Author Topic: Anyone care to explain the nuts n bolts of the US/China tariff situation?  (Read 875 times)

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Offline djacobowTopic starter

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I"m US-based and have been using Chinese PCBA to build some cool stuff. Now that the tariffs are kicking in, I'm trying to understand what the damage is going to be.

Scenario 1. I'm in the US, PCBA is in PRC, and the PCBA procures parts. Most of the BOM is western-branded parts from US distributors but really I have no idea where the parts really come from -- I assume some are from China. Is it correct to expect that (if the PCBA procures) they will pay a 30% Chinese tariff on the parts and when they ship to the US I will pay a 30% US tariff on the entire completed assembly? Or will that latter be minus what was paid for the parts (and their tariff)?

Scenario 2. I'm in the US, PCBA is in PRC, but I buy parts myself from US distributors and consign to the PCBA for my order. Does that mean I pay a 30% US tariff on the parts I bought (if they were made in China) and then the Chinese may apply a 30% Chinese tariff on the parts when they are imported to China, and then I might pay another 30% US tariff on the completed assemblies?

Sorry, I'm all mixed up, so maybe the question isn't even right.


 

Offline xaxaxa

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it really depends on how religious you are about parts being "genuine" and shit; most PCBA houses in CHina will source from local market which includes smugglers so they would be dodging china's tariffs. Shenzhen market parts are perfectly fine if you have proper statistical QA and testing processes. If you don't, then even digikey can fuck you over and then they will just say "it's a mistake" or blame it on the upstream supply chain.

If you source your parts and send it to them, then it's a matter of luck whether customs will delay your shipment (or even reject it). I think you'll have a better luck declaring a low value, making the package small and inconspicuous, and declaring it as toys or some shit.
« Last Edit: October 16, 2018, 01:30:30 am by xaxaxa »
 

Offline xaxaxa

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and yes if someone is uninformed enough to declare the correct value when sending parts to china then it will be hit with high tariffs; in china the saying is "obey the law and get screwed" or so it goes

Personally I prefer having the PCBA house source the parts and leave the smuggling to someone else.
« Last Edit: October 16, 2018, 01:36:16 am by xaxaxa »
 


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