Transit trade service

For some reasons, the country of commodity production and the country of commodity consumption cannot directly conduct commodity transactions. Instead, the trading activities of commodities have to be carried out through a third country. The third country not only acts as an intermediary but also as the owner of the goods, and it also obtains profits through such transactions. This form is entrepot trade.

When the third country participates in such activities, it must go through the value transfer activities of the goods - buying and selling. However, it is not necessary to go through the physical transfer of the goods. The goods can be directly transported between the producing country and the consuming country without passing through the third country.