China Gets Back In The Rebate Game
Posted by Dan on November 13, 2008 at 10:45 PM
For years, China gave partial to full VAT (Value Added Tax) rebates on many of its products shipped out for export. Recently, however, China had begun to reduce and/or phase out many of those rebates. On November 1, 2008, China's State Council reversed itself and raised tax rebates on 3,486 items. Today, it announced that come December 1, 2008, it will be increasing tax rebates "on 3,770 export items, or 27.9 percent of all products shipped by China." (h/t to 3PL Wire)
The price of product from China just went down. Again.
Comments
And trade tensions with the US just went up. Again.
Obviously, China is acting in its own self-interest here, and I'm 100% sure that they'd be doing this even if they were facing another term of G.W. Bush. But, intentional or not, this will not be viewed favorably by the incoming Obama administration. I guess the question is: does the Obama administration have the ability or inclination to stand down its left wing OR challenge China to act in a way that'll harm its export industries. Whatever the case, it doesn't look like China-US relations are in for an Obama-induced honeymoon. Ugh.
Posted by: Adam Minter | November 13, 2008 11:44 PM
Now that China has increased the rebate on their VAT effective November 1st, how can you determine the VAT percentage for products in Chapter 70, in the HTS
Posted by: Michael DiPalo | November 14, 2008 11:10 AM