Airwallex helps Australian SMEs fast-track millions in US tariff refunds
Airwallex
Airwallex helps Australian SMEs fast-track millions in US tariff refunds
Australian small and medium businesses owed tariff refunds by the United States are avoiding weeks or months of additional banking setup by using their Airwallex account to receive approved funds.
Following a landmark US Supreme Court ruling in February that found a range of tariffs were unlawful, US Customs and Border Protection (CBP) has begun processing refunds for eligible importers.
According to analysis by Oxford Economics, approximately US$80 billion has already been refunded globally, with a further US$80 billion expected to be returned to businesses over the next year, much of it with interest attached. There is a catch for Australian SMEs, however: CBP will only pay refunds to an ACH-enabled US bank account nominated through its Automated Commercial Environment (ACE) portal.
Opening a US bank account for an Australian small business means establishing a US legal entity, obtaining a US tax ID and clearing local compliance checks, a process that typically takes weeks or months. Airwallex customers can instead generate ACH-enabled US local account details instantly within their existing Airwallex account, enabling eligible importers to enrol those details directly in the ACE portal and receive approved CBP refunds electronically. New Airwallex customers can typically set up an account in a few business days, allowing them to access the same capability.
What's more, once they have received the funds they can put that money to work by choosing to pay US suppliers directly, or convert to Australian dollars when exchange rates are more favourable, rather than being forced into immediate currency conversion.
"Businesses shouldn't have to wait weeks for banking admin to catch up once a refund has already been approved," said James Teodorini, Head of ANZ, Airwallex. "We're helping Australian businesses avoid delays and get those funds back into their business sooner."
Australian swimwear brand Nashie is among the businesses that have already received a refund, through Airwallex.
“We already had Airwallex set up to collect USD for our US business, so when it came time to nominate an account for the refund, it was simple,” said Nashie co-founder Tom Wilson. “The payment came straight into our Airwallex account, and it worked without any issues.”
Wilson said receiving the funds quickly meant the business could put the capital straight back into product development, after a period in which tariffs had squeezed cash flow.
"Getting the money back isn't a lottery win, it just brings you back to baseline," he said. "But 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."
Wilson's experience highlights how businesses can avoid unnecessary banking delays as US tariff refunds continue to be processed.
"As more refunds are processed over the coming months, speed will matter, and the businesses with the right infrastructure in place will get their capital back to work first," said Teodorini. "Australian SMEs shouldn't lose time to US banking admin when the money is already theirs."
ENDS
About Airwallex
Airwallex is a leading global financial platform for modern businesses. We are building the future of global finance for a borderless, real-time, intelligent economy.
More than 250,000 companies worldwide, from startups to public enterprises, use Airwallex to manage their global financial operations, or to build and monetise their own financial products.
Founded in Melbourne in 2015, Airwallex holds 80+ licenses across North America, Europe, the Middle East, and Asia-Pacific, forming one of the most comprehensive financial infrastructures in the world. This regulated backbone powers Airwallex products at global scale, including payment acceptance, billing, global accounts, corporate cards, and spend management.
The company is co-headquartered in San Francisco and Singapore with over 2,200 employees across 26 offices. Learn more at www.airwallex.com.
Contact details:
Lou Galligani
+61 468 987 335