FOR IMMEDIATE RELEASE:
Roofing Nail Tariff Update
September 18, 2018
Dear Valued Customer;
“The Section 301 Tariff is being implemented at the rate of 10% effective with entries passing through customs as of September 24th, 2018. The additional 15% is being deferred until January 1st, 2019.”
It is our ongoing goal to keep our customers informed of changes regarding the nail market and our industry and any actions or activities that may impact your business both in the short and longer term. On Monday, the Office of the United States Trade Representative released, as part of the United States’ continuing response to China’s theft of American intellectual property and forced transfer of American technology, a list of approximately $200 billion worth of Chinese imports that will be subject to additional tariffs as noted earlier this summer. Click here for a link to White House statement.
What is the impact of the tariff?
In accordance with the directive from the White House, the additional tariffs will be effective starting with entries passing through customs on September 24, 2018, and initially will be in the amount of 10%. In addition, starting January 1, 2019, the level of the additional tariffs will increase to 25 percent.
What are the affected items?
The list of affected items contains 5,745 lines (95%) of the original tariff items that were on the proposed list of Chinese imports announced on July 10, 2018. Adjustments were made to the proposed list after USTR and the interagency Section 301 Committee received comments over a six-week period and testimony during a six-day public hearing in August resulting in the reduction Included among the products removed from the proposed list are certain consumer electronics products such as smart watches and Bluetooth devices; certain chemical inputs for manufactured goods, textiles and agriculture; certain health and safety products such as bicycle helmets, and child safety furniture such as car seats and playpens. Click here for a link to the full list of items affected.
What does this mean?
This tariff may affect other items you buy for your business. All items on the list, including nails, synthetic roof underlayments and house wraps, and other building and construction items that are made in China, will incur a 10% tariff on the F.O.B. value of the item. For roofing nails this is approximately $1.30 to $1.50 per box. As previously announced, this will be added as a separate line item to our invoices for those products subject to the tariff.
What can be done to plan ahead?
Quickly review your current inventory and upcoming demand. We have significant ‘ready capacity’ to ship prior to October 30th so material will arrive prior to January 1st and avoid the impact of the additional 15% tariff (which increases the tariff amount from ~ $1.50 to ~ $3.75 per box). As the largest direct nail importer into the U.S. we will work to continue to be the leader in ‘on-time delivery performance’ to support your business.
While we were one of the companies that did testify, on behalf of our customers and the roofing and construction industry at the August hearings, the nail products we supply to our distributor customers remain a part of the current final listing. We are still working behind the scenes to help mitigate this tariff in whole or part. We will provide additional tariff and market information as we receive it to allow you best plan for your business needs.
Please let us know if you have any questions.
Continental Materials, Inc. (CMI) is a national supplier of roofing system component materials and known for BUR (built-up roofing) asphalt with “No Smell”™ odor eliminating technology and its WeatherSeal™ protective packaging, All-Weather™ asphalt felts and coated organic rolls, CMI All-Weather™ modified bitumen rolls, SureGrip™ construction fasteners and roofing nails, Continental’s eco-friendly high density fiberboard roof insulation board and a premium line of SecureGrip™ synthetic roof underlayment products that are sold and used widely throughout the country. CMI has provided value added products and superior service to the roofing industry since 1958.
For more information on CMI products, call (215) 884-4930, visit www.continentalmaterials.com or contact your local CMI Sales Representative.