Making Purchases Using MIT Funds

• Receipts or other proof of payment for reimbursement requests, regardless of dollar amount
• Receipts or other proof of payment for ProCard. Exception: For transactions $75 and under, submit only backup for business meeting meals. (Alcohol is not allowed on the ProCard.)
• Invoices for purchase orders or requests for payment
• Record of receipt for goods (e.g., electronic receipt in B2P)

These records are used in support of internal approval processes, internal audits, and external audits

• to verify and approve transactions
• to show that an expense was legitimate and allowable
• to provide evidence that a transaction occurred

Ultimately, these records help ensure that MIT’s money is being used responsibly and effectively.

VPF advises DLCIs that electronic financial records stored on VPF central platforms do not require additional paper backup. Once complete and legible records are uploaded and approved in Concur, B2P, eRFP, Procurement Card Inbox, or journal vouchers, they are maintained by VPF and do not need to be stored and retained by your DLCI.

If you did not upload your receipt to a VPF system, your DLCI needs to store and retain records as follows:

Having a thorough understanding of MIT’s policy will help you follow the policy as well as associated best practices.

See Buying and Paying Policies, Section 8.00 for MIT's Financial Record Retention Policy. Highlights include:

• You’re encouraged to keep records in electronic rather than paper form
• If the original record was electronic (e.g., an electronic invoice or receipt), keep it electronic; there’s no need to print out and retain it in paper form.
• Once you upload a complete and legible financial record to a VPF-managed application (Concur, B2P, eRFP, Procurement Card Inbox, or Journal Vouchers), VPF is responsible for retaining it.

The table below provides a visual guide of the policy (also available for download in PDF format).

If you need some reminders of the policy and key best practices, take a look at the Financial Record Retention quickcards and FAQs:

• FAQs: Financial Record Retention
• Quickcard: How Long to Retain Financial Records
• Quickcard: Electronic Imaging
• Quickcard: ProCard and Travel Card Receipts
• Quickcard: ProCard Inbox Attachment
• Quickcard: Packing Slips for B2P POs
• Quickcard: Recording Receipt in B2P

You may find it helpful to keep these at your desk as quick references.

Here are a few ways to be vigilant against fraud perpetrated by outside individuals and agencies.

• Carefully verify the claims of suppliers who reach out to you unsolicited as some may be scam artists and fake companies.
• Never give out sensitive personal or business account information to someone who has called or contacted you unsolicited.
• Carefully review all purchase orders and invoices. Scammers might attempt to present invoices for goods that were not received. If you suspect this has occurred, immediately notify your department leadership and work with the B2P Contact Center at b2p@mit.edu or 617-253-7000.
• If your Procurement Card or Travel Card is lost, stolen, or has transactions you do not recognize immediately contact Bank of America at 1-888-449-2273 and follow up with an email to VPF Travel and Card Services.
• Never accept any changes to supplier banking or address information via email or phone. Changes must be made by the supplier in PayModeX or through the Coupa Coupa Supplier Portal.
• Do not send sensitive information via email or phone, such as Social Security Numbers or W-9s. This information should ONLY be sent via PayMode or through Coupa Supplier Portal.
• Do not send Procurement Card numbers, Travel Card numbers, or security codes over email.
• Ensure communications from a trusted colleague or supplier are genuine. A common scam is to impersonate (or "spoof") a colleague to ask for gift card purchases or money transfers. If in doubt, verify with your colleague.

If you suspect you are the victim of a scam or other fraudulent practices, immediately notify the B2P Contact Center at b2p@mit.edu or 617-253-7000.

To ensure that we are good stewards of MIT’s financial resources and to mitigate risk, VPF routinely conducts audits — on specific orders and on orders randomly selected for review — on purchases made with MIT funds.

Occasionally, VPF may ask you for additional information about one or more of your purchases, such as itemized receipts or a more thorough explanation of your intent for the goods or services. This is a routine and normal part of the audit process. These requests should be addressed in a timely manner.

Here are some ways you can help mitigate risk to yourself and MIT:

• Ensure that you understand how to responsibly use MIT funds, as well as what costs are allowable and appropriate.
• If you are a Financial Primary Authorizer, you are responsible for maintaining the purchasing authorizations for your area in the MIT Roles Database.
• If you accidentally misuse your Procurement Card or Travel Card, please contact VPF Travel and Card Services right away to explain and resolve the situation.
• If you suspect someone in the MIT community is committing fraud, contact your department, lab, center, or institute (DLCI) Director of Administration and Finance (DAF).

