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Manufacturing Extension Partnership (MEP)

AMS Helps Company get 301 Tariff Exclusions

With the help of: Arkansas Manufacturing Solutions

About

Sediver USA is the global technical expert and manufacturer of overhead line insulation technology in the electricity distribution industry. Sediver assembles various parts to produce completed electrical insulator products used in the High Voltage industry.

The Challenge

Sediver USA imports four products from China to make its high voltage electrical insulator units. The cost of importing these products from China was being significantly impacted by the US 301 tariffs which had steadily increased from about 3% to 25%. Through the US Trade Representative’s Office (USTR), one could apply for an exclusion to the 301 tariffs but needed to meet certain criteria in order to be granted such an exclusion.

AEDC Manufacturing Solutions did an outstanding job helping the Sediver team file for our tariff exclusion. This was very important for our company to be able to grow our business, add new employees, and stay competitive in the market.
— Rich Jayroe , Supply Chain Manager

MEP's Role

An AEDC Manufacturing Solutions team member, part of the MEP National Network™, who specializes in international trade issues provided guidance to Sediver management in terms of the strategy and exact language needed to meet the criteria for acquiring tariff exclusions for each of the four products. With the Section 301 exclusion application assistance provided by AEDC-MS, Sediver USA was granted 301 tariff exclusions on two out of their four imported Chinese parts. As a consequence of the significant cost savings generated by the Sec. 301 tariff exclusions, Sediver USA has been able to increase their competitive position in the market thereby retaining and significantly growing sales and employee positions.
Created July 28, 2021, Updated July 30, 2021