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SEACOMP Statement on China Tariffs

Published on Friday, November 9th, 2018

The latest tariffs imposed on goods imported to the US from China have been widely publicized within the news. These tariffs affect a lot of U.S. companies that do business globally, including SEACOMP.  We are a California corporation with a wholly owned manufacturing facility (www.mh-mfg.com) located in Dongguan, China. Therefore, due to the latest round of tariffs that went into effect on September 24th, 2018, most of the products that we manufacture and are subsequently imported to the United States are now subject to increased tariff duty rates. 

The USTR-2018-0026 list of product categories impacted by the tariffs amount to roughly $200 billion in goods imported annually from China into the United States. The tariffs on these products are now an additional 10% on top of the original tariff duty rate for said products (i.e., a product with a 3% tariff rate normally is now 13%). And, unless further action is taken by the US government, the tariff on these products is set to increase to 25% on January 1, 2019.

SEACOMP products affected include, but are not limited to:

INCOTERMS OPTIONS FOR SHIPMENTS ON NEW ORDERS

In order to simplify logistics during these uncertain times, SEACOMP will offer US customers the two following delivery options:

  • EX WORKS Hong Kong (EXW HK): SEACOMP will deliver manufactured goods from China to our HK warehouse for customer to arrange pick up and transportation from there
  • Delivered Duties Paid California 3PL (DDP CA): SEACOMP will manage import from HK into Torrance, CA 3PL warehouse and will manage all upfront duties and taxes for the shipment. SEACOMP will then invoice the cost of ALL duties and taxes, including increased tariff burden, to our customers. These charges will be invoiced separate from the unit price of the product and are subject to change between time of order placement and time of delivery into our California 3PL warehouse. SEACOMP will not increase the sale price of our products due to the tariffs.

Please contact your SEACOMP account manager or sales@seacomp.com with any questions or for additional information.