China hits importers/exporters with VAT on Freight Rates

As from 1st August 2013 China have announced a tax scheme which imposes 6% VAT onto the freight industry, this VAT will affect both air freight and sea freight rates for freight which is paid at origin China.

Ocean rates agreed in the UK will remain unaffected, as these rates are negotiated and paid in the UK.

What does this mean to you the importer/exporter? Basically the VAT means an additional 6% rise in shipping costs for international shippers importing and exporting from and to China.

As ever we shall endeavor to provide you with the best rates in Asia-Europe market place. Please do not hesitate to get in touch with us if you are unclear about this new tax and what it means to you.


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