Definition: Goods for processing

Category: 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. http://ec.europa.eu/eurostat/ramon/statmanuals/files/BoP_Manual_Fifth_Edition_EN.pdf