Ildico Sues Files 2 Complaints at Trade Court Over Wristwatch Classification

Beverly Hills watchmaker Ildico filed two separate complaints with the Court of International Trade on April 28, arguing its imported wristwatches within gold bezels and cases and synthetic sapphires on front and back should be classifiable as wrist watches with precious metal cases of heading 9101, rather than as CBP liquidated them under subheading 9102 as other wrist watches (Ildico Inc. v. U.S., #18-00076, -00136)

The imported watches at issue in both complaints have a front synthetic sapphire crystal, an 18 karat gold bezel, an 18 karat gold case and a synthetic sapphire affixed to the back of the case. The straps are made out of either textiles or base metal. CBP liquidated the Richard Mille brand watches from Switzerland at issue in the first complaint under heading 9102 wrist watches other than those of heading 9101 at a rate of 4.2% for the watch case, 9.8% for the strap, band or bracelet, and $1.53 each for the watch movement.

In the second case, also involving Richard Mille brand watches from Switzerland, CBP likewise liquidated the watches under various subheadings of heading 9102, dutiable at 2.2% to 4.2% for the case, 2.2% to 9.8% for the strap, and $1.53 to $1.75 for the movement, Ildico said in its complaint.

In both complaints, Ildico argues the watches should be properly classified under the duty-free subheading 9101.21.50 as "Wrist watches ... with case of precious metal or of metal clad with precious metal: Other wrist watches . . . With automatic winding: Having over 17 jewels in the movement: Other," with the watch straps also classified in heading 9101 at a 3.1% duty rate.

Idilco says a ruling letter CBP issued to it in 2017 on the classification of the watches is inconsistent with at least two other customs rulings wherein CBP classified Patek Philippe and Montblanc watches under heading 9101. Ildico says those watches are of a similar material construction and of like materials as its own. Ildico says that because its watch cases are wholly of 18 kt gold and the synthetic sapphire found on the back of the watch isn't part of the watch case, they belong under heading 9101.