New Tax in China from Aug. 01, 2013

Since the Chinese government launched its new VAT system in January 2012 with Shanghai as a pilot program, all of the provinces/cities in China have now gradually joined the VAT scheme and impose a tax on all domestic and international freight.

According to the Circular 37 issued in May 2013, the Chinese government will be imposing a VAT of 6% on national as well as international freight and ancillary services from August 01, 2013. All transport and freight charges from EXW will be subject to this VAT of 6%. Shipping lines and airfreight carriers have already indicated that they will be imposing additional service charges based on the 6% VAT.