US Grants Injunction Against Liquidation in Case Seeking to Apply Section 301 Exclusion

The Court of International Trade granted importer DS Services of America's motion for a preliminary injunction in its case seeking to reinstate a previously granted exclusion from Section 301 China duties for water coolers classified under Harmonized Tariff Schedule subheading 8418.69.0120. The court's order suspends the liquidation of the plaintiff's unliquidated entries while allowing the U.S. to continue to collect Section 301 duties, as the injunction is structured like a statutory injunction routinely entered in antidumping and countervailing duty cases (DS Services of America v. United States, CIT #22-00157).

The U.S. said it originally planned to contest the injunction, but reversed its position "without conceding that any of the four factors for injunctive relief have been met, including as to any likelihood of success on the merits." Judge Mark Barnett acknowledged this position in the order and said that the court acknowledges the "need to preserve the status quo ante in the event the litigation results in an adjustment to the duties owed on an entry. ... So too here, given Defendants’ consent, suspending liquidation is an appropriate exercise of the court’s equitable discretion," the order said.