China freight VAT notification

Starting on 1st of August, the Chinese administration is planning to apply a 6% VAT/GST tax on all the freight payable in China, effecting both exports and imports. Hong Kong is excluded as it has a special tax regime & is outside mainland China as is Macau.

The tax would not apply if the freight is paid in Australia, purchasing FOB terms on your imports maybe the only way to avoid this additional surcharge. The news has been unexpected and the situation is not entirely clear, we will update this information on our website when more information becomes available.