Core Points - The article discusses the requirements for taxpayers engaged in processing trade and the recent adjustments made to the VAT declaration process for these businesses [2][3][5] Group 1: Processing Trade and VAT Declaration - In 2024, China's processing trade export value reached 50,201 billion yuan, reflecting a 2.4% increase from the previous year [2] - Taxpayers involved in processing trade must accurately report the value of bonded materials used in their export goods, as per the relevant tax policies [2][3] - The State Administration of Taxation issued Announcement No. 2 in 2025, optimizing the VAT declaration process for taxpayers engaged in processing trade [3][5] Group 2: Adjustments and Compliance - The new regulations require taxpayers to dynamically adjust the reported value of bonded materials when discrepancies arise between the total amount used and the amounts reported in previous tax periods [3][5] - Taxpayers must ensure accurate accounting of bonded materials and report the corresponding amounts during export declarations [3][5] - The announcement also emphasizes the importance of compliance, stating that any fraudulent activities related to customs declarations will be subject to legal penalties [7]

Core Viewpoint - The Chinese processing trade industry has become a bright spot in foreign trade, with a year-on-year growth of 7.27% in import and export value during January-February 2025, reaching 1.20 trillion yuan, despite a 1.2% overall decline in China's foreign trade [1][13]. Industry Overview - Processing trade refers to the business activities where enterprises import raw materials and components for processing or assembly, and then re-export the finished products. Its core feature is "two ends abroad," meaning both raw material imports and finished product exports target international markets [2]. Industry Development History - The development of China's processing trade industry has gone through four stages: 1. Initial stage (1978-1985) focused on pilot projects in coastal areas. 2. Preliminary development stage (1986-1992) saw rapid growth and policy encouragement. 3. Rapid development stage (1993-2000) where processing trade became a significant part of foreign trade. 4. Adjustment and upgrading stage (2001-present) emphasizing structural optimization and high-end development [4][5]. Industry Status - The processing trade industry has deeply integrated into the global supply chain, with significant growth attributed to the optimization of industrial structure, particularly in high-end manufacturing and intelligent manufacturing sectors [13]. Key Enterprises - The processing trade industry includes various types of enterprises such as state-owned, private, and foreign enterprises. State-owned enterprises dominate large projects and high-end manufacturing, while private enterprises excel in niche markets due to their flexibility. Foreign enterprises leverage advanced technology and management experience [15]. Industry Development Trends 1. **High-end, Intelligent, and Green Transformation**: The industry is focusing on high-tech, high-value products, with increased R&D investment and the adoption of smart manufacturing technologies [21]. 2. **Regional Integration and Global Market Layout**: Enterprises are actively engaging in regional markets and diversifying their market presence to reduce dependency on single markets [22][23]. 3. **Brand Building and Value Addition**: Strengthening brand recognition and enhancing product value are key strategies for improving competitiveness and achieving sustainable development [24].