Question About Tariff Rebates [View all]
There are records, it can be done, with that said, how about this example;
Dick's Sporting Goods buys 100 golf clubs from China, 100 dollars per club and they pre-pay 10,000 dollars.
Krasnov puts a 20% tariff on those clubs.
The clubs arrive at a port, but they can't be shipped to Dick's until Dick's pays the importer person 2,000 dollars, am I correct? Then they can be shipped.
Dick's was going to sell each club for 150 dollars and make 50 dollars profit. If Dick's eats the tariff and still sells the club for 150 dollars it lost 20 dollars profit but is entitled to all of the rebate, correct? If Dick's charges 170 dollars for the club it still makes 50 dollars profit and the consumer is entitled to the rebate, correct? Dick's has the paperwork to legally claim the rebate, but may not be entitled to it. Can Dick's claim that it is paying its workers more money so that is why it charged an extra 20 dollars for the club? Buying goods at wholesale and then selling them at retail will prevent consumers from getting the rebates will it not?
Another question, is this importer person appointed by Krasnov? When he gets the tariff money does it go to the treasury or to a bank in Qatar?