FedEx, UPS, DHL Start Sending Out Trump Tariff Refunds — Here’s Who Gets Paid

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FedEx, UPS, DHL Start Sending Out Trump Tariff Refunds — Here’s Who Gets Paid

Refunds are generally issued to the original tariff payer, complicating the process for shoppers

Trump Tariffs Main.

File Photo of US President Donald Trump announcing the tariffs.

Photo : AP

US businesses are beginning to receive billions of dollars in refunds after President Donald Trump’s emergency tariffs were struck down, but many consumers who paid higher prices for imported goods may not receive the money.

Who gets the refund largely depends on how the product was purchased and who originally paid the tariff.

Shipping companies including FedEx, UPS and DHL have begun passing tariff refunds to customers after receiving reimbursements from the US government.

FedEx has said it is issuing about $800m in refunds, with payments beginning this month. UPS said its first round of claims totalled $500m and that customers should receive refunds one to three months after the company is reimbursed.

But the process is less straightforward for shoppers who bought imported goods through retailers.

US Customs and Border Protection (CBP) pays refunds to the “importer of record” – the company or shipping carrier that originally paid the tariff – rather than necessarily to the person who ultimately paid more for the product.

“There’s no way for consumers to get money from customs,” Rathna Sharad, chief executive of international logistics company FlavorCloud, told CBS News.

Consumers may therefore only receive money if the company that gets the refund chooses to pass it on. The refunds are part of a wider effort to unwind Trump’s emergency tariffs after the US Supreme Court struck them down in February.

CBP has been processing refunds since then. More than $100bn has now been refunded to businesses, according to a recent court filing, representing about 60% of the money the government owes importers.

For Americans who paid tariffs directly on an international shipment, receiving a refund may be more straightforward. FedEx has created a system that allows customers to check whether it has received a refund for tariffs attached to their shipments.

UPS and DHL have also said they will pass eligible refunds back to customers as they receive the money from the government.

DHL said its refunds would be automatic once CBP reimburses the company, with the money returned to the party that originally paid the duties.

For shoppers who bought products from retailers, however, it may be difficult to determine whether they are entitled to anything.

A customer who paid $1,200 for a television, for example, may not know how much of the price reflected tariffs. A retailer could have absorbed the tariff itself, passed some or all of the additional cost to customers through higher prices, or changed its pricing strategy in response to the duties.

Even if a retailer receives a refund, it is not automatically required to return the money to customers. Amazon has said it will proactively contact customers and issue refunds in limited cases where it can trace specific import charges that were directly passed on to them.

Other companies have said they may instead use refunds to lower prices or offset other costs rather than issue individual payments.

“Getting a refund check is very different from other people not paying increased prices because of tariffs,” Eric Johnson, a professor at Columbia Business School, told CBS News.

How Are the Refunds Being Processed?

The refunds are being handled through CBP’s new Consolidated Administration and Processing of Entries system, known as CAPE. Importers and authorised customs brokers submit refund requests through the Automated Commercial Environment, or ACE, portal.

Eligible tariffs imposed under the International Emergency Economic Powers Act (IEEPA), including interest, can be refunded electronically.

Businesses must have an ACE Portal account and provide CBP with bank details to receive the money by electronic transfer.

CBP says eligible refunds should generally be issued within 60 to 90 days after a CAPE declaration has been accepted, although some claims require additional review.

The system is being introduced in phases, meaning not all tariff entries can immediately be processed through the same system.

More complicated cases, including certain reconciled or finally liquidated entries, require additional steps.

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Rounak Bagchi
Rounak Bagchi author

Rounak is a journalist with over 7 years of experience covering geopolitical and international affairs. He has a keen interest in research and explain… View More

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Original source: https://www.timesnownews.com/world

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