Importers Ask White House to Settle Massive Section 301 Litigation

A group of importers involved in the litigation over the Section 301 tariffs sent a letter on May 7 to the White House urging a settlement in the case to "alleviate the economic and social harms these tariffs have caused to U.S. companies, U.S. workers and the overall U.S. economy." Led by the importers selected to serve as the test case for the litigation, HMTX Industries and Jasco Products Company, the companies told the White House they are seeking an end to the tariffs and a full refund of the "unlawfully" collected lists 3 and 4A duties collected from the companies. The case is currently making its way through the Court of International Trade.

"Section 301 does not authorize the U.S. Government to prosecute a vast trade war for an indefinite time by whatever means, particularly when the Section 301 investigation was originally reviewing only a limited set of actions," the companies said. "We are confident that the Court of International Trade will agree. Because of the harm to U.S. companies and their employees, we are seeking not only the cessation of the tariffs on a going-forward basis, but also a refund of all List 3 and List 4A duties unlawfully collected from plaintiff companies." Neither the White House nor the Office of the U.S. Trade Representative responded to a request for comment.

Whether importers may eventually be able to receive refunds of the duties paid if the lawsuit is successful remains to be seen. HMTX and Jasco recently filed for a protective preliminary injunction to suspend liquidation of all unliquidated customs entries imported from China with lists 3 and 4A tariff exposure (see 2104230069). However, the Department of Justice opposes refunds and said that the court doesn't have the jurisdiction to recover payments made on liquidated entries. The DOJ said it planned to file its response to the injunction motion either May 13 or May 14 on the issue of refunds.

The May 7 letter is another move in a series attempting to guarantee refunds for the importers and end the tariffs still being collected. "The plaintiffs are pushing for a faster resolution of this case given the economic harm that continued imposition of the tariffs is causing," said law firm Sandler Travis, which represents several importers in the case. "The recent appeal to the White House to settle the case is another effort to achieve that goal, though it remains to be seen what the administration’s response will be." Some of the largest companies involved in the suit, such as Walmart and Samsung, aren't listed on the letter.