01666cas a2200241 a 4500 AALejournalIMF003559 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451861211 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Outsourcing Tariff Evasion : A New Explanation for Entrepot Trade. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (18 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Traditional explanations for indirect trade carried out through an entrepot have focused on savings in transport costs and on the role of specialized agents in processing and distribution. We provide an alternative perspective based on the possibility that entrepots may facilitate tariff evasion. Using data on direct exports to mainland China and indirect exports to it via Hong Kong SAR, we find that the indirect export rate rises with the Chinese tariff rate, even though there is no legal tax advantage to sending goods via Hong Kong SAR. We undertake a number of extensions to rule out plausible alternative hypotheses. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2005/102 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/102/001.2005.issue-102-en.xml IMF e-Library