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Difference between subcontracted process and traded goods

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Posted 01 September 2020 - 09:29 AM

Good morning,

I'm hoping someone can help clarify the difference between a subcontracted process and traded goods.  When I had a phone conversation with the auditor who carried out our Covid assessment she explained it had changed in issue 6, unfortunately I can't find where I wrote down the information!


We manufacture solidboard and convert to boxes - this is our main process.  

We also buy and sell corrugated boxes - I used to class this as traded goods and we had the extra traded goods module.  

We also buy in solidboard die cuts and sheets which we convert to boxes - these are the same suppliers that supply our raw material.  I do not believe this counts as sub contracting?  


Any advice appreciated!






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Posted 01 September 2020 - 09:44 AM

The definition you need is listed under "outsourced (subcontracted) processing" in the glossary. Based on your description, I agree that this is not subcontracted processing - the materials you buy/sell are traded products, and the materials that you buy to subsequently process/finish would simply be raw materials.

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