FMC Commissioner Addresses China VAT Questions at U.S.- China Bilateral Maritime Consultative Meeting
Federal Maritime Commissioner William Doyle outlined a number of concerns and questions about a Chinese Value Added Tax (VAT) for freight charges during the U.S.-China Bilateral Maritime Consultative Meeting in Chicago on Oct. 28, the FMC said. Doyle "explained that…
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businesses in the U.S. are seeking clarity and guidance on the new VAT rule as well as confirmation from China that the VAT is being applied fairly to all businesses," the press release said. Companies are "concerned that they may be paying too much on the VAT and would like to know the reimbursement process," and "if businesses were paying too little, they were concerned that they would be billed or penalized later," Doyle said. The Chinese Ministry of Transport attended and "listened carefully to the concerns and committed to seeking further answers from China's State Administration on Taxation (SAT)," said the FMC. The FMC said recently it would take a closer look at the VAT program and its potential negative impacts on international commerce between the U.S. and China (see 13091919).