Processing

Under contract processing refers to the processing of goods against payment , the merchandise remains in the ownership of the client .

Depending on the location of the service are in foreign trade passive and active job processing distinguished:

• outward processing (English outward processing, also. outward processing) is the treatment, processing and repair of goods which are brought from the free circulation on the economic territory in foreign economic areas and finished or finished to be reintroduced.

Refinement is a form of outsourcing certain work processes from one's own company to a third-party company and is particularly important when it comes to cross-border cooperation . The main reason for outward processing (PV) today is mostly the exploitation of a wage gap to outsource labor-intensive processing or processing. Labor - intensive sectors such as the textile or clothing industry have long experience with Southern Europe , Eastern Europe , Asia and developing countries.

There are labor costs low and production is expensive not working and environmental standards. Of course, this increases the effort involved in transporting the textiles and the entire logistics for the companies.

• active job processing (engl. inward processing, including: inward processing): Foreign goods are temporarily imported and processed in the inner land.

The terms are mirror images: active contract processing from the point of view of one country is always presented as passive from the point of view of the other participating country.