April 8, 2021
SECTION 232 TARIFFS ON STEEL AND ALUMINUM ‘DERIVATIVES’ STRUCK DOWN BY CIT
This week, the U.S. Court of International Trade (CIT) ruled against President Trump’s Proclamation 9980 issued in January 2020, finding that it violated his authority when he expanded Section 232 tariffs on aluminum and steel derivative (downstream) products. This proclamation authorized an increase of 10% duties on certain articles of aluminum Annex 1 and an increase of 25% duties on certain articles of steel Annex II. See the FHK trade alert dated January 28, 2020 here for more information.
The decision was announced following a lawsuit filed by a steel nail importer who alleged that the administration was in violation due to the time limits for implementing an action. The President has 90 days to decide whether to act, and 15 additional days to take any such action and failed to do so in a timely manner. As a result, the court declared the proclamation “invalid as contrary to law” and directed that the entries at issue in the case be liquidated without the assessment of duties, or if the entries had already liquidated, the importer is entitled to reliquidation and refund of any duties, with interest as provided by law. You can read the decision here 21-36.pdf (uscourts.gov)
Please reach out to us with any questions you have regarding this or any other trade matter.
The decision was announced following a lawsuit filed by a steel nail importer who alleged that the administration was in violation due to the time limits for implementing an action. The President has 90 days to decide whether to act, and 15 additional days to take any such action and failed to do so in a timely manner. As a result, the court declared the proclamation “invalid as contrary to law” and directed that the entries at issue in the case be liquidated without the assessment of duties, or if the entries had already liquidated, the importer is entitled to reliquidation and refund of any duties, with interest as provided by law. You can read the decision here 21-36.pdf (uscourts.gov)
Please reach out to us with any questions you have regarding this or any other trade matter.
