Lawn Mower Engine Importer Seeks Duty-Free Treatment for Engine Entries at CIT

Importer MTD Products Inc. argued in its Dec. 8 complaint at the Court of International Trade that its lawn mower engines qualify for duty-free treatment and, in the alternative, an exclusion to the Section 301 China tariffs, and that CBP improperly denied its protest claiming as much. The importer brought in spark-ignition reciprocating or rotary internal combustion piston engines from China, each valued at less than $180, that are used in walk-behind, riding and zero-turn riding lawn mowers (MTD Products Inc. v. United States, CIT #21-00036).

The lawn mowers themselves fall under Harmonized Tariff Schedule subheadings 8433.11.00 and 8433.19.00, while the engines fall under HTS subheadings 8407.90.1010 and 8407.90.1020. MTD does not contest the primary HTS classification of its engines. What it does take issue with, though, is CBP's refusal to apply either of MTD's two secondary classification claims. The first establishes duty-free treatment for lawn mower engines, while the second would ensure a Section 301 exclusion.

HTS secondary subheading 9817.00.60 allows parts that are used in products entered under HTS subheading 8433, among others, to enter free of duty. Since MTD's engines are used in the lawn mowers that enter under this subheading, it should be allowed to enter its goods duty-free, the complaint said. Further, in July 2019, the Office of the U.S. Trade Representative granted an exclusion for lawn mower engines that fall under subheading 8407.90.1020. Due to this, at the very least, the importer should not have to pay the Section 301 duties, the complaint said.