2010-03-23 11:48:27

After receiving an order from a third-country buyer, the local trading company company A declares to customs and exports the materials and unfinished goods to offshore manufacturer company B for processing. Company B is responsible for exporting the finished goods directly to the third-country buyer. I. Outsourcing Processing & Direct Export (1)

• A. Outsourcing processing and direct export

Before shipping goods abroad for outsourcing processing, an entity shall first issue the GUI on which the value (price) of unfinished goods must be declared according to the value stated on Export Declaration approved by Customs to apply for sales for goods at zero-tax-rate. At exporting finished goods processed to the third country buyer, the entity shall issue GUI with the price computing by deducting original GUI value from total transaction amount in accordance with related transaction certificate. (Note: GUI issuance is not required for exporting of goods.) (Explanatory Decree No. 770665884 issued on Nov 15 1988 by Ministry of Finance)