Tariff Information

Letter to Customers

Our Valued Customers,

The tariffs announced by the Office of the United States Trade Representative (USTR) under the Section 301 Action went into effect on July 6th, 2018 with additional products added to the list on August 23rd. All items identified, as classified, under the Harmonized Tariff Schedule of the United States (HTSUS) with a country of origin of China are subject to a 25% duty upon importation into the United States. See List 1, List 2, and List 3.

Digi-Key continues to work toward minimizing the impact of the tariffs to our customers. We are working with the ECIA (Electronic Component Industry Association) and our 800+ suppliers to minimize impact on the supply chain yet adhere to the law. Due to our inventory position, we have been able to delay the immediate impact of the tariff in some instances.

Digi-Key is responding to customer requests to identify products impacted by this tariff in the search results on our website. Again, the tariff only impacts products with specific HTS codes, with a listed country of origin of China, and consumed within the United States. There is no impact on pricing for products within Digi-Key's stock shipped outside the United States.

This is a dynamic situation and we will continue monitoring the situation and exhausting all avenues to mitigate any impact or uncertainty in your designs or supply chain.

Any immediate questions not answered in the FAQ can be sent to tariffs@digikey.com

Thank You.

Dave Doherty
President & COO
Digi-Key Electronics

Last Updated: September 13th, 2018

Frequently Asked Questions

Any immediate questions not answered in the FAQ can be sent to tariffs@digikey.com

What parts are impacted by the new tariffs?

Section 301 identifies 818 product lines (based on HTS codes) that will be levied with an incremental 25% tariff: see List 1, List 2, and List 3. We currently do not have a complete list of part numbers available, however, our early review totals under 5% of the current stocking SKUs offered from Digi-Key Electronics would be subject to tariffs.

Will Digi-Key charge the tariff to customers and are prices going to change?

In instances in which a supplier is passing tariff charges through on the cost of our product, Digi-Key’s price will reflect the passed through increase, as those products are received. Because of the various ways these charges are being passed through, these increases make it very difficult to delineate the specific portion attributed to the tariff.

When will Digi-Key begin/end billing customers for the incremental tariff charge?

We are working closely with our 800+ suppliers to determine the impact while addressing the most economical supply chain solutions as we adhere to the guideline of the law. Due to our inventory position, we may be able to delay the impact of the tariff as we monitor and control our order backlog.

What’s Digi-Key’s strategy for mitigating the tariff impact to the customers?

Digi-Key is in the process of developing our course of action and we have been reviewing and addressing many related topics in order to achieve the best approach to fairly manage the impact of tariffs. We are working closely with our 800+ suppliers and the ECIA (Electronic Component Industry Association) to minimize tariff impact on our customers, including filing for the exclusion of electronic components from the Section 301 list.

Are part lead times and availability impacted?

Due to our current inventory position, there is no change in lead time or availability at this time due to tariffs.

How is Digi-Key handling drawback requests from customers?

Duty drawback is a process in which an entity in the US, subject to the tariff, can apply to recoup the duty paid if the product is subsequently exported in its original form without any value-added processes performed to it. We are still in the process of gathering all the pertinent information from our suppliers and government agencies to review how duty drawbacks could be processed for customers, where applicable.

How does the tariff impact Digi-Key customers doing business outside of the United States?

The Section 301 tariffs are not applicable for products being delivered outside of the United States. Digi-Key will not charge Section 301 tariffs on products delivered outside the United States. Digi-Key is in the process of establishing a Foreign Trade Zone (FTZ) warehouse located in Thief River Falls. When this is established, goods will not enter the U.S. commerce unless they are subsequently shipped within the US. All international shipments will avoid imposition of the tariff. For products imported by our suppliers as duty-paid, Digi-Key will re-export those parts with no tariff upcharge applied and we will claim duty drawback as allowed under Section 301.

Last Updated: August 23rd, 2018