FedEx, UPS Begin Passing Billions in Tariff Refunds to Some Customers

Some U.S. consumers who paid tariffs on overseas purchases last year are beginning to receive refunds through shipping companies that acted as customs brokers, The Associated Press (AP) reported.

Shipping companies including FedEx and UPS are returning tariff refunds to some customers who directly paid import charges on overseas purchases. [Photo: FedEx]

Shippers including FedEx, UPS and DHL that paid tariffs on behalf of customers and later received refunds from the U.S. government have begun passing the money back to the customers who originally paid the charges.

The refunds follow the U.S. Supreme Court's February decision invalidating broad tariffs imposed under the 1977 International Emergency Economic Powers Act. U.S. Customs and Border Protection subsequently established a system for processing tariff refunds.

About $100 billion in tariff refunds had been returned to companies through the government system by Aug. 13, although that does not mean consumers will receive the full amount.

Most tariffs were paid indirectly by retailers or importers and may have been incorporated into prices rather than directly charged to individual consumers.

FedEx said it had begun returning about $800 million in tariff refunds it received from the government to eligible customers. UPS said it had paid about $5 billion in tariffs on behalf of clients and was seeking refunds, while DHL said it had filed claims for eligible shipments.