July 29, 2013 Dear Leschaco, Inc. Valued Customer, Please note that as of August 1st 2013 the Cai Shui (2013) Circular 37 on “Tax Policy Concerning Implementation of VAT Pilot Program for Transport and Modern Services Sectors (the „Notice‟)” will take effect. This new policy will be replacing the current policy that was issued in January of this year. Carriers will now be required to collect the entire amount of the VAT from shippers on behalf of the Peoples Republic of China government. With that being said, the carriers will collect an additional 6% of Value-Added Tax (VAT) in addition to any other applicable local and or provincial taxes or charges as now constituted or as they may be modified. The tax will be levied on all charges remitted to the carriers in China, including ocean freight and all surcharges. The new VAT will be applied on all import and export cargo to/from China and the tax will impact all Trade Lanes-not just the Transpacific. The charges will take effect on August 1st and these charges will be based on the date of invoice. Please note this VAT charges is not a carrier surcharge, this is a Chinese Government tax. Leschaco, Inc. will advise you if there are any additional changes to this tax regulation. If you would like to review further please visit chinatax.gov.cn or you can visit china-briefing/news/2013/07/22/china-clarifies-tax-collection-issues-under-nationwide-tax-reform-2.html. If you have an questions or need further information please contact your local Branch Manager or sales representative. Best Regards, Leschaco, Inc.
Posted on: Mon, 29 Jul 2013 21:05:37 +0000
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