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America January 19, 2024 3 mins read

Customs Hit Acquisition 362 With Disputed Duty

America ı By Rihem Akkouche

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Customs Hit Acquisition 362 With Disputed Duty

In a legal skirmish that could redefine trade dynamics, Acquisition 362 LLC, operating under the trade name Strategic Import Supply LLC, has launched a blistering lawsuit against the U.S. Customs and Border Protection (CBP). The importer alleges that CBP compelled it to cough up preliminary tariffs on Chinese tires, despite the levies being hotly contested in federal courts.

Customs Hit Acquisition 362 With Disputed Duty :Unveiling the Tariff Turmoil

Strategic Import Supply LLC contends that Customs officials slapped a whopping 64.57% anti-dumping tariff on its imported passenger vehicle and light truck tires, a move fiercely challenged in ongoing litigation. The importer asserts that until the anti-dumping rate for tires produced by Shandong Hengyu Science & Technology Co. Ltd. and Shandong Wanda Boto Tyre Co. Ltd. is finalized, the tires should be assessed at the rate of 8.72%.

Customs Hit Acquisition 362 With Disputed Duty : A Tire Tango in the Courts

Hengyu and Boto are among numerous Chinese tire manufacturers covered by an anti-dumping order. Initially set at 8.72% in 2015, the dumping rates skyrocketed to 64.57% during an administrative review, sparking a legal firestorm. Chinese manufacturers, including Hengyu and Boto, contended that the U.S. Department of Commerce improperly based the dumping margin on the "aberrational" importing activity of a single business.

Judicial Jolt: A Twist in the Tale

In response to the lawsuit, the Court of International Trade (CIT) issued an injunction, halting the liquidation of imports subject to the administrative review, including tires from Hengyu and Boto. Despite the CIT upholding the rates, the Federal Circuit intervened, emphasizing that the Commerce Department must investigate a "reasonable number" of companies to determine a weighted average dumping margin, clarifying that "reasonable" means more than one.

Tariff Tumult: CBP's Bold Move

Strategic Import Supply, not directly involved in the ongoing case, strategically weaved it into their lawsuit against CBP. The importer argues that CBP should not have liquidated their tires at the disputed rate while the injunction from the other case was in effect, and Commerce was still reviewing the tariffs. Despite the statutory injunction, the remand redetermination mandated by the Federal Circuit Court of Appeals, and the lack of finalization on the anti-dumping rate, CBP pressed on.

Customs Hit Acquisition 362 With Disputed Duty: No Comment from the Battlefield

Requests for comments from Strategic Import Supply and CBP remained unanswered at the time of reporting, leaving the legal battlefield shrouded in uncertainty.

Legal Guardians of Importer's Fort: Cozen O'Connor Steps In

Strategic Import Supply is bolstered by the legal prowess of Thomas Wallrich and Heather Marx from Cozen O'Connor, who are spearheading the charge against CBP.

As the legal melee unfolds, the fate of customs duties hangs in the balance, and the clash between Strategic Import Supply LLC and CBP may well echo beyond the confines of the courtroom, shaping the landscape of international trade.

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Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

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