Implementing

    VAT
    Shipping

International HR
The chart, Staffing Options for UW Programs Operating in Foreign Locations, provides a detailed description of the five staffing options at a foreign site. Note that some of these options are available only to those UW programs that have an established legal presence in the host country.

Employment laws vary widely from country to country.However, certain UW policies and expectations must be implemented and followed in any international location where UW employees are working, including but not limited to:

HR issues such as corrective action, accommodation, layoffs and dismissal are handled for UW employees abroad on the same basis as they are for UW employees who are U.S.-based.  See the site, International HR, for more information. Consult the International HR specialist on the UW Global Single Points of Contact list for further consultation.

International Relocation Benefits
The purpose of international relocation benefits is to help offset the costs to an employee to relocate to a foreign posting when that assignment will last 12 months or longer. Expenses related to assignments of less than 12 months should be treated as travel status. See the site, International Relocation Benefits, for more information.

International Subcontracts
Faculty  often collaborate with colleagues at other institutions in order to enhance the programmatic or scientific aspects of a research project. If the PI at the subcontracting institution (Subcontractor) wants that project to be part of the UW project, a subcontract will be needed. Moreover, many times RFPs or program solicitations encourage or require that multiple organizations participate in the proposal activities. Consult the OSP Outgoing Subcontracts website for more information.

  • Accessing cash at a foreign site. There are four options for accessing cash from a field advance at a foreign site, each has its particular advantages and disadvantages. Consult the chart, How to Access Cash Abroad from an Advance (Field Advance or Per Diem Travel Advance) for detailed information about the options and possible additional budget impact.If cash will be carried into a foreign location, find out how much cash can be carried in.  If $10,000 or more in cash is being carried into or out of the U.S., ensure that the proper documentation is in place.
  • Foreign Bank Account. If a foreign bank account will be needed, review the procedures for opening one.  Determine, in advance, if any of the following will be concerns:
    • Do host country laws prohibit repatriating unspent funds when the account is closed?
    • Does a non-citizen of the host country have to report the bank account to local authorities?
    • Will the account be taxed by local authorities in the host country?
  • Foreign Exchange Rate. Oanda.com is the recommended site to determine the appropriate foreign exchange rate.

Consult Financial Accounting on the UW Global Single Points of Contact list for more information about field advances.

Procurement
Review the chart, How to Buy Goods and Purchased Services for International Activities, for information on procedures for purchasing in international settings. Ensure that any equipment purchased outside the host country is compatible with electrical standards at the foreign site. If the equipment will be purchased by a subcontractor, determine in advance who will own the equipment at the end of the project. Contact the International Contract Specialist on the UW Global Single Points of Contact list.

Equipment Inventory
Equipment purchased and used at a foreign site must be tagged and inventoried consistent with UW policies and procedures. For more informaiton, see the Equipment Inventory Office site.

VAT
Value Added Tax (VAT) is a consumption tax levied on goods and services in many countries. Each country has its own policy regarding whether VAT is charged, and if so, whether and how it can be reclaimed. For example, VAT rates in the European Union countries range from 3.5% to 25% depending on the country and the item purchased. Some countries charge VAT on rent and associated costs like cleaning, gardening and landscaping. VAT recovery can be a lengthy process and it may take up to 12 months to receive a refund. VAT cannot be included as a direct charge in a federal grant for an international project. Departments are advised to explore processes to either waive or recover VAT. If exemption or recovery is not feasible, unallowable VAT should be transferred to an appropriate non-federal funding source.

Some federal sponsors have allowed VAT to be charged directly on a special exemption basis upon request.  However, to reduce administrative burden for grantees, the OMB has developed a new final guidance document incorporating all previous guidance (A-21, A-110 etc.) which is effective beginning December 26, 2014.  This new guidance classifies VAT as an allowable direct cost across all agencies.  Administrative requirements and cost principles will apply to new awards and to additional funding (funding increments) to existing awards made after Dec 26, 2014. Existing Federal awards will continue to be governed by the terms and conditions of the Federal award.   The new guidance document can be found here:

https://www.federalregister.gov/articles/2013/12/26/2013-30465/uniform-administrative-requirements-cost-principles-and-audit-requirements-for-federal-awards

Shipping
Determine where equipment needed for this project will be purchased and factor in additional shipping charges. Options include:
  • Buying in the U.S. and shipping to the foreign project site
  • Buying in a different foreign country and shipping to the foreign project site
  • Buying in the country where the project will be done

Typically, purchasing equipment in the host country is the most cost effective approach. The following charges will likely be assessed against equipment brought into the foreign location: taxes, customs duty, clearing charges, storage at the port of entry and transportation charge from the port of entry to the final in-country destination.

