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China To Impose Security Levy On Sea Freight

by Mike Godfrey, Tax-News.com, Washington

21 April 2006

The Chinese Ministry of Communications announced this week that a security charge will be levied on import and export cargoes as from 1st June, to reflect the costs of implementing the International Convention for the Safety of Life at Sea (SOLAS) and the International Ship and Port Facility Security Code (ISPS).

The Ministry says that the country has invested a substantial amount of money to improve port security, increasing operational and management costs. The charge will be 20 yuan (US$2.50) per 20 ft container and 30 yuan per 40 ft container. Empty containers will not be charged, and there will be exemptions for fertilisers and some other goods, yet to be announced. Other freight will be charged 0.5 yuan per ton.

China adopted SOLAS and ISPS in 2004. SOLAS is seen as one of the most important conventions affecting maritime security, while the ISPS Code is a comprehensive set of rules aimed at enhancing the security of ships and port facilities, developed in response to 9/11.

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