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US Government Starts to Reimburse Tariffs

Alan Edward Klein

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Tariff reimbursement processing starts tomorrow on the US government site. See the article linked below.. Importers will get their tariffs paid back, although distributors and final customers will have to wait for the importers and retailers to work out repayments to final buyers. Lawsuits are working their way through the US legal system regarding those.

The article doesn't specifically mention di minimus tariffs. But it appears they will be paid back as well. FedEx and other shippers plan to repay tariffs indicated on their billing automatically. So that should affect most di minimus purchases and not require buyers to have to deal with submitting claims.

From the article: "Individuals may be more likely to receive refunds from delivery companies like FedEx and UPS, which collected tariffs on imports directly from consumers. FedEx has said it would return tariff refunds to customers when it receives them from the CPB. (US Customs and Border Protection)

“Supporting our customers as they navigate regulatory changes remains our top priority,” FedEx said in a statement. “We are working with our customers as CBP begins processing refunds and plan to begin filing claims on April 20.”

Businesses can claim refunds for Trump tariffs ruled unconstitutional starting Monday

A refund system for businesses that paid tariffs which the U.S. Supreme Court ruled President Donald Trump imposed without the constitutional authority to do so is scheduled to launch Monday. Importers and their brokers will be able to begin claiming refunds through an online portal beginning...
www.yahoo.com
 
Not a big deal. You and I won’t see a penny of this…

I’ll believe it only when I see it.
 
BrianShaw said:
Not a big deal. You and I won’t see a penny of this…

I’ll believe it only when I see it.
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I think tariffs paid on di minimus purchases separately indicated on FedEx and other shippers' bills will be paid as FedEx states they will in the article. Those are very straightforward. You could win back that money in small claims court. Plus, FedEx doesn't want to lose its customers.

The problem will be where, let;s say, a retail seller of a Japanese camera did not include the tariffs as a separate line item like sales taxes are shown on the buyer's bill. First, importers, distributors, and retailers have to work out the tariffs paid and passed along among themselves. There are already lawsuits on this. Once these are worked out, the retailer had better reimburse their customers for something they paid or they won't have any customers left if they don't. If you paid let;s say $1000 for a new Japanese camera, you know there's a 15% tariff on the imported price. That would be less than $150. Interestingly, the retailer might have to show their markup once you know they reveal their reimbursement amount.
 

It is entirely possible that a seller out of Japan for example might not really care about repeat customers and may not want to bother refunding tariffs. A shipper such as FedEx, UPS or DHL that has charged tariffs would be more likely to make refunds (less a transaction fee, probably).
 
Pieter12 said:
It is entirely possible that a seller out of Japan for example might not really care about repeat customers and may not want to bother refunding tariffs.
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Isn't that seller in Japan just a pass-through - collected tarrif money and passed it to the authorities? Don't think the sellers have anything to do with this. It's between importers and Custom and Border Protection...
 
Pieter12 said:
Unless you're the sender, you are not a customer. Nothing lost.
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Americans use FedEX, UPS, USPS, etc., shippers domestically to ship personal packages and documents. PLus if shippers fail to pay back the tariffs, there's bound to be a class action lawsuit. They'll wind up having to pay in the end.
 
BrianShaw said:
Isn't that seller in Japan just a pass-through - collected tarrif money and passed it to the authorities? Don't think the sellers have anything to do with this. It's between importers and Custom and Border Protection...
Click to expand...

So what is the incentive for the seller to do anything? It would be up to the buyer to prove the seller paid the tariff on their behalf and then be able to collect from the government.
 
BrianShaw said:
Isn't that seller in Japan just a pass-through - collected tarrif money and passed it to the authorities? Don't think the sellers have anything to do with this. It's between importers and Custom and Border Protection...
Click to expand...

I think that's correct. If you paid let;s say, through eBay or PayPal, they would show tariff cost, state sales tax (if applicable to the buyer's state) and shipping cost. The shipper (who is also the importer) would then pay the state the sales tax and the Feds the tariff amounts. So the shipper would apply for tariff reimbursement and send the check to the final buyer, less any handling charges if they impose them, which would be reasonable.
 
Alan Edward Klein said:
Americans use FedEX, UPS, USPS, etc., shippers domestically to ship personal packages and documents. PLus if shippers fail to pay back the tariffs, there's bound to be a class action lawsuit. They'll wind up having to pay in the end.
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And how many of those "Americans" who use those companies for personal domestic shipping paid tariffs through those shippers? The vast majority of the tariffs have been paid by business. Plus, it really rankles me to read or hear "Americans" as if the United States was the only country in North (or Central or South) America.
 
Pieter12 said:
So what is the incentive for the seller to do anything? It would be up to the buyer to prove the seller paid the tariff on their behalf and then be able to collect from the government.
Click to expand...

It’s up to the importer to work it out with CBP. Seller has nothing to do with this. Have you read the article?
 
Pieter12 said:
The vast majority of the tariffs have been paid by business.
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Absolutely correct. The big importers and tgeir agents have already applied. The big dogs always come first in bankruptcy proceedings snd they probably will in these too.
 
Why would the IEEPA decision impact de minimis? It would be really helpful to the small potatoes buying/selling of new and used stuff but I’d be surprised.
 
  • BrianShaw
  • Deleted
  • Reason: Not worth discussing…
BrianShaw said:
It’s up to the importer to work it out with CBP. Seller has nothing to do with this. Have you read the article?
Click to expand...

Seller has everything to do with it if they specify that tariffs are included in the sales price. And yes, I have now read the article.Large retailers (sellers) are likely to be called on to reimburse the tariffs they passed on to consumers. I doubt very much smaller businesses such as the aforementioned Japanese e-bay seller will respond to any requests for refunding tariffs included in the sales price.
 
Keep in mind that the tariffs have to be paid (likely by the seller) before the item was accepted by US Customs and allowed to cross the border, for example before Canada Post would even take a package. What the selling price agreed to was may well be quite independent of tariff costs. If you agreed to pay X dollars total for something, it wouldn't matter what the breakdown was at the sellers end. Many sellers, particularly at the start of this had to eat the tariffs if they had contracted to sell at a certain price.
 

If not prepaid, tariffs are collected from the receiver by the shipping company before clearing U.S. Customs.
 
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