Shipping items out of the U.S. from the UW requires additional review and consideration. The university does not have a centralized shipping center for international or domestic shipments. Each department must determine the best practice and method related to the logistics in moving items, freight and cargo to the desired end-use location. See the site Export Compliance:  UW Shipping Guide for more information.

Paying for International Activities—Payroll, Purchasing Services and Travel
Consult the chart, How to Pay for International Activities—Payroll, Purchasing, Services and Travel, for information about methods available to pay UW employees and consultants who work abroad, foreign vendors and travel.

The chart provides information on information about bank cards, direct deposit of UW paycheck, wire transfers and UW check as payment methods. Foreign nationals who are UW employees and who work outside the U.S. must complete a UW Certificate of Foreign Status. For more information about the certificate, see the site in Payroll, Foreign Nationals Working Ouside theU.S. For additional information, see the Global Single Points of Contact list.

Paying a Foreign National for Services on a UW Campus
As part of an international activity, a foreign national (i.e., a citizen of a foreign country) may be invited to a UW campus and paid to perform a specific service, like a lecture. There are a number of requirements that must be considered in order to ensure proper payment. The site, Foreign National Payments & Tax, has extensive information and work tools to assist in paying a foreign national.

Facilities
Decide what space at the foreign site will be needed for this project—office, lab, clinical facility and/or guest house for UW project staff.
  • Consult with UW Real Estate before commencing the process of looking for or identifying desired space.

In addition to budgeting for rent, it may be necessary to budget for other expenses associated with the rental such as utilities, alterations, tenant improvements, cleaning fee, furniture, grounds maintenance and security services/guard/night watch. Per UW policy, UW Real Estate (UWRE) is the only authorized unit that can sign a lease for space being used for university purposes or authorize signature under the UWorld corporate structure. Consult the International Real Estate specialist on the UW Global Single Points of Contact list for information about renting or leasing a space at a foreign site.

The tools listed below have been developed by UW departments to assess safety and security in facilities in international settings, and are available for campus use:

Insurance 
Consult the Risk Management website for information on equipment insurance. Find out if there are there host country insurance requirements that will apply to any aspect of this activity.

Per UW policy, only the UW Risk Management Office may purchase or authorize the purchase of insurance. Contact the Director of Risk Financing, UW Risk Management, on the UW Global Single Points of Contact list for more information regarding insurance in international settings.

Technology & Communication
Scale of Operations & IT Needs
IT needs for an international activity should be considered in terms of the scale of operations, size of the staff and project timeline.See the chart, Recommendations for IT & Communications in a Foreign Location for specific guidance.

 If access to electricity at the foreign site is not consistent, buy a power strip in-country. Additional precautions may be needed to signal the unexpected loss of power (e.g., an alarm on a piece of equipment). Back-up equipment (e.g., generator) may also be necessary.

Buying servers, workstations and printers in-country is recommended. This insures that devices are configured to meet local power standards and can make problem resolution and repairs less expensive and time consuming.  Portable devices such as laptops, smartphones and software can be purchased in the U.S. or in-country, depending on need and pricing.

UW travelers who are taking a laptop should ensure that all patches and applications are up-to-date before departing. In addition, insurance for the laptop should be purchased before leaving the U.S. Travelers should carry a personal phone that has international roaming and buy a second phone in-country for business purposes. Pre-paid phone cards are widely available in foreign locations.

In-Country Technical Support
Local technical support is recommended if project personnel will be heavy users of computer and communications equipment.  Local IT support professionals:
  • Are familiar with the  local technology environment
  • Understand the in-country IT infrastructure
  • Have experience with local IT vendors
  • Can provide timely and more cost effective technical problem resolution

See the checklist, IT Support Scope of Work for Foreign Locations, to identify services that may be needed abroad. Contact UW IT Connectivity on the UW Global Single Points of Contact for assistance in selecting a vendor.

Communications
Plan for how data will be transmitted and how communication between project sites will be managed (e.g., phone calls, Skype, video conferencing, VOIP phones). The communication method and roaming charges may add additional costs that should be reflected in the budget. See the UW IT site on international conferencing options.

 

 

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