Importer Files Second, Identical Complaint Launching Classification Battle Over Hoverboards
Importer 3BTech launched a second, identical classification battle over its electric scooters, known as hoverboards, in a Dec. 10 complaint in which it alleges the hoverboards were assessed duties under the wrong Harmonized Tariff Schedule subheading at entry into the U.S. 3BTech argues for a different HTS subheading than the one given to it by CBP, and, failing that, argues for an exclusion from the Section 301 China tariffs granted by the Office of the U.S. Trade Representative (3BTech, Inc. v. United States, CIT #21-00026).
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In both complaints, the importer says it shipped in the hoverboards at the Port of Los Angeles from September 2018 to June 2019 (see 2110150056). It claimed that they were classifiable under HTS subheading 9503.00.0090, which provides for "Tricycles, scooters, pedal cars and similar wheeled toys; dollsʼ carriages; dolls, other toys; reduced-scale ('scale') models and similar recreational models, working or not; puzzles of all kinds; parts and accessories thereof: Other," and allows subject goods to enter duty-free. The complaints, though, identify that the goods fall under the Section 301 tariff's "List 4B," but that they were not subject to the China tariffs at the time of entry.
CBP disagreed, finding that the true HTS home of the hoverboards is subheading 8711.60, an HTS subheading that was subject to the Section 301 duties at the time of entry. The subheading provides for "Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars." 3BTech fights for its preferred classification on the notion that subheading 9503 is a use provision, and that its use is for "amusement, diversion, and/or play, rather than practicality." Seeing as hoverboards are used for recreation, they properly fit under subheading 9503.00.0090, the complaints asserted.
If in fact the court does find that the hoverboards fit under Chapter 87 instead, goods entered under subheading 8711.60 were granted Section 301 exclusions, the importer argued. 3BTech said that the precise HTS subheading that CBP is attempting to classify its imports under was named among the 89 separate exclusions from China Section 301 duties announced by the Office of the U.S. Trade Representative on Sept. 20, 2019.