Rumor: China to Increase LCD Panel Import Tax
China Business News, 2/02/12
An industry source revealed recently that Chinese import tariffs for LCD panels would rise from 3% to 5% this year. According to Li Qiuwei, deputy GM for panel display research at Asia Vital Components (AVC), China already collects 5% tariffs on imported LCD panels, but offers preferential 3% tariffs on panels 32" or larger. With the launch of 6G and 8.5G LCD panel production lines at Chinese manufacturers BOE (000725.SZ), China Star Optoelectronics, and Nanjing Panda Electronics (600775.SH; 0553.HK) last year, 32" LCD panels are being produced in mass quantities domestically, allowing domestically produced panels to replace imports. Li said that China could begin charging 5% tariffs on all LCD panel imports in Q2 of this year. If domestic LCD mass production proceeds smoothly, the Chinese government could introduce new policies raising tariffs to between 8% and 10% in Q3 or Q4 2012, or in 2013, Li said. Were this to take place, many Chinese TV manufacturers would place orders with mainland panel makers rather than with South Korean or Taiwanese manufacturers.
Gu Zhihua, director of the flat-panel display (FPD) research center at Fudan University, said domestic flat-panel display demand exceeded 70 mln units per year - a demand that BOE, China Star, and Panda's 6G and higher lines, which have a combined capacity of more than 30 mln panels per year, will be unable to meet - meaning some imports will still be necessary.
Keywords: policy Gu Zhihua hardware display import tax Panda Electronics LCD 000725.SZ 0553.HK 600775.SH BOE China Star Optoelectronics
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