Q&A: Raistone Capital on Section 301 tariffs, refund process

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Global Trade, Imports

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Editor’s Note: MetalMiner has recently partnered with Raistone Capital to help manufacturing organizations claim and quickly obtain access to cash refunds for Section 301 tariffs paid on products that are on the exclusion list. Tariff refunds help buying organizations add actual dollars to their bottom line. 

Tariff exclusions are published in the Federal Register (there is also a search portal). You can also search through the lists with your HTS code: 

What is the total dollar amount Raistone estimates is owed to U.S. companies by the U.S. government for Section 301 tariffs? What do average refund amounts look like?   

Raistone estimates there is nearly $20 billion in refunds due under Section 301 of the Trade Act of 1974. Through our Accelerated Tariff Refund program, we are seeing refund requests that average $500,000 per company.

What does Raistone do for U.S. companies and why might it be better to work with a firm like Raistone versus waiting for a refund from the government? 

The only service of its kind, Raistone’s Accelerated Tariff Refund program will purchase qualified Section 301 refunds directly from any business – ranging from $50,000 to $300 million. Those customers will receive 100% of the refund (less fees) and have that money in their bank account in as little as one business day. 

Normally, these refunds could take a year or longer when paid by the U.S. government. Raistone’s program takes the uncertainty out of payment, delivering payment directly to the qualified customer in as fast as a day. 

If a company has not applied for a refund, can it still take advantage of getting paid early through Raistone? What steps must it take?    

Yes, the company can. 

We can assist the company with applying for a refund on the products deemed exempt. After our initial conversation and review of qualifying paperwork (qualifying refers to once the company has already requested a refund and has filed, as opposed to pre-filing), we can work with a company (and the customs broker) to handle all the required paperwork. We will then give a quote for accepting early payment. 

Early payment is 100% of the face value of the refund, minus any fees. If the company agrees to the terms, it can receive payment in as quickly as one day. 

Want to know if your company can claim a refund? Click here to learn more

How many companies do you think have been impacted by Section 301 tariffs and which industry sectors do you feel have been impacted the most? 

The impact is felt at hundreds of companies! Industries most affected include: automotive, manufacturing, consumer electronics, agriculture and communications. 

Many manufacturers have been impacted by Section 232 tariffs (in addition to Section 201 and 301 tariffs). Does Raistone help companies obtain refunds for these other tariffs? Why or why not? 

Yes, Raistone did launch the program initially focusing on the Section 301 trade tariffs; however, we have the resources in place to address the Section 232 and Section 201 tariffs, as well.

What problem or opportunity did Raistone see in the market to create a mechanism for offering this type of service?

After speaking with a number of companies, we realized there was a very high degree of uncertainty with respect to receiving a tariff refund. 

One reason for this uncertainty is when a company submits a refund request based on an exempt product, the company receives acknowledgment of the request being submitted but not a formal approval of the request, nor a time frame for when funds will be received. 

For many businesses adversely impacted financially by the tariffs, this raises a great deal of uncertainty on receiving vital funds. 

We take away the uncertainty. 

Once we review the paperwork and deem it qualifying, we quickly present terms to the company. Once the terms are accepted, the company can then receive its funds, typically within a day. Raistone advances the funds, then Raistone awaits payment from the government.

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