First, processing trade is divided into processing with supplied materials and processing with supplied materials. Processing with materials is to process the materials provided by foreign businessmen into finished products, and then return them to the foreign businessmen who provide materials to collect processing fees. Feed processing is the re-export of the materials purchased by ourselves after being processed into finished products. The difference between them lies in the different ownership of property rights. Compared with general trade, the advantages are: fully bonded, that is, imported goods do not have to pay a penny tax, including customs duties and value-added tax. There are also tax rebates for processing trade, and domestic materials used in the processing process can be refunded. However, all processing trade commodities must be re-exported for verification. Compared with general trade, the customs supervision of processing trade is much stricter and more complicated.

Second, the biggest difference between processing trade and general trade is that processing trade does not have to pay customs duties and value-added tax when it is imported, but general trade does. Secondly, processing trade is divided into three types: processing with supplied materials, processing with raw materials and processing with auxiliary materials, which are relatively common. Among them, the processing trade with supplied materials does not accept export foreign exchange, and foreign customers provide raw materials free of charge. The buyer only pays the processing fee, and the finished product is returned to the seller after processing. Incoming materials can be exported in foreign exchange, which is the raw materials purchased by domestic exporters for processing. General trade, no restrictions, normal import and export, export collection, import payment, payment of foreign exchange can be.

Third, "general trade" and "processing trade" are the classification of the nature of trade when reporting to the customs, and different trade properties correspond to different customs supervision methods. General trade is a normal international business and a basic type of customs supervision. If it is a general import trade, the consignee needs to pay taxes in the form of "general taxation" when purchasing the finished products completely (unless there is a formal exemption), and the declared value is the amount payable. If it is a general export trade, the seller can enjoy the national tax rebate. The Chinese side of processing trade often corresponds to a processing manual. Raw materials purchased from abroad are in bonded state and do not need to be taxed. After being processed into finished products, they must be shipped abroad. If it needs to be sold to China, it needs to be taxed according to general trade. All or at least part of the raw materials of processing trade need to be imported from abroad, made into finished products in bonded state, and then exported. In this way, enterprises can import raw materials without paying taxes in China.

Fourth, the difference between general trade and processing trade transfer.

Related problems of deep processing carry-over. The materials provided by general trade include purchase and sale contracts, invoices, packing lists, export verification forms, etc. They must use them to transfer factories in the bonded area or Hong Kong, otherwise they can't transfer factories. There are manuals for the transfer of trade in processing zones to factories. You can do deep processing directly, or you can do factory transfer in the bonded area. There is no tax refund if you do deep processing directly, and there is a tax refund if you do it in the bonded area. This is also a difference.

V. Types of transfer

There are basically three kinds of transactions between general trading enterprises: (1); (2) between processing trade enterprises; (3) between general trading enterprises and processing trading enterprises. ?

Extended data

General trade refers to the unilateral import or export trade conducted by enterprises with import and export operation rights in China, and the goods imported and exported in general trade transactions are general trade goods. When general trade goods are imported, they can go through customs formalities in accordance with the general import and export supervision system, and then general import and export goods; You can also enjoy specific preferential tax reduction and exemption, and go through customs formalities according to the specific tax reduction and exemption supervision system. At this time, it is a specific duty-free commodity; It can also be bonded with the approval of the customs and go through customs formalities according to the bonded supervision system. It is bonded goods at this time.

General trading methods are as follows:

General trade, processing trade, compensation trade, agreement trade, border trade, bilateral trade, multilateral trade, entrepot trade and entrepot trade.

2. Import, like export, may involve one of the above trade modes.

3. Compensation trade and transit goods are both import trade and export trade.

Processing trade refers to the business activities that enterprises import all or part of raw and auxiliary materials, spare parts, components and packaging materials (hereinafter referred to as materials), and then process or assemble them into finished products for re-export, including feeding and processing.

Processing trade is entrepot trade characterized by processing. According to the different characteristics of the business, the common processing trade methods are: feeding processing, processing with supplied materials, assembly business and cooperative production.

Processing trade is a way to import raw materials, materials or spare parts in various ways, use domestic production capacity and technology, process them into finished products and then export them to obtain the added value embodied by foreign exchange. Processing trade is entrepot trade characterized by processing. According to the different characteristics of the business, the common processing trade methods are: feeding processing, processing with supplied materials, assembly business and cooperative production.

Feed processing

Also known as "feeding and discharging", it refers to purchasing foreign raw materials and auxiliary materials with foreign exchange, using domestic technology, equipment and labor force to process them into finished products and sell them to foreign markets. In this kind of business, the operating enterprise signs contracts with foreign countries for purchasing raw materials as a buyer and contracts for exporting finished products as a seller. Two contracts are embodied in two transactions, both of which are characterized by the transfer of ownership. We should pay attention to the fact that the finished products after processing should be marketable in the international market. Otherwise it is difficult to balance the foreign exchange of imported raw materials. From this perspective, feed processing should bear the price risk and finished product sales risk.

Processing of raw materials for investors

Generally speaking, raw materials, auxiliary materials and packaging materials provided by one processing party from another foreign country are processed into finished products according to the quality, specifications and styles agreed by both parties, and handed over to the other party for processing fees. Some are supplied by the other party, some are supplied by the other party, and some are supplemented by domestic raw materials by processors. In addition, sometimes the other party only requires styles and specifications, and the processor uses local raw materials and accessories for processing and production. This practice is often referred to as "sample processing".

Assembly business

Refers to the equipment, technology and related parts required for assembly provided by one party, and delivered after being assembled into finished products by the other party. Processing with supplied materials and assembling with supplied parts include two trade processes, one is importing raw materials, and the other is exporting products. But these two processes are two sides of the same trade, not two transactions. The supplier of raw materials and the receiver of products are the same enterprise, and there is no buying and selling relationship between them, but a processing relationship, and the processor earns labor fees, so this kind of trade belongs to the category of labor trade. Its advantages are: the processor can give full play to its rich labor resources and provide more employment opportunities; It can supplement the shortage of domestic raw materials and give full play to the domestic production potential; By introducing foreign advanced production technology and learning from foreign advanced management experience, we can improve our technical level and product quality, and improve the marketability and competitiveness of our products in the international market. Of course, the processing and assembly business is only a primary stage of labor trade. Processors can only earn processing fees, and the added value of products in the process of transforming raw materials into finished products is basically occupied by the other party. Because this trade method is less risky than feed processing, it has been widely used in China and achieved good economic benefits.

coproduction

It means that one party provides some accessories or main parts, and the other party uses other accessories produced in China to assemble a product for export. Trademarks can be determined by both parties through consultation, and both the processor and the other party can use them. The price of the supplied parts can be deducted from the payment. Generally, the products produced in cooperation are agreed to be sold in whole or in part by the other party, or may be agreed to be sold by a third party.