Semimanufactures refer to partially processed goods or materials that have undergone some level of production but are still in an intermediate stage before becoming finished products. These goods are typically produced for further processing or transformation by other companies or industries.
Semimanufactures can take many forms, including but not limited to, raw materials, components, parts, and partially assembled goods. They possess some degree of value-added processing or modification but are not yet ready for final consumption by the end-user.
These products are often traded between different countries as a part of the global supply chain. They play a vital role in the manufacturing sector, facilitating the production of finished goods. For instance, semimanufactured steel is the intermediate product used by various industries, such as construction and automotive, to produce final products like buildings or cars.
Semimanufactures offer advantages to companies in terms of cost-effectiveness and efficiency. By outsourcing the production of semimanufactured goods to specialized industries, companies can focus on their core competencies and reduce the complexity of their manufacturing processes.
In international trade, the classification of goods as semimanufactures is important for statistical and customs purposes, as they may be subject to different tariffs, regulations, or incentives compared to finished products.
