Moving Smartwatch Production Out of China ‘Not Feasible,’ Says Fossil Exclusion Request

Fossil Group filed for a List 4A tariff exclusion on the “hybrid” smartwatches it imports from China under the 8517.62.00.90 subheading, it said in a post Monday in the Office of the U.S. Trade Representative public docket. “Fossil continues to look for ways to diversify its sourcing,” said the vendor. It has invested “significant time and resources in building its current supply chain in China” during the four years in which it has been in the smartwatch business, it said. Moving a “significant portion” of its smartwatch manufacturing out of China “is not feasible at this time, especially in the very challenging market,” it said. Fossil didn’t respond to emails seeking comment on why its tariff exclusion request on smartwatches came seven weeks after it sought exemptions on nine categories of traditional watch and component imports. USTR is scheduled to close the List 4A exclusion-request portal at 11:59 p.m. EST Friday.