MIT may see tariff charges in two common ways:

Directly: When MIT purchases a product from a supplier that will be importing the product from another country into the United States, shipping terms will determine who is responsible for paying the tariff.

• For Delivery Duty Paid (DDP) shipping terms, the supplier will cover all shipping costs, export/import clearance, and duties until the good reaches MIT. While this shipping term simplifies the shipping logistics, the supplier will seek reimbursement from MIT for such costs through the supplier’s invoice.
• For Delivered At Place (DAP) shipping terms, the supplier will cover all shipping costs to the specific shipping destination, but MIT is responsible for managing the import customs clearing process into the United States. VPF Procurement provides the supplier with MIT’s preferred customs brokerage firm, Watchpoint, to assist in managing the customs clearing process.  

If you intend to seek a tariff exemption as described in Section 6 below, MIT must use DAP shipping terms. Using DDP will make MIT ineligible for reimbursement, even if a tariff exemption is approved. If a DLCI believes DAP should be used, you should make a note to the buyer when creating a requisition and contact the VPF Procurement Buyer assigned to the requisition to confirm DAP. DLCIs may also contact VPF Procurement in advance to discuss the purchase and confirm appropriate shipping terms. 

Indirectly: Suppliers may increase prices for all customers to cover tariffs the supplier pays when importing products into the United States.

Some suppliers provide an estimated tariff at the time of purchase. However, the actual tariff charged is often determined based on the date of import (sometimes the date of export is used by U.S. Customs). Because of this, the actual tariff charged may differ from the estimate and DLCIs should check with their suppliers often regarding anticipated delivery schedules for orders to help anticipate the actual tariff that may be applied.

If a supplier indicates a tariff will apply to your order, DLCIs should request that the supplier provide the following information to help determine, confirm, and plan for the applicable tariff. If a supplier later discloses the applicability of a tariff by providing a tariff charge on an invoice, DLCIs should still request the information below and send to Watchpoint (see Section 5) to verify that the tariff charge is accurate: 

• Accurate item description(s);
• 10-digit HTS codes (https://hts.usitc.gov/) for each item;
• Proof of country of origin (such as a Bill of Lading, a Certificate of Origin, a Declaration of Origin, or a Tariff Schedule);
• Date of Entry (if tariff is provided on invoice; otherwise, DLCIs should work with the supplier to understand the anticipated shipment date and date of import); and
• Applicable Rate (if tariff is provided on invoice; otherwise, DLCIs should work with the supplier to understand the current rate and be aware that the tariff may change on the actual Date of Entry).
• Value of the Goods

Due to market and trade dynamics, DLCIs may find that suppliers are increasing prices. VPF recommends that DLCIs work with their suppliers to validate and negotiate any proposed cost increases:

• Validate: When suppliers propose a tariff-related price adjustment, to verify the proposed price adjustment DLCIs should ask the supplier to submit detailed documentation to demonstrate how the supplier’s supply chain has been impacted. This may include, but not be limited to, invoices, import documents, market data, or other relevant data.
• Negotiate: Based on the data and documentation submitted, DLCIs can engage with their supplier to negotiate (i) share of the percentage increase or fixed price increase or discount change, (ii) a cap on the increase, and/or (iii) the duration for which the increase will be allowed. 

DLCIs can reach out to Strategic Sourcing for assistance in engaging suppliers in these discussions.

Watchpoint is MIT’s Preferred Supplier for customs brokerage services. When importing goods, the use of Watchpoint is strongly encouraged. Watchpoint has provided a step-by-step process for Customs Brokerage.

Watchpoint is paid directly for their services, in addition to any applicable duties and taxes. DLCIs will create a B2P Requisition for the clearance services and fees and provide Watchpoint with the purchase order number to ensure prompt delivery and invoice processing. More information can be found on the Watchpoint Supplier Page in Supplier Search.

Watchpoint’s Supplier Contact Information:

Linda Amiro, Customer Service Representative

617-567-6800 | linda.amiro@watchpointlogistics.com

and

Customs Brokerage Team

cbpbrokerage@watchpointlogistics.com

As tariff and U.S tax requirements continue to evolve, customs clearance delays are expected. If your shipment has been idle in U.S. customs for 10 days, we recommend you email your shipment carrier name (DHL, FedEx, etc.) and shipment tracking number to Linda Amiro at Linda.Amiro@watchpointlogistics.com for a customs clearance status update (cc the VPF Procurement Buyer associated with the purchase).

