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:
Assess your current tariff situation.
Identify products suitable for digital separation.
Implement WaveOn’s NFC-enabled Product AI platform.
Document compliance clearly and confidently.