Prodisc announced that has obtained certification from the Hong Kong government allowing it to export duty-free from Hong Kong to China.
The story is covered from DigiTimes.com. Without the CEPA (closer economic partnership arrangement between China and Hong Kong) certification from Hong Kong’s trade and industry department, exports of optical discs from Hong Kong to China are subject to an 8.3% customs duty.
CEPA certification exempts companies from this duty. However, they still have to pay a value-added business tax of 17% for sale in the China market.
CMC Magnetics and Ritek, Taiwan’s top two makers of optical discs, have factories in Hong Kong, but currently they do not plan to apply for CEPA certification.