Tariff Impacts on BU’s Operation
The recent changes to U.S. trade policy and tariff schedules have disrupted supply chains and caused unpredictable pricing for the goods we purchase from abroad. As this situation continues to unfold in Washington, D.C., here are several steps you can take to protect your budgets and ensure the items you need will reach campus.
Validate Tariff Charges:
Suppliers must present credible documentation to justify any price increases attributed to tariffs. To avoid unjustified cost increases, review their claims including details about country of origin and the composition of tariffed inputs (e.g., aluminum, circuit boards). Where tariff costs are unavoidable, we should expect our suppliers to partner with us to partially absorb these increases. Similar to ubiquitous “COVID-19 Surcharges” encountered five years ago, we should not accept broad, opaque tariff-based increases. Everything is negotiable and BU has a long memory.
Utilize Available Resources:
- Sourcing Team: If your imported item incurs tariff surcharges, please submit a request via the Financial Affairs Customer Service Portal (see screenshot below). Our Sourcing team will promptly assist you.
- Customs Broker: BU’s Customs Broker, Watchpoint Logistics, will help ensure a smooth importation process. As soon as you have a quote from a foreign supplier and suspect tariff charges may be part of the transaction, engage Linda Amiro at Watchpoint Logistics for assistance. She can be reached at linda.amiro@watchpointlogistics.com, or (617) 567-6800.
- In certain circumstances, it may be possible to apply for Duty-Free Entry of Scientific Instruments or Apparatus using Form ITA-338P from the U.S. Department of Commerce. The application process is complicated, time-consuming, and not guaranteed, but it may provide some relief. We are in discussions with a few consulting firms that could manage the form completion and submission on our behalf. More to come.
- Tariff charges on grant-related purchases are generally unallowable but will be reviewed on a case-by-case basis.
- If a tariff surcharge appears on your supplier’s invoice and is not a specific line item on your Purchase Order, the invoice cannot be paid because it is out of tolerance. You will need to create Version 2 of your Purchase Requisition and add a line item that matches the value of the tariff surcharge. Please use G/L 535220 “Tariff Charges.”
- Substitute an imported item with a domestic source. Recently, one BU department was able to swap out Chinese-manufactured circuit boards for the same specification provided by a U.S. supplier, avoiding the tariff surcharge.
- Make strategic advance purchases. Work with suppliers to “buy ahead” from current pre-tariff inventory.
- Confirm delivery timelines. As was the case during the pandemic, tariff uncertainty will disrupt supply chains, lengthening the amount of time to receive your shipments. Collaborate with suppliers to anticipate delivery timelines and communicate expectations to your team as needed.
