Offshore re-export trade, also known as entrepot trade, refers to a trade method in which the ownership of goods is transferred between residents and non-residents, and the entire flow of goods does not occur within the country. Residents (middlemen) earn the upstream and downstream price differences. For a long time, the authenticity of the trade background of offshore resale transactions has been a difficulty and focus of supervision. The foreign administration policy introduces the management method of total quantity verification, but there is a certain lag. After the exchange rate reform in 2015, false trade activities were suppressed to a certain extent, but many traders still relied on re-export trade for arbitrage in order to continue financing.

In February 2017, the "Operation Guidelines for Cross-border RMB Business" was put into trial operation, which put forward specific requirements for banks to review cross-border RMB offshore resale transactions: 1. Banks should strictly implement the "Three Principles for Business Development" and conduct re-exports The authenticity of cross-border RMB trade settlement business shall be verified. 2. If the amount of re-export trade expenditure under the same contract exceeds the corresponding income amount by 20% (exclusive), and the interval between income and expenditure under the item of first payment and later receipt exceeds 90 days, the bank shall strictly review the business documents and shall pass the review Strengthen the review of the rationality of its business through customer information, business processing historical data, etc., and suspend its payment business if necessary. 3. Banks should take effective measures to verify the authenticity and consistency of property rights documents (bills of lading, warehouse receipts, etc.) involved in re-export trade through international bill of lading inquiry agencies, shipping company websites, warehousing companies, etc. 4. Enterprises on the key supervision list should be strictly reviewed for business authenticity.