One of the most costly mistakes a company can make occurs when it is importing steel.
Steel production in the US has been in decline for decades. Foreign mills can churn out high-quality low-cost steel cheaply. American mills have responded by lobbying Congress for strict, anti-import policies.
The main tool
Officially, it’s called Cai Shui no.37 (Circular 37) “Tax Policy Regarding Nationwide Implementation of VAT Pilot Program on Transportation and Modern Services Sectors”. What it means is a new China VAT for transportation amounting to 6% on all freight and some services related to freight.
Starting 1 August 2013, China