Bangladeshi Garment Makers Struggle to Reclaim IEEPA Tariff Costs as US Importers Get Refunds
Updated
Updated · Fibre2fashion.com · Aug 15
Bangladeshi Garment Makers Struggle to Reclaim IEEPA Tariff Costs as US Importers Get Refunds
1 articles · Updated · Fibre2fashion.com · Aug 15
Summary
Bangladeshi garment exporters that cut prices or offered discounts to absorb part of the now-invalidated IEEPA tariffs may struggle to recover those costs even as US importers begin receiving duty refunds.
US importers of record, not the suppliers, generally paid the customs duties and are first in line for refunds, leaving Bangladeshi factories with no direct legal claim and dependent on commercial negotiations.
Transaction-level proof is often missing, making it hard to show how much each factory actually absorbed and turning any recovery effort into a bargaining contest with retailers and brands.
Landed Duty Paid suppliers may have a somewhat stronger case, but industry stakeholders expect most compensation to come slowly through higher future prices, bigger orders or freight concessions rather than cash repayments.
That leaves many factories facing a disconnect between who receives the refund and who bore the cost, with no assurance they will be fully repaid.