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. For more information visit the China Section 301 - Tariff Actions and Exclusion Process site.

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 2,300+ 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.

In an effort to provide more transparency and simplify the buying process with us, tariffs will now be applied during checkout/invoicing. The price of the tariff will appear as a separate line item in your cart and on your invoice.

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: April 21st, 2020

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 product lines (based on HTS codes) that will be levied with an incremental 25% tariff: For more information visit the China Section 301 - Tariff Actions and Exclusion Process site. We currently do not have a complete list of part numbers available, however, under 15% of the current stocking SKUs offered from Digi-Key Electronics are subject to tariffs.

How will the charge for the tariff be determined?

Our approach is designed to minimize impact to customers due to our strong inventory position. Digi-Key has made the decision to charge a discounted flat tariff rate % to simplify the invoicing process and provide transparency to our customers related to the exact tariff fees being billed on their invoice.

Are the tariff charges already reflected in the price of the parts?

Tariffs will not be included in the resale price of our parts, but the tariff will be applied at the time of checkout or invoicing. The price of the tariff will appear as a separate line item in your cart and on your invoice.

How does the tariff impact DK customers doing business outside of the US?

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.

How will Digi-Key's quoting process address tariffs?

Our approach is to clearly identify parts that are subject to tariffs at the time of quote.

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 do I know a part is affected by the tariff?

Parts will be identified with a message box reading "Import Tariff may apply to this part if shipping to the United States".

Can you provide my company with alternate devices not affected by Section 301 tariffs?

Yes, with our diverse line card and support teams, we can provide your company with alternative solutions. We can redirect you to another approved vendor list (AVL) part to fulfill your needs. For your future designs, Digi-Key is able to provide full and turnkey design capabilities that can drive your innovation.

Will Digi-Key accept customer cancellations of NCNR orders due to the tariff?

No, the NCNR must be enforced. Digi-Key is only administering the tariff that is imposed upon us and is unable to modify this condition of sale.

What is the industry outlook for tariff-related issues?

We are a member of various industry groups and trade associations that indicate common themes across the issues, similar to those addressed in this FAQ. As an example, Digi-Key is currently working with the Electronic Component Industry Association (ECIA) lobby for the exclusion of electronic components from the Section 301 list. We share a similar position within our industry representing the need for:

  • A strong cooperation from suppliers to identify the impact on the affected parts
  • A flexible solution for customers that does not adversely affect the component supply chain
Last Updated: April 21st, 2020