May 20th, 2019        
 
To Our AdVantage Line Distributor Partners:       
 
AdVantage Line has been monitoring closely the United States Government’s Tariff Policy on Chinese goods. Currently many of AdVantage Line’s products coming from China are subject to a 25% tariff (tax) when they are sold into the United States. These tariffs are in addition to the standard duties already imposed on imported products. A 10% tariff went into effect on September 24th, 2018 and this was raised to 25% effective May 10th, 2019. These tariffs were imposed on China to pressure their Government to open its markets and reduce taxes on US made products, to honor intellectual property laws, and to eliminate the theft of intellectual knowledge stolen though mandated Joint Ventures. China and the USA have made some progress in trade negotiations but there remains no remedy in sight. here are over 5,700 products on the 25% Tariff list and these include bags, compasses, stainless steel products, measuring devices, apparel, tools, knives, automotive items, etc. Since many of AdVantage Line’s products are included in the current 25% tariff categories, we are faced with the reality of higher inventory costs. As our new inventory arrives into our warehouse, we must increase our selling prices. We are hopeful that the tariff situation will resolve itself with time and that new product inventory entering our warehouse will not experience the higher costs of tariffs.        
 
Due to the tariffs, the cost of select China made AdVantage products will carry a 10% Upcharge on all online net catalog pricing effective June 1st, 2019. You can be assured that if and when the USA-China tariffs are removed, we will quickly remove our 10% surcharge on China made items. Please note that all previous custom manufacturing quotes for products produced in China may also be subject to higher costs to our distributors.        
 
AdVantage Line encourages you to check pricing on any large quantity orders to make certain our listed pricing for existing stock is valid and to discuss ways to minimize your overall cost to work around the punishing 25% tariff. Please take this into consideration as you quote and place orders in the coming months and feel free to contact us with any questions. Most importantly, thank you for allowing AdVantage Line the opportunity to earn your business!        
 
Sincerely,
AdVantage Line – ASI 31570