Dear Partner,

Two major changes in recent U.S. tariff policy directly affect your costs and cash flow as an importer. As a glass candle jars manufacturer with nearly 30 years of experience, Sunny Glassware has been closely tracking these developments and is here to help you see the opportunities and next steps.

1. $166 Billion in Old Tariffs Are Being Refunded – Ask Your Finance Team to Check

U.S. Customs and Border Protection (CBP) has launched the CAPE duty refund system for the previously ruled‑illegal “Fentanyl / Reciprocal Tariffs” (IEEPA tariffs). Refunds began on May 11, totaling a staggering $166 billion. Even better: the refund includes interest of roughly 6% per year.

This money goes directly back to the **Importer of Record (IOR)** in the U.S. – which means you or your customs broker.

➡️ We recommend contacting your broker right away to confirm whether you have received the refund and interest. If the funds haven’t arrived yet, proactively check. Don't let this “unexpected cash recovery” slip through the cracks.

2. The 10% Global Surtax Was Ruled “Beyond Authority” – But Still Being Collected. Preserve Your Right to Reclaim It.

On May 7, the U.S. Court of International Trade (CIT) ruled that the 10% global surtax imposed under Section 122 of the Trade Act of 1974 was an “administrative overreach.” However, the government has appealed and obtained an administrative stay, so **the surtax is still being collected for now.**

If your company has recently paid this 10% surtax on imports of glass candle jars or other products, we suggest taking these protective steps:

- Clearly mark “Protest” on your duty payment documents (to preserve your right to challenge), or
- Engage counsel to file a parallel lawsuit with the CIT (especially for larger individual entries).

Why do this? If the surtax is ultimately ruled illegal on appeal, the duties you paid and protested will be eligible for recovery – saving you from turning them into a sunk cost.

 3. Protecting Your Profit Under Different Trade Terms

 If you work with us on FOB or CIF terms

You – the importer – are the direct payer of duties and the legal beneficiary of any refund.

👉This refund gives us a positive reason to talk about your second‑half purchasing plans.

Think of it this way: an unexpected cash inflow with interest frees up liquidity that was previously tied up. It’s a great moment to lock in orders for the fourth quarter or holiday season. Raw material and freight costs are relatively stable right now, so early price locking benefits both sides.

 If you work on DDP

Then the duties are nominally advanced by your freight forwarder, but the refund system only recognizes the U.S. IOR – meaning the money will first go to your forwarder or its U.S. agent.

⚠️ Do two things immediately:

1. Review your contracts and customs documents to confirm who is listed as the IOR for each DDP shipment.  
2. Contact your freight forwarder and customs broker, and get a **written confirmation** of who owns the refund (including interest) and how it will be returned to you.

For a product like glass candle jars – with transparent margins and healthy competition – that 6% interest may very well be the core net profit of that order. Don’t let the money that should come back to you “evaporate” offshore because of vague contract terms.

 4. Long‑Term View: In the Era of Rule‑Based Trade, Expertise Is the Real Dividend

The rejection of the 10% surtax does not mean tariff pressure is gone. The U.S. is accelerating a new round of Section 301 investigations covering 16 key sectors – aluminum, semiconductors, robotics, and more. While glass candle jars are not on the initial priority list, legal battles over trade rules are the new normal.

Our advice to you:

✅ Build tariff compliance and refund tracking into your daily supply chain management.  
✅ Stay in sync with Sunny Glassware – we are happy to share U.S. Customs and court updates we learn.  
✅ When signing new orders, clearly state in writing how future tariff changes and any refunds will be handled.

Over the past 30 years, Sunny Glassware has navigated many trade policy ups and downs with our U.S. customers. A truly stable partnership is not about avoiding risk – it’s about helping customers see the path clearly and protect their profits through the uncertainty.

If you have any questions about these tariff updates, or if you would like a “tariff health check” for your current orders, please feel free to reach out to our sales team. Your bottom line matters to us as well.

Best regards,

Sunny Glassware
Nearly 30 years – focused on glass candle jars for the U.S. market