Court of International Trade Reaches Decision on Section 301 Case

On March 17, 2023, the U.S. Court of International Trade (CIT) upheld the U.S. Trade Representative’s (USTR) imposition of the third and fourth rounds of tariffs on China-origin goods under Section 301 of the Trade Act of 1974. The decision came after approximately 3,600 importers challenged the legality of these tariffs.

The original complaint, filed by members of the importing community in 2020, claimed lists three and four of Section 301 duties, assessed at 25% and 7.5% respectively, failed to satisfy the requirements of the Administrative Procedures Act (APA), citing that the USTR failed to allow sufficient time and process for notice and comment.  The complaint also stated that USTR failed to adequately respond to the comments received.

The CIT ultimately found that the USTR’s actions related to engaging with the public were sufficient as the APA did not require as robust of an interaction as the importing community had argued. The CIT’s opinion quoted case law stating that it will “uphold a decision of less than ideal clarity if the agency’s path may reasonably be discerned”.

Though these findings decrease the likelihood of success, it is fully expected that these findings will be appealed to the Court of Appeals for the Federal Circuit, which will likely delay any further decision until 2024.

If you have any questions, please contact your local Noatum Logistics representative.