Boomtax

[Gibby99hound]

Is the boom tax still coming and is it 15 or 25%...thanks

[Rick_In_Tampa]

What's a boom tax and where is it supposed to be coming to?

[Gibby99hound]

Tariffs on fireworks

[Rick_In_Tampa]

Hopefully one of the advertiser reps will chime in on that. I haven't heard a thing about it until your post. Time for me to do some Googling I think!

[joewad]

Lynch is having a pre-tariff sale but it mostly applies to certain 1.3 items which is not a problem since they will store via contingency for you. So if they are having a pre-tariff sale and I believe I've seen similiar with some 1.4 sellers one must assume they consider this to be real and still planning for it. I keep hearing 25%.

[PyroKing31]

Last I knew in talking with Kneppy's we are suppose to know yay or nay on December 15th.

[Birdman]

Here's the most recent information I can find:

https://www.usatoday.com/story/money/2019/08/23/trade-war-tariffs-chinese-made-products-could-soon-cost-more/2091709001/

December tariffs: 15%

The tariffs scheduled to start Dec. 15 are included on a 21-page list.

Tech gear: Telephones for cellular networks, video game consoles, LED lamps, instant print cameras, cameras, and microwave ovens.

Baby gear: Strollers, infant nursery monitor systems, infant walkers, booster seats, play yards and swings.

Personal care: Shaving brushes, hair brushes, nail brushes, combs, hair accessories, electrothermic hair dryers and electric flatirons.

Miscellaneous: Fireworks, curtains, photo albums, children's picture, drawing or coloring books, printed cards, household- or laundry-type washing machines, ceiling fans, electric blankets, bedspreads, toys for pets, camping goods, umbrellas, music boxes, string musical instruments, cigarette lighters, scales, sleeping bags, toys, magic tricks, confetti, roller skates and fishing rods.

[nightstalker]

I got an email from Ace Pyro stating 15% would start Dec. 15th

[cptnding]

I got an email from Ace Pyro stating 15% would start Dec. 15th

I got the same sales pitch from 76

[cherrybomb1]

I would hope any reputable company that advertises on this web site wouldn't be adding a 25% tariff on fireworks that have already been stateside sitting in there magazines...wouldn't it only be product coming overseas after the tariffs take place...I bought some 1.3 product last year the was made in 2012.

[nightstalker]

Ok can't get the url to work.

[beaver nation]

if the chinese and trump don't come to some agreement or trump realizes it will hurt his chance for re-election then the tariff will increase 15% (so a total of 21.5% tariff).

the summit in Chile was cancelled by Chile so that opportunity is gone now for the meeting that was being planned.

[FruitLeups]

I would hope any reputable company that advertises on this web site wouldn't be adding a 25% tariff on fireworks that have already been stateside sitting in there magazines...wouldn't it only be product coming overseas after the tariffs take place...I bought some 1.3 product last year the was made in 2012.

I'm guessing you've never owned or run a company where a large portion of the money is tied up in maintaining inventory?

Raising prices on existing inventory does NOT make a company disreputable. For a company to maintain stable cash levels and cash flow, they would need to price their product based on what it will cost to replace it. If a fireworks company has a ton of inventory already and they don't raise prices on that product to compensate for new cost of replacement product, then when it does come time to get more product, they'll have to go a LOT deeper into their cash reserves to do it. This is not an optimal thing to do and there is some level of risk associated with it. Alternately, they might decide to just not buy as much and the consumer suffers due to lack of selection and perhaps even shortages (which could raise prices all on its own).

As I'm sure you've noticed, gas stations always raise their prices immediately when the price of oil goes up. They do it for the same reason I mentioned above - to maintain a stable cash flow.

[jknepp1954]

15% is the proposed tariff on fireworkson Dec 15. As someone mentioned before we wont know till then if going thru.
There is already a 15% tariff on some items.....fuse, snappers, sparklers, party poppers. That already started Sept 1.

[joewad]

Adding another 15% to the 7% sales tax plus in Indiana an additional 5% safety tax will impact my purchases in a big way. Impact I see is that vendors better show up with a "sharp pencil" to attract sales and stay above water.

[Fox One]

Time to buy it cheap and stack it deep. I already have over half of what I plan to use for next year. I'll be adding as much of the rest as I can before the end of the year.

[PyroKing31]

Adding another 15% to the 7% sales tax plus in Indiana an additional 5% safety tax will impact my purchases in a big way. Impact I see is that vendors better show up with a "sharp pencil" to attract sales and stay above water.

