How We’re Helping Customers Manage the Latest Increase in US Tariffs

How We’re Helping Customers Manage the Latest Increase in US Tariffs

Posted on: June 10, 2019

What Happened?

On May 10th, the U.S. raised tariffs on $200 billion worth of Chinese goods from 10% to 25%, which includes most electronics.

Who Is Impacted?

Customers importing electronic products into the US that originate in China are impacted by the tariff. Each customer is responsible for determining the Harmonized Tariff Schedule code (HTS code) for the product that they are importing, even if they are not the importer of record. In cases where SEACOMP is the importer of record on behalf of a customer, SEACOMP will invoice the customer for all import duties as a line item separate from the price of the product. SEACOMP will not build the cost of the tariff into any product unit price.

What Steps is SEACOMP Taking to Help Customers Minimize the Impact of the Tariffs?

SEACOMP is offering a non-China manufacturing option in order to perform PCB assembly and final assembly outside of China for eligible value added and turnkey products. The resulting product will have a non-China country of origin and not be subject to the US tariff on products imported from China. This strategy will NOT impact component product shipments such as color and monochrome LCD modules that are manufactured in China and cannot be moved to another country.

What Can You Do to Learn More?

Please contact your SEACOMP territory manager or to discuss details for your specific business or product. Here are some general suggestions:

  • For customers that SEACOMP is already working with on assemblies/ box builds, please work with your territory manager to get a quote for the non-China manufacturing option for your product.
  • For customers that purchase Displaytech or HDP Power products only, please discuss with us how a modification to your supply chain could help mitigate costs associated with the tariffs. SEACOMP’s manufacturing and engineering division, MH MFG, specializes in full electronics assembly and contract manufacturing and can provide a quote for performing display assembly onto a PCB or into a full product build. This approach provides our customers with valuable tariff savings for more than just the display module or power product that they are purchasing from SEACOMP.

SEACOMP will continue working proactively to provide solutions to our customers so we can keep Helping Innovators Deliver Awesome!