Processing with Supplied Materials

Processing with Supplied Materials refers to a trade mode in which a foreign party provides all or part of the raw materials, auxiliary materials, parts, components, supporting parts, and packaging materials, and if necessary, equipment, and our enterprise processes or assembles them according to the foreign party's requirements, with the finished products handed over to the foreign party for sale, and our enterprise collects processing fees. Its core feature is that the materials are provided by the foreign party, our enterprise is not responsible for selling the finished products, and only collects processing fees. It is mostly used in labor-intensive industries such as clothing, toys, and electronic assembly. Notes: 1. Goods imported under processing with supplied materials are bonded, and are verified and cancelled after export; 2. The processing enterprise must have processing trade production capacity; 3. The determination of processing fees must consider processing costs, reasonable profits, and international market levels; 4. If the foreign party provides equipment, the equipment price can be deducted from the processing fees. Difference from processing with imported materials: in processing with imported materials, our enterprise purchases materials on its own, bears profits and losses, and sells the finished products itself; in processing with supplied materials, the materials are provided by the foreign party, and our enterprise does not bear sales risks. Difference from assembly with supplied parts: processing with supplied materials focuses on material processing, while assembly with supplied parts focuses on component assembly, but the two are often collectively referred to as processing trade.