Turn Experience Into Savings: A New Strategy for Tariff Optimization

The Experience Is the Product

Consumers today don’t just buy objects—they buy outcomes. A connected fitness device is only as good as its coaching app. A smart appliance delivers its real value when it’s personalized, updated, and supported. In nearly every industry, it’s the digital layer that creates loyalty, satisfaction, and long-term value.

This shift in value comes at a time when global trade dynamics are more unpredictable than ever. With a new wave of tariff escalations and retaliatory trade measures, businesses that continue valuing products as if they’re purely physical risk are overpaying and falling behind.

It’s time to align your customs strategy with the way your customers already see your products: as experiences.

How Can Businesses Benefit?

Despite the growing importance of digital features and services, most customs regimes — including U.S. Customs and Border Protection — continue to apply tariffs based on the total value of the imported item.

That’s a problem in a world where the physical product is often just a gateway to the experience.

With tariff policies shifting rapidly as global trade tensions escalate, overvaluing imports can result in inflated costs, narrower margins and unnecessary risk. But here’s the opportunity: when structured correctly, digital services that activate post-import may be excluded from dutiable value altogether.

Example of Duty Savings with WaveOn

Consider a product imported at a total cost of $1,000 with a tariff rate of 30%:

Traditional Approach

Total Product Value: $1,000

Physical Value: $600

Tariff (30%): $300

WaveOn Optimized Approach

Digital Value: $400 (non-dutiable)

Total Duty Paid: $300

Tariff (30% of $600): $180

Duty Savings: $120 (40%)

WaveOn enables importers to separate the physical product from the digital experience.

Our Product AI platform helps you:

  • Clearly separate the physical good from the digital experience

  • Prove that digital services are optional, not essential for base functionality

  • Structure compliant licensing agreements for digital content and services

  • Ensure digital features are activated post-import, making them non-dutiable

The result? You only pay tariffs on what actually crosses the border in a box.

What Digital Services Can WaveOn Separate?

  • AI-powered customer support

  • Digital product documentation

  • Warranty and ownership registration

  • Digital product passports

  • Software updates and optional feature activations

Key Regulatory Insights

WaveOn’s methods align with established guidelines from U.S. Customs (CBP):

Component

Physical Products

Digital Products

Typically Dutiable?

Yes

Depends

WaveOn Compliant?

Yes (dutiable at reduced valuation)

No (if activated post-import)

Proven Precedents

WaveOn’s approach aligns with landmark CBP rulings:

  • HQ H239671 (2013): Clarified that digital software upgrades activated post-importation are non-dutiable.

Elevate Experience. Lower Costs.

Tariffs were built for a product-centric world. Your business isn’t.

WaveOn gives you the tools to operate in today’s experience-driven economy — while navigating tariff rules with intelligence and clarity.

How to Get Started

WaveOn makes tariff optimization straightforward:

  1. Assess your current tariff situation.

  2. Identify products suitable for digital separation.

  3. Implement WaveOn’s NFC-enabled Product AI platform.

  4. Document compliance clearly and confidently.