Kent Displays Sues CBP Over Section 301 Refunds for Excluded Product

Battery powered flexible electronic eWriter device containing flexible pressure sensitive liquid crystal writing film are properly classified as "optical appliances" under subheading 9013.80.7000 and subject to a product exclusion under Section 301 tariffs, Kent Displays said in a July 18 complaint at the Court of International Trade (Kent Displays, Inc. v. U.S. CIT # 20-00156).

Kent entered the subject eWriters and paid the required Section 301 duty in June 2019. At the same time, Kent filed a product exclusion request with the Office of the U.S. Trade Representative, which was granted in September 2019 after the merchandise in question had been liquidated. Kent said it then it filed a protest in accordance with CBP and USTR guidelines for retroactive refunds for excluded products.

CBP denied the protest, saying that the items were "electrical device[s] with an individual function that is more properly classified under ... 8543.70.9960," but that no correction would be made because "the result would be adverse to the importer." Kent then filed suit at the Court of International Trade, citing 337 previous entries between 2014 and 2018, which CBP "consistently liquidated" the merchandise under 9013.80.7000

Kent said that CBP failed to honor its obligation to retroactively honor Section 301 product exclusion granted by USTR and has asked the court to order CBP to reliquidate the items under subheading 9013.80.7000, apply the Section 301 product exclusion and refund the associated duty paid with interest. Alternatively, Kent asked the court to have CBP to reliquidate the items under subheading 8543.70.9960 and refund the Section 301 duties less the other applicable duties.