December 24 -

HLPFI reported in August 2013 that Chinese tax authorities would impose a 6 percent VAT on all domestic shipping, logistics and forwarding activities in the country, although the changes brought about widespread confusion on an international scale.
Federal Maritime Commissioner, William P Doyle, said that the VAT issue was discussed at an annual bilateral maritime consultation between the USA and China in October 2013.
Subsequently, Circular 106, as issued by MOF and SAT, says that international shipping lines will be exempt from the VAT law and will be retroactive to August 1, 2013, when the arrangement first came into effect.
A full description regarding VAT in China and the subsequent alterations can be found at the Federal Maritime Commission website.