Importer Fights for Section 301 Exclusions on Telecommunications Cables at CIT
Importer Cyber Power Systems (USA) Inc.'s telecommunications cables qualify for Section 301 China tariff exclusions and the duties it paid on the cables should be refunded, the importer argued in an Oct. 22 complaint at the Court of International Trade challenging CBP's denial of its protest, which sought to apply a particular exclusion (Cyber Power Systems (USA) Inc. v. United States, CIT #21-00200).
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The importer brought in seven entries of telecommunications cables through the Port of Minneapolis under the Harmonized Tariff Schedule subheading 8544.42.2000, which covers insulated cable and optical fiber cables. The subheading typically allows these goods to enter duty-free, but President Donald Trump placed them on the List 3 goods subject to the Section 301 tariffs on goods from China. However, the Office of the U.S. Trade Representative issued an exclusion for certain goods under subheading 8544.42.2000, including "Insulated electric conductors for a voltage not exceeding 1,000V, fitted with connectors of a kind used for telecommunications, each valued over $0.35 but not over $2."
Cyber Power Systems sought to apply this exclusion, but was met with resistance from CBP. The customs agency found that the importer "did not substantiate that the cables are used for transmitting data, voice, or video and failed to show that the subject cables meet the definition of telecommunications." In its complaint, Cyber Power Systems now argues that its cables meet this exclusion since they are insulated electric conductors which don't exceed 1,000 V, are fitted with connectors of a kind used for telecommunications, and are priced between $0.37 and $0.84 per unit.