By now, many people have heard about the filing of a lawsuit at the Court of International Trade by HMTX Industries and subsidiaries Halstead and Metroflor. The lawsuit is challenging the U.S. Trade Representative (USTR) and claiming that the USTR overstepped the Section 301 statute, when it made additional goods subject to the tariffs more than 12 months after the beginning of the investigation. 

Lists 3 and 4A were implemented outside the 12-month window required by Section 304 of the Trade Act. The suit is asking the court to vacate the List 3 rulemaking and order the tariffs refunded with interest. If this lawsuit succeeds, then all other importers who have filed similar suit by the end of business on September 18th may be eligible for tariff and interest refunds. 

It is imperative that all importers interested in claiming any kind of refund on the legal basis covered by the HMTX suit, file suit before the deadline on Friday. Failure to file suit by the deadline will mean that, even if the HMTX case succeeds, you will NOT be able to collect any refunds of list 3 and 4A duties*. It is also important to note that filing suit now will not entitle the filer to any refund, if the HMTX case does not succeed.

If you would like assistance with initiating legal action at the Court of International Trade to protect your financial interest, please contact your Mohawk Global representative. We can give you guidance and provide a reference to appropriate legal counsel.

*unless the product is eligible for an exclusion and within the protest time frame.

Section 301 Overview

Robert Stein