In accordance with the new circular 37 of Cai Shui [2013] on “Tax Policy of VAT Pilot Program on Transportation & Modern Services Sector”, jointly issued by the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) of PRC on 24 May 2013, the related VAT tax policy will be expanded nationwide with effect from 1 August 2013.

Simultaneously, the regulations regarding the VAT pilot program effective since 1 January 2012 were announced to be abolished. Please refer to Cai Shui [2013] (Circular 37) for more details.

Carrier will adhere to the new regulation.

In compliance with the above mentioned policy, an additional 6% Value-Added Tax (VAT) will be levied by Carrier on top of all charges payable at China starting from 1 August 2013, based on the issuance date of the VAT invoice.

Using this opportunity, we would like to express our sincere appreciation for your continual support. Please do not hesitate to contact us if we could be of any assistance.