What is the difference between general trade and processing with supplied materials and processing with supplied materials?

The difference between incoming materials and incoming materials is that incoming materials need to be bought, and incoming materials need not be bought. 1. Processing with supplied materials means that foreign investors provide all or part of raw materials, materials, auxiliary materials, spare parts, components, fittings and packaging materials, and provide equipment when necessary. Our processing unit will process and assemble according to the requirements of foreign businessmen, and the finished products will be sold to foreign businessmen, and we will charge labor fees. Foreign-funded equipment as payment, our labor service as reimbursement. 2. Feed processing refers to the business that an enterprise with the right to import and export purchases imported raw materials, materials, auxiliary materials, components, spare parts, accessories and packaging materials with foreign exchange, processes them into finished products or semi-finished products and then exports them. 3. The main difference between the two is that (1) the sources of imported materials are different: all imported materials under the feed processing are purchased by us with foreign exchange. 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. (2) The buyers and sellers of import and export goods are different: the foreign businessmen who import materials are not necessarily the buyers of my finished products because of the different processing prices. The buyer and seller of imported and exported goods processed with imported materials must be the same foreign merchant. (3) Foreign exchange settlement is different: for the export goods under our processing, foreign investors 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. (4) Different tax refund methods: when the imported goods are processed and re-exported, the method of "first levy and retreat" is adopted; The method of "no receipt or refund" is adopted for processing re-exported goods with supplied materials. 4. Processing with supplied materials is regarded as selling duty-free goods, and the VAT input tax of materials purchased in China cannot be deducted. Feed processing is regarded as selling self-produced goods, and zero tax rate is applicable to export, which can offset the input tax of value-added tax on purchased materials.