Fossil Files for List 4A Tariff Exemption on Traditional Watch Imports From China

Fossil Group filed for an exemption to the 15 percent List 4A Section 301 tariffs it has paid since Sept. 1 on the traditional watches it imports from China under the 9102.11.25.20 subheading, said a Friday posting in the U.S. Trade Representative’s public docket. “Fossil continues to look for ways to diversify its sourcing for traditional watches,” said the vendor. It recently invested in a factory in India that has “capacity to address our product needs” for the local market, but can’t “address our product needs in the global markets,” it said. “Watch manufacturing is a highly specialized skill which cannot be readily duplicated.” Moving traditional watch manufacturing out of China “is not feasible at this time, especially in the very challenging market for traditional watches that Fossil has been experiencing over the last couple of years,” it said. Movado shares recently plunged after the CEO blamed the success of the Apple Watch for the demise of the traditional watch business (see 1911260063). The exemption request doesn’t include Fossil smartwatch imports, which also have List 4A exposure. Fitbit filed Oct. 31 for a tariff exemption on the smartwatches and fitness trackers it imports under the 8517.62.00.90 subheading. Under USTR rules, any tariff exemption granted goes to all goods imported under the product subheading, not to the company submitting the exclusion request.