Bonded processing, or processing trade, refers to the business activities of an operating enterprise importing all or part of the raw and auxiliary materials, parts, components, and packaging materials (collectively referred to as materials), and re-exporting the finished products after processing or assembly.
Compared with the production and processing in the form of general goods import and export, the bonded processing form temporarily suspends the collection of customs duties and import-related taxes at the link of imported materials.
Bonded processing goods, or processing trade goods, refer to imported materials and finished products under processing trade, as well as scraps, defective products, and by-products generated during the processing process.
Bonded processing enterprises, or processing trade enterprises, include operating enterprises and processing enterprises registered with the customs.
Operating enterprises refer to various import and export enterprises and foreign-invested enterprises responsible for signing processing trade import and export contracts with foreign countries, as well as foreign processing and assembly service companies that have been approved to obtain a license for processing with supplied materials.
Processing enterprises refer to production enterprises with legal person status that accept the entrustment of operating enterprises and are responsible for processing or assembling imported materials, as well as factories established by operating enterprises that do not have legal person status but implement relatively independent accounting and have obtained industrial and commercial business certificates (licenses).