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Tax exemptions offered to boost China flag

Tax exemptions offered to boost China flag

Beijing: Effective July 1 Beijing is to attempt to lure more ships to its flag. Ocean-going ships flying foreign flags of convenience will be given tax exemptions as an incentive to register in the country, a top official with the Ministry of Communications told Xinhua.
Chinese-owned ships registered overseas by the end of 2005 will be allowed to register domestically - in Shanghai, Tianjin and Dalian - and exempted from customs duty and import value-added tax for the vessels.
As imported vessels are levied a 27.53 percent tariff and import value-added taxes, many ship operators chose to register their vessels overseas to cut costs and have an edge in the fiercely competitive market.
Xu Zuyuan, a vice-minister of communications, said the new policy is aimed at expanding Chinese-flag fleets by 4 million dwt in the next two years.
There are currently 1,920 ocean-going vessels flying the national flag with a capacity of more than 24 million dwt.  [27/06/07]


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