From the Netherlands to Hong Kong, according to the definition of Article 3 of the 'Regulations of the People's Republic of China on the Supervision of Processing Trade Goods' issued by the Customs in 2004: 'Processing trade refers to the importation of all or part of the original and auxiliary materials, spare parts, components and packaging by the operating enterprise. Materials (hereinafter referred to as 'material parts'), after processing or assembly, the business activities of re-exporting the finished products, including processing of incoming materials and processing of imported materials. 'In addition, in the late 1990s, Chinese enterprises carried out overseas investment The overseas processing trade mode should also be regarded as a new form of processing trade.
(1) Processing of incoming materials
1. The meaning of processing
The processing of materials from Holland to Hong Kong is also known as foreign processing and assembly business in China. The processing of incoming materials in a broad sense includes both processing of incoming materials and assembly of incoming materials. It refers to the provision of certain raw materials, spare parts, and components by foreign companies, which we process or assemble according to the requirements of the other party, and the finished products are handed over to the other party for disposal.
2. The role of processing business
For the client, it is conducive to the use of cheap labor and land in other countries and regions to save wages and expenses, thereby reducing product costs; it is conducive to the transfer of labor-intensive and low-medium-tech industries outward, thereby promoting domestic industries Structural adjustment and product replacement.
For the undertaking party, it has expanded employment, increased foreign exchange income, introduced advanced technology and equipment, and is conducive to transforming and enriching the enterprise Holland to Hong Kong.