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Import Tariff Notice: Update

October 22, 2018

Re: Import Tariffs Notice

Dear Valued Customer,

As advised on September 28, 2018; due to the U.S. Trade Representative under Section 301, imposing a tariff on a subset of electronic components manufactured in China and imported into the United States, Wall Industries would start billing section 301 tariffs on October 1, 2018.

WALL INDUSTRIES WILL START BILLING SECTION 301 TARIFFS ON OCTOBER 1, 2018

Starting with shipments made on October 1st, Wall will begin billing Section 301 tariff charges and associated tariff processing fees to our customers at variable rates reflecting those of our suppliers. Our approach is one geared towards billing at a percentage that properly represents the decisions of our suppliers and equitably passing these charges along while respecting the fact that our profit margin is included in your price.

The September 17, 2018 announcement advised the tariff rate was set at 10% for affected items, rising to 25% on January 1, 2019. We have yet to receive any formal notification from our suppliers as to how the tariff will be handled on January 1, 2019, once we receive those updates we will issue another notification.

BILLING PROCESS

Customers will see billing of tariffs in one of three ways:

  • A separate line item for the tariff charge on the invoice for the actual shipment of product.
  • A separate invoice following the actual shipment of product for the tariff charge. These invoices will reference the customer purchase order number and Wall’s original invoice number for shipment of product.
  • An increase in unit cost on a new quote. Wall was opposed to raising prices at the part number level, but an exception had to be made for parts which our materials suppliers have chosen to increase their piece part price and not separate the tariff costs, in which case we will have no choice but to pass these increases along in the purchase price.

Our primary objective is to minimize supply chain disruption and to support your requirements at the highest levels. We hope that our decision to delay billing of the Section 301 tariffs until October 1, 2018 gave you more time to prepare for the impacts, and that our billing calculation reflects an equitable approach to this extraordinary situation.

You can find updates on the Wall Industries website under Import Tariff Notice or paste this link in your browser:

https://www.wallindustries.com/tariff-notice-update/ 

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