Russia to raise import duties on GPS goods?

Russia to raise import duties on GPS goods?
Import duties on GPS navigators may be raised by at least 25%, Russian Deputy Prime Minister Sergei Ivanov told the media on Friday, reported the Itar-Tass news agency.

The Russian government is considering a proposal of the Industry and Trade Ministry and the Federal Tariff Service to reduce to zero the import duties on GPS components and to raise the import duties on finished GPS products.

Many other countries such as India and Brazil have high import duties on manufactured goods, among them GPS. So far these duties have hindered the development of the Personal Navigation Device market in these countries where PNDs are far less affordable than in the rest of the world.

If Russia was to set up high import duties it would de facto give an edge to a few local brands against Taiwan-built products from Garmin, TomTom and Mio. Looking at the current, limited size of the PND market in Russia manufacturing locally would drive important costs for these manufacturers. Although it would be easier for TomTom which anyway outsources the manufacturing process.

Monday, July 27th 2009

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