|Vimex Section 301 Tariff Policy|
VIMEX ACTION TO NEW SECTION 301 TARIFF POLICY
Vimex will be affected by the new imposition of a 25% duty tariff on all Chinese made goods imported into the USA. The list of Harmonized Codes affected by the tariff include everything Vimex sells.
See the list here: Federal Register (see Annex B beginning on page 10)
Or here: US Trade Representative
Since an additional expense of this amount is quite impactful, Vimex will need to pass a portion of this cost along to our customers. Vimex is taking the position that this will be difficult for all parties.
To show that we respect our customers and the relationships we have built Vimex is going to absorb a significant amount of this cost.
Effective August 1, 2018 Vimex will need to charge a Tariff Expense equal to 7% of the selling price for all affected goods shipped on both new and existing orders.
If and when the time comes that this tariff is lifted, the additional charge will be phased out 120 days after the date published by the Office of US Trade Representative.
For that reason Vimex requests that we treat the additional Tariff Expense as a separate line item on each invoice. This will allow better transparency to all parties for the period of time that the additional Tariff Expense is in effect. It will be obvious and simple to track in this manner.
If your company systems and policy prevent the addition of this line item to our invoices, please let us know. If your company needs to add a line item for this expense we will work with you on re-issued PO. We will accomodate any reasonable request for this situation.
Very truly yours,