Detailed processing trade

1. What is processing trade?

Processing trade refers to the business activities of importing all or part of raw and auxiliary materials, parts, components and packaging materials (hereinafter referred to as “materials”) after processing or assembly, and re-exporting finished products, including processing of imported materials and Feed processing.

The basic links of the processing trade system are: filing → import → processing → export → write-off.

2. What is processing trade goods?

Processing trade goods refer to imported materials, processed products and scraps, defective products and by-products produced during processing.

Processing trade goods may not be mortgaged, pledged or retained.

3. What is the processing trade of incoming materials?

Incoming material processing trade refers to the fact that imported materials are provided free of charge by overseas enterprises. The operating enterprises do not need to pay foreign exchange for import, and they are processed or assembled according to the requirements of overseas enterprises. Only processing fees are charged, and the finished products are sold by overseas enterprises.

4. What is the feed processing trade?

Feed processing trade refers to the business activities in which imported materials are paid for by foreign exchange companies, and manufactured goods are exported for export.

Feed processing includes counterpart contract processing and non-contracted contract processing.

5. What is the difference between feed processing and processing?

The import processing business enterprise pays for the purchase of imported materials, and the processing of imported materials is free of imported materials by foreign investors, and does not occupy our foreign exchange; the processing and management enterprises have the ownership of materials and products, self-determined production, custom Sales, self-financing, and risk at their own risk, while the processing and processing enterprises do not own the ownership of materials and products, only charge processing fees, do not participate in profit distribution, and do not bear economic risks.

6. What is the non-comparative contract for the feed processing counterpart contract and the feed processing?

The import processing counterpart contract means that the enterprise (operating enterprise) with import and export operation right has signed the import material contract and the corresponding export finished product contract (including the counterpart contract of different customers) when importing the customs to the customs, and importing the materials. The finished product, quantity and sales flow of production are determined in the import and export contract.

The non-comparative contract for import processing refers to the contract for the import of materials for enterprises (operating enterprises) with import and export management rights. The export finished goods contract has not been signed at the time of filing with the customs. The finished products, quantity and sales flow of imported materials are not determine.

7. How to supervise the non-comparative contract of the processing of the goods?

The import processing non-continent contract is fixed and bonded, that is, 15 kinds of commodities stipulated by the importing country are levied 5%, bonded 95%, other imported materials are first levied 15%, and bonded is 85%. After the finished product is exported, the customs will refund the tax collected according to the quantity of the actual processed re-export.

8. Are products subject to export tariffs exempted under processing trade?

If the export finished products under the processing trade are subject to export tariffs, the customs shall levy export duties in accordance with relevant regulations.

9. What are the basic policies implemented by China in processing trade?

At present, China's basic policies for processing trade mainly include the following three items: First, the import tax policy for processing trade imported materials, import materials under processing trade are exempt from customs duties and import value-added tax; second, import for processing trade The material trade implements a loose trade policy. Except for a very small number of sensitive commodities, there is no import quantity restriction on import materials for processing trade, that is, import quotas and license management are not implemented in principle. Third, a few imports are exempted from tax exemption by the state. In addition to the goods, the imported equipment for processing trade provided free of charge by foreign merchants is exempt from customs duties and import value-added tax, and is exempt from the formalities of import quotas, permits, registration or import certificates for mechanical and electrical products.

10. What are the categories of processing trade imported goods?

According to the requirements of the national industrial policy, the state divides the processing trade into imported, restricted and permitted categories according to imported commodities.

Prohibited categories: refers to goods that are prohibited by the state from being imported, and goods that the customs cannot implement for bonded supervision. At present, it mainly includes four categories: First, imported materials belong to China's banned imports (such as old clothes, waste books containing obscene content, industrial waste containing harmful substances, radioactive substances, etc.); second, for dismantling, Refurbished used cars, motorcycles and their main components; third, imported seeds, seedlings, fertilizers, feeds, additives, antibiotics, etc. for exporting and breeding products; fourth, imported frozen chicken wings, chicken feet, chicken Liver and other chickens are chopped.

Restricted category: refers to imported materials that are sensitive goods with large price difference at home and abroad and which are difficult for customs to monitor. Including plastic raw materials (polyethylene in primary form), Polyester chips, chemical fiber raw materials (polyester filament and chemical fiber staple fiber), Cotton, cotton yarn, Cotton Fabric (both bleached and unbleached), steel (iron and non-alloy) Steel and stainless steel), wool (including wool and wool), sugar (raw sugar, sugar and cotton), chemically modified vegetable oil, natural rubber (including natural latex and tobacco film), frozen chicken and other 12 kinds of products Some commodity tax numbers for large categories.

Allowed classes: Refers to items other than prohibited and restricted categories.

11. What kind of classification does the customs have for the classification management of processing trade enterprises?

The Customs carries out comprehensive assessment according to the company's business scale, operation and management status, customs declaration, compliance with customs laws and regulations, and divides processing trade enterprises into four categories: A, B, C, and D. The list of enterprises of Class A, Class C and Class D shall be determined by the Customs after listening to the opinions of the relevant departments, and Class B enterprises shall not be listed. The list of enterprise classifications is dynamically managed and adjusted in a timely manner.

Achieving Class A corporate standards, and is also engaged in processing trade in special industries such as aircraft and ships, or an annual import and export volume of 30 million US dollars (10 million US dollars for self-manufacturing enterprises) and above, or an annual processing export value of 10 million US dollars. The above enterprises are drawn from the A-type enterprises and are called AA enterprises.


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