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Entrepot trade, also known as transshipment trade, refers to the business of import and export goods in international trade, which is not conducted directly between the producing country and the consuming country, but through a third country.This kind of trade is transit trade for the transit countries.Goods that are traded can be shipped from the exporting country to a third country, where they can be sold to consuming countries without being processed (such as changing packaging, sorting, selection, packing, etc.);It is also possible to transport goods directly from producer to consumer countries without going through a third country, but there is no trade link between the producer and consumer countries. Instead, the transit countries trade with the producer and consumer countries respectively.Because China is the world's largest antidumping country, so this form of trade, almost become a special way to avoid trade sanctions.
Transit trade for the country where the middleman is located, generally must have two conditions:
(1) natural conditions, that is, the transit country's port must be a deep-water port, strong handling capacity, geographical location is superior, in the country between the traffic or international main route;
(2) artificial conditions: transit countries are required to adopt special preferential tariff policies and trade policies to the transit places, such as free ports, free trade zones, so that transit costs will not be too high.At the same time, the infrastructure, transportation, financial and information service systems are required to be developed and complete, so as to facilitate the transit trade.