Characteristics of processing with supplied materials

It is a trade way in which foreign investors provide certain raw materials or technical equipment, export enterprises process and assemble according to requirements, and export finished products charge processing fees. Processing with supplied materials does not occupy capital, nor does it consider the risks existing in sales. Processing with supplied materials does not own the ownership of products, and the relationship between export enterprises and foreign businessmen is entrusted and entrusted.

Characteristics of feed processing

Feed processing is a kind of trade way for export enterprises to buy raw materials from abroad with foreign exchange and then export them after production and processing. Foreign exchange for feed processing occupies working capital and bears the quality of export commodities and export risks. Feed processing has the ownership of products, and export enterprises and foreign businessmen have a trading relationship.

Tax difference between processing with supplied materials and processing with supplied materials.

Self-operated or agent-exported goods production enterprises are exempt from VAT, and their taxable consumer goods are exempt from consumption tax. Foreign trade enterprises implement the method of immediate refund of value-added tax, and all their taxable consumer goods will be refunded consumption tax.

Export goods processed with imported materials are exempt from value-added tax and consumption tax, and labor remuneration income of processing enterprises is exempt from value-added tax and consumption tax. The input tax paid for domestic raw materials consumed by export goods shall not be deducted and transferred to the production cost, and the tax paid for domestic supporting raw materials shall not be refunded.