6% VAT levied in China effective 1 August 2013

18 July 2013

Dear Valued Customer,

Re: VAT policies will be expanded nationwide in China effective from 1 August, 2013.

This is an opportune time to check your supplier’s prices, as freight rates have halved in the last two (2) months, and whilst the savings may not have been passed through to you, perhaps the VAT increase will?

The China PRC VAT tax policy will be expanded nationwide with effect from 1 August 2013, having a direct impact on the taxation for invoices of export and import related services also. From this date, the 6% Value-Added Tax (VAT) will be levied on top of the freight and charges payable at China, based on the issuance date of the VAT invoice.

Should you wish to discuss the above and your Incoterms please don’t hesitate to contact your Account Manager.

Our aim is to continue to deliver exceptional service to our valued customers 365 days of the year. Thank you in advance for your support.

Kind regards,

Transtar Management