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Digital Goods Could Now Face Tariffs

Practical Ecommerce·Armando Roggio·about 1 month ago
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For nearly three decades, the nations of the World Trade Organization have protected software and digital downloads from duties and tariffs. But what had been a rule is now negotiable. The WTO’s 14th Ministerial Conference on March 26-29 in Yaoundé, Cameroon, “ended in impasse, after an agreement among 164 WTO members to extend the Moratorium on Customs Duties on Electronic Transmissions to December 31, 2030, was blocked by Brazil and Turkey,” wrote the Office of the United States Trade Representative in a release . The moratorium expired on March 31, but the lapse does not immediately change how most businesses operate. But it removes a foundational protection for cross-border digital products, opening the door to tariffs on software, downloads, and potentially SaaS platforms. For ecommerce businesses, the impasse may foretell a shift away from global uniformity toward comparably fragmented, country-specific rules.…

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