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Importer Seeks Refunds of Certain Section 301 Duties on Power Supply Entries

Importer PowerTec Solutions filed a complaint at the Court of International Trade on Nov. 25 seeking refunds of Section 301 duties paid on its power supplies and cables (PowerTecSolutions International v. United States, CIT # 22-00322).

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The goods were originally entered in 2019, later deemed to be defective, then exported for repair in 2020. The goods were then re-imported in 2021 and classified under Harmonized Tariff Schedule subheading 8504.40.6001, free of duty, and secondary subheading 9903.88.03, subject to a 25% Section 301 duty.

PowerTec said it filed a post summary correction to include a claim for subheading 9802.00.50 and to claim that the Section 301 duties should be assessed only on the value of the repairs or alterations performed outside the U.S. CBP rejected the post summary correction and the subsequent protest.

The importer now stands before the trade court seeking a refund of the Section 301 duties originally paid minus any Section 301 duties owed "for rework treatment of the defective" power supplies and cable.