On July 6th 2018, the Office of the United States Trade Representative (USTR) introduced new tariffs under Section 301 on an extensive list of imports originating from China into the US. The first round of Tariffs target approximately $50 Billion worth of goods with a further second round worth $200 Billion to be implemented from the 24th of September 2018. Regrettably this has impacted the industry significantly as many electronic parts are manufactured in China.
At Chip One Stop, we are always doing what we feel is best, with your interests at heart. At this point in time, our team is working hard to ensure that the proper information is captured on all of our stock so that we can adequately advise you if this will affect your orders. With over 15 million orderable part numbers across hundreds of suppliers, this is a very demanding task and we ask for your patience with us while we work to have the details updated.
How are the Tariffs determined?
Tariffs are applicable to all products that satisfy both of the following conditions:
- The product has a Country of Origin (COO) of China
- The product’s HS classification code is on the list publicized by the USTR. The lists of affected HS codes that will be subjected to the 301 tariffs can be found here:
First Tranche List 1 (subject to 25%):
First Tranche List 2 (subject to 25%):
Second Tranche (Effective from 24th September 2018 subject to 10%. For products on the below list imported into the USA after 1st of June 2019, the tariff rate will be increased to 25% ):
What is Chip One Stop doing to mitigate these impacts?
We are currently in deep discussions with our suppliers to ensure that we do all that we can to reduce the impact of the Tariffs.
This means that we are negotiating duty drawbacks on all products where applicable so that unnecessary costs are not passed through.
My order falls under the above categories.
Can Chip One Stop pay the Tariff on our behalf?
As with all of our shipments to international locations,
all our orders are shipped incoterms FCA, CPT or EXW. What this means is that the Importer of Record will be responsible for paying the tariff.
At Chip One Stop, we will do our best to bring to your attention (where possible), any products that will be subject to the 301 Tariffs within your order. We are still working hard to update our website so that this information is easily accessible and noticeable in the ordering process so please bear with us until this has been finalized.
For further information, please feel free to contact Tariffs@chip1stop.com .