"Roughly 126,000 claims have been lodged through the US Consolidated Administration and Processing of Entries (CAPE) system since it opened for business on 20 April. Yet a sizeable proportion of those applications are expected to be bounced, either because the claimant is not legally eligible or because the paperwork has fallen foul of the portal's exacting requirements."
""Some UK businesses hoping for compensation may find they are ineligible for it and receive nothing," Mr Havard said. "A number of small British firms may never have encountered tariffs until President Trump's second term. They are likely unaware that, although falling sales and higher shipping costs have inflicted significant harm on their finances, legally they are owed nothing by the US Government.""
""The crux of the issue, Mr Havard argues, lies in the small print of international trade contracts. Where British firms shipped goods to American customers on an 'ex-works' or 'cost and freight' basis, the legal obligation to settle the tariff sat with the US importer rather than the UK seller.""
""Reimbursing the US importer for its additional costs does not qualify the UK entity to apply for a tariff refund," he explained. "In other words, even where British exporters voluntarily absorbed the cost to preserve a customer relationship, they cannot now walk into the CAPE system and ask for it back.""
About 126,000 claims have been filed through the US CAPE system since it opened on 20 April, but many are expected to be rejected. Claims may be denied if the claimant is not legally eligible or if paperwork does not meet the portal’s strict requirements. Some small British firms may have had no prior experience with tariffs and may not realize that financial harm from falling sales and higher shipping costs does not automatically create a legal right to payment from the US Government. Eligibility depends on contract terms. When goods were shipped on ex-works or cost-and-freight terms, the US importer is legally responsible for the tariff, so reimbursing the importer does not entitle the UK exporter to a refund.
Read at Business Matters
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