Another Importer Gets CIT Order on Section 232 'Derivatives' Tariffs; No Stop to Duty Collection but No Bond

Four more importers have now filed lawsuits challenging Section 232 tariffs on steel and aluminum “derivatives,” and one of them has already been successful in obtaining a court order blocking liquidation of their entries, if not collection of the tariffs. New Supplies and GJ Burkhart (dba Fry Fastening Systems) together filed a suit at the Court of International Trade Feb. 25. Represented by Brenda Jacobs, they told the court that the Justice Department had agreed to an order directing CBP to suspend liquidation until the case is eventually decided. CIT granted the motion and issued the order on Feb. 28.

The order is different from those already issued to PrimeSource and Oman Fasteners, which also put a stop to CBP duty collection (see 2002070055 and 2002210050). But PrimeSource and Oman Fasteners are also required to hold a continuous bond sufficient to cover the unpaid tariffs, in an amount to be re-evaluated every six months. Because CBP is still collecting tariffs from New Supplies and Fry, their order has no such requirement.

That approach -- requesting only suspension of liquidation, and not a stop to duty collection -- may benefit smaller companies leery of securing a larger bond. “Smaller companies may find that a larger continuous bond also comes with a collateral requirement, which could be a concern and viewed as an added risk,” said a lawyer involved in one of the Section 232 “derivatives” cases. “For these companies, the assurance that the duties will be refunded when the suits are successful makes more sense, despite having to deposit the duties upon entry.”

Trinity Steel and Astrotech Steels, which filed their lawsuits Feb. 20, have also filed motions along those same lines, though CIT has not yet issued any orders granting their requests. In contrast, Huttig Building Products, which filed suit Feb. 18, has taken the approach of PrimeSource and Oman Fasteners, requesting that duty collections be put on hold in return for increased bond requirements (see 2002200025).

Meanwhile, Aslanbas Nail and Wire and LitNaglis, represented by Lizbeth Levinson of Fox Rothschild, filed another lawsuit Feb. 26 challenging the Section 232 tariffs on derivatives. Metropolitan Staple and J. Conrad, both represented by Jeffrey Neely of Husch Blackwell, separately filed their own suits on March 2. None of the three has yet filed motions to suspend liquidation or stop tariff collections.

Email ITTNews@warren-news.com for a copy of New Supplies’ consent order.