In today’s volatile global trade environment, tariffs can change quickly—and unpredictably. These sudden shifts can dramatically affect your import costs, putting pressure on your margins and complicating pricing discussions with your customers. Simply increasing your prices to reflect new tariff costs often leads to friction and drawn-out negotiations.
A better approach? Separate government-imposed charges like tariffs from the product price in your sales quotes. This not only increases transparency but also helps customers understand the source of cost increases—and shields non-negotiable fees from discount discussions.
What Are Tariffs?
Tariffs are import taxes imposed by governments on specific goods entering their country. They’re used to protect local industries, generate revenue, or serve diplomatic goals. Tariff rates vary based on the product type and country of origin—and they can change rapidly as trade deals are renegotiated.
Tariffs are just one part of the import cost. Importing a product can also involve administrative overhead such as customs documentation, storage, permits, and brokerage fees. These indirect costs can fluctuate alongside tariffs and significantly affect your cost structure.
To manage these expenses, many companies calculate a per-unit import charge that reflects both tariff and related overhead. This charge can be either rolled into the unit price or shown as a separate line item in quotes and invoices.
Important Note:
Tariffs are paid once—at the time of import. There are no additional tariffs when reselling the product within the same country. Whether shown as a separate line item or not, import charges passed on to customers are still part of the item’s total price and are taxable accordingly.
How Do Import Charges Relate to Sales Tax or VAT?
Most countries apply either a sales tax or a value-added tax (VAT) on sales transactions:
- Sales Tax is applied only when selling to end customers.
- VAT is applied at every transaction point but since VAT paid and VAT received are offset, effectively only the value added at each stage of the supply chain is taxed.
When import charges are shown separately in quotes or invoices, they are still subject to the same tax rate as the base product. Here’s an example:
- Product cost: $10
- Tariff and import overhead: $4
- Profit margin: $3
- Sale price: $17
- VAT @13%: $2.21
Best Practices for Handling Tariffs in Sales Quotes
Option 1: Include Import Charges in the Unit Price
If tariffs are stable, the simplest approach is to adjust your product pricing to include tariff and import overhead. The customer sees one price, and you retain margin coverage.
Option 2: Show Import Charges Separately
If tariffs are volatile or subject to change before the sale is finalized, consider displaying import charges as a separate line item in your quote. This creates transparency, makes pricing discussions easier, and keeps the product price and import cost distinct.
You can also add a disclaimer to your quote reserving the right to update import charges if tariffs change—protecting your bottom line.
How to Manage Import Charges in TeamGram CRM
TeamGram CRM makes it easy to manage and present import charges separately in your quotes:
Step 1: Enable Import Charges
These features are disabled by default. If your subscription supports import charges, your system administrator can enable them via:
Control Panel → My Company → Enable Import Charges
Step 2: Enter Per-Unit Import Charges
After enabling the feature, each product record will display an additional field for per-unit import charges. Calculate and enter this value for every product.
Step 3: Prepare the Quote
When creating a quote, TeamGram will show import charges in a dedicated column for each line item. It will also calculate and display the total import charges separately. This layout improves clarity and makes it easier to explain pricing while applying discounts only to the product portion of the quote.
Final Thought
In competitive environments, you want your quotes to be lean—but not risky. Separating import charges from the product price helps you stay agile in the face of changing tariffs while maintaining pricing transparency and negotiating flexibility.
With TeamGram CRM, you can show tariffs clearly, justify your prices confidently, and win more deals—without compromising your margins.