Valued Customer,
As a follow up to our original communication regarding the US tariff policies and the 2019 National Defense Authorization Act (NDAA) we wanted to offer some clarifying information.

As you are aware, some of the video products we provide today under the Sonitrol or 3xLOGIC brands are potentially affected by this ban. The NDAA bill is divided into two parts. The first, which will not go into effect until August 2019 will only ban these products from being used in federal infrastructure projects. The second phase will not go into effect until August 2020. This will ban these products from being used in projects funded by the federal government. Additionally, projects that have these products deployed prior to the ban WILL NOT have to be replaced nor will there be a penalty assessed. While we understand that there is concern, please rest assured that these will not take effect immediately and that we are working diligently to provide alternative product options that will not be affected by the ban.

As to the potential Section 301 Chinese tariffs, a 10% tariff has been implemented that WILL NOT AFFECT our customer pricing. There will be an additional increase in December. We are in position to leverage a much larger purchasing structure and mitigate the risk of cost increase to our customers. In addition, Stanley, Sonitrol and 3xLOGIC have made a multi-million dollar investment to insure adequate inventory of products that may potentially be affected by the increased tariff fees.

We are working hard to mitigate any risk to your business and will continue offering the best security products and the best customer service experience in the industry. We would also like to direct you to resources that may be helpful.

• FAQ’s created by 3xlOGIC
• SIA (Security Industry Association) has issued a formal document on the situation.
• Section 889 -National Defense Authorization Act

We will continue to monitor both of these issues and will update you as more information becomes available.

-Your 3xLOGIC Team