International Trade Law Newsletter - GRVR Attorneys (August 2021)

Nearly 4,000 Importers Have Sued For Refunds Of The Section 301 Tariffs They Paid On Chinese Imports. Why Are You Waiting? If you are an importer who paid or is paying Section 301 tariffs on imported goods from China, you should seriously consider joining the nearly four thousand importers who have sued to force the US Government to refund the duties. Given the unprecedented dollar amounts at issue and the number of plaintiffs, there is a great deal of uncertainty of what exactly importers must do and when they must sue to protect their rights to a refund. For example, the legal deadline to file a lawsuit (i.e., the statute of limitations) is uncertain, but it is widely advised that importers should file at their earliest opportunity possible. Final disposition of these lawsuits is probably years away and will probably be resolved by the US Supreme Court. It is still early in the case, but the importers seem to have the early edge. They were able to convince the three judges presiding over the test case to impose a preliminary junction. To do so, the plaintiff importers had to prove that they were likely to eventually succeed on the merits of their claims. Ironically, the huge number of plaintiffs makes suing a relative bargain. Importers can ride the coattails of the test lawsuit and thereby avoid most of the usual litigation costs. If the importers eventually win, it is well possible that importers who did not sue will not be entitled to a refund. We represent dozens of importer plaintiffs in this litigation. Please contact us if you are interested in suing to collect a refund of your Section 301 tariffs. Importer Loses $4.5 Million Judgment For Misclassifying Cable The US Court of International Trade recently reminded importers that misclassifying imported goods can result in devastating penalties. In US v NYWL Enterprises , 503 F Supp 3d 1373 (CIT 2021), the court entered a default judgment of over $4.5 million dollars against an importer for misclassifying coaxial cable. The importer knew the correct classification and the correct duty rate of 5.3 percent, but entered the coaxial cable under the incorrect duty-free classification. The judgment consisted of $379,665 in unpaid duties, a civil penalty in the amount of $3,760,000, post-judgment interest, and costs. The Court hinted that, given the importer’s egregious misconduct, an even larger penalty of $9.4 million might have been entered had the Government sought a fraud penalty based on entered value instead of lost duties. Two Newly-Licensed Customs Brokers Meet To Toast Their Success Diana Berry and Ximena Burton met at a boot camp for the Best Customs Broker Course. Even though they did not live in the same state, they studied together and with other students and both passed the customs broker exam. The two realized that our study course is not only the surest way to pass the customs broker exam and get their license, it also allows students to forge life-long friendships and business associations. Diana Berry and Ximena Burton promised each other than once they earned their customs broker license, they would meet and celebrate half-way between their homes in Kentucky and South Carolina. That day came recently and they memorialized their time with plenty of photos, including this one. As someone once said, this is the start of a beautiful friendship. To find out more about our course and to become a member of our vast alumni network, go to BestCustomsBrokerCourse.com . ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Nearly 4,000 Importers Have Sued For Refunds Of The Section 301 Tariffs They Paid On Chinese Imports.

Why Are You Waiting?

If you are an importer who paid or is paying Section 301 tariffs on imported goods from China, you should seriously consider joining the nearly four thousand importers who have sued to force the US Government to refund the duties. Given the unprecedented dollar amounts at issue and the number of plaintiffs, there is a great deal of uncertainty of what exactly importers must do and when they must sue to protect their rights to a refund. For example, the legal deadline to file a lawsuit (i.e., the statute of limitations) is uncertain, but it is widely advised that importers should file at their earliest opportunity possible.

Final disposition of these lawsuits is probably years away and will probably be resolved by the US Supreme Court. It is still early in the case, but the importers seem to have the early edge. They were able to convince the three judges presiding over the test case to impose a preliminary junction. To do so, the plaintiff importers had to prove that they were likely to eventually succeed on the merits of their claims.

Ironically, the huge number of plaintiffs makes suing a relative bargain. Importers can ride the coattails of the test lawsuit and thereby avoid most of the usual litigation costs.

If the importers eventually win, it is well possible that importers who did not sue will not be entitled to a refund.

We represent dozens of importer plaintiffs in this litigation. Please contact us if you are interested in suing to collect a refund of your Section 301 tariffs.

Importer Loses $4.5 Million Judgment For Misclassifying Cable

The US Court of International Trade recently reminded importers that misclassifying imported goods can result in devastating penalties. In US v NYWL Enterprises, 503 F Supp 3d 1373 (CIT 2021), the court entered a default judgment of over $4.5 million dollars against an importer for misclassifying coaxial cable. The importer knew the correct classification and the correct duty rate of 5.3 percent, but entered the coaxial cable under the incorrect duty-free classification. The judgment consisted of $379,665 in unpaid duties, a civil penalty in the amount of $3,760,000, post-judgment interest, and costs. The Court hinted that, given the importer’s egregious misconduct, an even larger penalty of $9.4 million might have been entered had the Government sought a fraud penalty based on entered value instead of lost duties.

Two Newly-Licensed Customs Brokers Meet To Toast Their Success

Diana Berry and Ximena Burton met at a boot camp for the Best Customs Broker Course. Even though they did not live in the same state, they studied together and with other students and both passed the customs broker exam. The two realized that our study course is not only the surest way to pass the customs broker exam and get their license, it also allows students to forge life-long friendships and business associations. Diana Berry and Ximena Burton promised each other than once they earned their customs broker license, they would meet and celebrate half-way between their homes in Kentucky and South Carolina. That day came recently and they memorialized their time with plenty of photos, including this one. As someone once said, this is the start of a beautiful friendship.

To find out more about our course and to become a member of our vast alumni network, go to BestCustomsBrokerCourse.com.