Security Dealer & Integrator

AUG 2018

Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.

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12 Security Dealer & Integrator / www.SecurityInfoWatch.com August 2018 Read our June story on the tariffs: www.SecurityInfoWatch.com/12414317 SECURITY WATCH Tech Report / The industry's top technology news BY STEVE SURFARO • LED and LCD panels, parts and PCBs of electric sound or visual signaling apparatus (8531.20.00 8531.90.30 8531.90.90): Many solu- tion providers have analog and net- work horns and speakers, and horn/ strobe signaling devices in their product range. • Other parts of microphones, loudspeakers and electric sound amplifiers (8518.90.81): Again, could impact the life safety industry. Low Impact • Automatic Teller Machines (8472.90.10): Impacts POS termi- nals, touchscreens and mobile POS devices, which are often integrated with surveillance and alarm systems. • Lead Acid Batteries (8507.20.80): Used in solar, burglar and fire alarm systems. • Electric heating resistors used for anti-icing or de-icing (8516.80.40, 8516.80.80): Impacts weather-resistant camera housings and other control enclosures. • Television cameras, digi- tal cameras and video camera recorders (8525.80.30, 8525.80.50, 9007.10.00): Although a small por- tion of the security industry uses "broadcast" or cinema-quality cam- eras to stream events, this subseg- ment is growing. ■ » Steve Surfaro is Chairman of the Public Safety Working Group for the Security Industry Association (SIA) and has more than 30 years of security industry experience. Follow him on Twitter, @stevesurf. The June 2018 cover story of SD&I examined the impending trade war between the U.S. and China and its potential impact on various segments of the security industry. In the time since the story went to press, the Trump administration has finalized the list of products that will be sub- ject to this initial round of tariffs. The latest round, which went into effect on July 6, is wide ranging and includes everything from consumer goods, such as fruit, nuts, textiles and furniture to industrial computers, components and circuit boards. The most impactful new tariff item listed is simply entered as "burglar alarm systems" – obviously a great concern to the security industry. Additionally, the new general classification of "Automatic Data Processing Machines" includes virtu- ally every I/O device used in process- ing and storing data. Tariffs of circuit board assemblies and components may impact the emerging residential and DIY secu- rity markets using small single-board microcomputers, such as Raspberry Pi, Arduino and Odroid products. ATM terminals are listed, which impacts POS terminals and touch- screens that are often integrated with surveillance and alarm systems. Precious earth metals like tanta- lum, titanium and silver are tariffed – the most significant being refined copper rods and stock, which is sure to impact the global industrial eth- ernet cable market, now enjoying an annual growth rate of 17.31 percent. Here is a look at some addi- tional products, in decreasing order from high to low impact that will be affected by the tariffs. Noted are the 8-digit subheadings directly from the official U.S. Trade U.S.-China Trade War's Impact on Security Expands Tariffs expected to significantly impact the market in several additional areas Representative's Office (USTR) docu- ment (USTR-2018-0005): High Impact • Copper wire used for Ethernet cable (7407.10.50, 7408.11.30, 7411.10.10): Will increase the cost of CAT5E and CAT6A cable using imported Cu stock. • Electric burglar or fire alarms and similar apparatus (8531.10.00): Two of the largest product segments used by security. • Printed circuits, without ele- ments (8534.00.00): Will impact industrial, residential and DIY security. • Projection lenses for cameras (9002.11.40) and mounted objec- tive lenses for use in CCTV cameras/ mounted lenses (9002.11.40 and 9002.11.60/9002.90.85: Affects CCTV and network surveillance cameras. Medium Impact • Unit suitable for physical incor- poration into automatic data pro- cessing machine (8471.80.40 ): Impacts computers, servers, power supply, I/O, CPU, drive components. • Cards incorporating a magnetic stripe (8523.21.00 ): Although most of the time-and-attendance and phys- ical access control industry promote proximity cards, there are still many end-users and government agencies using "mag-stripe" readers and cards. Illustration: Bigstock

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