May I ask about "processing with supplied materials"? Who can explain in depth!

Processing trade with supplied materials is processing and assembly trade with supplied materials, also referred to as processing with supplied materials. It refers to processing trade in which imported materials and parts are provided by foreign businessmen, no foreign exchange is paid at the time of import, finished products are sold by foreign businessmen, and operating companies charge processing fees. The ownership and income rights of imported raw materials belong to foreign businessmen. 　　Processing and assembly trade with supplied materials is one of the main forms of foreign trade and is a trade form corresponding to general trade. 　　Processing with supplied materials is also known as the "two ends outside" processing and production form. Refers to a form of production and trade in international trade in which foreign manufacturers provide raw materials, process and produce them in accordance with specified product specifications and quality requirements, and deliver the finished products to the other party for sale. Specific methods include: ①Foreign businessmen provide all or part of the raw materials, materials, and auxiliary materials, and the finished products are sold by the foreign businessmen, and the processing enterprises only charge processing fees. ； ③Foreign businessmen provide all or part of the raw materials, materials, auxiliary materials, main parts, accessories and packaging materials, and the finished products are sold by foreign businessmen, but the import of raw materials and the export of products are priced separately. ； ③In addition to providing some or all of the raw materials, foreign businessmen also provide some machinery and equipment, tools, molds, etc., and the price is generally reimbursed from the processing fees. Adopting the form of processing trade with supplied materials is conducive to fully exploring human resources, increasing foreign exchange earnings, improving industrial production technology, and promoting economic development. Enterprises that process supplied materials are mostly located in areas with lower labor or land costs, convenient transportation, and higher import and export trade freedom. For example, in the coastal areas of Guangdong and Fujian provinces in China, the production and trade form of processing with supplied materials has developed rapidly since the 1980s. 　　Can a processing company with supplied materials undertake domestic processing business with supplied materials (can it undertake processing services provided by other domestic enterprises with materials and parts and charge processing fees)? The role of processing with supplied materials. For the client, processing with supplied materials is to use the labor of the undertaking party to reduce product costs. For the undertaking party, it is a kind of labor export with commodities as the carrier. 　　From the late 1970s to the early 1980s, our country regarded foreign processing and assembly business as a form of utilizing foreign capital, and protected and supported it through policies, so it developed rapidly. The processing and assembly trade volume already accounts for a considerable proportion of my country's total import and export volume. It should be said that this trade method has played a great role in increasing employment opportunities, prospering the local economy and promoting export trade. 　　There are currently two types of enterprises undertaking foreign processing and assembly trade. ； One is that the undertaking party is a Chinese enterprise or joint venture, and the relationship with the client is a simple entrusted processing relationship. By undertaking the processing business, the enterprise can use foreign funds, exert production potential, expand exports, increase income, and obtain international market information, speed up product upgrades, improve management levels and improve process technology. The other is for foreign clients to directly invest and set up factories in China, and then make full use of my country's preferential policies and low-cost labor through entrusted processing and assembly, making huge profits and competing with my country's original export trade for the market to a certain extent. Although the current "shop in front and factory in back" approach does more good than harm to the development of our country's economy. But in the long run, it is very necessary to use this method of utilizing foreign investment, use policies to guide technology-intensive and cost-intensive industries, and strengthen tax management. The customs verification procedures for processing with supplied materials are in accordance with Article 6 of my country's "Customs Regulations on the Administration of Foreign Processing and Assembly Business": Processing and assembly contracts must be submitted to the competent customs for verification procedures within one month after the expiration of the contract or the export of the last batch of processed products with the verification form signed by the local tax department in the customs "registration manual", together with the relevant import and export goods declaration forms, and relevant documents. The following documents should be submitted when writing off: 　　(1) "Registration Manual for Import and Export Goods for Foreign Processing and Assembly". 　　(2) Customs declaration form for import and export goods signed and stamped by the customs. 　　(3) Application for write-off of external processing and assembly compensation trade contract (Closing Form). 　　(4) For products with a high loss rate, a detailed list of materials used for processing and production and a description of the processing technology should be provided. 　　(5) Other relevant materials required by customs. 　　In order to simplify procedures, improve work efficiency, and embody the policy of promoting and service production, the customs adopts trust write-off, general write-off and key write-off methods according to different enterprises and commodities.: 　　①Trust write-off. This means that if the customs operates in a law-abiding manner, has complete documents, has normal contract execution, and does not violate customs temporary management regulations, it can allow enterprises and self-management groups that have been trained and approved by the customs to write off the business on their own. The written-off contract, "registration manual" and documents should be submitted to the customs for archiving in a timely manner. In addition to retaining the right to conduct random checks on the write-off results, the customs generally does not verify them. 　　