Importer Seeks Refund of Section 301 Duties Paid on Lawnmower Engines

Importer MTD Products filed a complaint at the Court of International Trade June 5 claiming its spark-ignition reciprocating or rotary internal combustion piston engines from China were improperly denied Section 301 exclusions by CBP (MTD Products v. U.S., CIT # 22-00174).

The engines were liquidated under either Harmonized Tariff Schedule subheading 8407.90.1020, which covers internal combustion piston engines that are installed in agricultural machinery and don't exceed 37.3kW, or subheading 8407.90.1010, which covers the same engines not exceeding 37.3kW and less than 4,475 W. Both subheadings were subject to Section 301 duties under secondary subheading 9903.88.02.

MTD said its products are meant for "walk behind, riding and zero-turn riding lawn mowers" and have a "power output ranging from 2,200W to 14,000W." In 2019, the Office of the U.S. Trade Representative established Section 301 exclusions for the spark-ignition reciprocating or rotary internal combustion piston engines classified under subheadings 8407.90.1020 and 8407.90.1010.

In its complaint, MTD argued that since its goods fit under these two subheadings, it should have gotten a refund from CBP for the Section 301 duties it paid.