Importer Says 'Hoverboards' Are Children's Cycles, Not Bicycles
Dicycles with electric motors and gyroscopic balancing technology, marketed and known as "hoverboards," are "chidren's cycles" and not "bicycles," importer GoLabs, doing business as GOTRAX, argued in a Feb. 14 complaint at the Court of International Trade. As a result, the importer argued that the hoverboards fit under Harmonized Tariff Schedule subheading 9503.00.0090 and not subheading 8711.60.0050 as classified by CBP (GoLabs Inc. v. United States, CIT # 25-00003).
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The products at issue are "compact motorized toy devices with two wheels connected by a central platform on which the rider stands," the company said. The hoverboard platform has gyroscopic technology, which allows the rider to control the hoverboard by "shifting their body weight to initiate forward or backward motion, or to initiate turns."
GoLabs said the hoverboards are "exclusively marketed for use by children and teenagers." and are properly considered "wheeled" since they come with wheels and function by means of wheels. The products are "primarily sold in the toy departments of retail stores throughout the United States" and are mainly meant for "pleasurable diversion rather than for practical or utilitarian purposes," the complaint said.
CBP classified the goods under subheading 8711.60.0050, which provides for motorcycles and cycles fitted with electric motors for propulsion not exceeding an output of 250W. The provision is free of duty but comes with a 25% Section 301 duty under secondary subheading 9903.88.02.
GoLabs said the proper home for the hoverboards is subheading 9503.00.0090, which provides for tricycles, scooters, pedal cars and "similar wheeled toys" that are "reduced scale models." The provision is "unconditionally duty free."
In its complaint, the importer highlighted one key HTS note, Note 4 to Chapter 87, which says that heading 8712 "includes all children's bicycles," while other children's cycles fall in heading 9503. Since the hoverboards at issue are "other children's cycles," they are precluded from classification under Chapter 87," the brief said.
As an alternative argument, GoLabs said that should the imports fall under subheading 8711.60.0050, they qualify for an exception from Section 301 duties, which provides for "Motorcycles with electric power for propulsion, each of a power not exceeding 1,000 W."