US Tariffs Hit China Video Surveillance

Author: John Honovich, Published on Jul 13, 2018

Chinese video surveillance products avoided tariffs for the first two rounds. Now, in the third round, many video surveillance products will be impacted.

Inside this note, we examine:

  • The relationship between products and tariff codes
  • What tariff codes are hit and how this will hit video surveillance products
  • Ways that the tariff impact could be minimized
  • What potential impact the tariffs take

******* ***** ************ ******** ******* ******* *** *** ***** *** rounds. ***, ** *** ***** *****, **** ***** ************ ******** will ** ********.

****** **** ****, ** *******:

  • *** ************ ******* ******** *** ****** *****
  • **** ****** ***** *** *** *** *** **** **** *** video ************ ********
  • **** **** *** ****** ****** ***** ** *********
  • **** ********* ****** *** ******* ****

[***************]

Executive *******

*** ****** ** ********:

  • *** ** **** * ******* *** ******* ****** ****** *** applying ******* ** ********.
  • ******* *** ***** ******* ** **** ********* ** ***** ***** but *** ** ******, ** ******** **** **** ******* *** or *** *** ** *** **** *******.
  • ** **** *** ****** ** ********* ***** ************'* ******** *** impacted. ************* **** **** ** ******** **********.
  • **** *** ** ******* ** **%, ***** **** *** ******** 25% *** ** ******* ** **** **** ****** ** *********.
  • ************* **** ****** **** / ***** ********** ********* ***** ** the ******* ****** **** ****** ** *** ********* ****** *** not ** **** ***** *** ** ****.
  • *******, *** ******* *********** *** **** *** ******* ******** ******* more ******* **** ** ** ********* *** **** *** ****** to *** ***-******* ************* (*.*., ****** *** *****).

Tariff ***** ********

***** *** ** ******* ****** ** ****** ***** *** **** are *** ****** ** ****** ******* ** ********.***** *** ******* **** ** ************ ********* ** ********** ***** ****** **** *******. ******* ** is *** ** *** ******** **** ******** ******* ** ***** surveillance (**: ********** ********* *** ********* *** ***** *******; ***** ********* AND ***********, ********** ***** *** ***** ********* *** ***********, *** PARTS *** *********** ** **** ********).

Video ************ ******* ****** *****

*** ****** *** ** ***** ******* ** ***** ************ *******.**:

*** ***** ***** ** ******** ******* ** ***** *** ********* July **** *** ** ****+ **** **************** ********* ** ****** *****. *** **** **** ****** ** impact ***** ************ ***, *********:

** *********** ** ***** *****, *.*., *** ****.**.** ** ******** but ****.**.** ** ***.

*** ********* ****** ** **** ** ******* *** * ************ is **** ** ******** ***** ********, *.*. ****.**.** *********** ******** are ******* ** *** ******** **% ****** *** ****.**.** *** not. ** ****, *********** ** *** ***** **** ** **** way ** ********* ****.

** *** ****** **** ****.**.** ****** **** ************ *******, ***** on ************* **** *********, *** ** ****** ** ******* *** many.

Hikvision ******* ******** ** *******

********* ****** *** *******'******* ********' ** **** **** ***** *** *** *******, ******:

****** ********* ******** *** ******** ** **** ****** ***** ** proposed ** ******* *******.... ***** ** *** ******** *****, ** expect ********** ****** **** ****** ** *** ******* ********* ** the ****** ******.

*******, ********* *** *** **** *** ******** ****** ***** ** name *** ******** ******* **********, ** ** ** ********* ** determine *** ******** ** *** ***** ****** ***** **.

Minimization - *********, *****, **********

*** ******* *** *** *** ** *********. ***, ** ******, there **** ** ******** ***** ****** *** ******* *** *** into *****. ******, **** ** *** **** *** ******* *****, it **** **** ****** *** ***** ******* **** *** **. As ****, *** ********* **** ** ******* ** ****** *** start ** *** ****** ***** ***** *** ********** ******. ******, this **** ****** ******* **** ****** ** ***** ** ** sold **** ***** *** **** *** ********** ****. *******, ***** is * *********** ** *********** *** ********** *** **** ** less ****** ** **** ***** ***** **** *******.

