By Chris Chang, posted Jan 29, 2011 at 12:04 PM, 1,903 views,

Import Duty Of iPad Dropped One Half in China

This is a piece of good news for iPad smugglers in China. Recently, the tax rate of the electronic products and camera was adjusted from twenty percent to ten percent in mainland China, this means the import duty of iPad which has being closely attended drop from 1000 yuan ($150) down to 500 yuan ($75). Yes, the ‘evil’ Chinese customs are now collecting lesser customs duties on iPad, but we believe smugglers will still use interesting ways to escape the taxes.

Previously, we have reported some ridiculous smuggling cases from Shenzhen, such as Chinese customs detaining iPad-smuggling housewives who tried to carry 88 iPads into China. Some westerners may wonder why these people are smuggling gadgets, especially iPads and iPhones. Well, China has been collecting tax on each iPad carried into the country, even those definitely for personal use. The local customs identified iPad as computer products that suitable for dutiable value of 5000 yuan. Since the tax rate at that time is twenty percent, one needs to pay 1000 yuan tax. Here comes the problem, the WiFi-only model costs below five thousand yuan and you are telling me that I need to pay 1000 yuan tax for it? WTF? So, this contradiction caused attention from all circles in society.

Looking at the good side, collecting higher customs duties on iPad is an effective way to combat smuggling. In the Chinese market, there are full of smuggled goods that will do harm to normal international trade. Last year, the huge demand for iPhone 4 has caused the Beijing Apple store to close the gate in operating hours, and this caused inconvenience to some customers who really wish to own an iPhone for self-use. The scalpers even resell the iPhones and iPads at high prices to earn big profits. Right now, Apple’s Chinese online store is not providing any iPhone 4s at all, while scalpers are sitting in front of their computers waiting for the magical ‘Select’ button to appear.

Source: China News