Flip Electronics, LLC.

Statement on U.S. Policy on Tariffs for Electronic Components

Date: Spring 2025

The U.S. Trade Representative has passed and confirmed increased tariffs on certain products imported into the United States, including country-specific tariffs under Section 301, as well as Reciprocal tariffs under IEEPA on certain product types. 

Flip Electronics recognizes the impact these tariffs have on the broader economy and the electronic component industry.  Flip is working with local trade organizations, USTR, advisors, and our supplier partners to minimize the disruption to the distribution services we provide our customers.  Flip is dedicated to minimizing the financial impact to our customers by implementing various strategies, including the usage of a Foreign Trade Zone (“FTZ”) and sourcing product outside of tariffed regions. 

Flip has been notified by its suppliers that they will pass along the full expense related to tariff charges, as is industry standard.   Flip will work to avoid tariff impacts on our customer base in general, but will be forced to pass along tariff fees for impacted product orders starting on 1/1/25.  Thanks to Flip’s FTZ, there will be little-to-no impact to Flip’s international customer base.

Flip is dedicated to better understanding the latest tariff developments in our industry to minimize the impact to our customer base.   We appreciate your patience and support as the industry adapts to the trade policy changes imposed by the U.S. Trade Representative. 

Please note that for Order of Product subject to Flip Electronics’ Terms and Conditions, Flip may assess a Tariff Recovery Fee relating to Tariffs on subject countries, including but not limited to China. The final charge will be included on Flip’s invoice. Flip Electronics reserves the right to assess this charge whenever a tariff is incurred or as additional country of origin information is known, even if no Tariff Recovery Fee is initially quoted.

Foundation:

On August 22, 2012, the Securities and Exchange Commission issued its final rule regarding the sourcing of conflict minerals under Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“the Dodd-Frank Act”). The rule outlines reporting requirements on publicly traded companies subject to the SEC under section 13(a) or Section 15(d) of the Exchange Act. This includes a requirement to report annually the presence of conflict minerals originating in the Democratic Republic of the Congo (“DRC”) or adjoining countries (“Covered Countries”) in the products they manufacture or contract to manufacture whereby the conflict minerals are necessary to the functionality or production of a product. These “Conflict Minerals” include:  Coltan (columbite tantalite) and its derivatives (Tantalum); Cassiterite and its derivatives (Tin); Wolframite and its derivatives (Tungsten); and Gold.

Flip Electronics Policy:

Although Flip Electronics is a privately held company, and therefore exempt from these government regulations, we fully embrace our responsibility as participants in the electronics supply chain and the importance of fighting human rights violations through Section 1502 of the U.S. Dodd-Frank Wall Street Reform Act, Rule 13p-1 under the Securities and Exchange Act, and EU Directive 2017/821.  

As a distributor of electronic components and parts, Flip Electronics does not engage in any manufacturing activities or value-added services that require the acquisition of raw materials that may be subject to the referenced legislation. Nor do we maintain or provide conflict mineral information on any products manufactured by our supply partners that pass-through our hands. Since the manufacturers are the definitive source of accurate information regarding substances and chemicals, including any conflict minerals, used in the manufacture of their products, Flip Electronics maintains that to obtain such information for pass-through parts customers will have to obtain the information directly from the manufacturers. Flip Electronics cannot certify the accuracy of technical information provided by any third party and cannot be held liable for such information. We thank you for your continued support.