Potential ****** ********

** ** *** *** **** ******** ****** ****** * *********** direct ****** ** *** *********** *********** ** *** ******, ***** it ** **% *** **** ** **** ***** ** **** but *** *** ***** ************ ********,

*******, *** ******* ********* ***********, ***** ***** ** ***** ********* and ********** ********* (*** **** *** ******* *** *** ***** Bill *** *** ******** ********), ** *********** ** ******* ***** surveillance *************. ****, ** **********, *** **** ************* ******* **** and *********** ** ***** ***** ********, ***** **** ****** **** to ******** *********** ******* *********. **** *******, ***** *******, *** the ****** *******, ********* *** ******* **** ***** ** ******* video ************ *************, ***** **** ******** ************ ** ******* ***** products, ******* *** ******* *** ********** *** ********* ** ***** companies.

Comments (51)

**** ****** **** ******* **'* **** *******? *'* **** ** send *** * ******** ****, **** ****, *** **** ****-****** medication.

*** *** *** ****** *** ****** **** ** *** **** codes *** ********* ************* *** *****. ** * ********** *** can *** ***** ****** **** ** **** ** *** ****** data

* *** *** *** *****. ** ****** **** **** **** and ******* **** **** (*.*.,***** ** ******* - **** ** ***** #* ******** ** Far). * *** *** *** ** **** *** **** **-******* but * ***** ** ******* **.

***, *******,**** ** ** ****** ** ********* ******* ** *** *** for * ***** ***** ***** ****. **'** ****** ** **** ****** ****** *** ****'* **** on *** **** ******. ****** *** ***** ** **** *******, feel **** ** ***** ********.

* **** ****** ******** *** *** **** **** *** *** tariff ******** ** **** ** ** *******. **** ** *** ultimate **** **** ** ***** ** *** **** *** ** this ***** **** ****** ******* *** *****. * *** *** why ** ***** **** ** **** *** ***** *** *** make *** ******** ****** ** ****** ****** ******? * ***** this ***** ***** ** ************* ******, *** ** ** ***, it ***** **** **** *****.

* ** ****** *** **** *** ** *** ********* ****** flexing *********** ********. * ***** ** ***** ** **** *****. Could ** **%.

* *** *** *** ** ***** **** ** **** *** China *** *** **** *** ******** ****** ** ****** ****** prices?

**** ** *** ***** ****. *** ******-**** ******* ** ** shift *************, ** *** ** *** **, ** ********* **** are **** ****** *** ******* ** *** **.

****, * *** **, *** *** ** *** ********* ***** to *** **** **** ****, *** * ***** ***** * lot ** ****** ********* (*.*., ****) *** ******* ******* *** this **** ******** ** ********** ****** ** ***** ***** ****** chains ******* ** *****.

* **** ***** **% **** ***** * ***** ***** ** manufacturing ** *** *** *** **** ** ***** ********* ** buy ***** *********. ** ***? * ***** ** ***** ******* have ** ** **%. **** ***** *********, **** **** ********** included *** ***** **** **** **% **** **** *** *** get *** ** *****. * *** **** ***** *** ** China **** ** *** ********* *** **** ***** ** ********** 0 ********** ** **** ********* *******:
*) *** ***** ***** ** ******* ** *** *** ** China
*) **** ************* ******* **** ***** ********* *** *** *** consumer ***** ********.

*** * **** ** *** **** **** ************* ** *** USA. ********** **** **** *** **** ***** **** *** *** SMB ******, *** * **** *** ** ********* ******** ***** in *** **** ******.

*** *** * ** * ********* ** *** ********* ***** but ****** * ** * ******** ** **** *****. ** are *** ******** ** ** ***** ** **** ***, ** are ******** ** ** *** *** ********.

* ** * ******** ** **** *****

*** *** *** ***** ** **** *** ***** *** **** China *********** ****** *** ******** *** ******** *** ****** ***** surveillance *************.

*** ***** **: **'* *** **** *****, ***** ***** ********* to *** ***** ******** ** '****' ***** ********* ******* ********* that **** ** **** ****** ** *****.

