Melbourne fintech firm Airwallex says it is helping Aussie SMEs recover their US tariff refunds faster by streamlining administrative compliance.
A US Supreme Court ruling in February ruled that tariffs imposed by the Trump Administrations using an emergency powers Act were illegal.
The US Customs and Border Protection (CBP) agency has begun processing refunds even as they seek to rebuild tariff walls; click here for that story.
“Businesses shouldn’t have to wait weeks for banking admin to catch up once a refund has already been approved,” said James Teodorini, the Head of ANZ, Airwallex.
“As more refunds are processed over coming months, speed will matter and the businesses with the right infrastructure in place will get their capital back to work first,” he says.
“Australian SMEs shouldn’t lose time to US
banking admin when the money is already theirs.”
An Oxford Economics analysis says about US$80 (A$114) billion has been returned globally with another US$80 billion due to be refunded over the next year, much of it with interest attached.
There is a catch for Australian SMEs: the CBP will only pay refunds to an ACH-enabled US bank account nominated through its Automated Commercial Environment (ACE) portal.
Airwallex says opening a US banking account for an Australian small business means establishing a US legal entity, obtaining an American tax ID and clearing local compliance checks which can take weeks or months.
It says its customers can generate ACH-enabled US account details instantly within their Airwallex account allowing eligible importers to enrol those details directly in the ACE portal and receive the refunds electronically.
Their customers can typically set up an account in a few business days.
Once the funds are back, SMEs can pay US suppliers directly or convert to Australian dollars when exchange rates are more favourable, avoiding immediate currency conversion.
MELBOURNE FINTECH HELPS NASHIE
Brisbane-based swimwear brand Nashie are among those businesses that received their refund through Airwallex.
“We already had Airwallex set up to collect US dollars for our US business so when it came time to nominate an account for the refund, it was simple,” says co-founder Tom Wilson.
“The payment came straight into our Airwallex account; it worked without any issues.”
Wilson said quick receipt of the funds meant they could put the capital straight back into product development after the US tariffs had squeezed their cash flow.
“Getting the money back isn’t a lottery win; it just brings you back to baseline,” he says.
“It felt good from a justice perspective. We were doing everything by the book, and it was good to see the rule of law prevail.”
ABOUT AIRWALLEX
Melbourne’s Airwallex is a global financial platform used by more than 250,000 companies, they say. Founded in Melbourne in 2015, Airwallex holds 80+ licences across North America, Europe, Middle East and Asia-Pacific. They offer payment acceptance, billing, global accounts, corporate cards, and spend management. The company is co-headquartered in San Francisco and Singapore with over 2200 employees across 26 offices. Learn more at www.airwallex.com.
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