The final cost of hearing aids for end users in LMICs are estimated between 25 per cent to greater than 100 per cent of the ex-factory cost, depending on import tariffs,
68inventory and shipment cost and distributor margins. Note that the base price of hearing aids is already high – typically ranging from US$100 to US$500 – and additional markup on that further renders them entirely prohibitive for LMICs. Four major cost components significantly influence the final price to the consumer and distributor margins account for the largest proportion. While import duties and taxes may be a significant contributor to the cost, many countries may apply some exemptions.
Table 14: Cost component for hearing aids supply
| Cost Component | Lower estimate | Higher estimate |
|---|---|---|
| Taxes and duties: import duty/custom tax/VAT | 0 per cent | 41 per cent |
| Shipment, inventory, and in-country transport cost | 20 per cent | 40 per cent |
| Quality inspection cost | 0 per cent | 10 per cent |
| Distributor margin | 5 per cent | >15 per cent |
| Additional cost | 25 per cent | >106 per cent |
26.VAT and import duties can be waived if the organization obtains a waiver and the pre-export verification of conformity (PVOC) to standards in advance. It is also waived for individual with disability importing for personal use. ↩︎