Reinstated product tariff exclusion for computer cases in the US
The U.S. Trade Representative’s office (USTR) has reinstated expired tariff exclusions for a range of products, including the computer case category. The exemption will be effective retroactively from October 12th 2021 and will last through December 31st 2022. Tariffs paid for imports of excluded categories from October 12th to date will be repaid to importers.
Fractal Gaming Group AB expects to be repaid approximately 720 000 USD regarding tariffs paid from October 12th to date.
Fractal’s net sales in the US amounted to 155 SEKm in 2021, representing 33% of our total net sales. During 2021, Fractal has paid an import duty of 25% of our product cost for all products imported to the US from China.
The reinstated tariff exclusion will have a significant positive effect on Fractal’s profitability. The expected positive earnings impact for 2022 amounts to approximately 15-20 mkr, including the repayment for already paid tariffs.
Background
In 2018 and 2019 the USTR imposed multiple rounds of tariffs towards the import of certain products imported from China, followed by a tariff exclusion process introduced in 2019. The former administration introduced 2 200 exclusions for the year of 2019 and 549 exclusions for 2020. Fractal was granted an exclusion from tariffs in March 2020 for computer cases, which was valid retroactively from September 2018 and lasted through December 31st 2020. This exclusion has now been reinstated. In total, 352 expired product exclusions from U.S. "Section 301" tariffs on imports from China have been reinstated.
For more information, please contact
Hannes Wallin, CEO and founder, Fractal
Telephone: +46 31 380 71 00
E-mail: IR@fractal-design.com
Karin Ingemarson, CFO, Fractal
Telephone: +46 31 380 71 00
E-mail: IR@fractal-design.com
This information is information that Fractal Gaming Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 17:45 p.m. CET on March 24, 2022.
Certified Advisor
FNCA Sweden AB
Box 5216
Nybrogatan 34, SE-102 45 Stockholm
+46(0)8-528 00 399
info@fnca.se
About Fractal
Fractal is a leading company in the premium segment of PC gaming products. The Group was founded in 2010 and our products are currently sold in more than 50 markets worldwide. Fractal is the market leader in premium PC cases in several geographic markets, for example in the Nordic region, is top two in Japan, and holds a top-three position globally. The Company also has a strong market position within power supply units, cooling products and fans for gaming computers. Find out more at www.fractalgaminggroup.se.