Importers, Led by HMTX, Request that Tariffs Be Frozen During Litigation

New York, NY, April 26, 2021-Importers challenging tariffs on more than $300 billion worth of Chinese goods asked the U.S. Court of International Trade for an injunction on April 23 to ensure that they can secure full refunds if the suit succeeds, reports Law360.

In this situation, tariffs continue to be paid, but are not liquidated by the government, meaning the importer can still get them back.

“More than 3,700 cases have been filed alleging that the Trump administration violated the law by expanding its tariff campaign against China beyond the scope of an initial investigation into Beijing’s intellectual property practices. Now consolidated before a CIT panel, the suits have been bogged down in procedural wrangling for months, but began to move forward Friday with the injunction bid.

“In the lead case serving as a vanguard for the thousands of other suits, companies led by vinyl flooring importer HMTX Industries LLC have now asked the CIT to stop the government from completing their collection of duties-a process known as liquidation-while the case plays out.

“The injunction request is an outgrowth of a disagreement between the importers and the government over whether tariffs can be refunded after the government has liquidated the entries. With that question unresolved, the importers have asked the court to suspend liquidation altogether.”