What is Re-Export? A Detailed Guide In the world of foreign trade, the term re-export does not come easy for beginners to understand. However, the concept of Re-Export is very straightforward. According to research, many countries adopt the idea of Re-export to maintain their power and high-end coverage on international trade. However, for the most part, Re-Export is not as simple as an import and export business. Henceforth, today, we bring you a brief yet detailed guide on Re-Export. Let’s find out:
Introduction to Re-Export - How does it work? To begin with, a few years ago, the U.S. The Bureau of Industry and Security declared re-export as an official form of international trade. By definition, Re-Export is the export of commodities to a third country, which were previously imported in the “exporting” country from another country. In official terms, Re-Export is also known as Re-Exportation or Entrepot Trade. Further ahead, as the concept of Re-Export grows in multiple countries, many countries are also practicing Re-Import. Now, you may wonder what re-import is? As the term itself is comprehensive, Re-Import is when a country imports the same commodities that it had previously exported. Unlike the trends of import and export in international trade, many legal issues arise on re-importing and re-exporting commodities. One of the major reasons for such issues is that many importers and exporters use re-import and re-export to their benefit via executive scams. For example, in the United States, pharmaceutical drugs are quite expensive as compared to price rates in Canada. Henceforth, a few years ago, the USA government passed a law allowing pharmaceuticals manufacturers to re-import drugs from Canada at Canadian rates.
How does Re-Export or Re-Import work? It is also noteworthy that all re-export or re-import deals are not fraudulent. Sometimes countries have genuine reasons for taking such action. For example, in the event that a country finds the quality of goods imported from another country unsatisfactory, it may re-export the non-satisfactory commodities back to the native country. Apart from this, re-export also happens when a country is under restriction or contractual obligation to send goods to another country. However, if it does not