The services we undertake include export cargo space booking, going through three inspections in customs, and transporting goods from ports and inland points all around China to those of the world. Sign and issue various multimodal transport B/L including ocean bill of lading. We also provide customers both at domestic and abroad with comprehensive service such as FCL, LCL, bulk cargo business, foreign destination customs clearance, package unpacking, goods picking and delivery. In addition, in accordance with customers’ requirement, we help to design a reasonable route, provide them preferential freight, and cargo tracking service all through the journey.

The services we undertake include import cargo space booking from major ports and inland points all over the world to those of China, port receiving of multimodal transport cargo, overweight and oversized cargo, various bulk cargo and container cargo, besides, we offer the service of going through three inspections in customs, and conducting a non-stop cargo delivery to final destination through domestic railway transport, air transport, coastal transport, inland river transport and multimodal transport.

What is Entrepot Trade

Entrepot trade is also called intermediary trade or re-export trade. It refers to a trade in which the import and export of goods in international trade is not carried out in manufacturing and consuming countries, but carried out in a third country. From the angle of intermediary countries, This kind of trade is called entrepot trade. Trade goods can be transported to a third country from an export country, and then they are sold to consuming countries without being processed in the third country (change of package, assortment, selection and arrangement are not treated as processing); these goods may also be transported directly to consuming countries from production countries not via a third country, however, trade relationship doesn’t arise between production and consuming countries, but arises between the intermediary country and the production country, and between the intermediary country and the consuming country respectively.

Entrepot trade connotatively contains the meaning of goods distribution center, warehouse, and storehouse, it belongs to parts of indirect transit trade of re-export trade and transit trade. the main reason for the occurring of entrepot trade is that the position of some countries and regions is suitable for them to be goods distribution center due to geographical, history, political or economic factors. These countries and regions import a large number of goods, except part of them that are to be consumed by themselves, the rest of goods are exported to neighboring countries and regions. For example, Singapore, Hong Kong, London, Rotterdam, are all famous international transit areas, where a large number of transit trade happens. Through entrepot trade, they can gain considerable entrepot profit and tax revenue from warehousing, transportation, loading and unloading, besides, it also promotes the development of local finance, transportation, telecommunication and other industries.

Trade Flow of Entrepot Trade

1. Goods is shipped from the Chinese port to the Port klang west, Malaysia. Which consigned to our Malaysian company.

2. After the goods was shipped from China, surrendered BL is required. And provide our Malaysian company with the copy of the first leg surrendered BL , Packing list and Invoice. We will make import and export declaration at Malaysia, book export space according to these materials, eliminate the first leg manifest issued from China, and arrange the preparation of the second leg.

3 According to the cargo shipping schedule, Malaysian company will arrange the booking of cargo space for second leg, and start to transload the container. (it takes about 3 days )

4. At the same time, we will handle some relevant documents, like Certificate of Origin, Declaration for Exportation, Endorsed by Embassy etc...

5. Whole Transloading Costing: First leg ocean freight + Transloading chrages with Third country documents + Second leg ocean freight

Entrepot Trade Modes

Entrepot trade has various forms, according to the different circulation channels, it can be divided into the re-export trade and document processing trade.

1.Re-export Trade refers to an indirect buying and selling activity between exporters and importers through middleman. And then goods will be directly transported from the exporting country to the importing country. Under the circumstances, the goods doesn’t go through import and export in a third country, and the middleman only gets involved in handling of documents.. such document processing trade is actually a re-export of proprietary rights. Re-export trade happens more frequently in the early stage of entrepot trade.

Due to people’s lack of experience and communication facilities, entrepot trade is done through twice of goods importing and exporting. With the development of the transit trade, processing trade has gradually developed, this trade can avoid complex procedures of import and export in the customs of a third country, save the freight, insurance premium, commission charge and other fees, reduce the risk, shorten the time of delivery, and is conducive for the importer to grasp sales opportunities, thus achieving greater profits. Thus document processing trade has gradually replace the re-export trade, currently becoming the main mode of entrepot trade. Entrepot trade can be divided into pure entrepot trade and processing entrepot trade. the difference between the two trades is decided by whether the goods is to be processed in the transit region.

2.Pure entrepot trade. the so-called pure entrepot trade refers to the re-export of the imported goods without processing them by the middleman in the third (transit) country. Of course, the middleman can have classification, mixed loading, labeling, and packing adding towards the goods in the local bonded warehouse. However, these activities won’t change the shape, nature, structure or utility of these goods, so it falls outside the scope of processing.

3.Processing Entrepot Trade refers to the trade mode in which the goods are transported to the transit country through the country’s customs, and then the goods will be processed and added value before they are shipped to importing country. After some kind of processing, the goods will have some kind of change in shape, nature, structure or utility. This trade not only can enable middleman to gain transit profit, but also gain processing profit. Processing entrepot trade requires lots of low-wage labor forces, better infrastructure, and bonded warehouse or free trade zone from transit region so as to lower goods processing cost, make them internationally competitive. In processing entrepot trade, middleman can process and assemble the whole batch of goods, and they also can purchase some parts from foreign countries fit them into the original facilities to make a large scale equipment for exportation.