Subcontracting production

Subcontracting production refers to goods produced for other enterprises for which the producer enterprise (principal) has paid a fee to the subcontractor in the target year. In subcontracting production, raw materials and semi-finished products are mainly obtained from the producer enterprise (principal). The subcontractor does not own or sell the products it has manufactured. In subcontracting the producer (principal) and subcontractor are always different enterprises.