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The goods involved in offshore trade do not enter and leave Hong Kong. Their values are thus not included in the statistics on external merchandise trade of Hong Kong. Examples 1 and 2 below illustrate the concept and definition of merchanting and merchandising for offshore transactions respectively.

Example 1 : Merchanting

Example 2 : Merchandising for offshore transactions

Glossary of Terms

Term
Definition
Rate of gross margin
Rate of gross margin refers to the gross margin from merchanting expressed as a percentage of the sales value of goods involved.
Commission rate
Commission rate is the commission from merchandising for offshore transactions expressed as a percentage of the sales value of goods involved.