Apple backs tax exemptions for Apple Watch and Mac Pro parts

by nativetechdoctor
2 minutes read

Apple has just submitted eight public comments in favor of a temporary tax exemption for the Apple Watch and Mac Pro parts, CNBC reported on the website of the US Trade Representative (USTR).

Apple watches and Mac Pro parts are subject to tariffs because they are imported from China , while iPhones are not. Tax filings are a public step in a process that could restore a government-issued tax exclusion for a 7.5% tax on imports of Apple Watch and 25% of Mac Pro components .

Apple’s actions show that companies are still grappling with tariffs introduced during the Trump administration’s trade war with China, especially after most cases ruled out. taxes have been allowed to expire at the end of 2020 or early this year.

In October 2021, the USTR said it would consider reinstating some tariff exclusions on a case-by-case basis, particularly if the product can only be sourced from China. USTR asked companies that assist with tax exclusions to answer questions, including whether the product might be manufactured in the US or other countries outside of China. Currently, the final production of Apple products takes place almost entirely in the mainland, although the company has tried to diversify production facilities.

In its tax filings for the Apple Watch , Apple says it is an “American-designed smartwatch” and should be exempt from the tax because of widespread use of the product for cellular connectivity and fitness applications. strong. The tech US giant said the Apple Watch is “currently available from third countries in limited quantities”, evidence that the company has been testing production outside of China. Apple also favors tax exclusions for seven components in the Mac Pro, including the mouse, trackpad, circuit board, and power supply. These components are not available from outside China, they are complex and are made to order. The Mac Pro is the only product assembled in the US, at an outsourced facility in Austin, Texas.

Eight Apple comments are among more than 1,700 entries submitted to the USTR as of October 2021. Other tech firms interested in tariff exclusions include Google, Intel and Sonos.

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