May 16, 2019
To: SIGMA Customers in USA
Re: REVISED pricing announcement — SIGMA Import Fittings, Accessories and Joint Restraint Products
Understandably, we have received several inquiries from our customers as to our pricing decisions vis-à-vis the impact from the increase of section 301 tariffs by the US Government on Chinese products. At least for now, the US Government’s actions have increased tariffs from 10% to 25% on “List 3” products. (As you know, “List 3” products include Fittings, Accessories and Pipe Restraint amongst other products used within our industry.) These additional tariffs will impact all shipments sailing from China after May 9th and will soon impact our costs and hence we are forced to reflect them in our prices to you.
As an additional note, SIGMA already absorbed another significant cost increase — in ocean freight costs of over 20% for all imports from both India and China that went into effect for all shipments from May 1, 2019.
Therefore, we have decided to revise our announcement of May 10th as outlined below:
AWWA Fittings & Accessories:
- Current pricing is valid through May 31, 2019. All orders received after May 31st will be priced 15% higher than the current multiplier.
- All existing orders and orders received before May 31st must be released for shipment by June 28th — subject to availability of inventory.
Joint Restraint Products:
- Current pricing is valid through May 31st.
- For all orders after May 31, 2019, the multiplier will be x.345 against the April 2018 Price List. (Multipliers for CT, DE, MA, ME, NH, NJ, NY, RI and VT are higher and will be provided separately.)
- All existing orders and orders received by May 31st must be released for shipment by June 28th – subject to availability of inventory.
We fully understand the discomfort these price increases will cause to your business as you have various commitments to your own customers. However, these actions by our government are equally burdensome on the suppliers like SIGMA who depend on various products and components produced in China.
If the tariffs on products from China are partially or completely rescinded by the US Government, we will make suitable adjustments in our pricing after consideration of inventory and existing cost factors at the time such as ocean freight, exchange rate and raw materials.
If you have questions, please contact SIGMA’s Territory Sales Manager.