9 July, 2018
Re. New US Tariff schedule on certain goods
Dear Valued customer,
As you may know, the office of the USTA (United States Trade Representative) has imposed increased tariffs on a variety of goods imported to the U.S. from China. It is understandable that you may have many questions and/or concerns regarding these new tariffs and we share those concerns. The purpose of this letter is to inform you that we are monitoring the situation very closely and to pass along everything that we know as of today. This is a very fluid situation as the government representatives continue to talk. However, from all the information we have studied, the majority of “consumer goods” (clothing, electronics, furniture, etc.) are not part of the increased tariff list. To be more specific, we know of no finished good products we currently produce at Hansong that appear on the affected list.
The vast majority of the products we produce fall under the US Harmonized Tariff schedule subheadings 8517 and 8518, most being 8518. 8517 includes products such as cellphone, but also includes Bluetooth accessories and similar. 8518 includes amplifier, processor and loudspeaker category products. Neither of these subheadings appear on the current list for tariff increase. While not likely for now, there are some single discrete components (resistors, capacitors, etc.) and sub assemblies that may be affected. We will need to work together with you to ensure that in the event we are shipping spare parts, for example, that we properly document and label these components to avoid potential problems. For additional guidance, you may reference: https://ustr.gov/sites/default/files/files/Press/Releases/301FRN.pdf
Again, we will continue to monitor the situation very closely and inform you if we hear of any changes that affect our products. Please let us know if you have any questions and we will do our best to answer.