Unit Consumption

Unit Consumption refers to the quantity of imported bonded materials consumed in producing a unit of finished product in processing trade, usually expressed as 'quantity of imported materials / quantity of finished products'. It is a core concept in customs supervision of processing trade, used to determine the consumption quota of bonded materials and thereby calculate the quantity of imported materials corresponding to exported finished products that should be offset. Usage scenarios include: processing trade manual filing, unit consumption declaration, offsetting, deep processing carry-over, etc. Notes: Unit consumption must be truthful and accurate; enterprises should retain production records for verification; different finished products and different materials should be declared separately; unit consumption is different from 'loss rate', which refers to the proportion of process loss to the amount consumed, while unit consumption includes net consumption and process loss. Difference from 'net consumption': net consumption is the amount of materials that constitutes the finished product entity; unit consumption = net consumption + process loss. Difference from 'consumption amount': consumption amount is total consumption, while unit consumption is consumption per unit of finished product. Incorrect declaration may lead to tax recovery, fines, or even determination of smuggling.