Tariff Disputes and Trade Law What Importers Must Know

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The Trade Policy Landscape Has Never Been More Complicated — or More Costly

If you imported goods from China in the last several years, you already know the feeling. A tariff rate that was manageable suddenly jumped to 25 percent. The duty calculation that made your landed costs work became the duty calculation that made your margins evaporate. And the regulatory environment has continued to evolve in ways that require constant monitoring just to stay current.

The US trade policy environment since 2018 has been characterized by a level of volatility and complexity that has fundamentally changed the economics of importing for thousands of American businesses. Section 301 tariffs, antidumping and countervailing duty orders, exclusion processes, and the ongoing evolution of trade relationships with key supplier countries have created a landscape where the difference between a well-managed trade strategy and a reactive one can be the difference between profitability and loss.

Navigating that landscape effectively — especially in dispute contexts — requires the kind of specialized legal expertise that a qualified customs attorney brings to the table.

Section 301 Tariffs: Where Many Importers Are Feeling the Most Pain

Section 301 of the Trade Act of 1974 authorizes the President to impose tariffs or other trade restrictions in response to unfair trade practices by foreign countries. The Section 301 tariffs imposed on Chinese goods beginning in 2018 represented the largest use of that authority in decades, applying additional duties of 7.5 to 25 percent on hundreds of billions of dollars of Chinese imports.

For importers of covered goods, the financial impact has been significant. And the complexity has compounded over time: multiple lists of covered goods, an exclusion process that allowed temporary relief for some importers, the expiration and partial reinstatement of exclusions, and ongoing uncertainty about the future direction of US-China trade policy.

Tariff Exclusions — and Why Having Legal Help Matters

The Office of the United States Trade Representative (USTR) has periodically opened processes for importers to request exclusions from Section 301 tariffs — exemptions that would apply the lower pre-tariff duty rate to covered goods. The exclusion process has been complicated, with specific procedural requirements, eligibility criteria, and limited windows for applications and renewals.

A customs attorney who monitors USTR processes can identify when exclusion opportunities are available for products an importer sources from China, assess whether the importer’s specific product qualifies, and prepare the application with the specificity and support that maximizes the likelihood of approval. For importers of goods with large volumes, a successful exclusion is worth substantial money — often many times the cost of the legal work involved in pursuing it.

Antidumping and Countervailing Duties

Antidumping duties (ADD) and countervailing duties (CVD) are a separate layer of trade remedy law, applied when domestic industries successfully petition the Commerce Department to find that foreign goods are being sold in the US below fair value (dumping) or with the benefit of foreign government subsidies.

ADD/CVD orders can impose additional duties that dwarf normal tariff rates — in some product categories, antidumping rates in the hundreds of percent have been in effect for years. For importers who source from affected countries and product categories, these rates can make the economics of importing completely unworkable.

The complexity for importers includes: understanding whether specific goods are covered by an existing ADD/CVD order, what the applicable rate is (rates can vary by manufacturer and change with annual administrative reviews), how to properly report ADD/CVD liability on customs entries, and whether there are legitimate strategies — such as sourcing from alternative countries or restructuring supply chains — to reduce exposure.

A customs law firm advising importers on ADD/CVD exposure can analyze whether specific goods are covered, assess potential liability for past entries, advise on supply chain strategies to reduce prospective exposure, and represent importers in the administrative review process that determines future deposit rates.

CBP Ruling Requests — Getting Certainty Before You Import

One of the most underutilized tools in the import legal toolkit is the CBP ruling request. CBP’s National Commodity Specialist Division (and, for more complex issues, CBP’s Office of Regulations and Rulings) issues binding written rulings on classification, valuation, country of origin, and marking for specific goods before they’re imported.

A binding ruling gives an importer legal certainty about how CBP will treat a specific product. It’s protection against the argument that a classification determination was made without reasonable care, and it’s a basis for disputing CBP’s later attempt to reclassify goods differently.

The ruling request process requires detailed product description, relevant technical documentation, and legal argument supporting the requested classification. Getting it right — presenting the case in the most favorable light while accurately describing the product — benefits from legal expertise. customs lawyers who regularly prepare ruling requests know what CBP needs to see and how to frame the analysis to maximize the likelihood of a favorable outcome.

Protests: Challenging CBP’s Decisions

When CBP makes a decision on liquidation — the final computation of duties owed on a customs entry — that the importer disagrees with, the procedural mechanism for challenging it is a protest. Protests must be filed within 180 days of the liquidation date. If a protest is denied, the importer can seek further review and, ultimately, can appeal to the Court of International Trade.

The protest process is the gateway to challenging CBP classification decisions, valuation decisions, admissibility determinations, and other post-entry agency actions. It’s a formal administrative and legal process with specific requirements for content, timing, and legal authority.

For importers who believe CBP has gotten a decision wrong — classified goods under the wrong HTS code, applied an incorrect valuation methodology, improperly determined country of origin — the protest process is the mechanism for asserting that position and preserving the right to judicial review. Missing the 180-day deadline, or filing a protest that doesn’t adequately develop the legal arguments, can permanently foreclose the ability to recover overpaid duties.

A customs attorney handling a protest develops the legal analysis — reviewing CBP’s basis for the decision, researching relevant case law and administrative rulings, and constructing the argument for the correct treatment — and manages the procedural requirements of the process.

The Court of International Trade

For customs and trade disputes that aren’t resolved at the administrative level, the Court of International Trade (CIT) in New York has exclusive jurisdiction over most US customs law matters. The CIT handles challenges to CBP classification and valuation decisions, cases involving antidumping and countervailing duties, challenges to trade remedy determinations, and other federal customs and trade law questions.

Litigation before the CIT is specialized federal practice. The procedural rules, the subject matter expertise required, and the substantive customs and trade law at issue are distinct from general federal civil litigation. Importers who have exhausted the administrative process and want to pursue their position need counsel with specific CIT experience.

customs lawyers who practice before the CIT represent importers, domestic producers, and other trade parties in litigation that can determine how hundreds of millions of dollars in duties are assessed across an industry. The stakes in that litigation are significant, and the expertise required is specialized.

Take Control of Your Trade Strategy

The importers who manage their trade costs most effectively aren’t the ones who react to tariff increases and CBP decisions after the fact. They’re the ones who have proactive legal counsel helping them identify opportunities, manage exposure, and respond strategically when disputes arise. Connect with a customs attorney who understands the current trade environment and can help you build a strategy that protects your margins and your business.

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