University employees who are involved in procurement, finance and related payment responsibilities should be aware of the importance of identifying and reporting tariff charges associated with university transactions. Recent changes in international trade policies may lead to the imposition of tariffs on various goods and materials, which may impact university purchases and budgets.

It is essential to identify and manage these costs prior to finalizing payment obligations with a supplier, as well as ensuring compliance and maintaining fiscal management.

Tariffs are taxes imposed by a government on imported goods. These charges can significantly increase the cost of purchased items, which could impact departmental budgets and overall university expenditures.  Tariffs are ultimately paid by the entity that is importing goods into the country. If a supplier pays a tariff as part of the importation of goods, the customer may or may not see itemized importation costs (tariffs) on their invoice. The price for the item may increase without notice or the supplier may list an additional importation cost on an invoice.  

Shipments where the university is responsible for importation may also see increased costs. However, payments to the university’s importation broker (JF Moran) do not need to be reported. Departments requiring importation estimates and any associated questions should reach out to pvdimportteam@jfmoran.com                                                                            

SPC is actively monitoring the evolving tariff situation and the SPC Strategic Sourcing team is working closely with Browns Strategic Suppliers to help manage and reduce potential impacts to Brown of the U.S. Government’s newly imposed tariffs (supply chain disruptions and additional fees imposed). Questions regarding potential tariffs should be directed to the Strategic Sourcing Category Manager for the applicable category - Strategic Procurement and Contracts Staff Listing. 

The terms “tariff” and “duty” are often used interchangeably, both referring to taxes levied on imported goods. A tariff is a tax imposed on imported goods, typically calculated as a percentage of the goods’ value. A duty is a broader term encompassing various taxes on imports, including tariffs, excise duties, and other fees. 

It is important to note that the tariffs are federally mandated charges on imported goods and are not optional. They apply to the products being imported themselves, regardless of who is importing them. While Brown is a tax-exempt higher education institution, this exemption does not apply to tariffs.

• Verify Payment Obligations: Invoices should identify the specific goods and services being purchased, including fees and charges, as well as any purported tariff charges. Some of these fees may not be valid.
• Compliance: Proper documentation of tariff charges ensures compliance with relevant regulations and adherence to contract terms and pricing.
• Fiscal Management: Identifying tariff costs enables the university to analyze spending patterns and potentially negotiate better pricing or explore alternative sourcing options. Accurate and precise budgeted forecasting and management assist in preventing unexpected financial obligations.

Plan ahead for your upcoming business needs:  

• Utilize Strategic Suppliers whenever possible
• Consider alternative supply sources (domestic suppliers or those from countries not subject to high tariff rates).
• When requesting quotes from suppliers, inquire upfront whether the equipment or goods are subject to tariffs. This information should be included in the Price Analysis when comparing multiple quotes under Uniform Guidance’s Competitive Bid policy and should be considered during the Workday approval workflow before the purchase order is issued.
• Contact Strategic Sourcing for additional assistance and/or direction.  

For single / sole source equipment / instruments (where no comparable product is made or available in the United States) that must be imported from foreign suppliers and will be subject to high tariffs: 

• Request documentation from the supplier indicating where the equipment or its components will be manufactured in order to confirm whether the tariff charge is legitimate
• Confirm lead times with the supplier, as the imposition of tariffs may delay customs clearance for imported goods.
• Determine if purchase is eligible for a duty exemption. Departments are responsible for completing and submitting Form ITA-338P: Request for Duty-Free Entry of Scientific Instruments or Apparatus to U.S. Customs and Border Protection
• Negotiate cost-sharing of the tariff fees with suppliers.
• When importing goods / equipment, contact Brown’s customs broker, JF Moran, to navigate requirements for U.S. Customs clearance.

Other informational resources to stay informed on tariff- related changes and policies:  

Trade Compliance Resource Hub  

U.S. International Trade Commission HTS   

Immediately report any discovered tariff charges to the Strategic Sourcing team via email at supplierdiversity@brown.edu. Be sure to include the word “tariff” in the subject line.  

Provide copies of the relevant invoices and transaction documents. Please include details like the supplier’s name, item description, tariff amount and any other relevant information. 

If necessary, consult with the SPC team before authorizing payment on any large or international purchases. When possible, obtain detailed breakdowns of costs from suppliers.  

We appreciate your cooperation to ensure the accurate, timely reporting of tariff charges.