CBP Says Data Transmission Not a Primary Function of 'SmartPlugs'

Plug-in devices that connect to Wi-Fi and allow for users to operate other devices by controlling whether electrical current flows from the wall outlet differ from wearable smart devices for classification purposes, CBP said in a Jan. 21 ruling. Lawyers from Sharretts Paley requested the ruling on behalf of SDI Technologies. SDI argued that the “SmartPlugs” deserve a similar classification as Fitbit fitness trackers that connect to mobile phones through Bluetooth (see 1707190028).

While the Fitbit trackers were classified in heading 8517 due to the data transmission functions, the plugs provide for different functions. The SmartPlugs, “to the extent that data is transmitted from the application to the SmartPlug, it is in service of the primary function of controlling the electrical current to the connected appliance," the agency said. "The transmission of data is not a function of the SmartPlugs."

As a result, "we find that the SmartPlugs are not switching apparatus of heading 8517 and therefore are not precluded from classification under heading 8537," the agency said. "Based on the foregoing, we conclude that the subject SmartPlugs are devices that provide electric control of electrical devices connected to them and thus are properly classified under heading 8537." The applicable subheading, 8537.10.9, includes a 2.7% duty rate, and is subject to Section 301 tariffs on China, the agency said.