There is some industry concern that a proposal to end the de minimis exemption to Section 301 goods isn't considered “economically significant,” an executive following the issue said. CBP submitted to the Office of Management and Budget a proposed rule titled “Excepting Merchandise Subject to Section 301 Duties from the Customs De Minimis Exemption,” according to OMB’s Office of Information and Regulatory Affairs website (see 2009040026).

France recently said it would not wait for the Organization for Economic Cooperation and Development to reach a compromise on digital services taxes, and said that it would start collecting taxes on internet giants in December. The National Foreign Trade Council said that's extremely troubling. “Moving ahead with a unilateral DST threatens to sap whatever political momentum exists to find multilateral consensus at the OECD, and to worsen bilateral economic relations with the United States,” said NFTC Vice President for Global Trade Issues Jake Colvin. “This move by France will only give cover to other countries to move ahead with implementing and collecting other discriminatory services taxes, which would fray the global international tax framework.” The Office of the U.S. Trade Representative has said it would levy Section 301 tariffs on French imports if the DST is implemented, including on champagne (see 2007130043).

An Akin Gump spokesperson declined comment Tuesday on the strategies it will deploy in litigating an end to the Lists 3 and 4A Section 301 tariffs on Chinese imports. The complaint it filed in the U.S. Court of International Trade on behalf of HMTX Industries and Jasco Products alleges the Office of the U.S. Trade Representative overstepped its 1974 Trade Act authority in imposing the third and fourth rounds of tariffs and that it violated the Administrative Procedure Act by running sloppy and nontransparent rulemakings. The complaint seeks to have the rulemakings vacated and the tariffs refunded. Strong parallels exist between the complaint and List 3 comments Akin Gump helped CTA draft in 2018 (see 2010120002). The CIT should deny DOJ’s motion for case management procedures to navigate through the thousands of Section 301 complaints (see 2009240040), argued Snell & Wilmer in an opposition letter (in Pacer) Tuesday in docket 1:20-cv-00177. The firm represents online retailer Shop247.com (in Pacer) and residential electrical supplier L’Image Home Products (in Pacer) in complaints filed Sept. 18. DOJ served its motion only through Akin Gump and not through the 3,500 other lawyers, in violation of CIT rules, said the letter. DOJ requested an immediate stay of the cases other than HMTX-Jasco, but granting it would deprive all the other lawyers “of the opportunity to advocate on their clients’ behalves in any meaningful way,” it said. Snell & Wilmer agrees the "high volume" of cases challenging the Section 301 tariffs "likely requires the Court to implement case-management procedures," it said. But the CIT "should be provided an opportunity to hear the legal and factual arguments of every party asserting claims in these related matters," it said. DOJ didn’t respond to questions Wednesday.

An Akin Gump spokesperson declined comment Tuesday on the strategies it will deploy in litigating an end to the Lists 3 and 4A Section 301 tariffs on Chinese imports. The complaint it filed in the U.S. Court of International Trade on behalf of HMTX Industries and Jasco Products alleges the Office of the U.S. Trade Representative overstepped its 1974 Trade Act authority in imposing the third and fourth rounds of tariffs and that it violated the Administrative Procedure Act by running sloppy and nontransparent rulemakings. The complaint seeks to have the rulemakings vacated and the tariffs refunded. Strong parallels exist between the complaint and List 3 comments Akin Gump helped CTA draft in 2018 (see 2010120002). The CIT should deny DOJ’s motion for case management procedures to navigate through the thousands of Section 301 complaints (see 2009240040), argued Snell & Wilmer in an opposition letter (in Pacer) Tuesday in docket 1:20-cv-00177. The firm represents online retailer Shop247.com (in Pacer) and residential electrical supplier L’Image Home Products (in Pacer) in complaints filed Sept. 18. DOJ served its motion only through Akin Gump and not through the 3,500 other lawyers, in violation of CIT rules, said the letter. DOJ requested an immediate stay of the cases other than HMTX-Jasco, but granting it would deprive all the other lawyers “of the opportunity to advocate on their clients’ behalves in any meaningful way,” it said. Snell & Wilmer agrees the "high volume" of cases challenging the Section 301 tariffs "likely requires the Court to implement case-management procedures," it said. But the CIT "should be provided an opportunity to hear the legal and factual arguments of every party asserting claims in these related matters," it said. DOJ didn’t respond to questions Wednesday.

The Section 301 tariff rulemakings typified the Office of the U.S. Trade Representative's “unreasoned decision making” that’s “impermissible” under the Administrative Procedure Act, the Consumer Technology Association argued in September 2018 comments on List 3 of the tariffs (see 1809070025) that draw strong parallels to the HMTX-Jasco litigation challenging lists 3 and 4A tariffs. CTA used Akin Gump to help draft the comments two years ago. It was where CTA first floated the idea of challenging the tariffs in court. The complaint Akin Gump drafted for CTA (see 2009220029) that the association never followed through on is seen as a template for the HMTX-Jasco litigation now ongoing.

Akin Gump said there’s no legal precedent for its Sept. 10 complaint before the U.S. Court of International Trade in which HMTX Industries and Jasco Products allege the Office of the U.S. Trade Representative overstepped its authority under the 1974 Trade Act to impose the Lists 3 and 4A Section 301 tariffs on Chinese imports (see 2009110041). The suit, plus the other roughly 3,500 nearly identical complaints filed at the CIT, seek to vacate the Lists 3 and 4A rulemakings and get the duties refunded. DOJ is expected to oppose Akin Gump's motion for a three-judge panel to manage the litigation when responses are due Oct. 21 (see 2010010043)

The Washington counsel for the U.S. Fashion Industry Association told members that it's not time yet to think about moving production out of Vietnam, in light of the recently announced Section 301 investigation into currency manipulation in that country (see 2010050036).

The following lawsuits were filed at the Court of International Trade during the week of Oct. 5-11:

International Trade Today is providing readers with the top stories from Oct. 5-9 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.

CBP is actively “exploring whether it can use reconciliation as another option for importers to take advantage of retroactive exclusions” from the sections 232 and 301 tariffs, the agency said in a Commercial Customs Operations Advisory Committee Antidumping and Countervailing Duty Working Group issue paper. COAC during the previous meeting mentioned reconciliation as a possible path (see 2007160032). CBP said it also “plans to provide a webinar to the trade on the protest process by the end of the calendar year.”