Updated on Chinese VAT – Maersk Notification

Updated on Chinese VAT – Maersk Notification

Dear Valued Customer,

In a reversal of previous rulings, the Ministry of Finance and State Administration of Taxation of PRC issued a new advisory Cai Shui No. 106 (Circular 106) on Dec 12, 2013, instructing that International Cargo Transportation Agency services will now be exempted from Value Added Tax.

To comply with the new Circular, effective from 1 January 2014 VAT and associated surcharges will be no longer charged by Maersk Line on top of the freight and the other charges invoiced and settled through banks in Mainland China. At the same time, Maersk Line will no longer issue special VAT Fapiao (receipts) but will issue general Fapiaos (receipts) for charges collected, applicable to all invoices issued with effect from 1 January 2014.

We thank you for your support to Maersk Line. For any questions, please feel free to contact your local Customer Service or Sales Representative. You will find contact details of our local offices on our website at www.maerskline.com.

Yours sincerely

Maersk (China) Shipping Co Ltd