Additional Duties on Certain Origin China Products Effective July 6, 2018 - Update

Updated August 31, 2018 | Original posted July 25, 2018

Dear Valued Customer,

As an update to our July 25, 2018 letter, we would like to provide you with new information.

Since the introduction of the new tariffs in early July 2018, Central has been absorbing these additional costs while we evaluated the impact. However, we must now pass along a fee to customers, to recover at least a portion of the origin China products tariffs we are being charged.

Central’s origin China products tariff fee will be a flat surcharge based on the sale price of all affected products. Beginning on September 4, 2018, products that may be subject to the origin China tariff fee will be identified as such on formal quotes and order acknowledgments. Effective September 10, 2018, you may start to see a line item on invoices from Central that include the origin China products tariff fee. Please note this fee will only be applied to products that shipped to Central from China after July 6, 2018; inventory on hand prior to July 6, 2018 will not be subject to the surcharge. The actual fee will be assessed when orders are shipped, depending on the lot receipt date at Central, and will be included on our invoices at the time of shipment.

We will continue to monitor this situation and will make any necessary adjustments to the origin China products tariff fee as of January 2, 2019.

Please contact your Central Sales Team member for further details or to see if certain products are affected by the tariff.

We value your business and appreciate your patience and understanding as we manage this issue.

Sincerely,

CENTRAL SEMICONDUCTOR CORP.

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