Path: utzoo!utgpu!news-server.csri.toronto.edu!cs.utexas.edu!usc!sdd.hp.com!wuarchive!emory!gatech!psuvax1!psuvm!cunyvm!rohvm1!mbdzm
From: MBDZM@ROHVM1.BITNET
Newsgroups: comp.sys.mac.misc
Subject: Re: Expensive International Macs
Message-ID: <90339.115611MBDZM@ROHVM1.BITNET>
Date: 5 Dec 90 16:56:10 GMT
References: <1990Dec5.094856.3679@csc.anu.oz.au>
Organization: Rohm and Haas Company
Lines: 44

You are forgetting import duties and local sales taxes.

I am not familiar with the taxes in OZ, but I have investigated the price
differences between the U.S. and the U.K.

In the U.K.:

There is an import duty on electronic equipment manufactured outside the U.K.
This helps keep Sir Clive in business.  It also fosters a market that will buy
Brittish equipment, most of which is better designed and built than the
Japanese, Korean, and Tiwanese stuff. But with out the duty, no one would buy
the stuff as it is too expensive. The quantities made are too small to charge
less.

I beleive that the duty is one half the retail cost of the item. (U.K. posters,
help please.)

There is also a Value Added Tax (Sales tax) of about 15 percent. The VAT varies
depending on where you are (England, Scotland, Channel Islands, Northern Irelan
d).

So in order to sell a MAC Classic that lists for $1500 (US), (2meg,40meg HD)
Apple needs to ask about about 70% more (The VAT is on the after duty price),
just to break even. (about $2500 US or 1250-1500 Pounds Sterling)

Add in the incremental costs, such as a 220V power supply, Brittish certificati
on (equivalent to U.L. and F.C.C) changes for national languages and keyboards,
cost of having a sales and support office overseas, etc, the price is quite
reasonable.

There is no (or minimal) duty in the U.S. on Japanese, Tiwanese, or Korean
manufactured electronics. The sales tax is added after the price and is
Anywhere from zero to 8 (in NY city) percent.  Here in Philly it's 6%.


Now you know why foreign tourists in the U.S. stock up on VCRs, computers,
Cameras,  etc.


It easier and cheaper to buy a PAL VCR in New York than London, but there are
no precorded tapes for sale or signals to record.


Geoff Mendelson   (uunet!gsm001!gsm)