On Sept. 10, several importers filed a judicial challenge to the USTR’s authority to assess List 3 Section 301 (China) tariffs. These actions were filed at the U.S. Court of International Trade (CIT).
The plaintiffs argue that the U.S. Trade Representative (USTR) failed to follow certain statutory timeframes when implementing List 3 and 4A tariffs more than a year after the initial Section 301 investigation was commenced under the Trade Act of 1974. The actions also allege the USTR unlawfully imposed these tariffs in response to retaliatory tariffs enacted by China, rather than the intellectual property violations initially cited in the investigation.
If you have paid significant amounts of tariffs under List 3 and/or List 4A, you may wish to consider the investment in court filings to bring a similar action to preserve relief.
The deadline to file this type of judicial action must be commenced within 2 years of when the cause of action accrues. Since the List 3 duties went into effect on September 21, 2018, List 3 actions must be filed by September 18, 2020 to preserve refunds.
If this litigation is successful, importers would be eligible for refunds of all Section 301 tariffs paid under List 3, regardless of whether an exclusion (or protest) was previously filed. Similar actions may need to be filed soon to cover relief for List 4A tariffs.
If you are interested to file an action or learn more, please notify one of the trade professionals below as soon as possible given the deadline this week.
Should you have any questions concerning these developments, please contact one of the trade professionals listed here.