FedEx is the first major company to sue for a full tariff refund after Supreme Court leaves payback open-ended - Fortune

FedEx has initiated a lawsuit against the U.S. government, seeking a full refund of Section 301 tariffs paid on imports from China. This significant development follows a Supreme Court decision in February, which clarified that companies could challenge these tariffs in the U.S. Court of International Trade (CIT) if they had not already done so. FedEx's lawsuit, filed in the CIT, specifically targets "List 3" and "List 4A" tariffs, arguing that the U.S. Trade Representative (USTR) exceeded its authority under Section 301 of the Trade Act of 1974 when imposing them.

This action by FedEx, as the first major company to file such a lawsuit post-Supreme Court ruling, has significant implications for a wide range of importers, customs brokers, and trade compliance officers who have paid Section 301 tariffs on Chinese goods. The Supreme Court's decision, while stemming from a case involving importers of steel products, opened a procedural avenue for challenging the legality of Section 301 tariffs on Chinese imports more broadly. This could potentially affect billions of dollars in duties across numerous companies that previously paid these tariffs.

The tariffs in question are the Section 301 duties imposed on thousands of Chinese goods, which began in 2018 under the Trump administration. FedEx is seeking a refund for "all Section 301 duties, interest, fees, and/or exactions" it paid on its imports from China, specifically challenging those under "List 3" and "List 4A." The Supreme Court's February decision did not rule on the legality of the tariffs themselves but addressed the procedural path for challenging them, effectively allowing companies to pursue claims even if the government argued the statute of limitations had passed.

Given this evolving legal landscape, importers who have paid Section 301 tariffs on goods from China should carefully review their import records and assess their potential eligibility for refunds. It is crucial for trade compliance officers and customs brokers to stay informed about ongoing legal challenges and their implications. Companies should consider consulting with legal counsel specializing in international trade law to understand their specific options and the potential for filing their own claims in the U.S. Court of International Trade.