PA made this mistake back in 2017 by adding a separate 12% tax on fireworks on top of their 6% sales tax. Really makes driving further to Ohio worth it, which is unfortunate for PA stores

[Justintime]

The 15% tax should be on fob China cost before duty, insurance, freight and testing, not 15% of retail price

[jknepp1954]

The 15% tax should be on fob China cost before duty, insurance, freight and testing, not 15% of retail price

I do believe that is how that works! But just keep in mind - it will still also raise the retail "somewhat"

[Justintime]

I would guess retail would have to increase 7 to 9% to offset the 15% tariff

[cherrybomb1]

Here’s an email I received from Jerry at Casabella fireworks 4559

[FruitLeups]

Here’s an email I received from Jerry at Casabella fireworks 4559

Thanks for sharing that. Sounds grim.

[Birdman]

The 15% tax should be on fob China cost before duty, insurance, freight and testing, not 15% of retail price

I neglected to think about this. Considering what I assume is a significant retail markup, the tariff shouldn't raise prices as much as I was thinking.

[beaver nation]

some Chinese source is saying that the Dec 15 tariff increase will not go into effect as planned:

https://www.fxstreet.com/news/chinese-trade-source-december-15-tariffs-will-not-be-imposed-by-the-us-fox-business-201911062116

[joewad]

D-Day is approaching and I don't hear or see a solution..........

[JoSlicknuts]

I neglected to think about this. Considering what I assume is a significant retail markup, the tariff shouldn't raise prices as much as I was thinking.

Consumers always pay 100% of the tariffs. The producers pass it on to the consumers. They aren't going to let it affect their bottom line.

[Birdman]

D-Day is approaching and I don't hear or see a solution..........

Trump made a statement, I think yesterday, that he doesn't think there will be trade deal made by the end of the year. Dow dropped about 1% on that news.


Consumers always pay 100% of the tariffs. The producers pass it on to the consumers. They aren't going to let it affect their bottom line.

In most cases, yes, and you can't blame them if the market allows them to. What I'm wondering is will prices drop if/when the tariffs are lifted? That I'm not so sure about.

[Fire Art]

In addition to the 15% only being on the FOB price, many of us importers that paid early were able to take advantage of a stronger than normal US dollar (6%) versus the yuan at the time of order. In a perfect world the cost with tariff is not going to be nearly as oppressive as a lot of the Doom and Gloomers are advocating. What really is driving the prices of fireworks up over the past few years are other factors in China: materials costs are soaring, wages are increasing, internal logistics, ocean freight, government oversight (fines, regulation, licensing, red envelopes <bribes>), and US over-land transportation fees.

[jknepp1954]

copy/pasted quote from a customs broker:

Two days ago, while at the NATO summit, President Trump announced he may wait until after the 2020 election to make a deal with China on these as well as other tariffs. Commerce Secretary Wilbur Ross indicated that there wasn’t much time left to secure a trade deal before then so it appears that for now, the December 15 tariff hike of 15% is still in going to happen.

We will continue to monitor the situation and advise of any further developments.
Plus now the importers will be experiencing early delays due to the factory explosion couple days ago.

[Ctpyro180]

copy/pasted quote from a customs broker:

Plus now the importers will be experiencing early delays due to the factory explosion couple days ago.

OH...you can't forget...hazmat is not being shipped out of the Hong Kong ports due to the demonstrations...Due to a lot of inland trucking to other ports freight just went up 10% + or so....

[Rick_In_Tampa]

materials costs are soaring, wages are increasing, internal logistics, ocean freight, government oversight (fines, regulation, licensing, red envelopes <bribes>), and US over-land transportation fees.

Wow.. And yet it's STILL cheaper to buy fireworks from China than to make them right here. Pretty scary stuff.

[Icooclast]

this may seem like a stupid question, and it most likely is, but: Japan seems to make good fireworks, so why don't we just get the same thing going with Japan that we have with china? would it be cheaper since the goods wouldn't be coming from china or is this tariff on everything that is imported in general? i must have missed the boat whent they said the tariff is all imports or just all imports from china.

thanks for informing me :)

[PyroKing31]

Japan has much higher labor costs, the rest of the logistics I do not know.

There is a guy on one of the facebook groups that started a fireworks company in Columbia. I believe he owns Miracle fireworks in Canada. Last I heard he was working on importing from his Columbian factory to the US market.

[captainpryo]

Japan has much higher labor costs, the rest of the logistics I do not know.

There is a guy on one of the facebook groups that started a fireworks company in Columbia. I believe he owns Miracle fireworks in Canada. Last I heard he was working on importing from his Columbian factory to the US market.

His factory is in Cambodia and he owns Mystical fireworks in Canada and Pyro planet for the US

[PyroKing31]

^ thank you for the corrections.

