Roofing Nail Tariff Update (May 2019) [UPDATED 5/10]
FOR IMMEDIATE RELEASE:
Roofing Nail Tariff Update
May 08, 2019 [REVISED 5/8]
Dear Valued Customer;
“The Section 301 Tariff increase to 25% (from 10%), that had been postponed from January 1, 2019, has now implemented.
Some Background.
On Sunday, May 5, 2019, President Trump announced that the tariff rate on USTR List 3 items of Section 301 tariffs would be increasing from 10% to 25% on Friday, May 10, 2019.
Additional details have evolved and clarifications have been made to the initial tariff implementation schedule that would have affected all entries as of Friday, May 10, 2019 at a 25% tariff rate. We have been provided details of changes in the scheduling of the tariff based on timing of export and entry of shipments from China to the US.
What is the impact of changes in the implementation of the tariff?
Exports shipment made from China beginning May 10th
The additional tariff will be effective on exports made from China beginning May 10, 2019 and will add 15% to the initial tariff amount of 10%.
Tariff Rate: 25 percent
Exports in transit from China prior to May 10th and entering US prior to June 1st
The tariff will remain at 10% with exports made from China prior to May 10, 2019 and entering the US prior to June 1, 2019.
Tariff Rate: 10 percent
Exports in transit from China prior to May 10th and arriving June 1st and after
The additional tariff will be effective on exports made from China prior to May 10, 2019 and arriving June 1, 2019 or after and will add 15% to the initial tariff amount of 10%.
Tariff Rate: 25 percent
What are the affected items?
Subject to any clarification from the U.S. Trade Representative (USTR), this immediate increase from 10% to 25% would impact those Chinese products previously identified in the USTR ‘List 3’ already targeted with Section 301 tariffs. List 3 represents $200 billion in annual U.S. imports from China.
What does this mean?
This tariff affects 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 may be made in China, will incur an additional 15% tariff on the F.O.B. value of the item. For roofing nails this is an addition of approximately $1.80 to $2.00 per box of 1-1/4″ coil roofing nails (or approximately $3.00 to $3.35 per box total at the 25% tariff level).
How can you 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 the ‘tariff cost’ as a separate line item on invoices and only charge the applicable tariff rate in affect at time of entry. The tariff amount will continue to be calculated based on FOB cost only.
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 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.