Beijing slashes by half unpopular tariff on electronic goods
Beijing halved the tariff on imported information technology products after a public outcry arose over people being charged 1,000 yuan (HK$1,180) for iPads they bought in Hong Kong or abroad.
The State Council had approved cutting the tariff from 20 to 10 per cent for computers, camcorders and other information technology products, mainland customs announced on Wednesday. The new tariff was effective yesterday.
Customs stepped up enforcement last October against inbound travellers and classified iPads they carried as computers for tax purpose. Based on the benchmark customs value of 5,000 yuan for computers and a tariff rate of 20 per cent, all iPads were subjected to 1,000 yuan tariffs - even though cheaper models cost less than HK$4,000 in Hong Kong.
The customs notice did not say whether the tariff would still be based on the controversial benchmark value or on the actual sales price.
Some small traders who buy tax-free electronic goods in Hong Kong and resell them on the mainland welcomed the tariff cut.
Beijing electronics merchant Sun Xuanzi said she had been planning a leisure trip to Hong Kong next month, but Beijing's tariff cut meant it would now be a business trip. 'This definitely means a remarkable benefit for us sellers,' she said. 'I think I'll make a nice bit of pocket cash.'
The owner of a small stall at an electronics market, Sun won't be making a big purchase.
She plans to buy 18 to 20 iPads for resale on the mainland, if she can find a good price and a retailer willing to sell that many to her.
Some retailers, however, doubt the tariff cut will mean a big increase in business.
'Maybe some people travel to Hong Kong for leisure and pick up some Apple products to sell here on the mainland,' said Chui Fengming , an electronics retailer based in Shenyang. 'But it's just not practical' - because the cost of repeated plane tickets outweighed the tariff cut, Chui said.
Taxman cometh
The iPad tariff is based on a benchmark value of 5,000 yuan, although in Hong Kong prices may go below, in HK dollars: $4,000
