Tariff Update

[NPeteN]

Insightful.

The truth often is

 

[marshg246]

Lol, refund!!!!
If anything that money goes back to the Vendors. More likely it's in an offshore account by now.

I am a vendor and if I get refunded the tariffs, I will refund best I can those you bought items with tariffs. A difficult task as I have much more in stock that had no tariffs. For instance, one guy bought two 06-4118. One was pre-tariff and one had tariff. All after him were with tariffs and all before were without tariffs. On his, I averaged my cost - how the hell do I figure out what refund - I ate a portion of his tariff.

You can be sure that UPS, et. Al. will refund only the tariff (if that) and not the fees they charged to handle the tariffs - so it's not at all straightforward to determine who gets what refunds. It will likely take me days to figure it all out and of course time is money, so those days are a total loss to me. Besides giving refunds, figuring out the landed costs of everything that is already in inventory is a nightmare.

If by vendor, you mean AN, et. Al., they will have no problem with the things they sold that came from the UK - they did not pay the US tariffs on what they sold - the buyer did! So UPS, DHL, Royal Mail, etc. will have to do the refunds to end users.

It's easy to think things are easy when you don't have to do them!

 

[Jerry Doe]

I am getting complaints about this thread being too political. I will leave it open for now. If I get anymore complaints, then I will lock the thread.

 

[Grandad]

Refunds ( not political ) .... on our BBC News and Sky News the impression given is that the chance of refunds will only apply to " importers " rather than " folks " buying stuff ... and of course the dispensing of cash if it ever happens will take numerous years .... death taxes will apply to most " folks " before this applies .... Lol ... Lol ??? .... .

Best to enjoy kickstarting your bike while you still can and especially enjoy the smug smile / blessed relief of e/start if you have it.

Safe scratching to all - what do non Brits call footpeg / silencer scraping on tarmac ? apart from exploring chicken strips of course

Keep it open please Jerry Gregs ongoing diary is surely helpful in lots of ways

 

[grandpaul]

You can be sure that UPS, et. Al. will refund only the tariff (if that) and not the fees they charged to handle the tariffs - so it's not at all straightforward to determine who gets what refunds. It will likely take me days to figure it all out and of course time is money, so those days are a total loss to me. Besides giving refunds, figuring out the landed costs of everything that is already in inventory is a nightmare.

"Dear valued UPS customer" You tariff refund on invoice 654972 comes to $4.38
You tariff refund processing fee is $3.92
You will find a credit on your account of $0.46
Thank you

 

[Grandad]

Well blow me .............. good news indeed

 

[NPeteN]

Refunds ( not political ) .... on our BBC News and Sky News the impression given is that the chance of refunds will only apply to " importers " rather than " folks " buying stuff ... and of course the dispensing of cash if it ever happens will take numerous years .... death taxes will apply to most " folks " before this applies .... Lol ... Lol ??? .... .

Best to enjoy kickstarting your bike while you still can and especially enjoy the smug smile / blessed relief of e/start if you have it.

Safe scratching to all - what do non Brits call footpeg / silencer scraping on tarmac ? apart from exploring chicken strips of course

Keep it open please Jerry Gregs ongoing diary is surely helpful in lots of ways

Some of us don't have the luxury of being dead in 10 years. This must be dealt with.

You are right, the money will go to importers (if it does) which should be straight forward as there is a computerized record.
Getting that money back to thousands of individuals is going to be near impossible...
Or just cut a check to each citizen.

I fear this is going to become another semi-permanent COVID style "supply chain" price hike on the consumer. Prices are not going to come down, just another smokescreen.

 

[marshg246]

"Dear valued UPS customer" You tariff refund on invoice 654972 comes to $4.38
You tariff refund processing fee is $3.92
You will find a credit on your account of $0.46
Thank you

That is a likely scenario. To be fair, UPS et., Al, got paid their fee to handle the tariffs and they did that. That is was all electronic and cost them little to nothing once setup is probably beside the point. For them to refund the tariffs they collect will be new work and I can easily see them wanting to be paid to do that work. It is not possible as far as I can tell, for US customs to do the refunds as they don't have the info needed. In some cases the shippers won't either without asking their direct customers.

