Do not accept price increases without proper justification. Request the following from your vendor:

• Send a response to supplier suggested by Purchasing Communication
• Detailed explanation of how tariffs impacted their costs
• Itemized cost breakdown with specific calculations
• Description of their efforts to minimize cost increases

Important: Ask vendors to itemize tariff charges as separate line items rather than embedding them in the base price. This allows us to track costs and potentially recover funds if tariffs change.

We have recently received your notification regarding price increases. We must ensure that any price adjustments are fully justified and transparent. To this end, we kindly request that you provide the following information:

1.  Detailed Justification: Please provide a comprehensive explanation of the reasons for the price increase, including specific details on how the new tariffs have directly impacted your costs.
2. Calculations: We require a detailed breakdown of the calculations used to determine the price increase. This should include the specific tariffs applied, the affected materials or products, and the percentage increase attributed to each factor.
3. Mitigation Plan: Please outline any strategies or measures you are implementing to manage costs and minimize the need for price increases.

We value our partnership and are committed to working collaboratively to navigate these challenges. By providing the requested information, you will help us better understand the situation and explore potential solutions together.

Please submit the requested documentation by [specific deadline, e.g., within 5 business days] to ensure a timely review and response.

Thank you for your cooperation and understanding. We look forward to your prompt response.

What is Form 338? A federal program that allows educational and research institutions to import qualifying scientific equipment without paying tariffs. This exemption is based on the Florence Agreement, which recognizes the importance of scientific research.

Eligibility Requirements (both must be met):

• Equipment used exclusively for teaching or research purposes
• No equivalent U.S.-made alternative exists with comparable scientific value
  

What Qualifies: Specialized laboratory instruments, research equipment, clinical research devices

What Does Not Qualify: General office equipment, computers, standard patient care devices, equipment available from U.S. manufacturers

Before You Order – Vendor Coordination: Discuss Form 338 early with vendors before finalizing equipment selection. Ask about their Harmonized Tariff Schedule (HTS) category and whether other customers have successfully obtained exemptions. Their experience can inform your planning.

Grant Planning: When writing grants, incorporate potential tariff costs into your budget as a contingency. Assess equipment eligibility for Form 338 exemption during the planning phase based on vendor input.

Application Requirements: Submit to U.S. Department of Commerce with the following information:

• Equipment specifications and research purpose
• Cost and country of origin
• Expected arrival date
• Justification for foreign purchase over U.S. alternatives
  

Timeline: Process takes several months, but equipment can arrive during review

Tariff Exemption (Form 338) Questions:

Scott Malouf, Senior Counsel | scott.malouf@rochester.edu

or

James Paulino, Senior Counsel
(585) 275-3648 | jimmy.paulino@rochester.edu

Vendor Price Increase Support:

Email: PriceIncrease@URMC.Rochester.edu
Subject Line: “Recent Price Increase Request”

Post-Order Processes: Refund and tracking procedures for tariff payments are being developed. Stay tuned for more information.