1. What is compensation trade? Compensation trade refers to the trade methods and equipment that foreign manufacturers provide or use foreign import and export credit to import production technology and equipment, and that our company conducts production and repays the other's technology, equipment price or credit principal and interest in the form of selling back their products. 2. What are the forms of compensation trade? (1) Product resale, referred to as repurchase trade or referred to as resale In the compensation trade, products produced with imported equipment or other materials are generally referred to as direct products. If they are paid by direct products, they are called product sales. Generally applicable to equipment and technology trade, it is called "industrial compensation" in the world. In China, it is generally called direct compensation. (2) Commodity redemption, collectively referred to as mutual purchase The goods that the first importer uses to pay for the imported goods are not the products directly produced by the imported materials, but other commodities agreed by the two parties, that is, the indirect products. Since this kind of trade is sometimes not directly related to other production, it is called "commercial" compensation trade in developed capitalist countries. Since this compensation trade is repaid with indirect products, it is generally called indirect compensation trade in China. (3) Multilateral compensation or transfer compensation This form of compensation trade is more complicated. The party that replaces the first import by a third country undertakes or provides the obligation to compensate the product. 3. What is the difference between compensation trade and general trade? Compensation trade and general trade have the following differences: (1) General trade is usually based on money as a means of payment. Compensation trade is essentially paid for by goods. (2) General commodities are usually not subject to credit. Compensation trade is often inseparable from credit. Credit is often an integral part of such trade. (3) General trade, one party is the buyer and the other party is the seller, and the transaction procedure is simple. Both parties to the compensation trade are both buyers and sellers. They have two identities. Sometimes the obligation to supply or sell can be given to third parties, and the transaction procedures are more complicated. 4. What is the difference between compensation trade and barter trade? Compensation trade and barter trade have the following differences: Both are directly exchanged between the buyer and the seller. Generally, currency circulation does not occur. Currency is only a means of pricing in these trades. The difference between the two is that barter trade is often a one-time act, and the buying and selling process occurs simultaneously, roughly at the same time. Compensation trades tend to last too long, some 3 to 5 years, some for more than 10 years, and each transaction often involves multiple trading activities. 5. How does the compensation trade go through the registration formalities with the customs? The operating unit and production enterprise that implements the compensation trade contract shall apply to the Customs for filing and registration within one month from the date of approval of the contract, and submit the following documents at the same time: (1) The approval letter and contract record certificate issued by the competent economic and trade department. (2) Business license issued by the administrative department for industry and commerce. (3) A copy of the contract signed externally. (4) The export finished product approval document for the approved export goods license approved by the competent foreign trade department. (5) Other documents and economic guarantees deemed necessary by the Customs. After reviewing the above documents, the Customs shall file a record of the conditions for compensatory trade, and issue the “Registration Manual for Imported Goods for Processing and Assembly and Small and Medium-sized Compensation Trade†to handle the customs clearance of goods. 6. How to apply for customs clearance for import and export goods under the compensation trade item? When importing raw materials, parts, components and equipment for compensation trade, and exporting processed products, the relevant foreign trade (industry and trade) companies and production company units shall hold 3 copies of the “Registration Manual†and the completed goods declaration form. Customs declaration of import and export, and submit the relevant documents such as the waybill, invoice, packing list of the goods. 7. The equipment imported under the compensation trade item shall be subject to customs supervision of the goods from the date of import to the full repayment. No unit or individual may sell, transfer, sell or withdraw for other purposes without the permission of the foreign economic and trade administrative department and the approval of the customs. If it is necessary to sell and dispose of it for any reason, it shall be reported to the competent department of economy and trade for approval, reported to the customs for approval, and supplemented with customs duties according to the regulations; if it is a license to manage commodities, it shall also submit an import license. 8. Can compensation trade products be transferred to third parties? Yes, both Chinese and foreign parties stipulate in the compensation trade contract that the product will be resold to a third party designated by both parties, and the third party must sign and confirm the contract at the same time, but it cannot be sold by the Chinese party to a third party or sold by a foreign company. If the compensation products belong to the national unified operation, export quotas and export license management commodities, the project shall be submitted to the Ministry of Economic and Trade for approval in advance. 9. Can I continue to export products after the completion of the compensation trade contract? can. However, the products that continue to be exported and the equipment and other materials purchased for export shall be handled in accordance with the general import and export goods, and shall not be used as compensation trade. 10. Can leasing imported equipment engage in compensation trade? There are two situations in which the leased import equipment engages in compensation trade: (1) After the leasing company leases and leases equipment, it is subleased or loaned to a company engaged in compensation trade processing, and shall pay taxes according to the regulations. (2) If the leasing company is engaged in the processing of imported materials and compensation for the import of leased equipment, the customs will provide corresponding preferential treatment. 11. Can the finished product under the processing of imported materials be used as a compensation product for export? If the finished product under the processing of imported materials is used as compensation for the technical equipment price or credit principal and interest provided by the foreign company, it is actually equivalent to purchasing the relevant imported technical equipment by spot exchange and does not meet the relevant provisions of compensation trade. 12. After the compensation trade contract expires or is completed, how to apply for verification to the customs? Within one month from the date of expiration of the compensation trade contract or the later batch of finished product exports, the relevant unit shall truthfully fill out the application form for verification (the unit seal) in the Registration Manual together with the customs seal of the port when the goods are imported. The special customs declaration form for import and export goods shall be sent to the competent Customs for the verification and settlement procedures. 13. If domestic raw materials are scarce, is it possible to reimburse the price of compensation trade equipment from the raw materials imported from abroad? A feasibility study should be conducted before signing a compensation trade contract. The issue of raw materials is an important issue in feasibility studies. If the raw material problem cannot be solved, it should stop the external negotiation, or change the processing and assembly contract, and the imported equipment will be repaid by the labor payment. If the contract has already been signed, there is a sudden shortage of domestic raw materials. In order to fulfill the contract, raw materials must be imported from abroad. Although the imported raw materials are sold back to foreign countries, they are of processing nature, but they cannot be exempted from import tax. If the import tax burden of raw materials is too high, the relevant enterprises can not afford it. Under the circumstances that the import of raw materials can be processed by the relevant authorities, the customs can grant tax reduction and exemption according to the import processing regulations, but the production cost of raw materials imported by tax reduction and exemption. For some equipment that repays the price, the customs will reimburse the import tax on the equipment. Vest And Jacket,Sleeveless Tank,Print Long Sleeve Jacket,Single Knitting Vest SHAOXING YINBO IMP&EXP CO.,LTD , https://www.yinbotex.com
100,000 compensation trades