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************,*** ***** ******** ******** products **** *** ****** list.
Inventory ******** ******
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Hikvision ************* ** *** *********
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******* ******** ****** (**** customers *** *************) **** discussed **** **** ******** their ****** ****** / manufacturing *** ** ***** due ** *** ******** about ******* *** ********* China / ** ********. Indeed, **** **** ** a ****** ***** **** ******** ********: **-***** ***** *** ******* rethink ** ****** ******.
**** ******* ****** *** industry ******** ******* ********* $*** million ** * ******* factory, ***** ** ****** to **** **** ** a ********** ***** ***.
Broader ******** ** '*******' *****
**** ***** *********, ********* those ** *****, *** increasingly ****** *** ** actions ** * **** to '*******' ***** ** a ***** ******* *** US, ** **** **** ******* ******:
*** ***** ******** ** only * ***** *** the ****** ****** *** dominance ******* *** *** powers. **** *** ***** pointing ** * ******* government ********** ** ***** back, ***** **** *** goal ** ******** ************ is ** *****, ***** is ******** ** **** in ** ** ********
Further ********** *******
***** *** *** ********* a ******** ******** ** its *** *** *********** ** *********.
*******, ** ***** **** retaliate, ********* ******** ********** ** ** “***** three” ** *** ***** war *** ***** ***** impose ******* ** ******* $267 ******* ***** ** Chinese *****.
**** ***** ****** ** tariffs ** $*** ******* of ******* *******, ** almost *** ******** ** Chinese ******* ** *** US ** **** (************ ***** $*** *******.)
**** ***** ********* ********* that ****** ** *** US ***** *******-**** ******** would ********** *******, ********** of ******** ********. *********** and ************ ****** **** note.
Comments (36)
John Honovich
Charles, good reporting.
I'd emphasize that moving supply chains out of China is the smart move for security and video surveillance manufacturers. Tariffs, cybersecurity, human rights, dealing with the authoritarian PRC government, general branding, etc. all combine to make it prudent to manufacturer elsewhere.
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Sean Nelson
09/18/18 07:18pm
Hooray for inflation!
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Jonathan de Chateau
For EU, a recording device has an import charge of about 16% and a camera of 4.9%.
Adding a tariff to something that competes with what you can make yourself is not strange, but doing it in a fight like this doesn't help anyone.
If everyone was so loyal to local products the tariff wouldn't even be needed, so it's going to hurt everyone's wallet except for the company that was just not good enough to compete, and now is.
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Undisclosed Integrator #1
Do you think it was a Hik cam that recorded whatever happened with those Russian women and the Donald? Let's hope his iPhone is never compromised or we are all going back to Blackberry.
In all seriousness, my prayers are with all the victims of this trade war. From the US integrators who make their living installing in K-12, to the distributor sales reps, to the poor factory workers who are hardly paid enough to begin with, I pray for them all. A stroke of a pen carries a lot of weight in this world.
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Undisclosed #3
The U.S. Is a big market, but there are plenty of green fields out there for Chinese products. The USA is ~12-13% of the global surveillance market, China is ~40%, few CN manufacturers rely solely on the USA as an export market, for most of them these tariffs will be a small pot hole in the road.
It will take China some time to adjust, but they will just move elsewhere, the U.S. Based channel players are the ones that will suffer more, these tariffs will not harm China as much as they will harm American distributors and integrators.
I agree with Sean, better to offer subsidies than impose tariffs.
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Charles Rollet
FYI, on the same day the US announced these tariffs, Avigilon boasted on Twitter that one of its latest products is "proudly manufactured in the USA". One sign of non-Chinese manufacturers taking advantage of this situation.
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Undisclosed Manufacturer #4
In Europe we have always had duty on recorders and cameras that impact the sell out price in local markets. Not quite 25% but we used to have 13.9% on recorders up to recently.
The interesting thing that has happened this year is that the duty % for importing into Europe has dropped considerably for recorders and cameras and most likely the majority of electronics.
A lot of importers into Europe when the duty % was high on recorders would get Dahua/Hikvision to ship main board and case as separate product so to avoid the 13.9% duty as the product wasn't complete when being imported and thus then only pay 4% (this same taric is now only 1%)
So maybe USA importers can get around the high duty by shipping in-complete product and then assembling the products in the USA!
But what may affect the above is that the big 3 in China are beginning to put a price premium if you want to ship MB and Case as separate products as they claim it is more work for them. Yes it is more complex for them but the price increases they are quoting currently is not a true reflection!
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Sean Nelson
09/19/18 03:58pm
I just got to thinking that the Alibaba buyers are really gonna get a slap in the face now when they find out their camera is now 25% more than they originally thought
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Undisclosed Distributor #6
25% Tariff only apply to DVRs, NVRs or only on cameras?
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thomas worthington
09/21/18 02:15am
Tariffs are going to hurt our business, and hurt our American employees.
This 25% tariff hurts installers and companies like mine. What happened to capitalism and free markets.
Tariff = tax
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Undisclosed #3
what about tax rebates instead of tariffs?
if you manufacture in the US you can get 25% tax rebate, instead of taxing you 25% if you bring from abroad
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John Honovich
Hikvision USA sent out an email to dealers this week about the tariffs, downplaying impact, nothing that they have significantly increased inventory in the US to avoid the tariffs impact for the time being:
Other elements worth noting:
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Undisclosed Integrator #7
Access control products also fall into the tariff categories and will affect them as well. Anything that functions as a time clock (like a card/fingerprint time and attendance terminal) or data storage device like the memory chips in access control panels may also be affected.
Does anyone else see this?
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