Importers may want to consider actions to challenge higher import tariffs on wireless speakers likely to result from a recent action by U.S. Customs and Border Protection.
CBP recently published a protest decision regarding certain Bluetooth-enabled wireless speakers classified under HTSUS subheading 8518.22.00, which are subject to Section 301 tariffs of 7.5 percent (under HTSUS 9903.88.15) when imported from China. Wireless communication apparatus that can receive audio data to be distributed to wireless speakers (classified under HTSUS 8518.22.0000) was excluded from those tariffs until that exclusion recently expired. Despite the awkward phrasing of this exclusion, referring first to wireless communication apparatus rather than speakers, many wireless speaker importers likely claimed the benefit of the exclusion.
However, CBP recently opined in ruling HQ H333110 that a device must transmit to wireless speakers external to the device itself to qualify for the exclusion. This interpretation significantly limits the application of the exclusion, meaning importers may be at risk for duty rate advances on unliquidated entries of goods for which the exclusion was claimed. Other enforcement action is possible as well.
For more information on what recourse may be available to such importers, please contact attorney Deb Stern at (305) 894-1007 or via email.
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