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Unit 5 contract for processing and assembling contents Definition Attention Reference Reading Exercises Processing with supplied materials and assembling with supplied parts and components refer to the Chinese enterprises use the raw materials, subsidiary/auxiliary materials, parts and components supplied entirely or partially by a foreign firm for processing or assembling in conformity with its requirements in regard to quality, specifications and designs, and the finished products are to be turned over(移交) to it. The equipment, technology, tools and instruments needed for processing and assembling are often supplied by the foreign firms and paid for by the Chinese enterprise from processing or assembling charges. In this sense, this is also a form of business to absorb foreign investment. Forms of Process and assemble trade Processing with /of supplied materials ;Processing with incoming materials;Processing with buyer’s materials;Assemble with supplied parts/components Processing with imported materials Processing according to supplied samples Practice :page53 Find out the characteristics of the processing and assembling trade. 5.2 Attention In the contract we should stipulate the time of shipment, the quality and the quantity of the materials and the parts or components supplied by the suppliers. If the quantity is not enough, or the quality is not up to the standard or the delivery is delayed, the suppliers shall indemnify the losses sustained. If it is processing according to supplied samples, we ’d better produce a counter sample as the basis of delivery. (2) We can effect shipment or insurance on behalf of the supplier, but the freight and premium concerned should be borne by the supplier because the ownership of the materials and the finished products belongs to the supplier. (3) We should strive for the purchase of the raw materials, packing materials and components in our country, then obtain the cost of them and the processing and assembling charge
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