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Beyond the Border: Why Tariffs, VAT, and Classification Should Shape Your Pricing Strategy, TecEx Podcast Series
“A 30% duty can turn a profitable product into a loss-maker if it’s not accounted for.” — Noa Sussman, TecEx
In the latest installment of the TecEx podcast series, Doug Green, Publisher of Technology Reseller News, is joined once again by Noa Sussman of TecEx to unpack the real-world financial impact of tariffs, duties, and VAT on global technology deployments—and why it’s no longer just a logistics issue, but a boardroom concern.
The Hidden Cost of Global Trade Decisions
Sussman warns that companies still underestimate how duties and tariffs directly affect sourcing and profitability. With geopolitical tensions and shifting regulations, a 10% or 30% tariff isn’t theoretical—it’s immediate and impactful. “It can take a product from black to red if you don’t factor it into your pricing,” Sussman explains. Sourcing from countries like China or exporting to regulated markets like Europe means companies must think beyond cost and lead times—they must assess tax exposure and long-term compliance risks.
VAT: Not Just a Cost of Doing Business
The discussion also dives into VAT—how it varies across jurisdictions, and how misunderstandings about reclaim rules can cause serious cash flow issues. Sussman shares how a poorly timed or misunderstood VAT payment can delay deployments and disrupt go-to-market timelines.
Case Study: When Classification Goes Wrong
In a striking real-world example, Sussman recounts how one client misclassified a component’s country of origin, triggering a massive tariff on an entire $1 million shipment rather than a single $5,000 part. The error, based on incomplete paperwork and poor compliance oversight, led to unexpected duties, delays, and financial loss—something a strategic partner like TecEx could have prevented.
Strategic Solutions: Planning and Partners
From leveraging free trade agreements to properly classifying products and understanding country-specific tax rules, Sussman outlines how planning can lower costs and reduce risk. He also introduces the concept of “duty drawback programs”—a lesser-known tool that allows qualified companies to recoup paid duties under certain conditions.
“Too many companies make the sale before they think about VAT or duties,” Sussman notes. “By then, it’s too late.”
Final Word: Don’t Go It Alone
For organizations deploying globally—whether into data centers or manufacturing facilities—the message is clear: bringing in a seasoned trade and compliance partner isn’t optional. It’s essential.
To learn more about navigating global deployment and compliance with confidence, visit tecex.com.
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By Telecom Reseller
4.9
1111 ratings
“A 30% duty can turn a profitable product into a loss-maker if it’s not accounted for.” — Noa Sussman, TecEx
In the latest installment of the TecEx podcast series, Doug Green, Publisher of Technology Reseller News, is joined once again by Noa Sussman of TecEx to unpack the real-world financial impact of tariffs, duties, and VAT on global technology deployments—and why it’s no longer just a logistics issue, but a boardroom concern.
The Hidden Cost of Global Trade Decisions
Sussman warns that companies still underestimate how duties and tariffs directly affect sourcing and profitability. With geopolitical tensions and shifting regulations, a 10% or 30% tariff isn’t theoretical—it’s immediate and impactful. “It can take a product from black to red if you don’t factor it into your pricing,” Sussman explains. Sourcing from countries like China or exporting to regulated markets like Europe means companies must think beyond cost and lead times—they must assess tax exposure and long-term compliance risks.
VAT: Not Just a Cost of Doing Business
The discussion also dives into VAT—how it varies across jurisdictions, and how misunderstandings about reclaim rules can cause serious cash flow issues. Sussman shares how a poorly timed or misunderstood VAT payment can delay deployments and disrupt go-to-market timelines.
Case Study: When Classification Goes Wrong
In a striking real-world example, Sussman recounts how one client misclassified a component’s country of origin, triggering a massive tariff on an entire $1 million shipment rather than a single $5,000 part. The error, based on incomplete paperwork and poor compliance oversight, led to unexpected duties, delays, and financial loss—something a strategic partner like TecEx could have prevented.
Strategic Solutions: Planning and Partners
From leveraging free trade agreements to properly classifying products and understanding country-specific tax rules, Sussman outlines how planning can lower costs and reduce risk. He also introduces the concept of “duty drawback programs”—a lesser-known tool that allows qualified companies to recoup paid duties under certain conditions.
“Too many companies make the sale before they think about VAT or duties,” Sussman notes. “By then, it’s too late.”
Final Word: Don’t Go It Alone
For organizations deploying globally—whether into data centers or manufacturing facilities—the message is clear: bringing in a seasoned trade and compliance partner isn’t optional. It’s essential.
To learn more about navigating global deployment and compliance with confidence, visit tecex.com.
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