FMC Commissioner Doyle Announces China VAT Issue Webcast

Joseph Keefe
Tuesday, February 04, 2014
Commissioner William P. Doyle of the Federal Maritime Commission (FMC)

New explanation issued from China on definition of “agents” in Circular 106. Industry briefing scheduled for March 6, 2014 concerning the latest information on China’s Value Added Tax regime and its impact on the maritime industry.

Commissioner William P. Doyle of the Federal Maritime Commission (FMC) today announced that he will be participating in a webcast that will take place on March 6, 2014, on matters related to China's Value Added Tax (VAT) regime, with specific emphasis on China's release of Circular 106, as it affects carriers, shippers and ocean transportation intermediaries.  Professionals from the global audit and tax firm, KPMG, will host the webcast.   
 
Commissioner Doyle stated, "I appreciate KPMG's willingness to provide a briefing on China's VAT program to FMC’s stakeholders.  KPMG has volunteered its services time and again during the implementation phase of the VAT program, working with the FMC and other U.S. agencies seeking to clarify the impact on U.S. businesses." Commissioner Doyle continued, “This issue disproportionately affects small businesses and consumers; they and all stakeholders, large and small, will benefit from this sharing of expertise.”

Commissioner Doyle has been working with the U.S. State Department through its officials in DC, the U.S Embassy in Beijing, and the U.S. Consulate in Shanghai. Together, the FMC and State Department have been seeking guidance on the VAT through China’s Ministry of Transport, the Ministry of Finance, and China’s State Administration of Taxation. Commissioner Doyle also had discussions on the VAT with officials from China’s Ministry of Transport during the 2013 U.S. – China Bilateral Maritime Agreement Annual Consultations and later during the Global Maritime Regulatory Summit, held at FMC headquarters in mid-December 2013.
 

In December 2013, Commissioner Doyle briefed the full Commission on the People’s Republic of China’s (PRC’s) implementation of the VAT, as it relates to maritime commerce. Commissioner Doyle informed the Commission that the Chinese government was expected to clarify its position on the VAT that has confused the shipper and carrier communities. On December 13, 2013, the PRC released Circular 106, which supersedes Circular 37 effective January 1, 2014.

On January 22, 2014, the PRC’s Ministry of Finance and State Administration of Taxation provided clarification for freight forwarding agent companies in China with regard to Circular 106 and the definition of “agents” of international goods transportation services.  The experts at KPMG view the latest explanation of “agent,” as defined in Article 1.4.6 of Appendix 2 of Circular 106, to include those direct agents and indirect agents, regardless of whether they deal with the international shipping/transportation/cargo companies directly.  All these agent companies should be eligible to enjoy the VAT exemption policy for their agency services.

Commissioner Doyle emphasized, "President Obama has urged government officials to focus on increasing regulatory cooperation between the U.S. government and the governments of other countries—with the help of private sector assistance and solid interagency cooperation, we are making progress on providing tax certainty for the shipping community that does business with China.”
 
The webcast is scheduled to take place on March 6, 2014 commencing at 11:00 a.m. EST and last for approximately 60 minutes. The participants will be able to ask questions during the presentation and CPE credit will be available.

The PRC’s clarification (in Chinese) on defining “agents” in Circular 106 can be found at: http://szs.mof.gov.cn/zhengwuxinxi/zhengcejiedu/201401/t20140122_1037995.html.

PRC provides clarity to its recently implemented VAT measures (with unofficial summary):  http://www.fmc.gov/china-vat-doyle/

Commissioner William P. Doyle’s China VAT briefing to the full Commission can be found here: http://www.fmc.gov/doyle_u.s.-china_bilateral_consultation/

The Central People’s Government of the PRC posted Circular 106, as issued: http://www.gov.cn/zwgk/2013-12/13/content_2547300.htm

More details on the VAT tax briefing will be provided in the coming weeks.  For quick reference:

China VAT Tax Briefing:

 

  • What: Webcast
  • Who: Hosted by KPMG
  • When: March 6, 2014 at 11:00 EST
  • Also: 1 CPE credit will be available
  • Further: More details will be forthcoming

 

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Cautious Optimism on Pacific NorthWest LNG Report

Canadian Environmental Assessment Agency (CEAA)  has ruled that Pacific NorthWest LNG’s project in British Columbia would likely harm harbour porpoises and contribute to climate change,

UPS Oposes CP-NS Merger

UPS, one of North America’s largest intermodal shippers, has told federal regulators that it is against Canadian Pacific Railway's (CP's) proposed acquisition of Norfolk Southern Corp.

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Finance

Brazil's CEEE to sell stakes in Wind Farms, Dams

Brazil's Companhia Estadual de Energia Elétrica (CEEE), a power utility controlled by the state of Rio Grande do Sul, will sell assets including stakes in wind farms,

DP World Bolsters Investment in India

DP World Pvt. Ltd, the world’s fourth biggest container port operator majority owned by the Dubai government, has plans to invest over $1 billion in India for augmenting its port-related operations.

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Container Ships

Hapag-Lloyd Enhances Conosur Service

Hapag-Lloyd has informed about its service enhancements on the Conosur Service (South America West Coast to South America East Coast). This is being upgraded by

Adani Ports Income Up by 15%

Adani Ports and Special Economic Zone Limited (“APSEZ”), India’s largest port developer and part of Adani Group, today announced the financial results for the quarter

Shipping Corporation Q3 Profit Surges

The Shipping Corporation of India (SCI) declared its unaudited financial results for the quarter ended 31st December 2015 posting a net profit of Rs. 59.66 crores as against a net profit of Rs.

Government Update

DP World Bolsters Investment in India

DP World Pvt. Ltd, the world’s fourth biggest container port operator majority owned by the Dubai government, has plans to invest over $1 billion in India for augmenting its port-related operations.

Philippines Mulls Bilateral Sea Talks with China

The Philippines may consider two-way talks with China to resolve a territorial dispute in the South China Sea but only if it wins its case with Beijing at an arbitration tribunal in The Hague,

NATO Sea Mission Launched against Migrant Traffickers

NATO ships are on their way to the Aegean Sea to help Turkey and Greece crack down on criminal networks smuggling refugees into Europe, the alliance's top commander said on Thursday.

Intermodal

UPS Oposes CP-NS Merger

UPS, one of North America’s largest intermodal shippers, has told federal regulators that it is against Canadian Pacific Railway's (CP's) proposed acquisition of Norfolk Southern Corp.

Port of Hamburg Reports Bulk Cargo Jump in 2015

The Port of Hamburg reports higher bulk cargo throughput and strong growth in rail and inland waterway seaport-hinterland traffic in 2015 – downturn in container handling.

Maersk CEO Looks to Increase Market Share

A.P. Moller-Maersk's chief executive said its container shipping arm Maersk Line probably gained market share in the second half of 2015 after losing some in the first half of the year.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1307 sec (8 req/sec)