The Court of International Trade is deluged with hundreds of lawsuits that closely model a challenge from Akin Gump and HMTX Industries that seeks to force refunds of Section 301 tariffs paid on lists 3 and 4 goods from China (see 2009110005). Such a torrent of filings is rare but not unheard of at the CIT, lawyers involved with and following the litigation said. The most obvious example was the yearslong litigation over the harbor maintenance tax (HMT), they said.
Light-emitting diode lamps imported by Grakon for incorporation into automobiles originate in the country where the lights inside the lamps were assembled, Mexico, rather than the country of the lamps’ final assembly, and are not subject to Section 301 tariffs on products from China, CBP said in a recent ruling.
Companies and lawyers quickly followed the example of a vinyl tile importer that sued the Office of the U.S. Trade Representative and said the imposition of Section 301 tariff lists 3 and 4 were beyond the agency's authority (see 2009110005). A variety of industries filed similar lawsuits over the past day in the hopes of preserving rights to any resulting refunds, with more filings likely. In addition to Akin Gump, which filed the original suit for tile importer HMTX Industries, Barnes Richardson, Grunfeld Desiderio, Rock Trade Law, Thompson Hine and Craven Trade Law are representing companies in the challenges. Companies that joined in the litigation include Fastenal, Otter Products, Nelco Products and the Apex Tool Group. While many lawyers recently said that a court filing is necessary soon to preserve the rights to any refunds, some questions remain about the specifics (see 2009160056).
More than 300 exclusions from lists 1 and 2 Section 301 China tariffs are set to expire Sept. 20, after the Office of the U.S. Trade Representative declined to extend them in the run-up to their expiration.
Over 300 exclusions from Lists 1 and 2 of Section 301 China tariffs are set to end Sept. 20, after the Office of the U.S. Trade Representative did not include them in two notices of exclusion extensions released Sept. 17. In its notice on List 1 exclusions, USTR granted extensions to 62 out of the 310 exclusions listed in U.S. Note 20(q) and filed under tariff schedule subheading 9903.88.14. USTR's notice on List 2 exclusions announced extensions to 17 out of the 86 currently listed in U.S. Note 20(v) and filed under subheading 9903.88.17.
The Customs Rulings Online Search System (CROSS) was updated Sept 16. The following headquarters rulings were modified recently, according to CBP:
High tech goods from China that are eligible for USMCA treatment remain subject to applicable Section 301 tariffs, CBP said in a Sept. 11 ruling. The ruling is a follow-up to a ruling in August that addressed a question of whether goods that originate in China and imported from Mexico are eligible for USMCA treatment (see 2008110037). While CBP in the previous ruling said that such goods are eligible for USMCA treatment, the agency didn't say then whether the Section 301 tariffs would apply.
Importers that want to benefit from a lawsuit challenging list 3 and list 4A Section 301 tariffs on goods from China may face a tight deadline for filing their own cases at the Court of International Trade, law firms said in recent days. “This lawsuit, if successful, could result in the refund of all Section 301 tariffs levied on List 3 and List 4A goods from China,” the National Customs Brokers & Forwarders Association of America said in an emailed alert. “However, importers must file their own independent claims to preserve their potential refunds by Friday, Sept. 18.”
A new World Trade Organization dispute settlement panel report said that the U.S. improperly applied Section 301 tariffs on goods from China. “It remains to be seen whether the US decides to appeal the ruling,” former WTO official Peter Ungphakorn said in a tweet. “Since the Appellate Body cannot function, this would be an 'appeal into the void.'” The WTO appeals court is mostly inoperable due to a U.S. hold on adding new members.
The Office of the U.S. Trade Representative plans to adjust an extension for a Section 301 tariff exclusion, it said in a notice. The agency said the technical change applies to an extension of an exclusion to the third list of goods subject to the tariffs. The extensions were “modified by deleting '(described in statistical reporting number 9403.20.0050)' and inserting '(described in statistical reporting number 9403.20.0050 or 9403.20.0078)' in lieu thereof,” it said.