Four Ways To Analyze Processing Trade

< p > 1, < a href= "//www.sjfzxm.com/news/index_c.asp" > feed processing > /a >: it is also called "feed in and out", which means buying foreign raw materials and excipients with foreign exchange, and making use of the technology, equipment and labor of our country to produce finished products and then sell them to foreign markets.

In this type of business, the business enterprise signs the contract of purchasing raw materials with the buyer as the buyer, and signs the export contract of the finished product in the identity of the seller.

The two contract is embodied in two pactions, all of which are characterized by the pfer of ownership.

In the processing trade, we should pay attention to the finished products being sold in the international market.

Otherwise, foreign exchange of imported raw materials is difficult to balance. From this point of view, the processing of incoming materials must bear the risk of price and sales risk of finished products.

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< p > 2, < a href= "//www.sjfzxm.com/news/index_c.asp" > raw material processing > /a >: it usually refers to the processing of one party from abroad to provide raw materials, accessories and packaging materials, according to the agreed quality, specification and style of finished products, to each other, to collect processing fees.

Some are supplied by the other party, some are supplied by the other side, and the other part is processed by the raw materials.

In addition, sometimes the other side only puts forward the requirements of patterns and specifications, and the processing side uses local raw materials and accessories for processing and production.

This practice is often referred to as "sample processing".

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< p > 3, < a href= "//www.sjfzxm.com/news/index_c.asp" > assembly business < /a >: refers to the provision of equipment, technology and related components and parts by a party, and the delivery from the other party to the finished product.

Incoming processing and incoming assembly business include two trade processes, one is imported raw materials, the other two is product export.

But these two processes are two aspects of the same trade, not two pactions.

The supplier of the raw material and the receiver of the product are the same enterprise. There is no paction relationship between the two parties, but the processing relationship is entrusted. The processing party is earning the labor service, so this kind of trade belongs to the category of labor service trade.

The advantage is that the processing side can exert the advantage of abundant labor resources and provide more employment opportunities; it can supplement the shortage of domestic raw materials and give full play to its productive potential; it can improve the level of domestic technology and product quality and improve the marketability and competitiveness of domestic products in the international market by introducing advanced production processes abroad and drawing on advanced management experience from other countries.

Of course, the raw material processing and assembly business is only an initial stage of labor trade. The processing side can only earn processing fees, and the added value of the product from raw material to finished product is basically occupied by the other party.

Because this kind of trade method is less than the risk of feed processing, it has been widely developed in China, and has obtained better economic benefits.

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< p > 4, collaborative production: it means that one party provides parts or main parts, and the other side uses the other parts of its own production to assemble a product for export.

Trademarks can be determined by negotiation between both parties, which can be used either by the processing party or by the other party.

The price of the spare parts can be deducted from the payment.

The product of cooperative production generally stipulates that all or part of the product is sold by the other party, or it can be regulated by third parties.

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