All open orders produced in China will be subjected to price adjustments. MEGA will send you the new prices so that you can update your order confirmation.
Dear Valued Customer,
The Office of the United States Trade Representative (USTR) announced that Section 301 List 3 was finalized by the Section 301 Committee. Effective September 24, 2018, Customs and Border Protection (CBP) began collecting additional tariffs on List 3 affected imports from China at 10%. Initially this was proposed to increase to 25% on January 1, 2019, but was postponed and implemented June 15, 2019
MEGA Electronics Inc products are under the below HTS codes, which are included in List 3
DC/DC Converters 8504.40.6018
Power supplies 8504.40.9530
Power cords 8544.42.9090
We are producing our power cords in both the Philippines and China. There is no tariff increase on our products produced in the Philippines, only parts produced in China. To mitigate the increase in the tariffs on MEGA products, we have accelerated the construction of our new power supply plant in the Philippines due to be completed in late 2020.
To receive a quotation based on production in the Philippines, please send us drawings and quantity requirements to email@example.com
Production from this location avoids the tariff increase.
All open orders produced in China will be subjected to price adjustments. MEGA will send you the new prices so that you can update your order confirmation
MEGA is committed to keeping our customers informed of current market conditions and will continue to monitor the situation as it develops. Should you have any questions regarding this update, please contact your MEGA sales representative.
MEGA Electronics Inc.