Policy & Law

Processing Trade Makes Good Headway

It is the consistent foreign trade policy of the government of the Democratic People’s Republic of Korea to continuously expand and develop processing trade with other countries over the world on the principle of equality and mutual benefit.

The DPRK with strong scientific and technical forces and a solid foundation of the independent national economy is capable of producing quality processed goods that are in great demand in international markets.

There are dozens of trade ports on the east and west coasts of the country.

Under such favourable circumstances the DPRK has conducted processing trade on a large scale with the countries in Europe, Asia and the Middle East.

In the new century the government has given definite priority to the development of the cutting-edge science and technology and worked to further develop processing trade on that basis.

A nationwide scientific and technological dissemination network has been set up centring the Sci-Tech Complex newly built in Pyongyang, which is linked to sci-tech learning spaces in scientific research institutes, universities and industrial establishments throughout the country, giving a powerful spur to the development and dissemination of new science and technology.

Lots of latest sci-tech hits have been made and the integration of the development of science and technology with production is being realized.

Modern factories have been built in large numbers as demanded by the IT era, the era of the knowledge-based economy, and the overall standard of technical equipment of the national economy is developing as the days go by.

Factories in the country are provided with quality management and integrated manufacturing systems that conform to the ISO and the international quality certification system so as to make production processes automated and IT-based on a high level.

Having laid firm material and technological foundations of enterprises, the government has taken various measures to encourage enterprises and trading companies in the processing trade.

It has authorized factories, enterprises, and scientific research organs capable of making inroads into foreign markets as well as trading companies with the right to trade so that they can conclude contracts of processing trade with foreign enterprises and implement them. In the meanwhile it has simplified relevant procedures in order to ensure smooth progress of the processing trade activities.

On the basis of the detailed survey and control of production abilities of industrial establishments, it has ensured favourable climate and conditions for conducting processing trade in a diverse way through investigation of information about international markets, mediation of customers and preferential use of trade ports and railways.

Satisfactory conditions for processing trade have been provided in the Songnim, Waudo and Jindo export processing zones and other economic development zones.

Recently many enterprises and trading companies in the country are engaged in bonded processing trade for machinery and equipment, electrical and electronic products, communications equipment and garments on the order of foreign businesses.

At present the revenues and kinds of processing trade by local factories, enterprises and trading companies have increased and they are finding more markets in Southeast Asia, Middle and Near East, Europe and Latin America.

The DPRK government will, in the future, too, further develop processing trade with other countries in a diversified and multilateral way.