[Rick_In_Tampa]

That's the problem this country has with China. They can pay a 12 year old kid $1 a month and all the ramen he/she can eat to work in a factory making <insert widgit here>, and in the rest of the world we have actual rules and regulations that govern how we treat workers. So when it comes to price, we're never going to be able to compete with China.

[Onetimeuser]

That's the problem this country has with China. They can pay a 12 year old kid $1 a month and all the ramen he/she can eat to work in a factory making <insert widgit here>, and in the rest of the world we have actual rules and regulations that govern how we treat workers. So when it comes to price, we're never going to be able to compete with China.

In China, there is a policy called compulsory education, which means children must go primary school and middle school, when children graduated from middle school they are at least 15 years old. And there are laws call "Law of the People?s Republic of China on the Protection of Minors" and "Labor Law of the People?s Republic of China", they say clearly no teenagers under 16 can be employed. So no one in 12 will be employed by any factory, if u see one, please call the police. Teenage worker between 16 and 18 belongs to minor worker, government also has rules and policies to protect their right. The salary of minor workers are the same with adults, if u see one minor worker has been paid with 1 dollar a month, please call the police too. If your time and money allow, please come to China do some visit, China is friendly and welcome to all of you:)

[displayfireworks1]

A quote from Mark Twain comes to mind with the suggestion of travel to China. We can all benefit from it.
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https://www.azquotes.com/picture-quotes/quote-travel-is-fatal-to-prejudice-bigotry-and-narrow-mindedness-mark-twain-42-32-91.jpg

[Rick_In_Tampa]

Boy... Doen't it just figure... The first time I make a smart-ass remark about China, a first time poster from China chimes in to give me grief. smh... Well if you're still out there, I would love to go to China one day to visit (among other things) the fireworks factories. Hopefully our two countries can work out their trade differences so we don't get hit with tarriffs on our fireworks.

[beaver nation]

Boy... Doen't it just figure... The first time I make a smart-ass remark about China, a first time poster from China chimes in to give me grief. smh... Well if you're still out there, I would love to go to China one day to visit (among other things) the fireworks factories. Hopefully our two countries can work out their trade differences so we don't get hit with tarriffs on our fireworks.

you just said something that is untrue and they called you on it. hehe

[Rick_In_Tampa]

you just said something that is untrue and they called you on it. hehe

What I said was an exaguration of the truth that it's cheaper to produce and ship a widgit from China than it is to make the same thing here. I wouldn't expect someone from China to understand what I was saying, but c'mon now...

[joewad]

Boy... Doen't it just figure... The first time I make a smart-ass remark about China, a first time poster from China chimes in to give me grief. smh... Well if you're still out there, I would love to go to China one day to visit (among other things) the fireworks factories. Hopefully our two countries can work out their trade differences so we don't get hit with tarriffs on our fireworks.

I thought it was kinda questionable that a new user would post their first and only input so far as well. I also noticed they joined the forum upon the date you made your point and have not posted since. My guess, it's another member here in forum trying to hide their identity. Their name is, well, you know kinda explanatory as well. Might be Kato. I apologize in these times of political correctness but you know its funny.

[Rick_In_Tampa]

Exactly Joewad..... But that's okay. Everyone is entitled to their opinion.

[RalphieJ]

Boy... Doen't it just figure... The first time I make a smart-ass remark about China, a first time poster from China chimes in to give me grief. smh... Well if you're still out there, I would love to go to China one day to visit (among other things) the fireworks factories. Hopefully our two countries can work out their trade differences so we don't get hit with tarriffs on our fireworks.

Don't worry about it. Onetimeuser parroted the Chinese Communist's Party propaganda regarding child labor. Google "child labor in China" and you'll find dozens of examples. Apple, Foxconn, Nike......all guilty, and who's to know what goes on at the Mom and Pop subcontractors. Do you really think that as a American visitor/client you will be shown the areas of abuse? Hah! The difference is that the people of China (and visitors) get what news the government decides what they should get, while here we get to see the truth.

[joewad]

I thought it was kinda questionable that a new user would post their first and only input so far as well. I also noticed they joined the forum upon the date you made your point and have not posted since. My guess, it's another member here in forum trying to hide their identity. Their name is, well, you know kinda explanatory as well. Might be Kato. I apologize in these times of political correctness but you know its funny.

Enough characters to meet the minimum requirement
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[Arclight]

To be fair, Mexico also has labor and environmental laws that are similar to the US. It's the uniform enforcement of these laws that is an issue.

[displayfireworks1]

I'm going to close the thread. I made a short video because it was too much to type. Lets move past it.
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https://www.youtube.com/watch?v=2LXF8KgNMWc