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Japan to Hong Kong-Shenzhen City XingYi International freight forwarding Co., Ltd.

Date: 2016-09-05
Views: 48

Japan to Hong Kong

The nature of the processing business

Processing of incoming materials is different from general import and export trade. General import and export trade belongs to the sale of goods; although the processing of incoming materials has the import of raw materials and parts and the export of finished products, it does not belong to the sale of goods. Because the ownership of raw materials and finished products always belongs to the entrusting party, there is no transfer in the process of one in and one out. The entrusting party only provides labor services and collects the agreed labor payment. Therefore, it can be said that the way of processing by entrusted processing belongs to the category of labor trade, and it is the export of labor services based on commodities.

Japan to Hong Kong At the same time, the processor does not need to raise foreign exchange funds for the purchase of raw materials and parts, nor does it need to bear the risk of finished product sales. Is a relatively simple form of primary cooperation, mainly labor-intensive and low-tech products, the level of labor payment


4. Issues to be noted when signing a contract for processing materials

The undertaker should pay attention to the following issues when drafting and signing the contract and agreement for processing materials.

    (1) It should be specified that the other party will receive incoming materials on time, quality and quantity. If the quantity is not enough, make up, and if the quality is not good, return it. If the delivery is late, the delivery date of the finished product should be postponed accordingly. Therefore, the loss caused by the downtime must be compensated by the other party. ;

    (2) Since the ownership of the incoming materials and processed products belongs to the other party, the insurance and transportation of the raw materials and finished products should be borne by the other party, but the procedures can be handled by the undertaker.

    (3) The domestic raw materials, spare parts, and packaging materials used by the undertaker in the local purchasing department shall be strived for, and the price and processing fee shall be recovered from the foreign merchant to expand the export of the acceptor and increase foreign exchange.

    (4) Attention should be paid to avoid impacting the normal trade of the undertaker and affecting the export of similar products in the country due to the large amount of processing of foreign products.

    (5) It should be clearly stated in the contract that in the event of disputes over intellectual property rights such as registered trademarks and patents, the other party shall bear the consequences. Japan to Hong Kong may sign a long-term agreement on the principle of long-term small-scale simple processing trades that are sporadic and frequent.

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