The company intends to conduct Hong Kong re-export trade and is inquiring about related fees, such as fee items and standards, and whether fees are calculated based on cargo value, weight, or other methods. The best answer states that Hong Kong re-export trade fees include logistics transportation fees (calculated by weight, volume, and distance), storage fees (based on space and duration), document processing fees (charged per bill), terminal operation fees (related to quantity and weight), etc. Different organizations have varying standards, and it is advisable to consult professional institutions.
What are the Criteria for Classifying Re-export Trade? Let’s Discuss!
Resolved
I've been studying trade-related knowledge recently and am not very clear about the classification criteria for re-export trade. I want to know, what is the basis for determining whether a trade is a re-export trade? Is it the transportation route of the goods, the trade entities involved, or other aspects? I hope friends who understand this knowledge can explain it to me in detail, preferably with actual cases, so that I can understand it more easily.
Trade Expert Insights Answers
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
The criteria for classifying re-export trade mainly include the following aspects. Firstly, from the perspective of the trade process, the country of production and the country of consumption do not trade directly, but achieve the buying and selling through a third-country merchant. For example, if country A produces goods, a merchant from country C purchases them from country A and then sells them to country B, then country C is engaged in re-export trade.
Secondly, in terms of the goods transportation route, although the goods are transported from the producing country to the consuming country, they will undergo operations such as transshipment, storage, and processing in a third country. For instance, some Southeast Asian countries, due to their geographical advantages, often serve as transit points for re-export trade, where goods briefly stop at local ports before being transported to the destination country.
Furthermore, from the perspective of trade documents, contracts, bills of lading, and other documents involved in re-export trade will reflect the flow of goods in the third country.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
The standards for re-export trade can be judged from the relationship between trade entities. If there is an intermediary trader between the exporter and the importer, and the intermediary trader is in a third country, and the goods are transported from the exporting country through the third country to the importing country, it may be re-export trade. For example, some large international traders use their resources to transfer goods between different countries.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
From the perspective of customs duties, goods in re-export trade generally enjoy specific tariff policies in the third country, such as bonded services. This can reduce trade costs and encourage traders to choose third countries for re-export. For example, some free trade ports attract a large amount of re-export trade due to preferential tariffs.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Judging re-export trade can also be based on whether value-added activities are carried out on the goods in the third country. If value-added operations such as replacing packaging or simple processing are carried out on the goods in the third country, it conforms to the characteristics of re-export trade, such as some products being repackaged in the transit country before re-export.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
The mode of transportation can sometimes also assist in judging re-export trade. If the goods transportation adopts complex methods such as multimodal transport, and involves transshipment or change of vessels in a third country, it may involve re-export trade, especially for some bulk commodity trades that require multiple transshipments.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
The flow of funds needs to be considered for re-export trade classification. Typically, funds will first flow to the third-country re-exporter, and then the re-exporter will pay the producing country, forming a different fund flow path from direct trade.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
The trade documents involved are the basis for judgment. Re-export trade documents will indicate the flow of goods through the third country. For example, bills of lading will have records of loading and unloading at ports in the third country, which differ from direct trade documents.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Time factors are also somewhat relevant. Due to the involvement of multiple parties and transshipment, the time it takes for goods to travel from the producing country to the consuming country in re-export trade will be longer than in direct trade. If the trade cycle is significantly extended, it can also serve as a reference.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
The nature of the goods can sometimes also assist in judgment. Goods that are easy to store and suitable for long-distance transportation are more likely to be involved in re-export trade, such as mineral resources, which are often transported to different countries through re-export trade.