Importer Claims Electronic Components Are Made in Taiwan, Not China
Importer Hellbender filed a complaint at the Court of International Trade on June 6 arguing that its electronic components are of Taiwanese origin, not Chinese origin, and are thus exempt from Section 301 duties (Hellbender v. United States, CIT # 24-00104).
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The company entered 64 different electronic devices, which were all originally assessed a 25% Section 301 duty under Harmonized Tariff Schedule secondary subheading 9903.88.02. Hellbender protested this classification, arguing that all 64 bits were not of Chinese origin. CBP import specialist Herman Porras reviewed the request and granted the importer's claim for 62 of the products.
Specifically, Porras said two products, dynamic random-access memory (DRAM) units made by Micron Technology and video processing units made by Intel, were still found to be made in China and subject to the Section 301 duties. Regarding the DRAM units, Porras said, "Images show handwritten letters and numbers on cardboard boxes." For the Intel units, Porras said, "Images show a box and do not depict the product.”
Before CBP and now at the trade court, Hellbender is arguing that substantial evidence backs its conclusion that the products are actually made in Taiwan. For instance, the company said the product code information for the Micron pieces incited that the country of origin codes for "both diffusion and encapsulation of the Micron devices are the last two digits on the top line of the Abbreviated Component Marking." These codes were both seven, which indicates Taiwan "as the location where both diffusion and encapsulation occurred."
For the Intel devices, submitted information included photographs of the product and the original manufacturer's containers for a part of the merchandise showing Taiwan as the country of origin, the complaint said.