Importer Kicks Off Classification Row Over Hoverboards

Electric scooters, known has hoverboards, were assessed duties under the wrong Harmonized Tariff Schedule subheading upon entry into the U.S., importer 3BTech said in an Oct. 15 complaint at the Court of International Trade. Kicking off litigation in its customs battle, 3BTech argued that even if CBP's HTS subheading of choice is correct, the products were granted Section 301 China tariff exclusions (3BTech, Inc. v. United States, CIT #20-00159).

The importer shipped in the hoverboards at the Port of Los Angeles from September 2018 to June 2019. It claimed that they were classifiable under HTS subheading 9503.00.0090, which provides for "Tricycles, scooters, pedal cars and similar wheeled toys; dollsʼ carriages; dolls, other toys; reduced-scale ('scale') models and similar recreational models, working or not; puzzles of all kinds; parts and accessories thereof: Other," and allows goods to enter duty-free but the subject good is a "List 4B" Section 301 good, not subject to tariffs at time of entry.

CBP disagreed, finding that the true HTS home of the hoverboards is subheading 8711.60, an HTS subheading that was subject to the Section 301 duties at the time of entry. The subheading provides for "Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars." 3BTech fights for its preferred classification on the notion that subheading 9503 is a use provision, and that its use is for "amusement, diversion, and/or play, rather than practicality." Seeing as hoverboards are used for recreation, they properly fit under subheading 9503.00.0090, the company asserted.

If in fact the court does find that the hoverboards fit under Chapter 87 instead, goods entered under subheading 8711.60 were granted Section 301 exclusions, the importer argued. 3BTech said that the precise HTS subheading that CBP is attempting to latch onto its imports was named among the 89 separate exclusions from China Section 301 duties announced by the U.S. Trade Representative on Sept. 20, 2019.