Definition And Difference Of Material Processing And Feed Processing

Definition of two:

The processing of incoming materials refers to the business activities that the imported materials are provided by overseas enterprises, and the enterprises do not need to pay for foreign exchange imports, and are processed or assembled according to the requirements of overseas enterprises, which only charge processing fees, and the finished products are sold by overseas enterprises.

The processing of imported materials refers to the import and export of imported materials by the operating enterprises and the export of finished products by the business enterprises.

The difference between them is:

1, the way of material payment is different. Materials supplied by foreign suppliers are provided free of charge by foreign investors without payment of foreign exchange.

2, the ownership of goods is different. The ownership of raw materials for processing is owned by foreign businessmen.

3, the mode of operation is different. The raw materials processing enterprises are not responsible for profit and loss, but only earn the labor payment: the processing enterprises independently gain profits and losses, purchase their own materials and sell products themselves.

4, the risk is different, the processing enterprises do not have to bear the risk of operation, the processing enterprises must bear all the risks in the process of operation.

5, the customs supervision requirements are different. The bonded materials under the feed processing item of the enterprise are allowed to exchange with the non bonded parts in the enterprise after the approval of the customs. Bonded materials under the processing items are not allowed to be exchanged for the ownership of foreign trade.