[Boris]

Swell.
Yes, agree its " rumour " but pretty comprehensive for just water cooler gossip don't you think. The Qingdao tax office has spoken with my people and told them to be ready ( my main guy is high party connected ) and as with all things we have to wait for the rubber stamped copy to be seen.

The absolute wrong time for them to do this though, don't you agree. The Xmas shipments will be being produced from next month and s/c and l/c agreed / opened. THEN you find out you lose 4 - 5%. OUCH !

As I said before - Check your shipment qualities boys, they have to get the profit from somewhere.

Anyone refusing a shipment, let me know. Love a good stock lot !!

[leodxt]

I have heard the same information from our company in China. But what I do not understand is how it works with raw materials imported into China

[Boris]

Originally Posted by leodxt

I have heard the same information from our company in China. But what I do not understand is how it works with raw materials imported into China

Simple really.
Goods being imported IN have a tax applied. In the export documentation you apply this tax ( in percentage ) for refund for the use of that material when sent OUT.

Very similar to VAT in the EEC ( Purchase tax, Sales Tax ) and Intrast ( record of sales Intra EEC to specific member entities registered for VAT in their own country ). All sales NET of VAT and non chargeable.

1) You can only have this tax back if you imported into the exporting company or Group and supply all the relevant documents AND be registered to have the refund..
2) You have to keep and support the refund with meticulous record keeping.
3) You are never allowed a 100% allowance of tax applied to the amount imported. The tax authories may give up to 20% ( don't quote me on the exactitude ) of the allowance as disallowed due to " wastage " etc.

Hope that explains. Its early and my coffee hasn't kicked in yet !

[leodxt]

Thanks Our manager in China confirmed that the VAT refund reduction was announced today.

[Swell]

Well, the rebate changes are out and for our products, the VAT rebate is totally scrapped!

The way shipping companies are putting weight restrictions on fcls (seafreight) not helping either!!

[Boris]

Originally Posted by Swell

Well, the rebate changes are out and for our products, the VAT rebate is totally scrapped!

The way shipping companies are putting weight restrictions on fcls (seafreight) not helping either!!

Looks like China is moving into the real world. Game on now.

As for weight restrictions . There have always been those due to inland haulage weight requirements. A lorry Gross Weight can only be so much.

[Sleuth]

Originally Posted by Swell

The way shipping companies are putting weight restrictions on fcls (seafreight) not helping either!!

In the US you can get around this, or ther road-haulage aspect of it, by paying an extra tax.
I think the weight limit in the US is 44K pounds.

[Boris]

You should all note that containers themselves have weight load restrictions written on them.
Max Gross , Max Net etc.

As i also said before there are nationa road haulage max weights. Have never heard of paying a premium tax for over weight.

[Swell]

No, I'm not referring to inland road restrictions which applies in the US.

I talking about the restrictions imposed by the shipping companies as a ploy to apply overweight charges. For example, used to load 20MT to Europe, lately freight companies limit price to the first 12-14MT, then apply overweight charge between 14-18MT extra. Now, the latest is even if you are willing to pay overweight surcharge, they won't take more than 14MT gross per 20'fcl!

[amos]

This is what the US Govt wanted, for China to increase pricing to make their goods more competitive with US made goods. Just one slight problem. Very little is made in US so bottom line is, US consumers are now going to pay more. Way to go congress! The products we import are going up a minimum 10% (8% tax rebate and at least 2% for currency). We will pass that on 100% to our customers who will the pass it on to the end users. A very inflationary move.