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UPDATE ON COURT CHALLENGE TO SECTION 301 (CHINA) TARIFFS

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UPDATE ONCOURT CHALLENGE TO SECTION 301 (CHINA) TARIFFS

The briefing has concluded on the lead Section 301 challenge case, In Re Section301 Cases, CIT Case Number 21-52 and oral arguments were scheduled to take place on February 1, 2022, in the Court of International Trade Ceremonial Courtroom in New York.  The oral arguments were to be presented by the Department of Justice and lead counsel for the importers before a three-judge panel including Chief Judge Mark A. Barnett and Judges Claire R. Kelly and Jennifer Choe-Groves. 

This next stage in the Section 301 challenge will be the three-judge panel’s internal consultations and formulation of written decision.  It’s difficult to predict when a decision will be issued, but typically a decision follows oral arguments in 4 to 8 months.  Whatever the decision, the result will most likely be appealed to the Court of Appeals by the losing party; a process that could add one to two years to the final outcome.

To date over 7000 importers have filed actions in the CIT to preserve their rights to a refund of Section 301 List 3 and List 4a duties paid to Customs.  (The court action does not cover List 1 or List2 duties).  Despite the advanced stage of the pending litigation, it is not too late to file an action!  The reach back period under the jurisdictional statute (28 U.S.C. 1581i) is two years.   If your company has paid Section 301 List 3or List 4a duties in the past two years and would like to preserve its rights to a refund, please contact our firm by phone (949) 719-2712 or e-mail: taylor.pillsbury@mscustoms.com for more information.

-Taylor Pillsbury