Imported Cell Phone Sales Up In 2009
Mexico, China & South Korea Lead Wireless Accessory Sales in Canada
Aug 31, 2009
For the first 6 months of 2009, imported cell phone shipments destined for Canada were up 23.4% to US$774.1 million.
Cell phones are imported into Canada under the 6-digit customs schedule code 851712. That code represents the international tariff classification applied to mobile phones for cellular networks and other wireless networks.
No customs duty is payable under customs tariff code 851712, regardless if the supplying country has a preferential tariff with Canada or is merely covered under the catchall Most Favored Nation category for all countries.
Therefore, no cell phone exporting country has a tariff duty advantage when it comes to shipping wireless telephone products to Canadian buyers.
Top Countries Supplying Cell Phones to Canada
The following list of countries was responsible for about 97% of all cell phones imported into Canada from January to June 2009.
- Mexico … US$287.7 million (37.2% of total imported cell phones)
- China … $224.5 million (29%)
- South Korea … $140.4 million (18.1%)
- Hungary … $37.4 million (4.8%)
- Taiwan … $34.7 million (4.5%)
- Malaysia … $13.3 million (1.7%)
- United States … $6.4 million (0.8%)
- Germany … $4.1 million (0.5%)
- Finland … $4 million (0.5%)
- Singapore … $2.4 million (0.3%)
- Philippines … $1.8 million (0.2%)
- Thailand … $1.1 million (0.1%)
- Israel … $1 million (0.1%).
Denmark, Brazil, the United Kingdom, Japan and Hong Kong also exported a relatively small amount of cell phones to Canada in the first half of 2009. For each country, that amount was well under $1 million in cell phone sales.
Fastest-Growing Countries for Exporting Cell Phones
The following nations grew sales of their cell phone products to Canada by significant percentages. Of these providers, Mexico has emerged as Canada’s top supplier of wireless accessories including mobile phones.
- Germany … US$4.1 million (up 1,772.3% from 2008)
- Mexico … $287.7 million (up 906.5%)
- Hungary … $37.4 million (up 420.5%)
- Finland … $4 million (up 188.5%)
- Thailand … $1.1 million (up 76.2%).
Nations with Declining Cell Phone Exports
In 2008, China and South Korea were the dominant suppliers of imported cell phones to Canadian consumers. However, both Asian countries experienced significant percentage decreases in their cell phone shipments to Canada.
- Singapore … $2.4 million (down 92.5% from 2008)
- Israel … $1 million (down 79.4%)
- Philippines … $1.8 million (down 72.4%)
- Malaysia … $13.3 million (down 68.7%)
- United States … $6.4 million (down 50.6%)
- South Korea … $140.4 million (down 33.1%)
- Taiwan … $34.7 million (down 12.4%)
- China … $224.5 million (down 4.8%).
While the United States has never been a leading exporter of cell products into Canada, the U.S. also saw a dramatic decline in cellular phone sales.
These statistics indicate that Mexico has strong comparative advantages in labor costs and technology to efficiently mass produce cell phones. Made in Mexico has become the most common label on Canada’s imported cell phones, surpassing innovative and low-cost Asian countries including China, South Korea and Taiwan.
Sources: Industry Canada's Trade Data Online, based on Statistics Canada reports as of August 31, 2009 and Canada Border Services Agency's online customs tariff manual.
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