The Court of International Trade (CIT) issued its decision in the lead case challenging the imposition of List 3 / 4A Section 301 China tariffs. In Re Section 301 Cases, CIT Docket No. 21-00052. The CIT ruled that the U.S. Trade Representative (USTR) had the authority to impose List 3 & 4A tariffs while in direct response to China imposing retaliatory tariffs. A copy of the decision can be accessed here.
The Court also held that the USTR failed to adequately address how the agency considered comments received during public hearings on whether to impose the tariffs. The Court acknowledged the USTR failed to explain how it reached decisions after receiving comments to withdraw certain products from coverage, or how it considered comments that otherwise supported or objected to the tariffs.
The Court remanded this issue to the USTR for further consideration to explain its past judgments - thereby leaving open the legality of the USTR's actions taken during the notice and comment period of proposed rulemaking.
The Section 301 tariffs will remain in place while the agency responds. The USTR has until on or before June 30 to return to the Court with its response. Litigants will conduct a status hearing and propose a scheduling order within 14-days after the USTR makes its response. All current litigation will remain suspended pending the outcome of the remand.
Should you have any questions concerning these developments, please contact one of the trade professionals listed here.