*** *** *** ***** ** **** *** ***** *** **** China *********** ****** *** ******** *** ******** *** ****** ***** surveillance *************.

**** *****.

** **** *** *** **** ****. *****, * **** ***** it **** ****** ****** ******** **** ********* ********** ** **** of ***** ****** ** ***** ****** *****. * ***** ***** should **** **** *** ** *** **** ** **% **** he *** ***** *****. ** *****, ******* ** **** **** would **** ** ******* ****** ** *** *******. ********* * think *** **** * ********* *********** ****, ** **, * hope ** *****.

** **** **** ***** ******** *** *** ***** **** ***** that ******** ******** *** *** *** !

* **** ***** **% **** ***** * ***** ***** ** manufacturing ** *** *** *** **** ** ***** ********* ** buy ***** *********. ** ***?

**'* *** **** *** **%.

**'* *** **** **** ** ***** ** ******.

**'* *** **** **** *** ******** ***** ** ******.

* ***'* **** **** ********* *** *** *** ********, *** I ***** ***** **** *** **** ***********, ******** ******** **** this ****** **** ** **** ****** *** ********* ******* *********.

*** **** ** ******** **** ******/**** **** ** ** ******** prices. ******* ******** ****** ** ******* ********** ***** *** ******** plays **** **.

*****, ******. *** ******** **** *** ******* ************* *** ******** pricing?

** *** *** ****, *** ***** **** *** ***** ******** pricing, *** ***** *** ****** **** **. *** *** **** reduce ***** ******** ******* ******* ******** ** ***** **** *** IRS? *** **** ** **** ***** ***** ** *** **** increasing *** ********* *** ****** **** ** ********* *****?

*** ********* **** * *** **** ********** **** **** *. I ** ******* ***** **** ********. ******

******* ********* ***'* *** ***** ******** ******* ** ************ ******** they ****. *** ********* ** ******** **** ********** ******* ** in **** **** **** * ***** ***** ***** *******. ******** pricing ** ********* ****** ** ****** ****** ***** ****'* *******.

* ******** ******* ***** *** **** ******* ******* ** *** IRS ** ******* ******** ****** **** * ***** ***** **** is **** *** ** *** **** ******. ************* ***** *** overhead *** ***** **** **** **** ********** ******** ***. **** of ****** ***** *** ** ** ** ***** ***** * have *** ****.

* **** **** ******** ****** ***** *** ************ *** * to * ******* ** *****.

*** **** ****** ** ******* **** ***** *** ** ***** parties. *** ***** ********* *** ********* ** *** ** *** transfer ****** ** **** ***** *** ********.

* **** *** **** ********** **** *** *** * **** firms **** ******** ******* *********. **'* **** *******.

*****, **** ********. *** *** ******* ****?

* **** **** ******** ****** ***** *** ************ *** * to * ******* ** *****.

* ** * ******* ****** **** **** **** ****? * to * ******* ** ****? *****, ****** ** **********.

* ** * % ****** *** *** ** ********** ***** in ***.

** ***!

*****, *'* *** **** ** ********. *'* *** ** ****** on *** ***** *** * **** **** ******** ** ******* international ********** ********** *** **** * ****** *** * ********* conveyed ** ** ** ************* *** *********** * **** ****** with. ** ****** ** ** **** **** ******* **** **** and * ************ *** **** ** **** ************** *** ***** other ******** *** ***** *** ******** ******* ********. *'* **** there *** ******* ******** ***** ** *** **** ********** *** issue. ** ***** *** ****** ***** ** ****** **** ******** pricing ** *** ******** ** ** ********* *** * ************ would **** ** **** ** **** * ******** ************* *** their ****** ****** **** ** *******.

