processing trade
Technical term in international trade: importing raw materials or parts duty-free, processing or assembling them, and re-exporting the finished products for sale by the foreign supplier.
Processing trade is actively conducted in China's coastal regions.
Many companies use processing trade because customs duties are exempted.
委託加工貿易 specifically refers to consignment processing trade, a subset of 加工交易 where the foreign company provides materials and the local company only processes them.
中継貿易 is entrepot trade, where goods are imported and re-exported without significant processing, unlike 加工交易 which involves manufacturing or assembly.
Compound of 加工 (processing) and 交易 (trade, exchange). The term is a modern Sino-Japanese coinage used in economics and international trade contexts.