- Did your company pay significant duties on Chinese imports subject to List 3 ($200 billion) or List 4A ($300 billion) of the U.S. Section 301 tariffs?
- A recently filed lawsuit could result in refunds of Section 301 duties levied to-date on List 3 and List 4A goods from China.
We want to bring your attention to this time-sensitive litigation, which if ultimately successful, may potentially allow importers to obtain refunds on Section 301 tariffs paid to U.S. Customs and Border Protection. However, as detailed in the summary below, in order to preserve a member company’s right to obtain such refunds for List 3 tariffs, the member company must file suit in the U.S. Court of International Trade by Monday, September 21, 2020.
Those wishing to challenge List 4A duties must file a suit in the U.S. Court of International Trade by Friday, August 20, 2021, which is two years after USTR published list 4.
Summary of Section 301 Litigation
As you may have heard during NAFEM’s Wednesday webcast, HMTX Industries, an importer of vinyl floor tiles, filed a lawsuit in the Court of International Trade challenging the China Section 301 tariffs on “List 3” and “List 4A.” The lawsuit argues that the tariffs were “prosecuted in an untimely fashion and without statutory authorization.” The plaintiffs ask that List 3 tariffs be declared unlawful, that duties be refunded and that the U.S. Government not to impose List 3 tariffs in the future.
Any company that imported products covered by List 3 and 4A, and has paid the additional tariffs, may challenge the tariffs at the CIT. To file a case, companies must concurrently file a summons and complaint at the CIT, and a few additional forms. Companies filing their own case should be prepared to disclose their publically-owned companies, their publically-owned affiliates, and any publically-held companies that has a greater than 10% shareholder interest in them.
Companies may also intervene in the case filed by HMTX Industries as the appeal proceeds, rather than filing their own case, although intervention is subject to the Court’s discretion and may be denied.
Further details of the appeal are available on a Fact Sheet summarizing the appeal and by reviewing the original complaint filed by HMTX.