Security Business

JUN 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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32 Security Dealer & Integrator / June 2018 assemblies, Systems on Chip (SoC), storage devices and microcomputers, it is virtually impossible for manufactur- ers to avoid Chinese parts suppliers. Semiconductor firms like Intel, Texas Instruments, Nvidia and Qual- comm have a large manufacturing presence in China and represent vital components used in security and ICT network infrastructure devices, such as switches, routers, access points and Power-over-Ethernet (PoE) midspans. ese companies all have estab- lished manufacturing plants in China and sell processors to Chinese tech companies, which use them not only in phones and computers, but also security systems performing access control and complex video analytics. Intel, for example, generated nearly a quarter of its 2017 sales from China. Many of these manufacturers sell electronic timers, power supply boards, programmable logic controllers, media converters, switches, microcomput- ers, Ethernet accessories and wireless devices to the security industry. e question of whether compo- nents within products that are assem- bled somewhere other than China will be taxed or subject to tariffs remains unanswered. e USTR has not yet provided a "blanket" interpretation on the component vs. assembly contain- ing the component made in China issue, but if the tariffs go into effect, it will be a central issue. Video Surveillance Lenses 85299078: Mounted lenses for use in CCTV cameras, with or w/o connec- tions included in motorized zoom or lens apertures powered by DC motors. Product-by-Product Impact Here is our in-depth review of the potential impacts of the proposed tar- iffs on a technology-by-technology basis for security, security applied sci- ences, cybersecurity and Information and Communication Technology (ICT) infrastructure. e products cited in the official U.S. Trade Representative's Office (USTR) document (USTR-2018- 0005) are classified in 8-digit subhead- ings; thus where possible, the Harmo- nized Tariff Schedule (HTS) eight digit number will be listed for reference pur- poses, followed by its projected impact. The Money Issue Cover Story Lithium ion batteries and components for lead-acid batteries are both used heavily in solar power systems. solar-powered video surveillance cam- eras and communications stations. e majority of new home energy storage systems and alarm systems use some form of lithium ion battery. Lith- ium ion batteries are lighter and more compact than lead acid batteries, have a higher depth of discharge (DoD) and longer lifespan; however, lithium ion batteries are more expensive than their NiCad and lead acid counterparts. With a 38-percent import share of the total market and China's share at 35 percent (according to Euromonitor International), the batteries and electri- © Istock Photo: Vivint I can tell you for a fact that security integrators are not going to eat the 25 percent . They will have to pass it through to the end-user in 95 percent of the cases." — Bill Bozeman, PSA Security Network Batteries 85065000, 85066000, 85069000, 85073080, 85079040, 85079080: Lith- ium, NiCad batteries and Lead-Acid bat- tery components. Opinion: High Industry Impact Lithium ion and NiCad batteries, as well as components for lead-acid batteries are on the tariff list, which, together with Lithium batteries, are used in electronic locks, surveillance power supply battery backup systems, Uninterrupted Power Supplies (UPS), cal equipment industry would experi- ence a high impact due to the new tar- iffs. In addition to the security industry, battery systems are in significant use in telecommunications and ICT. e battery tariff would also impact solar power. e three biggest residen- tial solar installation companies in the United States – SolarCity, Vivint Solar and Sunrun – each have potential growth, and in Vivint's case, leadership in the home security market. Lithium ion batteries and components for lead- acid batteries are both used heavily in solar power systems. Circuit Boards and Relays 85299009 (printed circuit assemblies for television cameras); 85364100, 85364900 (any device using control switching relays, such as access control, lockdown and life safety systems). Opinion: High Industry Impact With China's dominant role in pro- ducing electronic components, board

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