Workers make clothes at a factory of Jiangsu Dongdu Textile Group in Zhangjiagang, Suzhou, Jiangsu. [Photo/zjgonline.com.cn]
Jingang Customs in Zhangjiagang, Suzhou, Jiangsu province has introduced an "overseas processing" service to assist enterprises in optimizing their domestic and overseas production capacities.
The service allows Chinese companies to provide raw materials, components, and packaging materials to overseas manufacturing enterprises. Leveraging foreign labor, these materials are processed or assembled abroad, and the finished products are then re-imported.
Recently, Jiangsu Dongdu Textile Group in Zhangjiagang revealed that its overseas factory faced challenges such as limited orders and underutilized production capacity. Meanwhile, its domestic factories struggled to keep up with the high demand from e-commerce platforms. With guidance from Jingang Customs and utilizing the "overseas processing" service, the company successfully exported approximately $33,000 worth of clothing materials to Vietnam for garment assembly.
"Overseas processing not only resolved the imbalance in production capacity between our domestic and overseas factories but also saved us around 16,000 yuan ($2,239) due to favorable taxation policies," said Yin Jianmin, the company's logistics manager.
Jingang Customs has facilitated "overseas processing" for five enterprises in Zhangjiagang, involving about $1.5 million worth of products. "We will continue to promote this service among enterprises so that more of them can enjoy the benefits. We aim to boost the presence of local businesses and enhance their product competitiveness by helping them engage in international cooperation," stated Lu Xiaofei, deputy director of Jingang Customs.