②General write-off is also called document write-off. It means that the customs is not involved in imported materials and exported finished products. * * For licensing management, if the bonded amount is not large, there are accurate material consumption quotas, and there is no suspicion of smuggling violations, general write-off can be adopted. This method usually does not require going to the factory to verify the relevant physical objects, warehousing, account books, etc. The customs only conducts face-to-face verification of relevant documents and account books. The enterprise only needs to provide relevant information, samples, etc., and cooperate with the customs to complete the verification work. ： 　　③Focus on write-offs. It is a method that combines document verification and factory verification. It is mainly applicable to companies with bad reputation, suspected of smuggling violations, or commodities that need to be subject to key supervision by the customs within a certain period of time. This method requires the enterprise to provide the customs with detailed information on imported materials, storage, custody, extraction and use, storage of exported finished products, and export sales accounts, as well as relevant commercial correspondence, processing process flow charts, etc., and provide convenience for the customs to verify the physical goods, warehousing, account books, etc. when going to the factory. If the following situations are encountered during write-off, the enterprise should take the initiative to go through the relevant procedures with the customs.: 　　①It is necessary to go through the procedures for taxation, reduction and exemption. First, after the processing is completed, the remaining leftover materials can be exempted from the import goods license, and the customs will tax them according to their actual use value or reduce the tax as appropriate. The enterprise will pay taxes or be exempted from tax according to the customs regulations. The second is the remaining materials and parts due to improvements in production technology and operation and management after the processing enterprise has performed in accordance with the contract. ； or finished products that have been increased in production, are converted to domestic sales with the approval of the original approval authority, and if the customs approval is true, and their value is within 2% of the total value of imported materials and parts and the total value is less than RMB 3,000, they can be exempted from the import goods license and tax exemption. The excess part will be exempted from the import goods license and will be taxed according to the materials and parts. Third, if the imported materials and processed products under the contract are required to be transferred to domestic sales for some reason, or the contract is unilaterally terminated by a foreign businessman, and the processing unit requires that the stored materials or processed products be sold domestically to offset the workers' payment, after approval by the original approval authority and approval by the customs, the import procedures shall be handled by the customs in accordance with the provisions of general imported goods. If taxable goods are involved, tax shall be paid in accordance with the regulations. * * If the goods are subject to license management, you should also apply for an import goods license. 　　②Transferring semi-finished products for processing. If imported materials and parts are not directly exported after processing and assembly, but are transferred to a processing unit that undertakes the re-export of imported materials and parts for re-export, the unit transferring the materials and parts, together with the processing unit accepting the transfer, shall go through the transfer and verification procedures to the customs with relevant documents such as the purchase and sale or entrusted processing contract signed by both parties. 　　③It is necessary to suspend, extend or transfer the contract. When an enterprise needs to suspend, extend or transfer a full contract due to special circumstances, it should apply to the approval authority for approval within 10 days and report to the customs in charge of the contract. It can only be implemented after approval. 　　After the write-off is completed, the enterprise obtains the "write-off form" for processing and assembly from the customs, and handles the imported machinery and equipment under the contract in accordance with customs regulations.

Brother upstairs, this was directly searched from Baidu, anyone can check it! But still encourage me. I want to have a deeper understanding of the processing of supplied materials by oil refining companies.

Why doesn't anyone explain it? :'( :'( :'(

I am also waiting, kneeling down to ask for guidance. The leader asked me to do economic calculations for processing supplied materials and domestic trade. youweir001@163.com , be grateful

It is better to have the device running than idle. If you leave it there, the device will only rust and produce no value. It will cost you a lot of depreciation.； Although the depreciation cost is quite high when the device is running, it is at least better than leaving it idle. From the perspective of enterprise management, if the installation is idle, the personnel will be idle, and wages will still be paid. When people are idle, they will look for trouble, which is not good for enterprise management. Processing with supplied materials can at least activate equipment and personnel, and can ensure the normal operation of the enterprise. If it were you, wouldn't you do it? Moreover, if the company's business activities are carried out normally, it may also bring about other business opportunities. Although the profit will be less than that of processing raw materials by itself, it is still cost-effective.