Security Dealer & Integrator

OCT 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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10 Security Dealer & Integrator / October 2018 Top Story Low Impact • Automatic Teller Machines (8472.90.10): There are several Chinese manufacturers of ATMs and the included security devices by OEMs that will affect some retail financial institutions. • Cards incorporating a Magnetic Stripe (8523.21.00): Magnetic stripe cards are still used for electronic access control systems in some ver- ticals like aviation and retail; thus, this restriction may be the push end-users need to simply move to proximity readers and cards. The majority of cards with a magnetic stripe include EMV chip technology – rapidly becoming the global standard for credit card and debit card payments. These payment and access control instruments have embedded microprocessor chips that store and protect cardholder data. It is not yet known if this tariff will apply to all cards with a magnetic stripe or to cards with only a mag stripe. ■ » 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. While a number of security indus- try products have already been impacted by previously announced tariffs , a new round could a have a more far-reaching effect on the security industry and potentially raise prices for myriad devices – most notably burglar and fire alarms. The latest USTR document simply lists "Electric Burglar and Fire Alarms (8531.10.00)" – which will undoubt- edly be impactful to a wide range of companies in the security ecosystem, including not only those who install intrusion and fire alarms, but also central station monitoring providers. Understanding exactly what prod- ucts will be affected can be accom- plished by researching the HTS Code that the manufacturer in China spec- ifies on their export documents. For example, a typical product under this heading and exported by one manufacturer in mainland China is described as a Smart Home Security Alarm with GSM Connectivity and Auto Dial Feature. This device is obvi- ously intended for residential and office applications, and the export documents include components such as an alarm panel, PIR sensor and more. Published data shows an increase of burglar alarm system imports by year, with the U.S. typically having flatter trends on export. Other Impacted Products In the last three Harmonized Tariff Schedules (HTSUS), we saw sig- nificant product and infrastructure impact in microcomputers, fiber optic cables and transmitters, and even wireless network appliances. Here is a look at additional prod- ucts, in decreasing order from high to low impact, that will be affected by this latest round of tariffs – with Burglar, Fire Alarms Targeted in Latest Round of Tariffs Ongoing U.S.-China trade war impacting ever growing list of security products the official USTR 8-digit subheadings included. High Impact • Audio devices, com- ponents and assemblies (microphones and loud- speakers) (8517.69.00- 8522.90.36): Acoustic and gunshot detec- tion microphones and audio-visual mass noti- fication systems are becoming mainstream solutions for systems integrators. These prod- ucts will likely see a significant impact. Medium Impact • Computer and Server Systems, peripherals such as optical drives and mass storage (8471.60.10- 8471.90.00): Security application soft- ware solutions need platforms to run on, and the non-cloud-based infra- structure is now tariffed. • Television Cameras, Digital Cameras and Video Camera Recorders (8525.80.30-8525.80.50): A growing segment of the surveillance mar- ket and an established portion of the audio/visual market leverages network cameras having 1080p/4K/8K resolu- tion used for broadcasting televised events. These cameras are often also used for long-range traffic report- ing applications, such as a full view of a bridge crossing with the option to "zoom in" on a traffic incident. This video stream is typically broadcast to television and cable affiliates. • Objective lenses for Cameras (gen- eral category) and Closed Circuit Television Cameras (9002.11.60- 9002.90.85): Itemized in previous Tariff Schedules, lenses for CCTV and network video cameras continue to be tariffed. SECURITY WATCH BY STEVE SURFARO

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