Chinese Clarification on Controversial Six Percent Tax on Freight Expected, Says FMC
The U.S. State Department told Federal Maritime Commissioner Will Doyle that China is preparing a "circular to address the issues in the transportation and logistics sector" in response to the application of Chinese Value Added Taxes (VAT) to freight charges,…
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he said in a press release. "According to the State Department, any guidance and clarification provided with respect to the VAT circular would have a retroactive application to August 1, 2013," he said. Freight charges recently said to be subject to a new 6 percent tax after the expansion of China VAT raised red flags at the FMC and among shipping companies (see 13080111).