Chinese VAT Rate Adjustment

As per the Notice of Chaishui No.32 (2018) for VAT Rate Adjustment issued by the Chinese State Administration of Taxation, the VAT rate will be cut by one percent as from 1 May, 2018, ie. the rate for manufacturing will be lowered from 17 percent to 16 percent and the transportation, construction, basic telecommunication services and farm produce will be lowered from 11 percent to 10 percent. The export refund rate will also be adjusted accordingly as per the tax rate on the purchase invoices and will apply to all the exports before 31 July 2018 (export date on the export customs declaration documents). As from 1 August 2018, the export refund rate will be implemented as per the new rate.

Therefore, it can be predicted that either the ship space or the air space before the end of July will be very tight. Pls get prepared and try to arrange the shipment as earlier as possible before the export peak time arrives.