What are the processing and the export production?

What is the processing in import export goods?

Processing is a commercial activity in which the processing party will use part or all of the raw materials to comply with the request from the ordering processing party.

The processing party will receive remuneration for producing the product from the ordering/hiring processing party.

What is the export production?

Export production is a type of production and business in which businesses import raw materials from many sources to process into export products.

Export production businesses will benefit from the difference in the purchase price of imported raw materials and the selling price of exported products.

How are raw materials for processing and export production different?

Raw materials for processing

The processing party will:

Be provided with part or all of the raw materials, auxiliary materials, and supplies for processing according to agreement with the ordering/hiring processing party

Or receive money from the ordering/hiring processing party to buy materials according to the agreed quantity, quality, and price.

And not be unauthorized to arbitrarily use raw materials and supplies from the ordering/hiring processing party without their consent.

Raw materials for the export production

Export production businesses will:

• Buy raw materials, auxiliary materials, and supplies with their money to produce products
• And export them to foreign parties that have signed export production contracts
• Complete autonomy in the production process and raw material sources
• Use raw materials and supplies that they buy with their money and import by themselves

Redundant raw materials and supplies during processing and export production? 

Redundant raw materials and supplies during processing

At the end of processing, the processing party must agree with the ordering/hiring processing party to handle redundant raw materials, supplies, and scrap products according to the provisions of Decree 69/2018/ND-CP. So, the processing party will be allowed to handle redundant raw materials, supplies, and scrap products in one of the ways: selling redundant raw materials and supplies in Vietnam, exporting abroad, giving away, destroying, etc.

Redundant raw materials and supplies during export production

Export production businesses have full authority to handle redundant raw materials and supplies

Which import and export type codes are used for customs declaration of the processing and the export production?

Processing: E21, E23, E52, E54

Export production: E31, E62

CUSTOMS CLEARANCE SERVICES OF SEA DRAGON INTERNATIONAL LOGISTICS

The import and export customs clearance service of SEA DRAGON INTERNATIONAL LOGISTICS CO., LTD. will support customers with all import and export customs procedures. We ensure that your import and export shipments are processed quickly and avoid incurring many costs. Learn more HERE.

Source: Sea Dragon International Logistics CO., LTD.