In terms of number of units, portable computer devices that weigh 10 kilograms (22.05 pounds) or less are among the most frequently imported products in both the U.S. and Canada.
In plain English, these imported products include small laptops, notebooks, netbooks and similar computer devices. Apple’s new iPad tablet will also be reported under this category once sales data for 2010 becomes available.
U.S. and Canadian Small Computer Gadget Imports
In the first 12 months of 2009, the United States imported US$26.9 billion worth of computer notebooks and netbooks from 80 manufacturing nations from around the world. This amount represents a 2.5% decline from the $27.6 billion in small imported portable computing devices that Americans bought in the first 11 months in 2008.
Over that same time frame in 2009, Canadians imported $2.5 billion worth of notebooks and netbooks from 78 supplying nations. The 2009 dollar total is a 6.4% annual decline from the $97.1 million in hearing assistance products imported as of November 2008.
Clearly, these small imported portable devices mean big business for mobile users on the go. According to iSupply Corp, worldwide shipments of notebooks first surpassed desktop personal computers by a count of 38.6 million notebook units to 38.5 million PCs in the third quarter of 2008.
Leading Suppliers of US-Imported Notebooks and Netbooks
Below are the 10 nations that sold the highest total value of small portable computers to the U.S. during 2009.
China and Malaysia provided over 94% of overall notebook and net books that Americans imported last year.
- China … US$22.9 billion (85.1% of notebook and netbook imports, up 19.1% from 2008)
- Malaysia … $2.5 billion (9.1%, down 61.6%)
- Japan … $550.2 million (2%, down 30.3%)
- Ireland … $465.8 million (1.7%, down 16.2%)
- Mexico … $266.5 million (1%, down 3.4%)
- Taiwan … $102.7 million (0.4%, up 6.1%)
- Singapore … $49.6 million (018%, down 28.4%)
- Canada … $38.9 million (0.14%, down 9.4%)
- Philippines … $28.4 million (0.11%, down 52.4%)
- South Korea … $14.1 million (0.05%, down 33.8%).
Not only is China the largest supplier of smaller laptop and handheld computer devices, the People’s Republic also posted the fastest percentage gain among top 10 supplying nations. Taiwan was a distant second, generating a modest 6.1% rise. The remaining 8 exporting nations had percentage declines as severe as 61.6% for Malaysia.
Top Sources for Canadian Imported Notebooks and Netbooks
China and Malaysia accounted for 92.6% of small portable computers imported into Canada in 2009.
The list below shows the 10 countries that exported the highest dollar value in notebooks and netbooks to Canadians last year.
- China … US$2.2 billion (85.9% of notebook and netbook imports, down 1.3% from 2008)
- Malaysia … $170 million (6.7%, down 59%)
- United States … $83.5 million (3.3%, down 25.4%)
- Japan … $47.9 million (1.9%, down 23.7%)
- Mexico … $16.2 million (0.6%, down 11.1%)
- Taiwan … $12.8 million (0.5%, down 41.2%)
- South Korea … $7.1 million (0.28%, down 48.8%)
- Singapore … $6.8 million (0.27%, down 32.6%)
- United Kingdom … $2.7 million (0.11%, up 96.5%)
- Philippines … $2.6 million (0.10%, down 44.5%).
Among the above competitors, only the United Kingdom showed any gain from the prior year period. China had a slight decrease of 1.3%, while the other 8 countries suffered double-digit declines ranging from Mexico’s 11.1% drop to Malaysia’s 59% fall.
Tariff Duties on Imported Notebooks and Netbooks
The 10-digit harmonized system code (HSC) for portable computing devices weighing 10 kilograms (22.05 pounds) or less is:
- 8471.30.01.00 for American customs officials
- 8471.30.00.00 for Canadian border services officers.
While the 6-digit international prefix is the same, U.S. and Canadian tariff codes for the remaining 4 digits are slightly different due to national customs tariff differences.
Notebooks, netbooks and similar computing devices that weigh under 10 kilograms are duty free. This is true for both American and Canadian imports.
Competitive Advantages in Trading Portable Computers
Canada shipped $38.9 million worth of small portable computers to the U.S. during 2009. Over that same period, the U.S. delivered $83.5 million worth of notebooks, netbooks and the like across the Canadian border. Therefore, America achieved about $44.6 million in net exports in its trade with Canada for this fast-growing and important category of small computers.
That figure may be overshadowed by the $22.2 billion in Chinese notebook and netbook sales to the U.S. and $2.2 billion in similar exports to Canada. Still, the U.S. has shown a competitive advantage in making and selling small portable computing devices to its Canadian trade partner.
With the February 2010 introduction of Apple’s iPad in the U.S. and a scheduled June launch in Canada, it will be interesting to see if American exporters can build on that competitive advantage in the next year.
Sources: United States International Trade Commission’s Interactive Tariff and Trade DataWeb, Industry Canada's Trade Data Online, based on Statistics Canada reports as of February 13, 2010, United States International Trade Commission Harmonized Tariff Schedule, and Canada Border Services Agency's online customs tariff manual.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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