Legal Definitions - ENTREPÔT

An entrepôt refers to a designated facility or location, often within a free trade zone or near a major port, where imported goods can be temporarily stored without incurring import duties or taxes. The primary purpose of an entrepôt is to facilitate the re-export of these goods to another country, rather than their consumption within the country where the entrepôt is located. It acts as a transit point for international trade, allowing businesses to manage logistics and distribution more efficiently and cost-effectively.

• Example 1 (Global Logistics Hub): Imagine a large logistics company operating a massive warehouse complex near a major international airport in Singapore. A shipment of consumer electronics from South Korea arrives at this warehouse. Instead of being imported into Singapore for local sale, these electronics are temporarily stored there. Within a few days, they are sorted, repackaged, and then shipped out to various retail distributors in different Southeast Asian and Australian countries.

  This scenario illustrates an entrepôt because the electronics are brought into Singapore, stored temporarily, and then re-exported to multiple other countries without having to pay import duties in Singapore. The warehouse serves as a strategic hub for international distribution.

• Example 2 (Specialized Goods - Luxury Items): Consider a company that trades in high-value, non-perishable luxury goods, such as rare watches or fine art. They might utilize a highly secure, climate-controlled storage facility in a neutral country like Switzerland, often within a bonded warehouse zone. Shipments of these items arrive from various global sellers, are held in this facility, and are then dispatched to private collectors or auction houses worldwide.

  Here, the Swiss facility functions as an entrepôt. The luxury goods are imported into Switzerland's bonded zone, stored, and then re-exported to various international buyers without being subject to Switzerland's standard import tariffs, providing a secure and duty-efficient transit point for valuable assets.

• Example 3 (Raw Materials for Regional Manufacturing): A multinational automotive manufacturer has assembly plants across South America. They source specialized engine components from Germany and high-tech sensors from Japan. Instead of shipping these directly to each plant and dealing with multiple customs processes, they use a large distribution center located in a free trade zone in Panama. The components from Germany and Japan are shipped to this Panamanian facility, consolidated, and then forwarded to the various assembly plants in Brazil, Argentina, and Chile.

  This Panamanian distribution center acts as an entrepôt because it allows the company to temporarily store and consolidate raw materials from different origins in a third country, avoiding import duties on the individual components until they reach their final manufacturing destinations in South America. This optimizes logistics and reduces immediate tariff burdens.