Reimportation
Encyclopedia
Reimportation is the import
ation of goods into a country which had previously been exported from that country. A number of legal issues arise with the reimportation of goods, particularly where the goods were not designed for sale in the country from which they were initially exported. Because prices differ from one country to another, a reimporter may purchase goods in another country where they are sold at a low price and reimport them in order to undercut the price at which the goods are being sold in the country to which they are imported. Such reimported goods may constitute grey market
goods.
Reimportation occurs often when excise taxes are high on a commodity, such as alcohol. Buyers who desire certain domestic products, but do not wish to pay the high excise tax, can buy it from another country where the excise tax is lower. This occurs, for example, when reimporting Koskenkorva Viina
, a Finnish product, from Estonia to Finland.
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...
ation of goods into a country which had previously been exported from that country. A number of legal issues arise with the reimportation of goods, particularly where the goods were not designed for sale in the country from which they were initially exported. Because prices differ from one country to another, a reimporter may purchase goods in another country where they are sold at a low price and reimport them in order to undercut the price at which the goods are being sold in the country to which they are imported. Such reimported goods may constitute grey market
Grey market
A grey market or gray market also known as parallel market is the trade of a commodity through distribution channels which, while legal, are unofficial, unauthorized, or unintended by the original manufacturer...
goods.
Reimportation occurs often when excise taxes are high on a commodity, such as alcohol. Buyers who desire certain domestic products, but do not wish to pay the high excise tax, can buy it from another country where the excise tax is lower. This occurs, for example, when reimporting Koskenkorva Viina
Koskenkorva Viina
Koskenkorva Viina is the most common clear spirit drink in Finland, produced by Altia in the Koskenkorva distillery in Ilmajoki and bottled in Rajamäki....
, a Finnish product, from Estonia to Finland.