Saturday, August 24

iPhone to avoid import duties in a “magic” way

The iPhone is the item made in China and on the principle will be subject to import duties if taken in the US. But so far, “Apple” has not yet been imposed taxes.

On 1/8, US President Donald Trump posted a tweet that announced that $300 billion in imports from China would be taxed 10%, starting on 1/9. This product group consists of smartphones such as the Apple iPhone and other consumer electronics items that are shipped to the US from China. As the iPhone is designed in the US but is assembled in China, it is considered as imports from that country and subject to taxation. As this is a tax that U.S. companies have to pay, Apple may decide to bear the full cost of the tax, and then sell the product to consumers at a higher price, or pay some additional costs, and the consumer must pay the rest.

But it seems that the iPhone and some other types of smartphones that are imported from China have been deferred tax in a short time. The U.S. trade representative announced this morning (14/8) that several items relating to “health, safety, national security and other factors” were removed from the list of 10% tax-imposed items. Some other items including “mobile phones, laptops, game consoles, toys, computer monitors, and certain footwear and clothing items” will not be applied to a 10% tax rate until 15/12.

Short-lived strikes between the US and China ended suddenly in the beginning of January 8

Unless the U.S. president has a new decision, the models iPhone 2019 will not face a 10% tax rate as they are launched in September 9 here. Ming-Chi Kuo analyst of TF International, who always expressed interest in the beats of Apple, says that the company is planning to “bear most of the additional costs” of tariffs to keep retail prices as old.

Earlier, in the last 6 months, the iPhone seemed to have “escaped” when President Trump and the Chinese co-senior agreed on a trade-in-war deal. Trump says China has agreed to buy a large number of American agricultural products. However, he recently declared that China had disobey the deal and forced him to declare the tax imposed on goods valued at $300 billion from China. Meanwhile, the Chinese said that the President Trump imposed a 10% tax, so they didn’t buy agricultural products from the states. The escalation of this war will probably continue for some time.

On the Apple side, the airline sought to transfer 30% of the iPhone production work out of China. “Apple” has shifted some old iPhone models to India to avoid import duties – which will increase 100 USD for each iPhone. The airline has started its production line in India from the beginning of the month. Another possible location for iPhone production is Vietnam.

However, moving plants and training workers is a time-consuming process. And logistics of the supply chain can not be made one-way soon. So now Apple continues to face the ability to pay taxes for each iPhone they imported from China.

The iPhone is the item made in China and on the principle will be subject to import duties if taken in the US. But so far, “Apple” has not yet been imposed taxes.

On 1/8, US President Donald Trump posted a tweet that announced that $300 billion in imports from China would be taxed 10%, starting on 1/9. This product group consists of smartphones such as the Apple iPhone and other consumer electronics items that are shipped to the US from China. As the iPhone is designed in the US but is assembled in China, it is considered as imports from that country and subject to taxation. As this is a tax that U.S. companies have to pay, Apple may decide to bear the full cost of the tax, and then sell the product to consumers at a higher price, or pay some additional costs, and the consumer must pay the rest.

But it seems that the iPhone and some other types of smartphones that are imported from China have been deferred tax in a short time. The U.S. trade representative announced this morning (14/8) that several items relating to “health, safety, national security and other factors” were removed from the list of 10% tax-imposed items. Some other items including “mobile phones, laptops, game consoles, toys, computer monitors, and certain footwear and clothing items” will not be applied to a 10% tax rate until 15/12.

Short-lived strikes between the US and China ended suddenly in the beginning of January 8

Unless the U.S. president has a new decision, the models iPhone 2019 will not face a 10% tax rate as they are launched in September 9 here. Ming-Chi Kuo analyst of TF International, who always expressed interest in the beats of Apple, says that the company is planning to “bear most of the additional costs” of tariffs to keep retail prices as old.

Earlier, in the last 6 months, the iPhone seemed to have “escaped” when President Trump and the Chinese co-senior agreed on a trade-in-war deal. Trump says China has agreed to buy a large number of American agricultural products. However, he recently declared that China had disobey the deal and forced him to declare the tax imposed on goods valued at $300 billion from China. Meanwhile, the Chinese said that the President Trump imposed a 10% tax, so they didn’t buy agricultural products from the states. The escalation of this war will probably continue for some time.

On the Apple side, the airline sought to transfer 30% of the iPhone production work out of China. “Apple” has shifted some old iPhone models to India to avoid import duties – which will increase 100 USD for each iPhone. The airline has started its production line in India from the beginning of the month. Another possible location for iPhone production is Vietnam.

However, moving plants and training workers is a time-consuming process. And logistics of the supply chain can not be made one-way soon. So now Apple continues to face the ability to pay taxes for each iPhone they imported from China.