The federal government announced a baseline tariff of 10% on all imports effective April 5, 2025. Additional country-specific tariffs have been paused.
A tariff is a tax or duty imposed by a government on goods imported from another country. Duty and tariffs are interchangeable terms. The company importing the goods is required to pay the tariff and will often pass the cost onto their customers.
- Foreign orders: The importer (Expeditors, UPS, Fed Ex, DHL, etc.) pays the tariff. The importer may then pass this cost on to the University.
- Domestic orders: If they University orders from a US supplier, and the supplier needs to import an item for the order, the tariff may be charged to the UW by the supplier as a separate line item or added to the product cost.
To avoid delays, fees, or COD charges, work with UW's Customs Broker: Expeditors Inc
Workday
Domestic orders: If the supplier quotes a tariff, add the tariff amount to your Requisition, preferably as a separate line item; tariffs are taxable, use Spend Category SC2555. Ask the supplier for documentation supporting the tariff, specifically the Country of Origin of the goods and the Harmonized Tariff Code.
At this time, tariffs on M&E tax-exempt orders are not subject to sales tax, but this may change pending guidance from the Washington State Department of Revenue.
Foreign orders: Please issue a Purchase Order to Expeditors for the customs/import fees and share the goods purchase order number with them. In most instances, Expeditors will pay the duty on the UW's behalf and include the duty on their invoice to the UW.
Duty Exemption
You can apply for exemption on scientific instruments or equipment if there is no similar product made in the United States. The process can be complicated and time-consuming; Expeditors may be able to assist.
Form ITA-338P Request for Duty-Free Entry of Scientific Instrument or Apparatus.
Items defined as prototypes that are not intended for other use may also qualify for exemption, check with your supplier or Expeditors for assistance.
The Harmonized Tariff Schedule provides the tariff rates for all items imported into the US. You can view the HTS and take an interactive learning at the HTS website.
Supplier Pricing
- Services are not subject to tariffs. If your supplier is providing services and adding a tariff to the quote, they need to provide justification for the tariff.
- It is acceptable to tell suppliers that the UW is closely watching the tariff situation and expects suppliers to work to mitigate tariff costs being passed on to the UW.
- If a supplier claims they must charge tariffs, require them to provide documentation. The supplier should provide you with documentation showing the country of origin and composition for the goods being ordered. The supplier should also provide the tariff schedule.
- If tariff information is not on the quote, ask if they apply and request a revised quote. Be sure a supplier is not assessing tariffs for items that they had in stock prior to tariffs being implemented.
- If a supplier indicates that the tariffs will not be known until the date of shipment due to the frequency of tariff changes, departments should use the current tariff for budgeting. The final tariff charge may be more or less depending on the tariff in effect at the time of import.