*** **** ** **** ** *** ***** ******* ** **** worldwide ******** **** *** **** **** ** ********** ***** **** globally. ** *** ****** ***** ** **** *** ***** **** the ***. *** *** ***** "** **** *** **** ****** what *** ****"

*** **** ***** ***** *** * *** ******* ** *** goods **** **** ** *****, ** *** **** ** ***** tax ***** *** ***** ** ***** *** ****** ** ***** in ***** ****, ****** ****** **% *** ** **** ****** in **** ******** *********. *** ******* ******* ** *** **** too **** ****** ** *****, *** ***'* *****( **********) *** money **** ** *** ** ******* ****** **** ***** ** those ************. *** ** ***** * ******** ** **** **** that ** ****. *** **** * *** ** ***** ********* and **** **** **********/*** *** ****** ** **** ***** **** as *** ** ********. *** **** ** *** ******* * had ** ******* ** ****** ********* *** **** * ********* tax **** ** *%.

** ***** ** ** ***** *** ***** ****** *** *** really **** ** **** ** **** ********** ****** *** ******* to ***** ** ********** *** **** *** ***** **** **** are. **** ******** **** **** *** **** **** ** ** annual ******, *** **** *** *** *******.

**** ** *** ** *** **** ******** **** ** ****** and * ***** ******* ** ** ****. ** **** * supply ***** ********** ****** **** ******** ** ** *** ***** and ***** **** ******** ******** ******** ********* **** ******- ****** is ** *******. *** **** **** ** ******** * ***** variety ** ***** ******* **** ****** ** ******* ****** *** they *** *** **** *********. ** * ******** * **** pay **** *** * ***** ****** ** *** ****** ** has **** ***** ***** *** * **** **** ******* ** the **** ****** ******* ********** ******* ******* ** ****. * then *** ****** ** ****** ***** ** ***** *** *****. Protecting ** **-*********** ***** ******** ** *****. ** ***** ***** a ***** ************ ****** * ***'* ***** *** ** ** matter *** *********** ** ** *** ***** **** ****** ****** the ****** ******.

* ******* *** ***** ** ** *********** ******* ** **** directions *** *********** ***** ************ ******** ** ******* ******* **** external *********.

***** *** ***** ** ********** ***** ******* ******** **** **** entering **** ******* **** **********.

** ****** *** *** ******* **** *** ******** ******* ********** subsidies ** **** ***. *** ** *** ******** *** ********* to *** ******* ** ****** **** ****** ****** ** ****. Both ***** **** ** *** ********** *****, *** *** *******.

*** ***** *** ****, *** ***** ** ******* ** ******* now *** *********** ***** **********. ***** ********** **** **** ** evaluate *** *********.

*** ***** **** ******* ** ***** *** *** ** ***** lead ** *** *******?

** ****** * ****** **** *** ** *** ***** *** is *,*%. *** *** ********* ****** **’* **,*%.

** *** ****** ******** **** **** **** **** *** **’* a **** **’** ***** ******.

*** ***** ** * *** ***** *** ***** **** *** a **** **** *****!

** **** ** ****** **** ***** ** ** ****** **** any *******?

*** ******* (******* *** **). ***** *** ***** *** **** exceptions ** ***** *** ********** **'* *** ******* **** ** places.

******* *** * *** ** ********* ******.

** ***** *** ** *** ******** **** **** *** ******** our *******.

**** **** ******** ******** ****** **** *******. (*******, *********, ****).

**** *** *****. ******** ***** ******** **** ****, ** *******, and ***?

**** **** * ******* *** * ***** ** ****.

***** ******** ** *** ** *** ******* *** ****** * top **** ************ *** ***** ** *** **.

*** ***** *** **** **** ***** ***. **** **** *** thought.

*** *** ** ***** **** ********** **** *** ******* ** the ********** ** *** ***** ** *** ****** ***? ********** these ******* *** **** ***** ********* *** ***.

* **** ********* ***** ** **** ***** ********* ** ***** or *******. * ***** ** **** ** *****/******* **** ****** parent ******* ** *****, *** *** ***** **** ******?

**, ******* ****. **** ********. *** ***** ****** **: ***.

******* *** ******* ********* ** ******* ** ******, *** ******* of ****** - ******* ** ****** ***** *** **** ** the **' ********** ****** ** *******. (****** ******** ****.)

*** ** *** ********* "******* ** ******" ******? *** *** agreement ** ***** ** ******, ***** *** ** ** ***** to,****: "*** *** ******* ** ** ********** ** *** ****** of * ********** **** ** ** ****** (*) *** ******* where ***good *** **** ****** ******** or, (2) when more than one country is concerned in the production of the good, the country ***** *** **** *********** ************** *** **** ******* ***".

