Shippers Lose Tax Breaks for Exports from China

The Chinese government has cut the value added tax (VAT) rebate on 2,831 classifications of products, effective July 1, 2007. The move is designed to rein in strong export growth and help temper the country’s growing trade surplus.

This makes it more expensive for exporters to ship their goods out of China. 

According to Ernst & Young, "China has been employing a number of different strategies to address overheating export growth and to manage the ballooning trade surplus. A number of "tools" have been employed by the government to achieve their goals. One recently favored "tool" is to revise the VAT refund rates given to companies exporting goods out of China."

"Export VAT refunds have played an important role in keeping export prices low. By changing (either by increasing or decreasing) the VAT refund rates on certain products, the government can, to a certain extent, either encourage or discourage exportation of the affected products."

For more information on the products affected by the change to the VAT rebate, visit the Ministry of Commerce of the People’s Republic of China at http://english.mofcom.gov.cn.

U.S. Air Carriers Scrambling to Acquire Rights for China Routes

Last month's negotiations between China and the U.S. resulted in greater market openings for U.S. carriers wanting to expand their presence in China.

The U.S. Department of Transportation has begun taking applications from U.S. carriers on up to 8 new daily U.S.-China flights that will become available over the next three years.

Delta, for one, intends to get in the game this time around. The company has launched its third bid to add a China route to its roster and is drumming up as much popular and political support as possible.

To read more, click here.

Top Firms Using Technology to Reduce Landed Cost

Global trade solutions provider Management Dynamics says new research from the Aberdeen Group, entitled "Global Trade Management Strategies: Surviving Growing Complexities in 2007," reveals the importance of technology in reducing landed costs.” Aberdeen surveyed more than 200 enterprises for the study, according to which:

• Companies that currently have import or export compliance automation are 1.4 times more likely to have reported increased customs clearance speed over the past 2 years
• Companies that currently use a global supply chain visibility platform are twice as likely to have reduced total landed costs, lead times and lead time variability from international locations over the past 2 years

The Aberdeen research analyst who authored the study noted that, “Technology plays a critical role in providing the much-needed visibility into international orders and shipments and facilitating the management of all aspects of global trade. Based on this study’s findings, Best in Class companies have used a variety of technology enablers to support GTM (Global Trade Management)." She added that, "These enablers have helped to better plan, execute, and track transactions while keeping global supply chain risks at bay.”

To read more, click here.

World Trade, NASSTRAC, AST&L, ISM and NITL present the seventh of 12 webinars in the 2007 Supply Chain Management University series:

Lean Six Sigma Logistics

Date and Time: July 25th, 2007 at 1:00 pm ET

Professor: Thomas J. Goldsby, Ph.D.

University: University of Kentucky

Sponsor: C.H. Robinson 

Course Objectives:

      Logistics, Lean, and Six Sigma form a natural union.  Logistics is about managing inventory.  Leanis about speed, flow, and the elimination of waste.  Six Sigma  is about understanding and reducing variation.  Therefore, Lean Six Sigma Logistics embodies the elimination of wastes through disciplined efforts to understand and reduce variation, while increasing speed and flow in the supply chain. 

      This session illustrates how Logistics Flow, Capability, and Discipline can form the essence of a successful logistics strategy that yields robust processes – processes that delight customers at the lowest possible costs.

Missed a previous event? No Problem! The First 6 Webinars are Now Available On-Demand!  

Visit the archive section and choose from previously held events by leading U.S. Supply Chain Management Universities, at http://supplychainwebinar.worldtrademag.com.