Tuesday, December 15, 2020
CHALLENGE TO SECTION 232 DUTIES
In January 2018, the Trump administration invoked Section 232 of the Trade Expansion Act of 1962 — a Cold War-era law that authorizes the president to impose tariffs and other trade restrictions upon a determination that targeted goods are being imported into the United States “in such quantities or under such circumstances as to threaten to impair the national security” — in relation to imported steel and aluminum products. Following an investigation and determination that steel and aluminum imports threatened to impair U.S. national security, the Trump administration imposed a 25% ad valorem tariff on steel imports and a 10% ad valorem tariff on aluminum imports for certain non-exempt countries.
Importers were able to petition for an exclusion process if they could show that their product(s) were not produced in the United States “in a sufficient and reasonably available amount or of a satisfactory quality or based upon specific national security considerations.” The US Department of Commerce granted some importers the exclusions they requested, while others were denied.
One importer whose request for an exclusion was denied by the Department of Commerce filed suit, challenging the denial in the U.S. Court of International Trade. The importer provided enough evidence that the decision was reversed, and a confidential settlement was agreed upon whereby the Government agreed to refund the importer the Section 232 tariffs in full.
There have been other successful Section 232 lawsuits filed over the past year involving similar procedural challenges, many of which resulted in certain relief or even in full refunds of duties.
Click here to learn more about the legal challenge to the Section 232 tariffs, and if you have any questions about this or any other trade matter, please contact us.
Importers were able to petition for an exclusion process if they could show that their product(s) were not produced in the United States “in a sufficient and reasonably available amount or of a satisfactory quality or based upon specific national security considerations.” The US Department of Commerce granted some importers the exclusions they requested, while others were denied.
One importer whose request for an exclusion was denied by the Department of Commerce filed suit, challenging the denial in the U.S. Court of International Trade. The importer provided enough evidence that the decision was reversed, and a confidential settlement was agreed upon whereby the Government agreed to refund the importer the Section 232 tariffs in full.
There have been other successful Section 232 lawsuits filed over the past year involving similar procedural challenges, many of which resulted in certain relief or even in full refunds of duties.
Click here to learn more about the legal challenge to the Section 232 tariffs, and if you have any questions about this or any other trade matter, please contact us.
