Technology product shipment price slashes help meet customs union transition challenge

The move, taken in partnership with Tech Data logistics partners, will see shipping service charges on technology products from Tech Data in Dubai and Bahrain, and to the rest of the GCC reduced by up to 25% for the remainder of January 2003.

"We are delighted to see this very real move to customs union, but we have to recognize that there is a period of transition involved in any change of this scale," said Michael Vosper, Operations Director, Tech Data. "This initiative from Tech Data is intended to assist in minimizing the impact of the transition for the region's technology companies."

Although agreed at a GCC level, some aspects of customs union have yet to be implemented at the 'grass roots' level, particularly affecting ground distribution. As well as having the potential to cause delays, these issues can also impact cash flow, cost and fairness in competition. "What this means is that our customers could incur custom duties twice, once in the UAE and another time once the product reaches the borders of some of the other GCC states," said Vosper. He further explains that it could also mean that total cost of technology shipments might vary between GCC states depending on the local custom duty being levied, and until the final agreement on a unified 5% across all states.

Vosper ended: "Our intentions are to keep the business levels up in the GCC, ensuring our customers have access to best prices at all times, while continue supporting great initiatives taken by the GCC governments."