The Federal Maritime Commission said it is “considering a range of options to obtain further clarity” on how China is implementing a new nationwide value-added tax on international transportation services.
The FMC discussed China’s VAT at its closed meeting this week. China implemented the nex tax on Aug. 1.
The commission said commercial shipping officials have expressed concern about the tax and have asked the FMC to help clarify the VAT’s application and scope.
“At this time, commission staff is gathering information on the VAT by cooperating with other U.S. federal agencies, our U.S. Embassy and various U.S. consulates in China. In addition, staff is gathering information from the private sector including carriers and non-vessel-operating common carriers,’ the FMC said in a statement.
The commission added that it is concerned that the VAT may harm U.S.-China oceanborne commerce, and that the commission has an interest in laws, rules and policies that may harm U.S. shipping and that may merit commission attention under section 19 of the Merchant Marine Act, 1920 or the Foreign Shipping Practices Act.