Customs slap 14% duty on LCD DVI displays

UK CUSTOMS AUTHORITIES unilaterally slapped a 14 per cent tariff on the import of LCD monitors and TVs with DVI, with chaos threatening to disrupt the businesses of manufacturers, distributors and resellers Europewide.

Bob Raikes, managing analyst at Meko UK, said the imposition of the tariff came on the 1st of October, and that it was likely the ruling would affect organisations not in possession of valid BTI certification from customs authorities.

Those with the customs chit would likely have a period of grace, but the UK authorities appear to have decided to switch units using the 8471 customs classification to 8528 from the beginning of this month.

UK customs authorities have decided that if a monitor with DVI can be driven by a DVD player, a camcorder or a video game, the 14% tariff will apply.

There's some guidance from our government, here.

Raikes said the situation Europe wide remained very unclear. Dutch customs appears to have adopted the 14% tariff, but the German authorities were reluctant to impose it. That leaves a hole big enough for several trucks laden with LCD monitors and TVs to drive through simultaneously. If Germany does not impose the tariff, that means units shipped into that country can be exported to other EU territories without attracting the tariff, it appears.

Raikes said: "It's bit of an uneven playing field". He said: "If you haven't a BTI, it's your tough luck".

Customs authorities throughout Europe met earlier this autumn in order to thrash out a common approach to the matter, but after four days were unable to reach a concensus, apparently.

Some sources suggest that that new members of the European Community may well benefit from the imposition of such tariffs - behind the scenes, there appear to be political forces attempting to move jobs from China to the recently enlarged community.

Manufacturers are likely to devise strategies to attempt to limit damage to their sales. Philips will assemble monitors in Hungary, LG will put things together in Wales, while Samsung will work hammer and tongs to get its Slovakia plant churning out DVI displays, so avoiding harm to their businesses. µ

L'INQ
Meko

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LCD units face 14% price hike soon