TranexioAI-native trade platform
简EN繁
Sign inBook a demo
Trade models

Entrepôt trade

Entrepôt trade is the model in which goods move from the exporting country to the importing country while an intermediary contracts and settles separately with buyer and seller. Tranexio pairs purchase-side and sales-side contracts, supports switch documents, L/Cs and payments on both legs, back-to-back margin accounting, and sanctions and compliance screening on both sides.

Key points

  • Paired contracts on both legs

    Purchase-side and sales-side contracts and orders are paired one-to-one or many-to-many, differences in quantity, price and delivery date are clear at a glance, and margin is calculated in real time from the pairing.

  • Each leg settled separately

    Payments on the purchase side and receipts on the sales side are managed separately, combining L/Cs, collections and telegraphic transfers, with conversion on the agreed exchange-rate basis when currencies differ.

  • Switch documents

    The intermediary replaces key fields of the purchase-side documents with sales-side details. Fields before and after the switch are compared and logged, preventing information leaking between the parties.

  • Sanctions and compliance screening

    Sellers, buyers, vessels and banks are all screened against sanctions lists, and dual-use items and export controls are assessed before contracting and shipping.

The problem

Entrepôt trade means two sets of contracts and two settlements. Documents must be switched, cash must be matched, and margin is only known once both legs have settled. Counterparties span several countries, concentrating compliance risk.

What the platform does

Step How Tranexio handles it
Modelling Commercial model “own-account” × regulatory model “entrepôt trade”; the own-account entrepôt preset fills both in one click
Contracts Purchase-side and sales-side contracts are signed separately and paired
Documents Bills of lading, invoices and packing lists managed on both legs, with switch documents supported
Cash Letters of credit, collections or telegraphic transfers on both legs; back-to-back L/C issuance
Accounting Margin calculated from pairings, with FX differences included in order P&L

Key controls

  • Quantity, description and delivery date are checked for consistency across both legs.
  • Counterparties, vessels and banks on both legs undergo sanctions screening.
  • L/C soft clauses are identified and discrepancies handled.
  • Credit is consumed separately for purchase-side payments and sales-side receipts.

Frequently asked questions

Does entrepôt trade require a customs declaration in China?

Entrepôt trade in which goods never enter China normally involves no domestic import or export declaration. With the regulatory model set to entrepôt trade, the system creates no domestic declaration or tax refund workflow, and the focus shifts to matching contracts, documents and cash across both legs.

How are switch documents managed?

Sales-side documents are generated from the purchase-side documents, replacing key fields such as shipper, consignee and price. The system keeps a before-and-after comparison and an activity log for consistency checks and later audit.

How is margin calculated when the two legs use different currencies?

Each leg is booked in its transaction currency and then converted to the entity’s functional currency on the agreed exchange-rate basis to calculate the paired margin. If an FX hedge is added, the difference between the locked rate and the actual conversion is also included in order P&L.

How is compliance risk controlled in entrepôt trade?

Sellers, buyers, carriers and banks are screened against sanctions lists before contract signature, shipment and payment, and any hit is blocked and logged. Where goods include dual-use items, export-control rules prompt for licence requirements.

Related

See how Tranexio fits your trade operations

Tell us how you trade and what systems you run today — a product specialist will walk you through your own scenarios.

Book a demo →

Updated 2026-10-06