Bluetooth-Enabled Nikes Classify as Shoes, not Wearables, CBP Rules

Nike shoes that include Bluetooth connectivity are classifiable as shoes, not Bluetooth wearables, said Customs and Border Protection in a Friday ruling. Nike had argued the shoes should be classified based on their Bluetooth transceivers, similar to smartwatches that rely on Bluetooth connectivity and are imported under the Harmonized Tariff Schedule's 8517.62 subheading. "Wearable 'smart' technology is a growing segment of the marketplace," CBP said. "Without a doubt, these types of goods will require individual, or case-by-case, analyses in order to determine their essential character." Jeffrey Whalen, a lawyer for Nike, requested the tariff classification ruling. Nike says the shoe's Bluetooth transceiving system "imparts its essential character" and makes "the article 'what it is' in the eyes of the consumer." The agency disagreed, saying the shoe's wireless capability “is a support function and not the essential character when viewing the electronic module on its own."