Trade Court Sets Test Case in Customs Tiff Over Hoverboards

The Court of International Trade in a July 22 order consolidated three customs cases concerning the proper classification of electric scooters, known as hoverboards. Two of the cases, including the now-lead case, were brought by 3BTech, while the remaining action was brought by Pro-Com Products. The cases were launched to argue that the hoverboards were classifiable under Harmonized Tariff Schedule 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 subject goods to enter duty-free (see 2112100053) (3BTech Inc. v. United States, CIT Consol. #21-00026).

The importers, though, identify that the goods fall under the Section 301 tariff's "List 4B," but that they were not subject to the China tariffs at the time of entry. CBP said the hoverboards are classifiable under subheading 8711.60 and were subject to the Section 301 duties at the time of entry. Failing to argue their preferred HTS classification, the importers argue that subheading 8711.60 was granted an exclusion to the Section 301 duties by the Office of the U.S. Trade Representative.