News
During its closed meeting last week, the U.S. Federal Maritime Commission (FMC) discussed China's new regulations on implementation of a nationwide value added tax (VAT) on international transportation services. This new tax was implemented by China on August 1, 2013.
The Commission has now received requests for assistance from the shipping community to clarify the application and scope of the VAT.
The FMC has said it has interest in laws, rules, and policies that may have an adverse impact on U.S. shipping, and which may merit commission attention under section 19 of the Merchant Marine Act, 1920 or the Foreign Shipping Practices Act. In light of the discussion, the regulatory agency is considering a range of options to obtain further clarity on the application of this new tax regime.
