Electronic products used by consumers and businesses typically are subject to customs duty when imported into the European Union (EU) and other jurisdictions. A recently signed World Trade Organization (WTO) trade agreement on information technology—known as the “ITA expansion”—is expected to eliminate customs duties on a range of electronic products for import into a number of markets, including the EU.
Other countries where the ITA expansion is expected to apply include:
|China||Korea||Switzerland (and Liechtenstein)|
|Hong Kong||New Zealand||United States|
Customs duties will be eliminated either upon the ITA expansion’s entry into force on 1 July 2016, or within three, five, or seven years. The EU will reduce duties to zero for roughly 50% of the products covered when the agreement enters into force in July 2016.
The product coverage of the ITA expansion is mainly structured according to tariff classification. For imports, it will be prudent to review the tariff classification and product descriptions in the ITA expansion to see whether they relate to specific commodities and, if so, how duty reductions will be staged. To determine that no duty-saving opportunities are missed or whether too many savings are claimed, review the existing classifications for correctness.
Read a June 2016 report prepared by the KPMG member firm in the Netherlands
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