Entre-Port Trade vs. Re-Export Trade

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For many of us who are working in the field of International Trade and especially dealing with import-cum-export business want to know the difference between Entre-port trade and the Re-export trade. This two types of import is done to export the imported goods again adding some profit margin on its import cost.

In this article we will discuss those two terms as per import policy order 2015-2018 from ministry of commerce in Bangladesh. It will help you to understand how those two trade prcedures are handled as well as their differences. 

Entre-Port Trade:

Definition of entre-port trade:

Entre-port trade means such a trade where imported goods are exported to a third country adding a margin to its import cost without any change, including their quality, quantity or shape. 

Conditions for entre-port trade in Bangladesh:

  • Import Permit on returnable basis from the Chief Controller of Imports and Exports will be required.
  • Margin to be added to the import cost is minimum 5% as per Import Policy Order 2015-2018.
  • Imported goods are not allowed to bring outside the port area if port of entry and export is same. 
  • For export purpose it can be carried from one port to another port in Bangladesh with the prior permission of the Ministry of Commerce. 
  • For `entre-port' trade, import can be done against back-to-bank LC of the buyer.
  • In import declaration it is to be mentioned that it is `entre-port' or `Temporary Import'.
  • Import value or import price will mean CFR value of imported items for entre-port trade.
  • Requirement for inscription of E-TIN/UTIN, BIN of the importer on at least two percent of the largest packet, cover, timed package, sack pack, wooden box or other packets containing the imported goods is waived in this case.

Re-Export Trade:

Definition of re-export trade:

Re-export trade means export of imported goods within specific period adding a margin to the cost of import after re-processing locally. In this case shape, quality or both may be changed as part of re-processing.

Conditions for re-export trade in Bangladesh:

  • Value addition requirement in Bangladesh is minimum 10% over the import cost as per Import Policy Order 2015-2018.
  • Import value is the CFR value of imported goods for re-exports.
  • Agents  and representatives of  the  foreign  manufacturers   are  allowed  to   import  machinery  and  equipment  on temporary basis.
  • Goods brought into Bangladesh for exhibition or demonstration must be re-exported within one year
  • The  importer  shall  execute  a bond  and  furnish  a Bank  Guarantee  or  a  legal instrument  to  the   Customs  Authority for clearance of the goods regarding timely re-export.
  • Prior permission of the Chief Controller must be obtained for banned or restricted items included in the items imported on temporary basis.
  • Equipment  or  material  imported  on  re-export  basis  can  be transferred to  any local  contracting firm at a concessionary rate of duty/duties with the prior permission of Chief Controller.
  • Import Permit on returnable basis issued by the Chief Controller of Imports & Exports will be required.
  • Any goods can be imported for 100% export against export LC of the buyer paying Duty & Taxes under Duty Draw back system or against 100% Bank Guarantee or under Bonded Warehouse.
  • "Processed in Bangladesh" must be mentioned in the packet of the re-exported goods.
  • Date of expiry and packing of the goods, description of goods are to be written or printed on each pot or container or jute-made package of the goods.
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