The latest on Russia sanctions from the International Trade and Supply Chain Team
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On September 10, 2020, HMTX Industries LLC, along with Halstead New England Corporation, and Metroflor Corporation (importers of vinyl tile) filed a complaint (Ct. No. 20-00177) at the Court of International Trade (CIT) challenging both the substantive and procedural processes followed by the United States Trade Representative (USTR) when instituting Section 301 Tariffs on imports from China under List 3. The List 3 tariffs went into effect on September 24, 2018. This is the first challenge of its kind filed against the administration’s use of Section 301 Tariffs in the ongoing trade war between the United States and China.

The complaint alleges that USTR’s institution of List 3 tariffs violated the Trade Act of 1974 on the grounds that USTR failed to make a determination or finding that there was an unfair trade practice that required a remedy and moreover, that List 3 tariffs were instituted beyond the 12 month time limit provided for in the governing statute (19 U.S.C. § 2414). The complaint also argues that the manner in which in the List 3 tariff action was implemented violated the Administrative Procedures Act (APA). According to the complainants, USTR failed to provide adequate opportunity for comments, failed to consider relevant factors when making its decision (e.g. no analysis of increased burden on U.S. commerce from unfair trade practices), and failed to connect the record facts to the choices it made by not explaining how the comments received by USTR came to shape the final implementation of List 3.

Husch Blackwell continues to monitor this challenge against the Section 301 List 3 tariffs on Chinese imports and will provide future updates as more information becomes available. We encourage companies who are currently affected by Section 301 Tariffs under List 3 to contact Husch Blackwell’s International Trade and Supply Chain group for further information.

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Photo of Nithya Nagarajan Nithya Nagarajan

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory…

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory actions before the Department of Commerce, International Trade Commission and U.S. Customs and Border Protection (CBP) and defends clients in appeals before the Court of International Trade, Court of Appeals for the Federal Circuit, NAFTA panels and the World Trade Organization. In addition to her body of U.S. experience, Nithya is also well-versed in international trade issues in China and India.

Photo of Julia Banegas Julia Banegas

Julia is an associate in the Washington, DC office of Husch Blackwell. She advises clients doing business in the heavily-regulated Government Contracts and International Trade sectors.

Photo of Turner Kim Turner Kim

A trade analyst, Turner conducts industry research and analyzes trade data to assist attorneys with client proceedings at the U.S. International Trade Commission, U.S. Department of Commerce and U.S. Court of International Trade. He also actively monitors U.S. government and global trade developments…

A trade analyst, Turner conducts industry research and analyzes trade data to assist attorneys with client proceedings at the U.S. International Trade Commission, U.S. Department of Commerce and U.S. Court of International Trade. He also actively monitors U.S. government and global trade developments for issues relating to client’s most critical trade matters.

Photo of Camron Greer Camron Greer

A trade analyst, Camron researches transitions in global trade policy and their impact on client business matters. Camron assists clients, attorneys and legal teams when trade, business and the law intersect.