A sudden trade policy shift has left many U.S. importers scrambling to adapt. With punitive tariffs squeezing profit margins, businesses faced mounting financial pressure—until a recent policy adjustment by the U.S. Trade Representative (USTR) reopened 352 tariff exemptions, creating over $1 billion in potential refund opportunities.
Jeff Berman of Logistics Management recently spoke with Ben Bidwell, North American Customs and Compliance Director at C.H. Robinson (CHR), about how companies can capitalize on these refunds while preparing for future trade policy changes. Below are key excerpts from their discussion.
Restored Exemptions Create Refund Windfall
LM: The USTR reinstated tariff exemptions—what does this mean for shippers? We understand one CHR client may qualify for nearly $20 million in refunds.
Bidwell: After all exemptions expired last year, USTR solicited public comments about potentially restoring some. Then, unexpectedly, they announced 352 exemptions would be reinstated through December 2022, retroactive to October 2021.
This means qualified imports during that period avoid Section 301 tariffs, and shippers can claim refunds for duties already paid. The retroactive component is crucial but under-discussed. Beyond our $20 million case, we're seeing $1-3 million refund opportunities across multiple clients.
Streamlining the Refund Process
LM: How is CHR helping clients secure refunds?
Bidwell: We launched a U.S. Tariff Search Tool to help importers verify exemption eligibility. Our team analyzes clients' import histories to identify refund opportunities, then prepares and submits documentation to Customs. The process requires meticulous record-keeping—proper Harmonized System (HS) codes and product descriptions are essential.
LM: Are companies actively pursuing refunds?
Bidwell: We're proactively educating clients, though many new prospects remain unaware. Most established importers have conducted thorough reviews, but there's still significant untapped potential.
Trade Policy in Flux
LM: With the White House considering tariff reductions, are we in a holding pattern?
Bidwell: Absolutely. The four-year statutory review of Section 301 tariffs examines both their effectiveness and economic impact. Three outcomes seem plausible: full repeal, status quo, or—most likely—retaining tariffs while expanding exemptions through a new petition process.
Any new exemptions would apply industry-wide, not just to individual petitioners. The USTR relies heavily on data-driven decisions following public comment periods.
Tariffs Reshape Supply Chain Strategies
LM: How have tariffs impacted U.S. supply chains since 2017?
Bidwell: Customs considerations now take center stage in business planning. Where import discussions were once an afterthought, companies now dedicate entire meetings to trade strategy. Early-stage consultations about tariff impacts have become standard.
The numbers speak volumes—Customs collected $35 billion in duties in FY2017 versus $85 billion in FY2021. While some manufacturers explored relocating operations from China, few followed through due to the enormous costs involved.
LM: Have the tariffs achieved their original objectives?
Bidwell: The ongoing review will provide clarity. After four years, we'll soon learn whether the policy delivered its intended results.