Tariffs

US Tariffs

Which parts have tariff charges?

The tariff landscape seems to be changing continuously. Below is a list of the current tariffs applied to goods entering the United States, when the tariff was initiated, when Future started applying the tariff and some general facts regarding the tariff.

These tariffs are cumulative in their effect. Example… If an aluminum heat sink is made in China, the tariff will be 25% (Section 301) + 20% (IEEPA) + 25% (Section 232) = 70%

• How does Future set the tariff rate to the customer?

Future uses a simple weighted average to set a flat tariff rate per supplier, COO, and HTS. We take the total tariff cost for a given period of shipments and divide by the total combined resales for the same group of products. This results in a flat breakeven rate applied to the resale.

• Why are the tariff rates for one supplier different from another for the same basic part.

The tariff is paid by the importer of the device. In some cases, the importer is Future Electronics, and the standard tariff rate will apply. You will note that the rate is usually less than the actual government tariff rate but still high as we import using distributor cost, which is only minimally lower than the resale. To reduce tariffs to domestic customers, Future encourages suppliers to import the product. Since each supplier imports their parts at different costs, there can be a large delta in the final rate to the customer.

• How are tariffs impacting non-US customers?

Future has invested heavily in tariff mitigation to provide a relatively tariff free experience to non -US customers. For customer that that export directly out of the US, Future does not apply a tariff surcharge. For customers that must ship through a domestic US Freight Forwarder, Future can still provide a tariff free experience provided the following conditions are met”

• 1. The account must be set up as an export account, which means the final shipping destination is outside of the US and Puerto Rico.
• 2. The customer must provide a “bonded” freight forwarder as an inter-consignee. This means the freight forwarder has a government issued “FIRMS” code that allows them to move product in bond from a foreign trade zone.
• 3. Sign the Drawback Rights Blanket authorization form and agree to provide the required proof of exportation for each export shipment should US customs audit any claims.

Some suppliers cannot support any form of tariff mitigation, and the tariff must be recovered. Future will normally add the cost to the resale, but a surcharge is possible. Please speak to a Future salesperson for details. 1-800-655-0006

Due to the case-by-case nature of the tariffs situation, we have temporarily halted shipping outside of the US while we work on a solution for website orders.

• What is Future Electronics strategy for mitigating the tariff impact to customers?

Future has duplicated it supply chain channels wherever it makes financial sense to minimize the impact to our customers.

Future pushes suppliers to be the importer on product all requirements for non-US customers. This allows Future to move the goods through our FTZ to avoid the tariff on exportation.

There is no way to mitigate the tariff for customers that consume product within the US, but Future pushes suppliers to be the importer of record to support this business, so that we leverage the lower import cost to provide the lowest possible pass through rate to US domestic customers.

• When will I see the tariff charge per part?

Parts that are tariffed will display a symbol and a message box reading "Tariff charges may apply if shipping to the United States. An estimate of tariff charges will be calculated at checkout.". Once in the checkout process, the tariff charge will be calculated at the part level and added to your total bill as a separate charge.

• How will the tariff charged be billed?

Existing Future Electronics customers will be billed as per their regular account specifics. They can be billed either by accumulating the tariff charges over a two-week period and will receive a standalone invoice for the tariff charges for the previous 2 week activity, or, be billed on the same invoice as a separate charge.

• Can I request non-tariffed parts to be shipped for my order?

No. Future Electronics carries a mixture of inventory that includes parts made exclusively in China and parts that come from China that may be made in other jurisdictions. At this time, we are unable to guarantee that any requests for parts made in places outside of China can be honored, therefore, we will not be making any specific guarantees related to this type of request.

• Can I select which region to ship my order from to avoid tariffs?

No. Future Electronics will ship product from the distribution center which is in the best position to fulfill the order requirements.

• Will I still be charged tariffs if the part was labeled as tariffed, but the parts shipped are not of origin China?

At the time of order fulfillment, if the parts are determined to not be of origin China, there will not be a tariff charge on those specific units and the tariff amount will be adjusted on the invoice.

• Will the tariff charge be refunded if product is returned?

Yes. If a tariffed part is returned, the tariff charges will be refunded.

• Will Future Electronics accept customer cancellations of NCNR orders due to the tariff?

No, the NCNR will be enforced. Future Electronics is only administering the tariff charge that is imposed upon us and is unable to modify this condition of sale.