---
title: "What are the main types of international entrepot trade models for foreign trade enterprises in Jiaxing?"
description: "Small and medium-sized foreign trade enterprises in Jiaxing often fall into operational difficulties due to trade barriers and shrinking profits，and urgently need to clarify the types of local-adapted entrepot trade. The current mainstream models are divided into three categories: documentary entrepot trade，physical entrepot trade and bonded zone entrepot trade. Documentary entrepot trade is suitable for asset-light enterprises，physical entrepot trade can cope with trade barriers，and bonded zone..."
url: "https://www.sh-zhongshen.com/en/qa/jiaxing-mainstream-international-transshipment-models-for-foreign-trade-enterprises.html"
language: "en"
type: "Q&A"
category: "Entrepôt Trade Q&A"
datePublished: "2026-10-21"
dateModified: "2026-10-21"
brand: "Zhongshen Trading China"
answerCount: 8
---

# What are the main types of international entrepot trade models for foreign trade enterprises in Jiaxing?

## Question

 I am the head of a small and medium-sized foreign trade enterprise in Jiaxing focusing on hardware tool export. Recently, the US anti-dumping duty rate for our product category has risen from 22% to 35%, which directly swallowed up our original profit of around 5%, and the 3 container orders on hand are about to be lost. I heard from peers in Ningbo before that entrepot trade can avoid such trade barriers, but I am completely unfamiliar with it, and do not know what compliant and reliable international entrepot trade models are available in Jiaxing. Some people say that documentary entrepot trade saves costs as there is no need to move the goods, while others say it is safer to transport the goods to Malaysia for container replacement. I am afraid of falling into pitfalls, such as being investigated by customs for false origin declaration, or cargo detention and port delay caused by document connection problems. I am so anxious that I can not even sleep well now, I just want to figure out the operable types of entrepot trade in Jiaxing, as well as the risks and applicable scenarios of each type, so that I can finalize the plan as soon as possible to save the orders. 

## Answers
                            
### Answer 1 — Best Answer

Taking the anti-dumping dilemma you are facing as an example，the core disadvantage of traditional direct export is that high tax rates erode profits，and may also trigger a chain reaction of mass order loss. There are three main types of international entrepot trade suitable for Jiaxing，which can be selected for hedging from the dimensions of cost，threshold and return.

The first is **Documentary Entrepot Trade**，which does not require actual movement of goods，and only adjusts the origin information on documents through a third-party offshore company. It has a low access threshold，only requires basic documents such as authentic trade contracts and packing lists，and is suitable for asset-light small and medium-sized foreign trade enterprises with small order volumes. The comprehensive cost per container is about 800-1200 US dollars，which can avoid more than 90% of anti-dumping duties，with a return ratio of about 1:3.2.

The second is **Physical Entrepot Trade**，which requires transporting goods to neutral third countries such as Malaysia and Thailand for container replacement and issuing local certificates of origin. The access threshold is slightly higher，and the compliant qualification of the transit country warehouse needs to be confirmed in advance. The comprehensive cost per container is about 2500-3500 US dollars，which can completely avoid the risk of origin traceability，and is suitable for enterprises with high-value goods and large order volumes，with a return ratio of about 1:2.7.

The third is **Jiaxing Bonded Zone Entrepot Trade**，relying on the policy dividends of Jiaxing Comprehensive Bonded Zone. Goods are deemed to be exported after entering the bonded zone，and can enjoy preferential policies such as VAT deferral and storage fee reduction. The access threshold requires bonded zone filing qualification，the comprehensive cost per container is about 1500-2000 US dollars，which is suitable for the regular entrepot trade demand of local industrial belts，with a return ratio of about 1:2.9.

**status:** accepted
**Author:** Cindy Chen
**Date:** 2026-10-21

### Answer 2

For customs declaration of entrepot trade, focus should be paid to the logical consistency of documents, especially the header information of the certificate of origin, bill of lading and packing list must match the trade entity of the third-party transit country. If there is a mismatch of document headers, the customs will directly trigger a valuation dispute, and even launch a logical verification chain, resulting in 3-7 days of cargo detention at the port.

The full set of documents should be submitted to the customs broker for pre-audit in advance to ensure that the "transit country trade entity - bill of lading header - certificate of origin issuer" are completely unified. At the same time, retain authentic transaction vouchers of the transit country to form a complete closed loop of customs declaration logic, and avoid being judged as false origin declaration.

