President Biden has continued and expanded Section 301 tariffs on imports from China, and President-elect Trump has signaled a possible increase to those tariffs as early as Jan. 20, 2025. Importers of affected goods should therefore consider taking action to preserve their right to potential refunds of some Section 301 tariffs if a related court case is ultimately successful.
A case first filed in 2020 and since joined by thousands of importers argues that the Section 301 tariffs on List 3 and List 4A goods from China were wrongly imposed. In March 2023 the Court of International Trade ruled in favor of the federal government, but that decision was appealed to the Court of Appeals for the Federal Circuit. Oral arguments before the CAFC have now been scheduled for Jan. 8.
If this case is ultimately successful, refunds of all Section 301 tariffs paid on List 3 and List 4A goods will potentially become available. Importers can still preserve their rights to possible refunds of these tariffs by joining the litigation. For more information on whether this strategy makes sense for your company, or for assistance filing your claim, please contact ST&R at 301Litigation@strtrade.com.
In the meantime, importers should also act now to consider how to avoid, mitigate, or recover Section 301 and other tariffs, particularly ahead of anticipated increases in 2025. There are numerous options, from tariff engineering to implementing a first sale valuation structure to utilizing foreign-trade zones and other duty deferral mechanisms. ST&R will be reporting in more detail on these options in the near future, but for more information now please contact an ST&R professional.
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