Roofing Nail Tariff News [10/11 UPDATE]
FOR IMMEDIATE RELEASE:
Roofing Nail Tariff Update
October 11, 2019
Dear Valued Customer;
“The Section 301 – Additional Tariff” – tariff increase to 30% (from 25%) planned and subsequently delayed implementation from October 1 st , 2019 to October 15th 2019, now delayed indefinitely.
Background
On August 23, 2019, President Trump announced that the tariff rate on USTR Lists 1, 2, and 3 items of Section 301 tariffs would be increasing by 5% from 25% to 30% and was to take effect with entries on or after Tuesday, October 1, 2019. This tariff had subsequently been delayed to impact only entries made on or after Tuesday, October 15th, 2019.
Tariff Update Announcement
With the interim ‘Trade Deal’ between the U.S. and China announced on Friday October 11th, any implementation of the proposed ‘additional tariff’ has been suspended indefinitely at this time.
What are the affected items?
Subject to additional clarification from the U.S. Trade Representative (USTR), this announcement of the delay in tariff increase from 25% to 30% would impact those Chinese products previously identified in the USTR ‘Lists 1, 2 or 3’ already targeted with Section 301 tariffs.
What does this mean?
This tariff would affect many 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 not incur the announced additional 5% tariff at this time (and only the 25% tariff remains in effect at this time).
How to plan?
As the largest direct nail importer into the U.S., we will continue to work to be the leader in ‘on-time delivery performance’ to support your business.
CMI will continue to add any ‘tariff cost’ as a separate line item on invoices and only charge the applicable tariff rate in affect at time of entry, as your best option, though of course we are always flexible to customer’s requirements. The tariff amount will continue to be calculated based on the FOB cost only, your best option when sourcing your nail requirements. Many other suppliers in this product space include the tariff in the cost of goods which can be confusing and make it difficult to understand the actual tariff impact. We will continue to be transparent regarding what the tariff is and only charge the actual verifiable tariff cost.
Going Forward
It is possible that should the Trade Deal be finalized in the near term future that the 25% tariff could be reduced or removed. Caution is still imperative, because things could quickly turn and tariffs could always be increased until a final agreement is signed. We will continue to monitor and provide additional tariff and market information as we receive it to allow you to best plan for your business requirements.
Additional Notes!
We have heard of significant tariff cheating that has been going on since the initial China tariff implementation. We are hopeful that Customs and Border Protection (CBP) will not let their guard down and be vigilant to go after those that skirt the system and their responsibilities and help insure consistent and uninterrupted supplies of tariff items for your business.
Continental Materials also provides options of non-tariff roofing nails from non-China production facilities. As one of the largest nail importers into the North American market we have supply agreements with nail suppliers in many countries.
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 our website or contact your local CMI Sales Representative.