Apple Plans To Reduce Chinese Import Taxes By Shipping Directly From Foxconn Factories

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The iPhone 5c is supposed to be Apple’s breakthrough device for the Chinese market – though we’ve heard they’re crazy for gold – so to make the import process quicker and cheaper Apple plans to ship iPhones from supplier Foxconn’s factory directly to China.

Apple has already been working with China’s customs authorities to set up the process, according to a report from Digitimes. By shipping products directly from the Foxconn factories, Apple will be able to avoid Chinese procedures that required them to ship products first to Hong Kong or Shenzhen, China to be exported, only to be imported back into China so they could land on shelves.

There are other benefits for the shipment changes as well, namely taxes. Direct shipments from Foxconn will reduce Apple’s import tax bill which could lead to lower prices in China.

Foxconn’s plants in Zhengzhou, China have already started shipping small amounts of products directly to the Chinese market in September. Other Foxconn plants in Indonesia and Brazil are also being consider as candidates to copy the direct shipment business model.

 

Source: DigiTimes

 

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