Processing with supplied samples is a form of processing trade in which a foreign party provides samples, and the receiving party (usually a domestic enterprise) carries out production and processing according to the sample requirements. The finished products are delivered to the foreign party for sale, and the receiving party charges a processing fee. Usage scenarios: applicable when the foreign party has specific design or style requirements but is unwilling to provide raw materials or molds, commonly seen in industries such as clothing, footwear, toys, and handicrafts. Precautions: the receiving party must accurately understand the sample's technical standards, materials, and workmanship to avoid unqualified finished products caused by misunderstandings; the responsibilities for sample custody, ownership of intellectual property, and the method of calculating processing fees should be clearly defined; processing with supplied samples differs from processing with supplied materials—the former provides only samples, while the receiving party purchases raw materials on its own, whereas the latter provides all or part of the raw materials; compared with processing with imported materials, processing with supplied samples does not involve our side purchasing raw materials, so the risk is lower but profits are also limited. In addition, attention should be paid to preventing samples from involving infringement issues, and acceptance standards should be clearly stipulated in the contract.
📝 Examples
1. A foreign party provided a sample of a new type of backpack and required us to produce 5,000 pieces according to the sample. All fabrics and accessories were to be purchased by our side, and after delivery of the finished products, our side would charge a processing fee. (Note: a typical case of processing with supplied samples; the foreign party provides only the sample and does not supply raw materials.)
2. Because the workmanship of the sample provided by the customer was complex, we suggested making a confirmation sample first and, after the customer's written confirmation, then carrying out batch processing with supplied samples, so as to avoid delivery disputes. (Note: emphasizes the importance of sample confirmation and risk prevention in processing with supplied samples.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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