is more about the trade path passing through a third country. The concepts of the two are different, so re-export trade is not indirect trade.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Indirect trade has a broader scope, and re-export trade is merely one specific form of it, therefore, re-export trade cannot be simply regarded as indirect trade.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
In re-export trade, the third-country merchant actively participates in transactions to profit; in indirect trade, the role of the third country is relatively vague. Thus, it is clear that re-export trade is not indirect trade.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Re-export trade emphasizes the transfer of goods ownership, while indirect trade emphasizes the trade path. Therefore, re-export trade does not belong to indirect trade.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Re-export trade focuses on the change of goods ownership, while indirect trade focuses on the trade process passing through a third country. This determines that re-export trade is not indirect trade.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
From the perspective of the role of trade entities, the third-country merchant plays a crucial role in re-export trade, while the role of the third country in indirect trade is more flexible. Therefore, re-export trade and indirect trade are different.