Pure handwritten experience: Interpretation and sustainable operation of re export trade -- Malaysia as an example

At present, the Sino US trade war is on the verge. Many people naturally think of re export to avoid 25% high tariff. How to operate entrepot trade, what is the risk, whether there are successful cases and samples that can be used for reference, and what are the matters needing attention? I will explain the previous operation of Malaysia as an example

What is re export trade? Re export trade is a kind of triangular trade barrier, which is used for customs clearance at the port of destination by changing all the documents into manufacturing (including the real certificate of origin) through the bonded area or processing zone of the third country or region

Re export process: from Chinese port to western port of Klang, Malaysia (container change / photo taking / re declaration) - two way bill of lading and K2 are issued to apply for certificate of origin - destination country (generally 15-20 days slower than China's direct export)

Re export notice: it can only be operated with the consent of the consignor in the destination country. If it is necessary to paste the origin mark, you should know it in advance (Malaysia / Sri Lanka / India). Generally, the EU / US does not need to collect the payment from the re export country, but can directly let the customer pay to your overseas offshore account (such as Xianggang account). For South American countries (such as Argentina / Brazil) and India, the payment must be collected on behalf of you, Because the bank law of the destination country is very strict, the payment for goods must be operated through the country of origin. We will sign a collection agreement to ensure the safety of your payment. Generally, 3 working days after the actual receipt of the account will be transferred to the account designated by your company. There will be a certain service charge

The following is the product introduction of each re export country and region:

1. There are a lot of Malay re export products, such as wooden furniture, plywood (to the United States), stainless steel products (steel coil / steel pipe), bearings, photovoltaic, corrugated paper, aluminum profiles, ceramics, ceramic tiles, steel wire rope, stainless steel sink and other general products (lower cost)

2. Taiwan re export (Kaohsiung Port change cabinet) is generally products: such as electric bicycles (bicycles), aluminum alloy profiles, steel products, mechanical equipment, cables, castings, aspartame, ferrosilicon, etc

3. Thailand's re export (changing cabinets at linchaban port) is relatively less operable at present, generally bicycles to Europe

4. At present, Indian re export (changing cabinets in port of Calcutta) currently operates clothes hangers to the United States, and glass mosaic to Argentina. Because of its higher cost, slower time and need to collect payment for goods, it mainly aims at products that can not be operated in other regions

5. Sri Lanka's re export (changing cabinets at Colombo port) currently operates yarns to Turkey, clothes hangers to the United States, and heaters to Argentina. The re export cost is similar to that of India, which is mainly limited by the production capacity of the country

6. Bangladesh and Indonesia re export (both change cabinets at Singapore port) export the certificate of origin of Bangladesh and Indonesia. At present, the products in operation include steel screw to the United States, glass fiber mesh cloth / bicycle to Europe, and textiles to Turkey. The actual application is not so much, depending on the customer's requirements

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