The National Industrial Transportation League, the nation's largest shipper group, has requested assistance from the U.S. Government in obtaining clarifications on a value-added tax being imposed by the Chinese government.
NIT League President and CEO Bruce Carlton, has written letters
to the U.S. Department of State, the U.S. Federal Maritime Commission and the U.S. Department of Transportation's Maritime Administration seeking information about the new Chinese tax, which came into effect on August 1, 2013. The NIT League said the tax "has created much confusion as to its application and resulting impacts, especially on freight moving between the two countries."
According to the PRC, Carlton noted the six percent VAT is applicable to domestic shipping, logistics and freight forwarding in China and not specifically to international ocean freight.
"Nevertheless, we have monitored reports that some ocean carriers and non-vessel operating common carriers (NVOCCs) are simply passing on the tax to their customers in the form of surcharges or service charges even when the freight charges have been 'pre-paid,'" he said.
This confusion, he concluded, "is clearly generating considerable market uncertainty for shippers not only in the region, but in the U.S. as well." - Chris Dupin