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Tariff's

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dendecott
Posts: 3
Joined: Mon Jul 09, 2018 2:52 pm

Tariff's

Post by dendecott » Mon Jul 09, 2018 3:13 pm

With the tariff's coming into play how are molder's managing this with customers? For example, we have several tools that are being built in China today with schedules to ship to US over the next several months. We have been open with the customers all along that the political situation was fluid. How are you planning on recouping the costs from your customers. We are contemplating sending a separate invoice with the tariff documentation included. We also are reviewing the opportunity to add as a line item on the existing invoice. Second question - has anyone sent a notice to all customers regarding the effect of the tariff on their tools as well as on affected hardware that might be affected and include price increases on assembled products?

ch3solutions
Posts: 10
Joined: Tue Feb 27, 2018 9:42 am

Re: Tariff's

Post by ch3solutions » Tue Jul 10, 2018 4:30 pm

We are currently building 3 tools in China. We did send a notice to our customer on the price increase do to the Tariffs. we also were already informing them that there was a possibility of it coming depending on our government. Fortunately we have an understanding customer who understands that this is out of our control. Even with the tariff, the prices of the tools are still much less expensive then building in the U.S. It is unfortunate but that is the reality of the situation. I understand the concept behind the tariff but I am not sure it will have the positive effect that is hoped for. :|

dendecott
Posts: 3
Joined: Mon Jul 09, 2018 2:52 pm

Re: Tariff's

Post by dendecott » Wed Jul 11, 2018 9:03 am

thank you!

Troyonix29
Posts: 29
Joined: Mon Feb 26, 2018 10:09 am

Re: Tariff's

Post by Troyonix29 » Tue Jul 17, 2018 9:06 am

The MAPP staff sent out an email notification in the middle of June to update members on the status of the Tariff issue. In this email alter, Alan Rothenbuecher from the law firm of Benesch advised that our members take steps to protect themselves in future job quotations. he indicated the following:

"For all your current quotations, add the following language.

This quotation is subject to [insert name]’s right to pass through via a surcharge its cost for any new duties, tariffs, or taxes it is required to pay because of any change in U.S. law on tariffs impacting imported molds."

He also indicated the following:

"Whether you can pass on the surcharge to your customers will often be driven by the language (terms and conditions) of your contract. Claims of force majeure and the exercise of force majeure provisions in contracts (particularly if the force majeure clause contains broad catchall language such as “or any other events or circumstances that may affect the Company’s ability to deliver products”) will allow passing along a surcharge, as will price adjustment clauses linked to increases in cost of raw materials. Regardless, for those quotations that already have been accepted and upon which you are performing, here is an example of a notice you can send to the customer:

The Trump administration announced June 15 a list of 818 products from China that will be subject to an additional 25 percent duty as of July 6. These tariffs are being imposed after a Section 301 investigation determined that China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation are unreasonable and discriminatory. In light of this unforeseen contingency, [insert name of molder] must pass through via a surcharge the additional cost imposed upon it by its mold supplier because of this substantial and unanticipated expenditure caused by the new executive action. The amount of the surcharge will be sent to you via separate email along with documentation substantiating the cost. "

Troy

Troyonix29
Posts: 29
Joined: Mon Feb 26, 2018 10:09 am

Re: Tariff's

Post by Troyonix29 » Tue Jul 17, 2018 9:16 am

Dear MAPP Members:

Please find the link to an Email Alter sent from the MAPP office.:

https://www.mappinc.com/about/news-and- ... fs-update/

Also, the MAPP staff is working to host a Tariff Webinar to bring our members up-to-speed. Please stand-by...

Troy

jhertlein
Posts: 2
Joined: Wed Jun 27, 2018 2:06 pm

Re: Tariff's

Post by jhertlein » Fri Sep 28, 2018 3:24 pm

Has anyone actually been subject to the 25% tariffs? Our freight forwarder, Kuehne & Nagel, is telling us this does not apply to injection type molds for plastics, HTS # 8480.71.8045... yet.

HRothenbuecher2018
Posts: 3
Joined: Fri Jun 22, 2018 12:06 pm

Re: Tariff's

Post by HRothenbuecher2018 » Mon Oct 01, 2018 5:49 pm

Hello Joy: they are absolutely wrong. HTS code 8480.71.80 was specifically covered under the August 7 expanded list of tariffed items. That list went into effect on August 23. Wish I had better news. Happy to talk offline on strategies to reduce impact of tariff.

-Alan

jhertlein
Posts: 2
Joined: Wed Jun 27, 2018 2:06 pm

Re: Tariff's

Post by jhertlein » Tue Oct 02, 2018 3:58 pm

Thanks for confirming. We thought the tariffs applied to tools! We're also trying to understand whether the 25% tariff applies to the full cost of the tool or just the steel content in the tool. One of our customers is insisting it only applies to the steel content.

Troyonix29
Posts: 29
Joined: Mon Feb 26, 2018 10:09 am

Re: Tariff's

Post by Troyonix29 » Tue Oct 02, 2018 4:03 pm

Joy, we have members splitting out design/labor. You might want to check with Alan because he, I think, rests on the side for what you are ultimately insuring the tool in transit.

Troy

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