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What is re-export?

Re-exporting refers to exporting of goods that have been imported and modified before being exported again. Learn more about its process and meaning in this blog.
What is re-exports
The practice of re-export, also known as entrepot trade, is a type of international trade where products that were previously imported are exported without any changes. For instance, one party of a free trade agreement might offer cheaper tariffs to other countries to attract their business before re-exporting the same goods to another partner in the trade agreement.

What is the meaning of re-export?

Domestically produced goods that are transported outside of a country are exports. Re-exporting, on other hand, refers to the movement of goods that have already been imported into a country but are then exported to that same country or to a different one. For instance, a country may re-export defective goods back to its home country if it deems the quality of products it has imported from another country to be unsatisfactory. Re-export also occurs when a country is bound by a contract or restrained from sending goods to another country1.

Process of re-exporting

1. Goods (consider machines) are imported into country A from country B.
2. Country B tests the machines.
3. Later, country B exports these machines to country C.

Since the goods that were earlier imported are now being exported, this process is re-exporting.

Things to keep in mind while re-exporting

· Goods must remain in the same condition during import and export.
· To facilitate organization, improve efficiency, and facilitate analysis, records of the re-exported goods must be kept separate.

Difference between export and re-export

Re-exports apply to any goods that are brought into the country from abroad and then resent to another country. For instance, a piece of equipment might have been shipped from country A after required testing, while it was initially imported into country A from country B. Re-exports in this case refer to the act of sending such equipment back to the same or a different country. When a country exports goods to another country and later imports it back into the same country – it’s called re-imports.

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Global Selling

With the growing demand for Indian products in international marketplaces, exporters and Indian sellers are keen to expand their businesses to the world. Amazon Global Selling is an e-commerce exports program that enables exporters and MSMEs to start and grow their export business in 200+ countries and territories. The exporter can simply register with the program in four simple steps and reach millions of customers shopping on 18+ Amazon international marketplaces.

Frequently Asked Questions

Why is re-export important?
Re-imports and re-exports occur frequently as a result of the exported items not meeting quality standards, not fitting the buyer's requirements, or being shipped for a specific reason, such as a project, display, etc.
Published on January 29, 2023.

Sources:
1. https://en.wikipedia.org/wiki/Re-exportation
2. https://www.iiiem.in/blog/what-is-re-export/
3. https://cag.gov.in/uploads/download
4. https://howtoexportimport.com/Difference-between-exports-and-re-exports
5. https://cites.org/eng/disc/how.php
6. https://cag.gov.in/uploads/download_audit_report/2016/Chapter%203%20of%20Report%20No.%205%20of%202016%20Compliance%20Audit%20Customs%20Union%20Government%20Department%20of%20Revenue.pdf

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