Vizio First to Apply for Tariff Exclusions on Finished TVs Sourced From China

Vizio became the first major TV brand to seek exclusions from the List 4A Section 301 tariffs on finished flat-panel sets from China when it filed Jan. 7 for exemptions on four 10-digit classifications of goods under subheading 8528.72.64 that vary by screen size. Vizio is “working closely” with its third-party original design manufacturers to shift production outside China, the vendor posted in the Office of the U.S. Trade Representative public docket. “Some of the ODMs moved manufacturing to third countries including Mexico in the late Q3 2019 timeframe.” Despite those efforts, it’s “extremely difficult” for Vizio to transfer production to other third countries, including Taiwan, Thailand and Vietnam, “without significant cost” that would “far exceed” the “modest profit margin,” it said. That would “likely” result in a “significant price increase to American consumers,” it said. “Responsibly exploring alternatives to manufacturing, without sacrificing quality, safety, and the low prices that define our brand takes considerable time.” List 4A tariffs took effect Sept. 1 at 15 percent, but are due to be rolled back by half (see 1912310010).