similarity

First, both kinds of processing trade have experienced three links: import, processing and export.

Second, the supervision mode of the two is the same, that is, the imported materials used for processing and manufacturing export products are subject to customs bonded supervision, registered at the time of import, exempted from customs duties and value-added tax, and the imported materials are written off by the customs when the products are exported.

(2) Difference

First, the ownership of raw materials, spare parts and products is different. Processing with supplied materials means that the raw materials, spare parts, components and products produced and processed are completely owned by foreign investors and dominated by foreign investors; In feed processing, business units have the ownership of raw materials and finished products.

Second, their trade nature is different. In the processing of supplied materials, the relationship between foreign investors and business units is entrusted and entrusted. Business units accept the entrustment of foreign businessmen and conduct production and processing according to the requirements of foreign businessmen, which is purely processing trade. In the feed processing business, the business unit operates independently and has a buying and selling relationship with foreign businessmen, who sell materials and buy our finished products. Business units earn the difference between finished products and imported raw materials, which makes foreign exchange appreciate, which belongs to the nature of general international trade.

Third, products are sold in different ways. In the processing business, the products produced and processed are sold by foreign businessmen after being shipped out of China, and the sales quality has nothing to do with us; In the feed processing business, after the product is produced and processed, the business unit should be responsible for external sales, and the quality of product sales is closely related to itself.

Fourth, the provisions of tax policies are different. Imported goods are subject to tax refund (or tax exemption), and imported goods are subject to tax exemption.