The China Ministry of Finance (MOF) and State Administration of Taxation (SAT) issued a circular (Caishui  No. 37, (“Circular 37”)) on May 24, 2013, announcing the expansion of the Value-Added Tax (VAT) Reform Pilot on a nationwide basis. Certain revisions to the pilot regulations in this nationwide application of the VAT program will result in a 6% VAT charge assessed on transportation charges and freight forwarding services billed and paid in China.
News / Supply Chain Alerts
STOUGHTON, WI, July 11, 2013 / Armstrong & Associates, Inc. / – Eighty-six percent of Domestic Fortune 500 companies use 3PLs for logistics and supply chain functions according to a new report just issued by Armstrong & Associates. The report “Trends in 3PL/Customer Relationships – 2013” leverages Armstrong & Associates’ proprietary database of 6,398 3PL customer relationships to provide detailed information on the top outsourcers to 3PLs, trends in service demand, and 3PL market size by vertical industry segment from 2005 through 2013E.
Customs and Border Protection (CBP) announced that they will begin full enforcement of Importer Security Filing (ISF) regulations on July 9, 2013 and will start issuing liquidated damages against ISF importers and carriers for ISF non-compliance.
The Wall Street Journal
South China Morning Post
Matthew Cheung calls their first sit-down constructive, but union is less impressed
Hundreds of port workers at Li Ka-shing’s Hong Kong terminals surrounded his Cheung Kong Center headquarters in the city’s business district after rejecting pay rise aimed at ending a three-week strike.
Pact calls for $3 an hour wage hikes; maintains royalty-payment formula.
The International Longshoreman’s Association’s (ILA) 14,500 rank-and-file members late Tuesday overwhelmingly ratified a six-year master contract covering 14 East and Gulf Coast seaports. The agreement ended more than a year of contentious negotiations that threatened to shut port operations from Maine to Texas for the first time since 1977.
Marchers call for talks over docks face-off
More than 4,000 protesters, including Hongkong International Terminals contracted workers, marched on the Central Government Offices calling on the government to negotiate an end to the 11-day docks strike. The protest came yesterday as Confederation of Trade Unions leader Lee Cheuk-yan urged Chief Executive Leung Chun-ying to press the port operator to negotiate with workers.
Workers at Hongkong International Terminals Ltd., backed by billionaire Li Ka-shing’s port operator, continued a six-day strike for higher wages after a court ruling barred them from entering terminals in the city.