Merchanting
/ˈmɜːrtʃəntɪŋ/
Definitions
- (n.) The practice in international trade and customs law of purchasing goods in one country and selling them in another without the goods entering the merchant's country, often for tax or tariff advantages.
The company engaged in merchanting to optimize its tax liabilities across borders.
Related terms
See also
Commentary
Merchanting must be clearly distinguished from import/export as the goods do not physically enter the merchant's country, which affects applicable taxes and customs duties.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.