Costco's Imported Floor Jacks Not Subject to Section 301 Tariffs, CBP HQ Rules

Hybrid hydraulic floor jacks are eligible for exclusion from Section 301 duties under Harmonized Tariff Schedule secondary subheading 9903.88.46, CBP headquarters ruled in a recently released ruling. CBP said that the ruling came in response to an application for further review from Costco regarding the applicability of Section 301 tariffs on its imported Arcan 3-ton Professional Grade Hybrid Service Jacks.

There was no dispute in the ruling over the classification of the jacks under HTS subheading 8425.42.00 as "other" hydraulic jacks and hoists, hydraulic,” CBP said. The only issue was whether the imported jacks were specifically excluded from Section 301 tariffs.

After the jacks were originally entered at the port of Baltimore between June and July 2019, CBP liquidated them as products of China and subjected them to additional duties under U.S. Note 20 to Subchapter III, Chapter 99 (HTS subheadings 9903.88.03 and, for entries made between May 10, 2019, and June 15, 2019, 9903.88.09).

In reassessing its initial ruling, CBP noted that there are two separate exclusions within Chapter 99 that pertain to hydraulic jacks. The first covers "hydraulic jacks of a kind for raising vehicles, with a lifting capacity of not more than 550 kg" and the second covers “hydraulic floor jacks of steel, each measuring not more than 81 cm by 41 cm by 25 cm, weighing not more than 52 kg." Both are described in statistical reporting number 8425.42.0000.

Because the first exclusion is limited to hydraulic car jacks with a lifting capacity of not more than 550 kilograms, and does not cover floor jacks, CBP found that the jacks at issue were not covered. CBP then examined the second exclusion, which required that jack be described by statistical reporting number 8425.42.0000, measure no more than 81cm x 41cm x 25cm, weigh under 52kg, and be a hydraulic floor jack of steel.

Except where the headings otherwise state, articles of base metals that contain two or more are treated as articles of the base metal with the highest percentage by weight. In this case, steel predominated over aluminum and so CBP found that the jack met the requirement of being a "hydraulic floor jack of steel" and so also met the requirement for the second exclusion.