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Tariffs on Bluetooth Headphones, Earbuds Would Force Layoffs at JLab Audio, Says CEO
August 1, 2018 by Paul Gluckman|Intellectual Property

JLab Audio, which markets Bluetooth earbuds, headphones and speakers through Best Buy, Target and other big-box retailers, wants to testify at the Trump administration's Aug. 20-23 public hearings against proposed 10 percent Trade Act Section 301 tariffs on Chinese imports, said CEO Win Cramer in July 27 comments posted Tuesday in docket USTR-2018-0026. JLab in the past five years became “a disruptive force within the consumer electronics category growing itself to a top 5 audio brand despite the competition of much larger, seasoned brands such as Apple, Sony, Bose, and Samsung,” said Cramer. The goods that JLab imports from China under the Harmonized Tariff Schedule 8517.62.00 subheading account for more than 80 percent of the company’s business, he said. Since JLab is “focused on a relatively narrow range of products” under HTS 8517.62.00, mainly Bluetooth earbuds and headphones, it can’t absorb the “added costs” of 10 percent tariffs “by balancing continued profits from other products,” he said. JLab also sells “almost exclusively” to the U.S. market, “so we are unable to offset increased costs in this market with profits from other global markets,” he said. “Because of this, it is our opinion that this increase in duty rate will hurt our small U.S. business, and likely other small and medium businesses, more than it will harm large multinational corporations.” Cramer fears the tariffs would “require our company to engage in cost cutting by laying off U.S. employees,” he said. The HTS 8517.62.00 code to which Cramer referred is the same “single line item” that exposes to tariffs “basically the entire ecosystem of the internet,” said Sage Chandler, CTA vice president-international trade (see 1807300002).

Tech Interests Oppose Section 301 Duties on Tariff Line They Say Would Damage 'Internet of Things'
August 1, 2018 by Paul Gluckman|Top News

As critics continue ratcheting up their opposition to the Trump administration’s proposed third round of Section 301 tariffs on $200 billion in Chinese imports, it remains to be seen how the Office of the U.S. Trade Representative will accommodate all who have requested to testify in five-minute slots during four days of public hearings scheduled to begin Aug. 20. Well more than 300 people in various industries filed requests in docket USTR-2018-0026 by the July 27 deadline to appear at the hearings, virtually all of them to say they'll testify against the tariffs.

Topics:Harmonized Tariff Schedule, Customs duty
Tariffs on Bluetooth Headphones, Earbuds Would Force Layoffs at JLab Audio, Says CEO
August 1, 2018 by Paul Gluckman|Trade

JLab Audio, which markets Bluetooth earbuds, headphones and speakers through Best Buy, Target and other big-box retailers, wants to testify at the Trump administration's Aug. 20-23 public hearings against proposed 10 percent Trade Act Section 301 tariffs on Chinese imports, said CEO Win Cramer in July 27 comments posted Tuesday in docket USTR-2018-0026. JLab in the past five years became “a disruptive force within the consumer electronics category growing itself to a top 5 audio brand despite the competition of much larger, seasoned brands such as Apple, Sony, Bose, and Samsung,” said Cramer. The goods that JLab imports from China under the Harmonized Tariff Schedule 8517.62.00 subheading account for more than 80 percent of the company’s business, he said. Since JLab is “focused on a relatively narrow range of products” under HTS 8517.62.00, mainly Bluetooth earbuds and headphones, it can’t absorb the “added costs” of 10 percent tariffs “by balancing continued profits from other products,” he said. JLab also sells “almost exclusively” to the U.S. market, “so we are unable to offset increased costs in this market with profits from other global markets,” he said. “Because of this, it is our opinion that this increase in duty rate will hurt our small U.S. business, and likely other small and medium businesses, more than it will harm large multinational corporations.” Cramer fears the tariffs would “require our company to engage in cost cutting by laying off U.S. employees,” he said. The HTS 8517.62.00 code to which Cramer referred is the same “single line item” that exposes to tariffs “basically the entire ecosystem of the internet,” said Sage Chandler, CTA vice president-international trade (see 1807300002).

CTA Finds 302 Tariff Lines Members Want Excluded From 10% Duties, Sage Says
July 31, 2018 by Paul Gluckman|International Telecom

The U.S. trade relationship with China "significantly impacts” CTA members relying "on the global supply chain,” said Sage Chandler, vice president-international trade. She asked to appear at Aug. 20-23 hearings to oppose 10 percent Trade Act Section 301 tariffs proposed by the Office of the U.S. Trade Representative. Members identified 302 tariff lines of Chinese imports in USTR sights, with more than $109 billion in value, for which 10 percent duties “would be detrimental,” said Chandler's Friday filing. Harmonized Tariff Schedule codes that most worry members would affect startups using U.S. IP, research, design and engineering, said Chandler. Duties on those products would cause “substantial” harm to the entire IoT “ecosystem,” she said. What spooks Chandler most is a “single line item,” HTS 8517.62.00, listed as covering machines for reception, conversion and transmission or regeneration of voice, images or other data, she told us Monday. That “captures servers, gateways, modems,” plus “Bluetooth-enabled devices, like headsets, speakers, fitness trackers, smart health devices and watches,” she said. It exposes “basically the entire ecosystem of the internet,” she said. “You’re looking at what potentially could be pass-down costs everywhere along the chain for the Internet of Things."

AudioControl CEO Blasts Tariffs
July 31, 2018 by Paul Gluckman|Intellectual Property

Audio supplier AudioControl opposes Trade Act Section 301 tariffs on electronics components and materials imported from China “and used in our US manufacturing of our products” because it will “cause the adverse effect of what is intended” in trying to thwart allegedly unfair Chinese trade practices, said CEO Alex Camara in comments posted Friday in docket USTR-2018-0026. He doesn't plan to testify, he emailed us Friday. He said AudioControl is coordinating with CTA, which plans to testify (see 1807300064). Of USTR Robert Lighthizer testifying last week that he didn’t necessarily see the tariffs remaining for years (see 1807270018), Camara quipped: “Good to see there is a light at the end of the tunnel, although the actual light bulb or light fixture is probably tariffed!!” Camara’s hope, "seriously," is that “there will be enough voices making it clear” that there are “real economic issues at stake" with the imposition of tariffs, and "we should not be playing politics!”

CTA Finds 302 Tariff Lines Members Want Excluded From 10% Duties, Sage Says
July 31, 2018 by Paul Gluckman|International

The U.S. trade relationship with China "significantly impacts” CTA members relying "on the global supply chain,” said Sage Chandler, vice president-international trade. She asked to appear at Aug. 20-23 hearings to oppose 10 percent Trade Act Section 301 tariffs proposed by the Office of the U.S. Trade Representative. Members identified 302 tariff lines of Chinese imports in USTR sights, with more than $109 billion in value, for which 10 percent duties “would be detrimental,” said Chandler's Friday filing. Harmonized Tariff Schedule codes that most worry members would affect startups using U.S. IP, research, design and engineering, said Chandler. Duties on those products would cause “substantial” harm to the entire IoT “ecosystem,” she said. What spooks Chandler most is a “single line item,” HTS 8517.62.00, listed as covering machines for reception, conversion and transmission or regeneration of voice, images or other data, she told us Monday. That “captures servers, gateways, modems,” plus “Bluetooth-enabled devices, like headsets, speakers, fitness trackers, smart health devices and watches,” she said. It exposes “basically the entire ecosystem of the internet,” she said. “You’re looking at what potentially could be pass-down costs everywhere along the chain for the Internet of Things."