University employees who are involved in procurement, finance and related payment responsibilities need to 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 to ensure legitimacy, compliance and responsible fiscal management.

Things to Know

What are tariffs?  

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 who is importing goods into the country. If a vendor 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 vendor 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 (Ceva Logistics) do not need to be reported. The Purchasing Department assists in gathering importation estimates and answering associated questions.  

Why is reporting important? 

• Verify Legitimacy: We have already identified invoices with added fees purporting to be tariff charges.  Some of these fees may not be legitimate. 

• Budgetary Accuracy: Accurate reporting allows for precise budget forecasting and management, preventing unexpected financial burdens. 

• Compliance: Proper documentation of tariff charges ensures compliance with relevant regulations and adherence to contract terms and pricing. 

• Negotiation and Analysis: Identifying tariff costs enables the university to analyze spending patterns and potentially negotiate better pricing or explore alternative sourcing options. 

• Cost Transparency: Reporting allows for transparency regarding the total cost of goods and services. 

What should I be looking for during the review process? 

Be sure to review all invoices and transaction documents carefully for any line items labeled as “tariff,” “duty,” “import tax” or similar terms.  

Pay close attention to invoices from international suppliers or those involving imported materials.  

Be aware tariffs can be applied to a wide range of goods, including scientific equipment, laboratory supplies, electronics and raw materials.  

Reporting Procedures  

Immediately report any discovered tariff charges to the Purchasing Department via email at askme@purchasing.utah.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. 

Caution and Best Practices

If necessary, consult with the Procure-to-Pay teams before authorizing payment on any large or international purchases. When possible, obtain detailed breakdowns of costs from vendors.  

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

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