**status:** suggested
**Author:** Evelyn Li
**Date:** 2026-10-21

### Answer 3

The logistics path of Jiaxing entrepot trade should give priority to the direct route of "Jiaxing Port - transit country hub port - destination port", to avoid increasing cargo ownership risks caused by multiple transshipments. If physical entrepot trade is selected, a cargo ownership custody agreement should be signed with the transit country warehouse, clarifying that the warehouse is only responsible for container replacement operations and has no right to dispose of the cargo ownership.

At the same time, require the warehouse to upload seal photos, new packing lists and scanned copies of bills of lading within 12 hours after container replacement. For abnormal situations such as space shortage and container rolling, spare space in the transit country should be locked in advance, and the locking ratio of spare space shall not be less than 15% of the order volume, to ensure that the goods can connect to the destination port shipping schedule on time.

**status:** suggested
**Author:** Lucas Liu
**Date:** 2026-10-21

### Answer 4

Jiaxing enterprises carrying out entrepot trade can realize tax cost hedging through the combined structure of "offshore account + bonded zone storage". When adopting documentary entrepot trade, the transaction income of the offshore account can enjoy the low tax rate policy of the transit country. At the same time, the full set of entrepot trade documents should be submitted to the Jiaxing tax authority to prove that the goods have not entered the domestic customs territory, and there is no need to pay domestic value-added tax.

If Jiaxing bonded zone entrepot trade is adopted, VAT deferral can be applied for, delaying the VAT payment time to 6 months after the actual export of the goods, easing the capital pressure of the enterprise. It should be noted that the profit of entrepot trade needs to be reasonably distributed between the transit country and the domestic side, to avoid triggering relevant BEPS verification.

**status:** suggested
**Author:** Michael Zhang
**Date:** 2026-10-21

### Answer 5

The foreign exchange receipt and payment of entrepot trade shall strictly follow the principle of "receipt before payment" or "separate lines for receipt and payment", and it is forbidden to use the same account for hedging operations of foreign exchange receipt and payment. If documentary entrepot trade is adopted, the foreign exchange receipt shall be the payment from the destination port customer received through the offshore account, and the foreign exchange payment shall be paid to the upstream supplier through the domestic account.

The difference between the two amounts shall be controlled within a reasonable range, generally not exceeding 10% of the cargo value. If CIPS is used for RMB cross-border payment, "payment under entrepot trade" shall be clearly marked in the SWIFT message, and documents such as the transit country trade contract and certificate of origin shall be retained as supporting materials for foreign exchange receipt and payment compliance, to avoid being judged as abnormal transactions by the bank.

**status:** suggested
**Author:** Daniel Xu
**Date:** 2026-10-21

### Answer 6

For entrepot trade, focus should be paid to preventing the legal risk of certificate of origin fraud. If a false certificate of origin is used, you may face high fines from the destination country customs, or even be included in the trade blacklist. A certificate of origin issuance agreement should be signed with a formal institution in the transit country to clarify the authenticity and compliance of the certificate of origin, and require the other party to issue a performance guarantee.

If the cargo is detained due to certificate of origin problems, the other party shall bear all losses. In addition, when signing a contract with the destination port customer, a "transit trade exemption clause" shall be added to clarify the fact that the goods are transshipped through a third party, to avoid contract disputes caused by origin problems.

**status:** suggested
**Author:** Linda Gao
**Date:** 2026-10-21

### Answer 7

If entrepot goods shipped from Jiaxing Port encounter customs inspection, the full set of entrepot trade documents shall be prepared in advance, including the transit country trade contract, pre-audit copy of the certificate of origin, MSDS report of the goods, etc. For pre-shipped goods of physical entrepot trade, neutral marks shall be marked on the outer packaging of the goods to avoid domestic origin information.

At the same time, actively explain the nature of entrepot trade to the customs during inspection, and cooperate with the customs to complete the verification of goods and documents. If the goods are selected for testing, communicate with the testing institution in the transit country in advance to ensure that the testing results meet the origin standards of the transit country, to avoid the goods being unable to be shipped due to unqualified testing.

**status:** suggested
**Author:** Victor Sun
**Date:** 2026-10-21

### Answer 8

Entrepot trade is not within the scope of export tax rebate. If an enterprise incorrectly declares entrepot trade as export tax rebate, it will trigger tax correspondence adjustment, and even be required to return the rebated tax and pay late fees. When filing documents, clearly distinguish between entrepot trade and general trade documents.

Entrepot trade documents, including transit country trade contracts, bills of lading, certificates of origin, etc., shall be archived separately, to avoid confusion with general trade tax rebate documents. If an enterprise carries out general trade and entrepot trade at the same time, an independent financial accounting system shall be established to separately account for the income and cost of the two trade modes, to ensure the compliance of tax declaration.

**status:** suggested
**Author:** Grace Wang
**Date:** 2026-10-21

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