CIT Strikes Down Sec 122; Bars Tariff Collection for Only 3 Importers

Posted on May 11

By: Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

Yesterday, May 7, the Court of International Trade (CIT) struck down Proclamation 11012 (Section 122 – 10% Tariff) in a 2-1 split decision. The judges’ opinions can be viewed here.

The judgment ordered that Sec 122 tariffs cease being collected only for The State of Washington, Burlap and Barrel, Inc., and Basic Fun, Inc. The government was given five days to implement the injunction for the three plaintiffs.

It is expected that the government will appeal the CIT’s order and move for a stay pending the appeal. This would move the case before the Court of Appeals for the Federal Circuit (CAFC) – where if the CAFC rules in favor of the plaintiffs the Sec 122 tariffs would be found universally unlawful and no longer collectible by the government.

We will continue to monitor and provide updates as needed. Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.