Sony Section 301 Case Shows It’s Sourcing Some Big-Screen TVs From China

Sony Electronics joined the massive Section 301 litigation inundating the U.S. Court of International Trade by hiring a sole practitioner, David Newman of Nyack, New York, instead of a big multinational law firm to file a complaint (in Pacer) on its behalf Wednesday arguing the List 3 and 4A tariffs on Chinese imports are unlawful and should be refunded. Joining the suit as co-plaintiffs were Sony Latin America and Sony Interactive Entertainment, the arm of the company responsible for the PlayStation 5. Sony argues “the same cause of action” as the first-filed HMTX Industries/Jasco Products case in September, that the Office of the U.S. Trade Representative overstepped its 1974 Trade Act by imposing tariffs that had no link to the Section 301 investigative report's finding of serious Chinese trade misbehavior. It also alleges USTR violated Administrative Procedure Act protections against rulemakings that lack transparency. An attachment to the complaint lists more than 15 dozen import categories to which Sony has List 3 or 4A exposure. Though the vast majority are for capital goods, not finished products, one standout listing is for the Harmonized Tariff Schedule’s 8528.72.64.60 subheading for finished TVs sourced from China on List 4A, with screen sizes exceeding 45 inches. No other categories of finished TVs from China are listed. Sony, like other TV brands playing in the premium tier, is believed to source most of its big-screen products from Mexico. Sony didn’t respond to questions Thursday.