Service, Regulatory Updates and Important Notifications
FedEx International Economy DirectDistribution (IED) is a delivery service of bulk shipments from one origin location to multiple addresses at competitive rates. Shipment clears customs as a single unit and then individual pieces are delivered to multiple addresses, bypassing warehouses and middlemen.
We are pleased to announce that effective November 4, 2019, International Economy DirectDistribution (IED) service will be provided for shipments to and from the following markets:
• To and from Japan and China
• From Korea to Japan
• From China to Korea
• From Hong Kong SAR to Australia
• From Singapore to Australia
• From Singapore to Japan
With the new service launch, based on business requirements, customers can now choose either priority or economy distribution services for these lanes.
The UK Parliament has been granted a further extension until January 31, 2020 to the UK’s exit from the European Union (EU).
What does this mean?
The UK was scheduled to leave the EU at 11pm on October 31, 2019. However, a further extension to Article 50 has now been agreed. This extension will last until January 31, 2020, unless a Brexit deal is ratified with an earlier exit date.
For the duration of the extension, the UK will remain within the EU Single Market and your import and export procedures from/to the UK will remain unchanged.
What happens next?
Until a Withdrawal Agreement is passed by the UK Parliament, the legal default position for the UK remains exiting the EU without a deal at the end of the extension period.
While the process of determining how the UK leaves the EU continues, we will be following the Brexit developments closely, assessing impacts and making necessary arrangements to help you implement any new processes and regulations. Find out more from our Brexit toolkit.
Thank you for choosing FedEx Express as your business partner.
In order to speed up clearance and to shorten delivery time, starting from September 1, 2019, we will enhance our service to provide pre-clearance in Guangzhou Airport for inbound formal entry shipments in South China.
If you choose this service, you need to meet below requirements:
- If the inbound shipments are no need to reweight or to double check the packages’ amounts. These shipments are none-wooden packaging. Then this service is available.
- Customers need to offer accurate and complete clearance documents to us on the day of pickup until one business day prior to their shipments’ arrival.
- Customers have processed paperless agreement with Guangzhou custom and have signed E-POA agreement registration in China E-port website.
- For E-bank customers, they should pay duty and tax to customs before 8pm on the day of declaration.
If you want to get more details, please contact your Sales Representative, call our Customer Service Hotline at 800.988.1888/400.886.1888 (International).
Shipping Regulatory Update
The Office of the U.S. Trade Representative (USTR) issued a notice on an increase in Section 301 tariffs on US $200 billion worth of Chinese imports from 10 percent to 25 percent as of 12:01 a.m. Eastern Standard Time on May 10, 2019.
The impacted categories of goods can be found from the link below: https://www.cbp.gov/sites/default/files/assets/documents/2018-Oct/Section301_HTSUS_Ref-Guide_Oct2-2018.pdf
On May 13, China announced its decision to raise the tariff rate imposed on some imported U.S. products as of June 1, 2019. China had earlier imposed additional tariffs on US $60 billion worth of U.S. imports. The additional tariff rates on some products will be increased to 25 percent, 20 percent, and 10 percent. Those commodities with a 5 percent tariff rate will remain 5 percent.
The impacted categories of goods can be viewed on the below link (For your reference): http://gss.mof.gov.cn/zhengwuxinxi/zhengcefabu/201905/t20190513_3256788.html
There is no change on the shipping process and documents required. However, if you need further assistance, please contact your Sales Representative, call our Customer Service Hotline at 800.988.1888/400.886.1888
According to the regulation stated in Announcement No. 39, 2019 issued by the Ministry of Finance, the State Taxation Administration and General Administration of Customs, effective April 1, 2019, the 10% VAT rate for taxable activity will be reduced to 9%. Therefore, the VAT treatment for FedEx Domestic and International Express services will be adjusted as follows. FedEx outbound shipments remain VAT exempt.
• For FedEx Domestic shipments shipped on or after April 1, 2019, the VAT applicable rate will be reduced from 10% to 9%.
• For FedEx Inbound collect shipments shipped on or after April 1, 2019, the VAT applicable rate will be reduced from 10% to 9%.
• The VAT applicable rate on the duty and tax of goods imported which clearance date on or after April 1, 2019 will be reduced from 10% to 9% who use FedEx to pay Customs for their inbound shipments and the Customs receipts are issued in name of FedEx.
For further information, please contact your Sales Representative, call our Customer Service Hotline at 400.889.1888 (Domestic) or 800.988.1888/400.886.1888 (International).
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