The Pak Banker

Apple asks US to waive tariffs on China-made watches, iPhone, AirPods

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Apple Inc asked the Trump administra­tion to waive tariffs on Chinesemad­e Apple Watches, i Phone components and other consumer products, according to company filings with the U. S. Trade Representa­tive's Office.

The company on Thursday sought t ariff exclusions from 11 products, including HomePod speakers, i Mac computers, parts for use in repairing iPhones, iPhone smart battery cases, AirPods and others. The public has until Nov. 14 to submit comments on the requests.

Apple t old t he U. S. Trade Representa­tive's Office the products were consumer electronic devices and "not strategica­lly important or related to ' Made in China 2025' or other Chinese industrial programs."

The exclusions seek relief from 15% t ariffs that took effect on Sept. 1.

FitBit Inc asked the administra­tion t o waive tariffs on its fitness trackers. The company told the administra­tion "the vast majority of global production capacity for wrist- wearable communicat­ions devices is in China."

The company added that "while Fitbit is aware of facilities currently producing such devices in Taiwan and South Korea, these facilities are fully owned by, or otherwise contracted to, Fitbit competitor­s that use them for t heir own branded production, rendering them unavailabl­e to Fitbit." Alphabet Inc announced Friday it has reached a deal to acquire Fitbit.

Apple submitted t he requests on the first day the Trump administra­tion began accepting them. An Apple spokesman did not immediatel­y comment.

Apple's wearables and accessorie­s business - which includes the Apple Watch, AirPods and HomePod - brought in $ 24.5 billion in its fiscal 2019 ended in September, or about 9.4% of Apple's revenue. Sales in the segment were up 41% versus the prior year, and the devices have become an important driver of Apple's business as iPhone sales declined for the past four straight quarters.

Apple chief executive Tim Cook said Wednesday on the company's earnings call the company is paying "some tariffs today, as you know, some that went into effect pre- September and some others that went into effect in September. So we are paying some."

Christie's Inc has asked the administra­tion waive tariffs on Chinese sculptures, statues, painti ngs, antique furniture and silverware and other collectibl­e i t ems. Sea Eagle Boats Inc submitted requests to waive tariffs on i nflatable stand up paddleboar­ds.

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