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April 30, 2018
NADL Update on Proposed Tariffs on Dental Restorations
In early April, the NADL released information on proposed tariffs that could impact the cost of goods sold for imported finished dental restorations that come from China.
The U.S. Government will hold a hearing in May 2018 on the proposed tariffs. It remains to be seen, whether or not the tariffs will actually become effective. This assessment is based on the fact that on a daily basis there are continuing negotiations and political posturing between the United States and China on tariffs and other trade matters.
The NADL board of directors at its most recent board meeting has decided not to take a position on the proposed tariffs, or submit any public comment on these specific proposed tariffs.
As NADL’s previous news alert outlines, China is the only country subject to the proposed tariffs. It is true, that China remains the largest exporter of finished dental restorations coming into the U.S. Marketplace.
According to data from the U.S. International Trade Commission as of March 2018, Vietnam is the next biggest exporter, followed by countries including Mexico and Costa Rica. It is expected that if the proposed tariffs on Chinese imported products went into effect, the market may respond and shift off shore restorations to another country that is not subject to tariffs. This would not result in reducing the number of foreign produced restorations coming into the U.S. marketplace, just the point of origin.
NADL’s board looked at tariffs in general as part of its debate on the current proposed tariffs. It should be noted, that in the future, other countries could be considered for tariffs on imported products. This could include component parts and/or finished restorations.
As most dental laboratories know the majority of raw materials and equipment used by U.S dental laboratories come from outside the U.S., namely Europe. There is concern that supporting tariffs in general, could be counterproductive if further tariffs are considered to apply to other dental products imported from other countries.
Although NADL is not taking a position, pro or con on the current proposed tariffs, it will continue to share updates on this and future tariff proposals, so its membership and other stakeholders in the dental laboratory market are best informed on these matters.
Continue reading...
NADL Update on Proposed Tariffs on Dental Restorations
In early April, the NADL released information on proposed tariffs that could impact the cost of goods sold for imported finished dental restorations that come from China.
The U.S. Government will hold a hearing in May 2018 on the proposed tariffs. It remains to be seen, whether or not the tariffs will actually become effective. This assessment is based on the fact that on a daily basis there are continuing negotiations and political posturing between the United States and China on tariffs and other trade matters.
The NADL board of directors at its most recent board meeting has decided not to take a position on the proposed tariffs, or submit any public comment on these specific proposed tariffs.
As NADL’s previous news alert outlines, China is the only country subject to the proposed tariffs. It is true, that China remains the largest exporter of finished dental restorations coming into the U.S. Marketplace.
According to data from the U.S. International Trade Commission as of March 2018, Vietnam is the next biggest exporter, followed by countries including Mexico and Costa Rica. It is expected that if the proposed tariffs on Chinese imported products went into effect, the market may respond and shift off shore restorations to another country that is not subject to tariffs. This would not result in reducing the number of foreign produced restorations coming into the U.S. marketplace, just the point of origin.
NADL’s board looked at tariffs in general as part of its debate on the current proposed tariffs. It should be noted, that in the future, other countries could be considered for tariffs on imported products. This could include component parts and/or finished restorations.
As most dental laboratories know the majority of raw materials and equipment used by U.S dental laboratories come from outside the U.S., namely Europe. There is concern that supporting tariffs in general, could be counterproductive if further tariffs are considered to apply to other dental products imported from other countries.
Although NADL is not taking a position, pro or con on the current proposed tariffs, it will continue to share updates on this and future tariff proposals, so its membership and other stakeholders in the dental laboratory market are best informed on these matters.
Continue reading...
