08/29/2018
From SFATA: You may have heard recently about tariffs being imposed on v***r products with an effective date of August 23, 2018. What you may not know is that tariffs are introduced in what is called “tranches.” A tranche is basically a fancy word for “phase,” and each tranche will introduce other tariffs for collection.
The August 23, 2018 date referenced above was when the second tranche, or phase, of the current tariff plan went into effect and, as we understand, includes only complete hardware kits. This means that currently, if you purchase devices and tanks separately, you will not pay a tariff. This does a great disservice to our member shops carrying All-In-One devices—a very popular tool for new vapers—and increases the costs of other hardware when they are sold as individual units.
As if this weren’t troublesome enough, this next part is where things could get worse for us, or better, depending on how things play out.
Right now, the United States Trade Representative (USTR) is proposing a third tranche which could add anywhere from 10% to as high as 25% to the import cost of v***r and e-cigarette products, and there is no clarification as to which products this third tranche would affect.
This means that amount could be added on top of the 25% already imposed on the kits tariffed in the second tranche, totaling a tariff of between 35% - 50%. Or, it could be a tariff on all other products. We won’t have more information on this until all comments are entered into public record on September 6, 2018.
We find this unacceptable, so SFATA is partnering with other industry associations to provide comments that could result in the tariffs being lowered or even dismissed. BUT, to accomplish this, WE'RE GOING TO NEED YOUR HELP!
We’ll have to make solid financial arguments against the tariffs. To date, all testimony on the subject of tariffs has been anecdotal as to the implications. We need hard data that will show how the tariffs will impact our industry if we hope to see results.
To obtain this data, we are asking you, our members, to provide financial data for the purposes of securing a lowered tariff or exemption. This will be submitted anonymously and sent directly to a third-party organization that will capture, compile, and analyze the data to present to the USTR.
We are asking that you PLEASE fill out this survey promptly, as we have very little time to gather and interpret the data. The deadline to participate is Friday, August 30, 2018, but please don’t wait. This is important, and we need everyone’s participation. The future of your businesses could depend on it.