Reduce Import Tariffs with WaveOn Technology

Navigating Tariff Uncertainty

Trade policies are evolving rapidly, creating challenges and opportunities for businesses importing goods. The recent temporary tariff reduction between the U.S. and China is a prime example:

  • U.S. tariffs on certain Chinese imports dropped from 145% to 30% starting May 12, 2025 (lasting 90 days).

  • Despite temporary relief, ongoing tariff volatility requires smarter, longer-term solutions.

How Can Businesses Benefit?

WaveOn offers a clear, compliant strategy to reduce tariff liabilities by separating the value of physical goods from digital services.

Traditionally, import duties are applied to the total value of the product. By clearly distinguishing between physical products (tangible goods) and digital services (like software or AI-driven interactions), businesses can significantly lower their dutiable amount.

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’s Technology Advantage

WaveOn’s innovative Product AI platform uses NFC chips embedded in products to separate digital services clearly and compliantly:

  • Clear Separation: Physical goods function independently of digital services.

  • Optional Digital Services: Consumers activate these services after importation, clearly demonstrating they're optional and thus non-dutiable.

  • Compliant Documentation: WaveOn provides detailed documentation proving separate contracts for digital services, ensuring customs compliance.

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.

Why Act Now?

The current tariff reductions won’t last forever. By adopting WaveOn’s compliant and effective separation strategy, you secure long-term tariff savings and protect against future uncertainty.

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.