The World Customs Organisation in Belgium has decided that Samsung’s Galaxy Gear smartwatch is a ‘mobile telecommunications’ device, rather than a smartwatch. The decision means that the product can be exported and imported between most countries without tariffs – which would be up to 10% in some countries, if the device were classified as a watch. Tariff eliminations could begin as early as June, saving up to $13 million, according to Korea’s Ministry of Strategy and Finance.
Analyst Comment
Like the long-running monitor vs TV saga, this decision is based on the ITA agreement that ensures that IT products have 0% duty (BR)
