The difference between processing with supplied materials and processing with supplied materials

The difference between processing with supplied materials and processing with supplied materials is as follows:

1. The concepts of processing with supplied materials and processing with supplied materials are different. Processing with materials is provided by overseas enterprises free of charge, and only processing fees are charged. However, feed processing requires domestic enterprises to form imports by paying foreign exchange;

2. The ownership of processing with supplied materials is different from that of processing with supplied materials. The ownership of processing materials belongs to the overseas entrusted enterprise, and the ownership of processing materials belongs to the buyer.

3. The commercial nature of processing with supplied materials is different from that of processing with supplied materials. Processing with supplied materials belongs to entrusted processing business, and the processing enterprise is not responsible for profit and loss, and the risks arising therefrom shall be borne by the entrusted enterprise. Feed processing is a buying and selling business, with its own profits and losses and risks;

4. The customers of processing with materials and processing with materials are different. Conceptually, the import and export of processing materials are generally the same customer, while the customers who import raw materials and export finished products are generally different.

5. There are many ways to sign the processing contract. Generally, only one entrusted processing contract is signed for processing with supplied materials, and two unrelated contracts are signed for processing with supplied materials, one is an import contract and the other is an export contract.

6. The taxes for processing with supplied materials are different from those for processing with supplied materials. Processing with supplied materials is tax-free business, and import, export and processing fees are exempt from value-added tax. Because it belongs to tax-free income, the input tax paid by the corresponding domestic goods cannot be deducted, and it does not involve export tax rebate. Export tax rebate business is feed processing;

7. Processing with supplied materials and processing with supplied materials have different sources. All imported materials and parts under the processing with supplied materials are purchased by one party with foreign exchange. The imported materials and parts under the processing with supplied materials are provided by foreign businessmen free of charge. It can be seen that the risk of feed processing is greater than that of feed processing;

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

9. Processing with supplied materials and settlement with supplied materials are different. In the case of processing with imported materials, one party exports goods, the foreign trade party pays according to the general trade method, and the other party receives foreign exchange. However, the export goods of one party under the processing with supplied materials are not priced, and only the labor remuneration is charged according to the contract. ;

10. There are different tax refund methods for processing with materials and processing with materials. For the re-export of raw materials, the method of "first levy and retreat" is adopted; The method of "no levy, no refund" is adopted for processing re-exported goods with supplied materials;

1 1. Processing with supplied materials is different from processing with supplied materials. After the processing of supplied materials needs to be filed by the local customs, the first copy of the application form shall be retained, and the remaining three copies shall be returned to the transferring enterprise and handed over to the transferring enterprise. However, within 20 days from the date of filing with the customs at the place where the imported materials are processed, the remaining three copies of the application form shall be held to fill in the relevant contents of the enterprise, and the customs at the place where the imported materials are transferred shall go through the filing formalities and sign it.

Legal basis: Article 33 of People's Republic of China (PRC) Customs Law.

Enterprises engaged in processing trade shall file with the customs in accordance with the provisions of the General Administration of Customs. The unit consumption of finished products in processing trade shall be approved by the customs in accordance with relevant regulations.

Finished products of processing trade shall be re-exported within the prescribed time limit. If the imported materials and parts used are allowed to be bonded in accordance with state regulations, they shall go through the verification procedures with the customs; Those who pay taxes first shall go through the formalities of tax refund with the customs according to law.

Where bonded imported materials or finished products for processing trade are sold domestically, the customs shall levy taxes on bonded imported materials according to law; Where the state restricts imports, it shall also submit an import license to the customs.