Definition: Goods for processing
Balance of Payments, IMF
Goods for processing covers goods that are exported or imported for processing and that comprise two transactions:
(i) the export of a good (e.g., crude oil, vehicle parts, fabric) and
(ii) the import of the good on the basis of a contract and for a fee.
The inclusion of these transactions under the category of goods is an exception to the change of ownership principle.
Source:
International Monetary Fund (IMF), "Balance of Payments Manual" (BOP), Fifth Edition, Washington D.C., 1993
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