Re-export

Commerce

Re-export is the export of foreign goods in the same state in which they were previously imported.

In general, re-export is not considered to be all goods that have been modified in the national territory. Although, there may be cases in which a modification that involves a minimum proportion of the value added is classified as re-export.

The sale of imported products to the same country of origin is also considered re-export. This can be considered as a return of the purchased goods.

Difference between export and re-export

Exports refer to the sale of products of national origin abroad. Meanwhile, re-exports are related to the sale of goods abroad of foreign origin.

For example, suppose that Spain sells vehicles with a high national component to the rest of the world. That is classified as an export. On the other hand, if Spain ships crude oil to the rest of the world, it is very likely that it is of foreign origin. That is, it has acquired the mineral from an exporting country and has sold it to another nation. This is classified as re-export.

Re-exports and penalties

Trade sanctions imposed by multilateral organizations or advanced countries can be circumvented by this method. Thus, a country unable to sell its basic products abroad, sells them at a discount to a partner. Later, this partner can resell said product in the same state, making a profit in the process. Either monetary of the operation or in bilateral negotiations.

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