Shenzhen iPad Smuggling
We can see a lot of reports from news papers and TV in Shenzhen these days talking about the fast growing iPad smuggling cases in Shenzhen.
So far iPad has not been officially debut in Hong Kong, let alone the mainland. Retailers from Hong Kong import iPad through gray market and then smuggling into Shenzhen to sell the iPad in Shenzhen and other places in China mainland. These iPad retailers in Hong Kong pay for cross-border travelers to carry the iPad into Shenzhen through borders such as Luohu border, Huanggang border, etc. Most of these travelers are housewives that want to earn extra cash in these hard times.
There are some places you can buy iPad in Shenzhen though. My friend bought one at Coastal City, Nanshan couple of weeks ago. It costs around 3000 RMB. However when I went to Coastal City Nanshan last weekend, the Apple outlet seems to be closed. It is just at the first floor of the electronic market which is bellow Suning Electronics at Coastal City. Later on, I found there was another Apple outlet at Xue Fu Road, Nanshan. I can see they were selling iPad there.
Border customs control can’t fully stop the flow of iPad which is in huge demand in China mainland. According to Shenzhen customs officials, in a order to prevent smuggling and make it tougher, Shenzhen began to collect a tax of 1,000 RMB on iPads carried into the mainland, even if they are for personal use. It is said you would need to pay tax even though your iPad is used.
It is pathetic for Chinese consumers to buy iPad in mainland, especially those Shenzhen consumers. Because iPad was first assembled by massive Foxconn factory in Shenzhen, then shipped to America. After that Hong Kong businessmen imported the iPad from America through gray market and smuggling into Shenzhen again.
about Foxconn Shenzhen
The massive Foxconn factory in Shenzhen China is well-known known for assembling famous electronic goods like Apple’s iPhone, iPad, etc. Shenzhen Foxconn also produces electronics and computer components for Dell Hewlett-Packard and other global companies. It is a Fortune 500 company that has 420,000 workers in Shenzhen alone. Of course the number of labor in Foxconn Shenzhen is reducing rapidly, just like other factories in China, they have been moving to other cities in the mainland for cheaper labors and lower expenses.
Foxconn Shenzhen is best known for its string of Suicides of the employees. In 2010 alone, more than 10 Foxconn workers had killed themselves, mainly by jumping off the roofs of their dormitories. I have a friend who used to work for Shenzhen Foxconn, he said that the Foxconn management treats their labors very bad.