*********, ** ********* ************ ******** ** ***** **** *** **** shipped ** *** **, ***** ******** *** ********** ****** *******, not ******* ****. ** **** ***** *** ** ******** ** tariffs.

*******, ** **'* ************** ***** **** ********* ** **** ****** very ******** ******* ** ******* '************' ** *****, *** ***** is ** "*********** **************" ****** ***** ** ***** ** ***, the ** ***** ********* *** ******** ** *********** ** **** in ***** *** ***** **** ******* ** ****, **** ** they *** ******* *** ** *****. (******* * ** *** ********.)

**'* ***** ****** **** ***-******* ********* ************* ** ***** *** still ******** ** *** *******. *** *******, ** ***** **** cars ** ***** **** ** ******* ** *** **, *** recently********* ** *** ********* ***** **** *** ******* ** *** *******.

*** *** *******, ***** *** ** ** * ******* ********** of ***** ******* "*********** **************"** ******* *** **** ** **** countries *****. * *** **** **** **** ********, ** ** memory ** ******* ** *** **% ** ******* *** **** in *** ***** ****** *** *** **** ** *****. *** this: ***** *** ******** *** **** ** *** ** *** cost ** ****** *** ********( *** ******* ** ** *** CPU) ******* ******* *** ** ******* ************.

** ** ****, *** *** ***** ******** *** ********** ** another ******* *** *** ******* ** ***** ** **** ** that ******* ** ** ******.

**** ** ********* **** ** **** *** ***, ******

* *** *** ********* ****** ***** ********* ** *** ** to ******* *** ***** ******** ******. * **** **** ** the ******** *** ***** ** ******. * **** ** *** been ********* *** **** ** **** *** *********.

****/***** ************* ** ********** ***** ****** ******** ** ******** ***********. Because ******** *********** ******** ********** ***** ** ***** *****, * know *** * **** **** **** *****, *** ** *** final ********** *** ********* ** *****. *********, *** **** *** & ****, ******* *** *********.

* ***'* *** *** *** *** ****** *********** ** ******** assembly ******* **** ** *** **, **** **** ******* ****, labor **** *** ***** ******** ** *****/*****/*******?

*** ********?

*****- **** *** ******* ** **** * ***** ****

******- *** ******* ***** ** ****** ******* ***** ****** ** all ** *** ************* *** ********. *** **** **** ** is * *** ********* ** ** ******* *******. **** ******* have * ******** *********** ******** ** ******.

***, *** **** *** ***** **** **** **** **** *********? It’s **** ** ** *** ***/************ ******* **** **** ****** increase ** * ***** ***** *** *** ********* ** ********* besides “*****”.

**** **** ***** [*] ****** ***** ** ******* ******** ******** each ******, ******* **, *** ***** ******* ***** ***** ** out *** ********.

*** ** **** **** ****** ******** *** ****** **** ****? How ***** ** ***** ************ *********?

**** *** *** *********** ******** * '*****' *** ********* ** a ******* **** ** ********* ******* ********* **** **** ** the ********** *** **** ** ** *** ****** ** ***** assembled *** ******. **'* * **** **** *********. ***** *** seconds ******* ****** ** *********, ******** *** *** ** ******** box. ****** *** ********** ********* ***** ** *** **** ** the ******** **********, *** ****** **** **** ****** ******* ** cameras. * *** ********** ********** *** **** ******* ***,*** * day. ** ***** *** ** * ******** ** ***** ** 100's ** **** ** ***** ***** *********. * ***** ****** the '*********' *** ***** ** **** ** ****** **** **** delivery ** ******** ***** ******** ***** **** ***** *** **** have ** ****** ** *** *** ******* *** ******** ******** with *** ********* ** ******** *** ******** *** *********.

*** ******** **'* ***'** (*** ***) **** *****.

******, *** **** ***** ** ***** ********* ** *********. *** many ********* *** ********* *** **'* *** **** * ******* that **** *** ******* ******* ****** ******* ** **.

