Operating an import company, importing goods from abroad for domestic sales, after learning about transshipment trade, asking if import companies can engage in transshipment trade and what to pay attention to during operation. The best answer states that import companies can engage in transshipment trade, leveraging their own advantages. During operation, attention should be paid to cargo transportation, document processing, and trade and tariff policies of the destination country.
What Actions Constitute Transshipment Trade?
Resolved
I don't know much about transshipment trade in international trade. I'd like to know what actions are considered transshipment trade. Are there any specific examples to help me understand? What are the differences between transshipment trade and general trade in practice? I hope to get an easy-to-understand explanation, thank you!
Trade Expert Insights Answers
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Transshipment trade refers to the buying and selling of imported and exported goods in international trade that does not occur directly between the producing country and the consuming country, but rather through a third country. For the transit country, this type of trade is transshipment trade.
For example, Chinese Company A produced a batch of apparel originally intended for export to the United States, but the U.S. imposed high tariffs on Chinese apparel. In this scenario, Chinese Company A first exports the apparel to Singaporean Company B (Company B is merely a trade transit platform), and then Company B re-exports this batch of apparel to the United States. Here, Singaporean Company B is engaged in transshipment trade.
Unlike general trade, where goods are exported directly from the producing country to the consuming country, transshipment trade involves three parties. The goods' transportation path and trade process are relatively complex, and the transit country primarily profits from the price difference of goods and service fees.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Simply put, trade involving the transfer of goods between the place of production and the place of consumption through a third party is transshipment trade. For instance, toys produced in China are first shipped to Hong Kong, and then Hong Kong merchants sell them to Japanese customers. The actions of the Hong Kong merchants constitute transshipment trade.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Transshipment trade means goods depart from the producing country, pass through an intermediate country, and then reach the consuming country. For example, Brazilian coffee beans are shipped to the Netherlands, and then Dutch merchants sell them to the UK. The operations of the Dutch merchants constitute transshipment trade.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
When a country imports goods from another country and re-exports them to a third country without substantial processing, this action is transshipment trade. For instance, South Korea imports steel from China, and without processing, re-exports it to Vietnam. South Korea's practice is considered transshipment trade.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Transshipment trade is common in situations with trade barriers. For example, if Country A has restrictions on products from Country B, Country B's products are first shipped to Country C, and then from Country C to Country A. Country C's trade activities constitute transshipment trade.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
For example, Thai fruits are first shipped to Malaysia, and then Malaysian traders sell them to Russia. The actions of the Malaysian traders constitute transshipment trade; this is a typical transshipment trade behavior.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
By definition, transshipment trade involves the producing country and consuming country not trading directly, but through a third party. For instance, Indian spices first go to the UAE, and then UAE merchants sell them to France. What the UAE merchants do is transshipment trade.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Transshipment trade is similar to an intermediary's action. Chinese electronic products first go to Singapore, and then a Singaporean company sells them to Australia at a higher price. The Singaporean company is engaged in transshipment trade.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Transshipment trade means goods are transferred through a third location. For example, Indonesian coal goes to the Philippines, and then Filipino merchants sell it to South Korea. The operations of the Filipino merchants constitute transshipment trade.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
If goods from Country A are first exported to Country B, and Country B then exports them to Country C without substantial processing, this action by Country B is transshipment trade. For example, Canadian timber goes to Mexico, and Mexico then sells it to Germany.