EntrePot Trade Strategies to Simplify Pipe Sourcing

What is Entrepot Trade?

The entrepot trade involves exporting products from the producing country to a third country, and then from that third country to the final importing country.

This trade method is widely used in the field of industrial products, more suitable for importers who need to optimize taxes, improve customs clearance efficiency, and reduce post-cost.

Benefits of Entrepot Trade

• Reduce Tariff Optimization

The higher tariffs of some countries to especially produce a country, but implement the third country entrepot trade can be:

1. Avoid the higher tariff resource country tag

2. Use the third country as the port of transhipment

3. Reduced the import cost and enhanced the price advantages

• Faster Customs Clearance

The third country usually has:

1. Higher customs clearance efficiency

2. Flexible in the requirement of documents

3. The logistics support is more mature

• Flexible Trade Options

The entrepot trade is especially suitable for:

1. Mixed packages of multiple brands 

2. Small batch, various varieties

3. Take the different produce land documents to meet the needs of the customer

• Stable Logistics and Delivery

The third country usually has mature ports and shipping routes, and  can provide:

1. Shorter transit time

2. More stable shipping schedules

3. Less transportation risk