Reclassification, Duty Increase Proposed for Wireless Speaker

Friday, May 18, 2018
Sandler, Travis & Rosenberg Trade Report

In the May 16, 2018, Customs Bulletin and Decisions, U.S. Customs and Border Protection is proposing to reclassify a Bluetooth wireless speaker that comprises two loudspeakers and a subwoofer. This item is currently classified as a machine for the reception, conversion, and transmission or regeneration of voice, images, or other data under HTSUS 8517.62.0050 (duty-free) but CBP is proposing to reclassify it as multiple loudspeakers mounted in the same enclosure under HTSUS 8518.22.00 (2.4 percent duty).

While CBP previously reasoned that the Bluetooth chip performs the principal function of this composite machine, it now believes that function is performed by the loudspeaker, regardless of the manner in which the speaker’s function is enabled by its Bluetooth capabilities.

Ruling NY N233202 would be revoked to reflect this change. Comments on this proposed revocation are due by June 15.

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