Processing trade with materials refers to the business that foreign businessmen provide all raw materials, auxiliary materials, spare parts, components, accessories and packaging materials, and provide equipment when necessary. The processing unit of the undertaking unit carries out processing and assembly according to the requirements of foreign businessmen, and the finished products are sold to foreign businessmen. The contractor shall collect the service fee, and the equipment price provided by foreign investors shall be repaid by the contractor.

Feed processing refers to buying raw materials, spare parts or spare parts in the international market with your own foreign exchange, processing and assembling them into finished products according to your own design, and then exporting them to foreign markets. In China, this practice is also called "feed-in and feed-out".

2. The sources of imported materials and parts are different.

All imported materials under the item of feed processing are purchased by us in foreign exchange. However, the imported materials and parts under the processing with supplied materials are provided by foreign businessmen free of charge. The risk of feed processing is greater than feed processing.

The buyers and sellers of import and export goods are different.

Because the input and processing are at different prices, the foreign businessmen who import materials are not necessarily the buyers of my finished products. The buyer and seller of imported and exported goods processed with imported materials must be the same foreign merchant.

4. Foreign settlement and tax refund methods are different.

For the export goods under our import processing, foreign businessmen pay according to the general trade method, and we collect foreign exchange. However, the export goods under the processing with supplied materials are not priced, and only the labor fee is charged according to the contract. For transit goods, the method of "first levy and retreat" is implemented; The method of "no receipt or refund" is adopted for processing re-exported goods with supplied materials.