Some goods may be exempt from tariffs, but the process can be lengthy and there is no guarantee that an exemption will be granted and a refund will be provided. DLCIs remain responsible for any applicable tariff charges until the exemption is approved. 

MIT’s most commonly sought exemption is laboratory and research scientific instruments or apparatus that cannot otherwise be sourced from within the U.S., for which DLCIs may submit a Request for Duty-Free Entry of Scientific Equipment and Apparatus Exemption Form.

As a first step to determine eligibility, VPF recommends gathering the following information from the supplier/vendor before order placement:

• 10 digit Harmonized Tariff Schedule (HTS) (https://hts.usitc.gov/) code that will be used on the commercial invoice for the equipment item(s).
• Country of Origin
• Value of the Equipment Item(s)

Email the above information to cbpbrokerage@watchpointlogistics.com and Linda Amiro (Linda.Amiro@watchpointlogistics.com) at Watchpoint Logistics, and ask if the item(s) may be eligible for an exemption. Watchpoint can help determine exemption eligibility based on the information provided above. Even if your item may be eligible for an exemption, approval of the exemption is not guaranteed. U.S. Customs and Border Protection may deny the request.

If Watchpoint confirms eligibility, you may proceed with completing and mailing your application to the address for U.S. Customs and Border Protection on the form (Watchpoint cannot submit the application on your behalf).  If U.S. Customs and Border Protection approves your exemption, provide a copy of the approval to cbpbrokerage@watchpointlogistics.com and Linda Amiro (Linda.Amiro@watchpointlogistics.com) for customs clearance purposes.

Yes. All tariffs must be paid and are applied based on the date that the item(s) arrived in the U.S. This is more commonly referred to as the “entry date.” 

MIT DLCIs are responsible for paying the tariffs for shipments from international locations. When/where possible, MIT strongly recommends sourcing items from vendors that can/will ship from within the U.S. 

Some goods may be exempt from tariffs. VPF recommends first contacting Watchpoint to understand exemptions that may be available or applicable to you. This may include, but not be limited to, laboratory and research scientific instruments or apparatus that cannot otherwise be sourced from within the U.S., for which DLCIs may submit a Request for Duty-Free Entry of Scientific Equipment and Apparatus Exemption Form to the address for U.S. Customs and Border Protection on the form.

Some goods may be exempt from tariffs. VPF recommends first contacting Watchpoint to understand exemptions that may be available or applicable to you. This may include, but not be limited to, laboratory and research scientific instruments or apparatus that cannot otherwise be sourced from within the U.S., for which DLCIs may submit a completed Request for Duty-Free Entry of Scientific Equipment and Apparatus Exemption Form to the address for U.S. Customs and Border Protection on the form.

Contact your cost object owner(s) or DLCI Director of Finance and Administration to discuss any budgeting needs. 

The Federal Government has the authority to impose tariffs, and the government is currently in several tariff discussions and negotiations worldwide.    

There may be an opportunity to negotiate the impact of tariffs on your specific purchase with the supplier that is selling the product. For example, you may ask the supplier if they would be willing to absorb all/some of the tariff cost, or offer lower pricing on the items to help offset the tariff cost. There may also be an opportunity to ask the supplier to explore ways to ship the items to MIT from their U.S. location. 

Yes, adding the tariff charges to a quote may help DLCIs understand costs for budgeting purposes, and provide an opportunity to negotiate item and tariff costs before the items are purchased and shipped. However, please be aware that tariffs are subject to change and are determined by actual date of entry and, therefore, you may see a different tariff charged on your final invoice (higher or lower).

NOTE: If you are considering seeking an exemption, we recommend requesting the tariff charge be estimated separately from the quote to avoid confusion over responsibility for managing the import customs clearing process. In order to qualify for tariff refunds, if exemption is approved, MIT must be the importer of record and responsible for managing the import clearing process.

Tariffs, customs, and import duties are generally allowable under federally sponsored awards, so long as the related activities take place within the U.S. DLCIs should reach out to their cost object owner(s) and/or RAS Administrator to help plan for potential tariffs in the sponsored budget. 

Yes. The tariff exemption process is lengthy and often exemptions are not approved until after the tariff is imposed. U.S. Customs and Border Protection has been experiencing months-long delays in processing these requests. If not processed by the time your package arrives at the port of entry, you will need to pay the duty in order to have your shipment clear customs. If you have paid the tariff and your exemption is later approved, Watchpoint can assist you in seeking the tariff refund from Customs.