China’s slowing economy have resulted in the People’s Republic of China’s new regulations on implementation of a nationwide value added tax (VAT) on international transportation services, implemented on August 1, 2013. A number of maritime industry stakeholders have expressed concerns regarding the application of the VAT and are now actively gathering information on how extensive this tax is. Some Ocean carriers, shipping lines and NVOCCs appear to be collecting the new tax. But the actual execution of this new regime is still not clear. Expect shipping costs to and from China to rise.

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