On April 23, 2026, the Court of International Trade (CIT) issued a decision in that clarifies how certain cables are classified under the Harmonized Tariff Schedule of the United States (HTSUS) and how Section 301 duties apply. The ruling addresses whether cables used with telecommunications equipment qualify for telecommunications classification and confirms the limits of Customs and Border Protection (CBP) authority to recover additional duties after liquidation.
The case focused on the classification of cables used to connect battery backup units to optical network terminals. The importer asserted that the cables qualified as telecommunications cables and were eligible for exclusion from Section 301 duties. CBP determined that the cables did not meet the criteria for telecommunications classification and applied Section 301 duties accordingly.
HOW DID THE CIT INTERPRET TELECOMMUNICATIONS CLASSIFICATION?
CIT determined that classification under HTSUS subheading 8544.42.20 depends on whether the product is “of a kind used for telecommunications,” which is evaluated based on principal use. The court found that the cables’ primary function was to provide uninterrupted power to telecommunications equipment. While some models transmit signals, that function supported power delivery rather than serving as the principal use. As a result, the cables were not considered telecommunications cables for classification purposes. TheCourt concluded that the cables are properly classified under HTSUS subheading 8544.42.90 as “other” electric conductors. This classification does not qualify for telecommunications-related exclusions and supports the application of Section 301 duties under subheading 9903.88.03.
CAN CBP COLLECT ADDITIONAL DUTIES AFTER LIQUIDATION?
Although the court determined that the correct classification would normally result in additional duties, it also found that CBP cannot retroactively collect those duties once the statutory timeframe for reliquidation has passed. The decision reinforces that CBP’s authority to revise duty assessments is governed by strict statutory timelines, even when a classification error is later identified.
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