How Tariffs Impact Medical Device Sourcing


To get a feel for how rapidly the medical industry was forced to evolve over the past year, we must look back at the early months of 2020. When faced with incredible demands in March 2020, U.S. trade officials exempted more than 100 medical items manufactured in China from import tariffs to help fight the outbreak.

As of March of this year, the Biden administration extended tariff exclusions on about 99 categories of medical products from China, including essential PPE like nitrile gloves and masks, for a projected date of Sept. 30, 2021. Although these suspensions are still in effect, companies need to start considering the increased costs when these tariffs go back into place. For example, consider an added 10% tariff on your $200 million worth of goods in a month. Are you able to absorb a $20 million tariff on that order? 

That’s where we come in. 

Domestic Supplies
When tariffs are skyrocketing, the simple solution is to source your materials from a domestic supplier. Our team is capable of creating the medical devices and PPE you need to keep your employees and clients safe.

Plus, since we’re located in Battle Creek, Michigan, we’re positioned in the middle of the country. That means we can ship to businesses across the nation quickly and efficiently. With supply chains as clogged as they are, this can make the difference between receiving your shipment tomorrow and next week.

FTZ Division
Imagine importing your goods and only paying a fraction of the tariff for them. Sound too good to be true? Our Foreign Trade Zone Division can make it happen.

Foreign Trade Zones (FTZs) are areas in the United States that are considered to be outside of the country for customs purposes only. FTZs offer the benefit of storing large amounts of inventory that is held and ready for you when you need it but isn’t technically imported into the country until it leaves our zone. This means that tariffs won’t be applied until you access your goods, preventing you from being hit by hefty, potentially unexpected fees all at once. Tariffs on your terms. How could it get better? 

Easy. Since our team is qualified to manufacture medical devices, you can import parts of your finished product to us. Then, our team can assemble or sub-assemble the item before it ever leaves the FTZ. That way, you only pay tariffs on the completed product, instead of all of the parts that make it up. Plus, when you work with us, we destroy any pieces that don’t meet your quality standards so you never have to worry about paying tariffs on goods you can’t use.

If your business is interested in continued cost savings and avoiding shipping disruptions, utilizing an FTZ is a great place to start. Reach out to our team today to receive a quote and learn about how we can help you build inventory and save on tariffs in the long term.

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