Sonos Seeks Section 301 Refunds for Speaker, Amp Imports
CBP failed to pay a refund of Section 301 duties to Sonos for imports of wireless speakers and audio components for which exclusions had been granted, the importer argued in a Dec. 9 complaint at the Court of International Trade. Due to this alleged failure, Sonos is seeking over $229,000 in refunds of the Section 301 duties paid (Sonos v. U.S., CIT #22-00337).
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In January 2020, Sonos imported its Sonos Beam Smart Soundbars, a compact wireless speaker, and Sonos Amps, a wireless audio component meant for use in speakers, TVs and turntables. The importer entered the merchandise under Harmonized Tariff Schedule subheading 8517.62.0090, free of duty but subject to a 15% Section 301 tariff under secondary subheading 9903.88.15. In March and May 2020, the Office of the U.S. Trade Representative granted two of Sonos' exclusion requests for "Wireless Mesh Network Speakers" and "Wireless Mesh Network Audio Components" under subheading 8517.62.0090, the complaint said. USTR granted two more exclusions in May and July 2020 covering this subheading and subheading 8518.22.0000 under secondary subheadings 9903.88.47 and 9903.88.53.
Sonos claims the "exclusions exempt the subject merchandise from payment of 301 tariffs for merchandise entered" on or after Sept. 1, 2019. The importer filed a post summary correction after entry to apply the 9903.88.47 subheading and get its Section 301 refunds. The entry liquidated in December 2020, but Sonos never got its refund, leading the importer to take to the trade court.
The two-count complaint says CBP is obligated to pay the $229,524.87 refund plus interest pursuant to 19 U.S.C. Section 1505 and the Administrative Procedures Act. The brief said the APA lets the court compel unlawfully withheld or delayed agency action, which includes the refusal to pay the refunds.