Planning to conduct re-export trade business in Suzhou and asking if there are risks and what specific risks are faced. The best answer indicates that Suzhou's re-export trade involves risks such as policy, logistics, document processing, market, and fraud. Policy changes affect imports and exports, logistics transportation carries risks of cargo delay and damage, document errors affect delivery and settlement, and changes in market supply/demand/prices and partner fraud can also bring disadvantages. Early preparation is needed to address these.
What Businesses Can Re-export Trade Do? Let's Explore Together!
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Recently, I've become quite interested in re-export trade and want to deeply understand what kind of businesses it can actually do. I haven't had any prior exposure to this, so I hope knowledgeable friends can explain it, ideally with practical examples for easier understanding. For instance, which industries commonly use it, what specific operational procedures are involved, and so on. Thank you all!
Trade Expert Insights Answers
Re-export trade can encompass various types of businesses. In the commodity trade sector, for example, a Chinese apparel company facing high US tariffs can utilize re-export trade. First, the clothing is shipped to a free trade zone warehouse in Malaysia, where simple processing such as repackaging and other value-added operations are carried out. Then, it is exported to the US under the name of a Malaysian company, thereby circumventing some tariffs.
Re-export of electronic products can also be done. Domestic electronics manufacturers ship products to Singaporean warehouses, utilizing Singapore's advanced logistics and financial services for quality inspection, labeling, etc., before re-selling them to Europe.
Furthermore, in the agricultural products sector, for instance, Southeast Asian fruits are re-exported to mainland China via Hong Kong. Hong Kong leverages its trade port advantages to perform preservation, distribution, and other services for the fruits. Re-export trade typically involves operational procedures such as commodity transportation, warehousing, value-added processing, and logistics distribution.
Re-export trade is also commonly applied in the chemical products industry. Domestic chemical enterprises transport products to warehouses in third-party countries, and after quality inspection, repackaging, and other processing, they are then sold to other countries, which can utilize the preferential policies of the third-party country.
The toy industry can also engage in re-export trade. Domestic toy factory products are first shipped to a free trade port, where aesthetic improvements or new labels are added, before being re-exported to target markets, which can optimize product competitiveness.
The furniture industry is also applicable. Domestic furniture enterprises transport products to transit locations, where they are assembled and adjusted according to different market demands, before being sold to various regions, which enhances product adaptability.
In the field of mechanical parts, domestic enterprises transport parts to re-export locations, where they undergo sorting and packaging optimization, before being re-sold to other regions, which facilitates meeting diverse customer needs.
In the jewelry industry, for example, some small jewelry processors transport products to regions with tax incentives, where they are redesigned and reassembled before export, which can increase product added value.
In the plastic products industry, domestic factory products are shipped to re-export ports, where environmental testing and other checks are conducted. After meeting standards, they are re-sold, which satisfies the environmental requirements of different markets.
In the footwear industry, products are transported to transit locations, where cleaning, relabeling, and other operations are performed, before being re-exported, which can enhance product image.
In the lighting industry, domestic lighting enterprises transport products to a third party for performance testing and aesthetic optimization, before being sold to various regions, which improves product quality.