Apple Watch Bands Classified Separately From Apple Watch, CBP Says

Apple Watch wristbands are classifiable separately from the Apple Watch itself, CBP said in a Nov. 7 ruling (here). While Apple's lawyers at Cassidy Levy said the band should be classified as part of the Apple Watch, CBP disagreed in its response to the internal advice request. CBP previously classified the Apple Watch and other "smartwatches" in heading 8517 based on the radio transceivers in the watches that impart the essential character of the devices (see 1603070028).

CBP classified the Apple Watch as a good consisting of several components classifiable in different headings. Based on that, Apple suggested that the wristbands should be classified as a part of the Apple Watch, rather than under the 9113 heading for watch bands. The Apple Watch can't properly function without the bands, the company told CBP. "In order for the Apple Watch to measure activity levels, it must be affixed to the wrist of the user to measure heart rate," it said. "The taptic functionality of the Apple Watch also requires that the Watch be affixed to the wrist. The Apple Watch will not go into standby mode when it is attached to the user’s wrist." The company also said CBP should discount a previous New York ruling that found the bands classifiable in heading 9113 because that ruling was issued before CBP ruled on the Apple Watch classification.

There are several Apple Watch functions still available without the band and when not affixed to a user's wrist, CBP said. "The Watch can still display the time, play music, surf the internet, respond to text messages and emails" and work as an alarm clock, it said. While CBP previously found that the radio transceiver in the Apple Watch provides the essential character, the bands "do not assist the transceiver in the Apple Watch in any way from pairing with the user’s iPhone," CBP said. "Therefore, they cannot be said to be an indispensable part of the transceiver and an essential part of the Apple Watch." Instead, the "sole function of the Apple Watch Band is to fasten the Apple Watch to the wrist of the user, and in this respect is no different from any other watch band."

While Apple pointed to other CBP rulings that found wrist straps classifiable outside of heading 9113, those rulings involved products that had "no resemblance in form or function to any sort of watch," CBP said. "Due to the dissimilarity between these products and the merchandise at issue here, we find that these rulings are inapplicable." The watch bands made of fluroelastomer and bovine leather carry a 1.8 percent duty rate as classified in subheading 9113.90.80, which provides for “Watch straps, watch bands and watch bracelets, and parts thereof: Other: Other.” The stainless steel bands carry a 11.2 percent duty rate as classified under subheading 9113.20, which provides for “Watch straps, watch bands and watch bracelets, and parts thereof: Of base metal, whether or not gold- or silver-plated.”