Processing with Imported Materials

Processing with Imported Materials refers to a foreign trade business in which our enterprise uses foreign exchange to purchase imported raw materials, parts, components, etc., processes them into finished products or semi-finished products, and then exports them to earn processing value-added. Its core feature is 'two ends outside': raw materials come from abroad, finished products are sold abroad, and our side is only responsible for the processing link. Usage scenarios are mostly labor-intensive or technology-intensive processing trade, such as clothing, electronic assembly, etc. Precautions: enterprises must first apply for a processing trade manual or electronic account book; imported materials and parts are bonded, but finished products must be re-exported and must not be sold domestically without authorization; if sold domestically, taxes must be paid retroactively and penalties may be imposed. Difference from 'processing with supplied materials': in processing with supplied materials, raw materials are provided free of charge by the foreign party, and our side only charges processing fees and does not bear sales risks; while in processing with imported materials, our side purchases raw materials on its own, is responsible for its own profits and losses, and has ownership and pricing power over the finished products. In addition, processing with imported materials differs from 'general trade', which requires payment of tariffs and value-added tax on imported materials and parts, while processing with imported materials enjoys bonded policies. Enterprises need to pay attention to unit consumption management, export tax rebates, and customs supervision requirements.