The Court of International Trade (CIT) has granted a preliminary injunction in the Section 301 litigation—the lawsuit where thousands of importers are seeking to get List 3 and 4A Chinese tariffs vacated with duties refunded—as of July 6, 2021. This suspends the liquidation of plaintiff’s unliquidated entries from China that are subject to List 3 and List 4A Section 301 tariffs.

All three judges seem to be in favor of the plaintiff’s right to refunds if they win. The reason Chief Judge Barnett’s has an opposing opinion is because the CIT already has the legal authority to force Customs to refund the duties if the plaintiffs win.

The CIT has now temporarily restrained liquidation of any unliquidated entries of merchandise imported from China by any of the plaintiffs.

Although this decision does not make a definitive determination and is only procedural, it could lend the plaintiffs a positive outlook.

If you have questions, please reach out to your Mohawk Global representative.

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