The General Office of the Ministry of Transport ("MOT") has recently distributed the Circular on Deepening the Pilot Program of Non-Truck Operating Common Carriers (the "Circular").
The Circular sets forth requirements in five respects, including "stepping up the monitoring and assessment of how the pilot program proceeds", "optimizing external environment for the sake of the development of pilot enterprises" and "pushing for improvements to relevant tax and insurance policies". The Circular clearly states that efforts will be made to further standardize the business licensing for private transport businesses, and that no barriers should be set to obstruct private businesses' applications for business qualifications; also, industry management modes will be optimized and innovated, and possible ways will be explored to promote the policy of different-place-based credibility assessment and endorsement for drivers that engage in road freight transport and the policy of allowing vehicles used for road freight transport to be annually examined in a different place. Furthermore, the Circular calls for driving ahead the implementation of certain tax policies, such as the deduction of input VAT by non-truck operating common carriers, enabling private transport businesses to obtain VAT special invoices issued on a commission basis in a different place, and allowing non-truck operating common carriers to issue VAT special invoices on a commission basis for private transport businesses; moreover, actions will be taken to explore the innovative liability insurance system, and develop and promote the liability insurance products designed for non-truck operating common carriers.