*** ** **** * ******* **** **** *** *** ******* to *** ** ****** *** **** ****** **** ***** ****.

**** *** ******* ****, ** ** *** ***** ******* * use ** ***** **** ******* * ***** *** ***** *** only *** **** *** ****** * ***** ******* **. **** was **** *** * ** **** ****** *** **** **** sophisticated *****.

*****, ****** *** **** *****. **** **** ** **** **** that **** ******* * *****, **** **** *******?

** *** ***** ***'* **** ** ***** **** * ***** would **** ** **** ** ******** ********* **** **********. ** use ** **** ** ***** *** ********* ********** ***** ***'* easy

**** ** ****, *'** ****** ** ******** ******* ** * Korea *** ********* **** *******. ** ****** ** *** ********, who ******* *** *********, ******* ***** ******* ** ***** **** in ****.

****** ********* ********* ******** ***** ******** **** ** *** **** 3 *****, * *** **** *** **** *** **** ******* are **** *********.

***, **'* ****** ******. ***** *** **** **** *** **** PCB *****. ***** *** ***** **** *** *******. ***** ** the ****** *** ***** *** **** ***** * ***** *****, finally ******* **** *** ***.

***** *** *** **** ** ******, ** ******. *** **** this ****** **** ** ******, ** ***** ** ****** ** investments *****.

** * **** ****, *** ******** ** ***** ******** ** Consumer ***********. * **** **** ******** ******* ** * *****. Samsung **** ***** ******** ******** ** ******, ** ***** *** a **** ******** ********. ********* ** *******/**, *** *** ** too *****, **** ***** ****** ****** ***** *&* **** *** Television *** ***********.

* ***** ******** ********* **** * ********* **** ** ******* Sales ********. **** *** **** ** ***** ***. ** *** time, * ******* **** ******* ******** ***** ******* *** **** 22 ******* ********. ****, ******* ******** ******** *** ** ******* in * *** ** ***** ******.

*** ******* ************* ******* ********* *** **** ********, ** ********* other **** **** ***** *** ******** *** **** **** **** usd.

*** ***** ** ***** *** ******* , *******, ************* *** security **** *****.

* **** **** ******** ********** ** **** ** *&* **** 3000 ****** ** *** **** ****** ****** ** ** **** 400 ******. **** ******* *** **** ******.

********* ****** **** ***** ****** ** ******* *** *** **** 40,000. ** *** ** ** ****** *********. **** ****.

********* ****** **** ***** ****** ** ******* *** *** **** 40,000.

********* ** *********, ** ** *** ****** **** ****. *** 2016, **** ******** ~***,*** ******* ***,******, *******:

** **** ********* ************ **** **** *** *******, ***** ** 2017 ** *** ******* ******** ** ****** ** *** ****** units. ** ****** ** **** * ******* ******** ** ********** in *** ****** **** ** **** ****. ** * *********, the *******’* ***** ********** ******** ** ****** ***,*** ****** *****.

*** ****** ** *** ***** ************* ******* **, * ** not **** *** **** * **** ***** ****** *********** ** that *****. *** ******* **** * **** **** ****** **** ********* ********* ***** (******* ****), ******** *****:

*** *** **** ****** * *** ***** ** * **** level ** **********

*** *** *** ******* ****

**** *****. *'** *** ** ******** ******** ** *** **** don't ***** ******** *** **********. *** **** ** *'** *** true ******* ****** **, *** **** ***** *** ********.

**** **** * ****, *** *** ******* ***** **% ** their ********, ****** **** *******?

* **** *** ***** ****. ** ***** ******* *** "**** makes ** *****, ****** **** **** ****** ********* ** *** US ** **** *** ******* ****** *** * *****". *******, I ***** ** **** **** *** ***** ******* ** ****** to ***** ****** * ***, ********** ** ******** *********. ***** they **** *** ** *** *** ****** ** * *** to **** ******* *** ** ********* ******** ***** *** **** bottom *******.

********* **** **** ** ***** ******* '***** ** *** ****' sale ** *** *** *********, *.*.

**** ** *** *** ** *** **** ** **** ** so.

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