Msg: 2384 *Conference*

04-16-92 12:30:28

From: JIM SAMUEL

To : STEPHEN MELCHER

Subj: REPLY TO MSG #2375 (GOVERMENT KILLS 102??)

Stephen....actually, what your friend told you is the reverse.  In the past,
this country imposed a tariff on finished laptop computers but not on the
components.  As a result, Toshiba set up an assembly plant in the US, and
American companies assembled their laptops here.  Then, in 1991, the US
government changed its regs.  They lifted the tariff on assembled laptops and
imposed a hefty tariff on LCD screens, but only when the screens were imported
as components.  This was to save the US LCD screen industry (of which there are
no companies supplying the PC market).   The tariff does not apply to LCD
screens that are imported as part of a complete laptop PC.  The end result:
Toshiba closed its US assmebly plant and IBM is moving to move its production
overseas ASAP.