Sunday, April 15, 2007

Air Freight Tax - What Are The Charges?

In the United States the Airport and Airway Trust Fund are providing funds for capital improvements to the US airport and airway system and in order to fund the aviation trust fund taxes have been imposed on both commercial and non-commercial aviation. Below we are going to look at air freight tax and what exactly it is with reference to the United States.
There are two types of taxes that are imposed on the air freight services as follows: 1. Waybill tax imposed on freight transportation.2. Fuel taxes on gasoline and jet fuel for freight services (non commercial aviation)1. Waybill Tax
In the United States air freight tax is charged on all domestic air cargo transportation at 6.25% ad valorem excise tax and this tax only applies to transportation that begins and ends in the United States. But unlike air passenger taxes the shippers are the ones liable for the air freight tax payment and so transportation providers are subject to penalties if they fail to make reasonable efforts to collect the tax that has been imposed. In the United States there is no disclosure requirement with regard to air freight tax and this tax expires after the 30 September 2007.
2. Fuel Tax Where freight services are concerned (non-commercial aviation) they are only subject to a fuel tax and the rates for both gasoline and jet fuel are shown below.
1. Non-commercial aviation is taxed at 19.4cents per gallon of aviation gasoline 2. Non-commercial aviation is taxed at 21.9cents per gallon on jet fuel.
Air freight companies also need to factor in an additional 0.1 cent leaking underground storage tank trust fund tax as well.
As you will soon discover that in order for air freight companies to make a profit they will usually include a surcharge on their quotations and bills to help towards the cost of the air freight tax that they are required to pay. So it is advisable when looking at using an air freight company in the future you read the small print of their contract in order to know exactly what you are paying for.

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