I'm guessing the refund will be made but it will take a long time and it will not be all the money paid for that reason. It will be a mess anyway I see it playing out. I read somewhere the massive number big companies like Apple will need to contend with - how to get all their levels of sales whole - can't imagine.

 

[marshg246]

Some of us don't have the luxury of being dead in 10 years. This must be dealt with.

You are right, the money will go to importers (if it does) which should be straight forward as there is a computerized record.
Getting that money back to thousands of individuals is going to be near impossible...
Or just cut a check to each citizen.

I fear this is going to become another semi-permanent COVID style "supply chain" price hike on the consumer. Prices are not going to come down, just another smokescreen.

In my case, I know the exact cost of every part I sell and except for weird situations, I add a very small percentage to that cost. I recently changed my online pricing where I no longer use the average cost to set the price but list items based on my cost and therefore my price. People choose which to buy and sometime buy some at one price and the same part at another. For instance, I have the parts I got when I bought out Old Britts at that cost, the parts I bought before tariffs at that cost and the ones bought at the original tariffs at that cost and the ones at the 25% at that cost. For example:

BTW, they are ordered by when I bought them, not by price. I'm sold out of the ones of these from Old Britts so they don't show. When I did have them, they were $3.31.

 

[Lineslinger]

The truth often is

When it's an honest observation and not another petty under the radar political swipe.

Offshore bank accounts? The statement has nothing to do with the real world economics of tariffs and tariff fees, much less how they are designed to work, or not work.

You have been sniffing around the political jar since JD imposed the no politics mandate almost 10 years ago.

 

[Lineslinger]

I am a vendor and if I get refunded the tariffs, I will refund best I can those you bought items with tariffs. A difficult task as I have much more in stock that had no tariffs. For instance, one guy bought two 06-4118. One was pre-tariff and one had tariff. All after him were with tariffs and all before were without tariffs. On his, I averaged my cost - how the hell do I figure out what refund - I ate a portion of his tariff.

You can be sure that UPS, et. Al. will refund only the tariff (if that) and not the fees they charged to handle the tariffs - so it's not at all straightforward to determine who gets what refunds. It will likely take me days to figure it all out and of course time is money, so those days are a total loss to me. Besides giving refunds, figuring out the landed costs of everything that is already in inventory is a nightmare.

If by vendor, you mean AN, et. Al., they will have no problem with the things they sold that came from the UK - they did not pay the US tariffs on what they sold - the buyer did! So UPS, DHL, Royal Mail, etc. will have to do the refunds to end users.

It's easy to think things are easy when you don't have to do them!

Truth.

 

[NPeteN]

When it's an honest observation and not another petty under the radar political swipe.

Offshore bank accounts? The statement has nothing to do with the real world economics of tariffs and tariff fees, much less how they are designed to work, or not work.

You have been sniffing around the political jar since JD imposed the no politics mandate almost 10 years ago.

Innocent speculation, did not mean to offend you.

 

[marshg246]

Big update:

The 25% tariff on purchases from the UK are not affected by the Supreme Court ruling because they were not added using IEEPA, they were added using Section 232 of the Trade Expansion Act of 1962. To make matters worse for us, the 10% across the board order signed yesterday was modified last night to the max of 15% and it is in addition to any existing tariffs. So starting Monday for up to 150 days, it looks like our parts will have 40% tariff and there are no refunds coming.

As far as I know, there is no case before the courts for Section 232 and I found this:
"It allows the U.S. President to impose tariffs when imports are deemed a national security threat.
Courts almost never overturn Section 232 actions because they defer heavily to national‑security determinations."

Not sure what National Security threat the UK or buying from the UK imposes but that's what is in effect now and has been since the tariff on UK goods was imposed and it is a power given to the president.

I am not a lawyer and certainly not an expert in this but I am reporting what I find and what affects us. Please stay non-political!

If you want a political discussion on this, I'm happy to do that with you - call or email me, just please don't do it here!

 

[Flatspot]

Like many others over here on the opposite side of the pond we listen to tariff here, tariff there, and all it’s doing is penalising you who are simply trying to keep a bunch of elderly motorcycles from ending up on the scrap heap. Such a shame you can’t get ‘veteran vehicle’ exemption from tariffs. It’s not as if you are trying to become billionaires by investing all your hard earned money in Norton spares. As always it’s the little man that loses out.