CIT Clarifies Classification of Wheeled Toys in Decision on Imported 'Waveboards'
Skateboard-like “waveboards” are classifiable in the tariff schedule as sporting goods instead of wheeled toys, said the Court of International Trade in a Sept. 22 decision affirming CBP’s classification of Streetsurfing’s “Ripple Board” and “The Wave.” The trade court found that wheeled toys have certain characteristics like a lack of required training or skills, little risk of injury, and no athletic aspect to use. Streetsurfing’s waveboards do not share any of those attributes, and should instead be classified as “other sporting goods” alongside skateboards, said CIT.
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The waveboards at issue in the case were imported by Streetsurfing in 2007. The boards are similar to skateboards, except that they have two flexible platforms instead of one rigid deck, and have wheels that can turn. By pushing his or her feet back and forth in a wave-like motion, the rider can propel the board forward without removing his or her feet from the board.
CBP liquidated the entries under subheading 9506.99.60 (“articles and equipment for general physical exercise, gymnastics, athletics, other sports … or outdoor games, not specified or included elsewhere in this chapter …: other: other: other”), dutiable at 4%. Streetsurfing protested, arguing the waveboards should have instead been classified under subheading 9503.99.60 (“tricycles, scooters, pedal cars, and similar wheeled toys: other”), which is duty free. CBP denied the protest, and Streetsurfing took the case to court.
Heading 9506 only covers merchandise “not specified or included elsewhere” in chapter 95 of the tariff schedule, so if Streetsurfing’s waveboards were classifiable as wheeled toys in heading 9503 then they could not be classified as other sporting goods, said CIT. Looking to the explanatory notes for heading 9503, CIT found that they share characteristics: “(1) the absence of a training requirement prior to its use; (2) the absence of a meaningful risk of injury involved in its use; (3) the lack of a acquired skill to fully utilize the item; (4) the lack of exercise or athletic aspect in the item’s use; and (5) the presence of an assistive device” like handlebars or pedals.
Streetsurfing’s waveboards, on the other hand, include a training video, said CIT. They are marketed at schools as “a physical activity” for teaching students “a new skill that works on core stability utilizing balance, weight transfer, and movement for space,” said the court quoting legal briefs submitted by CBP. The waveboards do not include any handles or pedals either, said CIT. Thus, they cannot be classified as wheeled toys under heading 9503.
But like skateboards, the waveboards share the characteristics of sporting goods. They require training and skill, and can be used for exercise. The fact that there is no organized waveboarding competition is meaningless, said CIT, citing an earlier court decision that found backpacking to be a sport. As they are sporting goods not classified elsewhere in chapter 95, the waveboards are correctly classified under heading 9503, ruled CIT.
(Streetsurfing LLC v. U.S., Slip Op. 14-110, CIT No. 09-00136, dated 09/22/14, Judge Eaton)
(Attorneys: Russel Semmel of Neville Peterson for plaintiff Streetsurfing LLC; Marcella Powell for defendant U.S. government)