CLA-2 RR:CTF:TCM 968171 HkP
Port Director
Port of Cleveland
6747 Engle Road Middleburg Heights, OH 44130
RE: Request for Internal Advice; 19 C.F.R. §177.11; Energizer battery chargers
Dear Port Director:
This is in response to a request for Internal Advice (“I/A”) initiated by counsel on behalf of their client, Energizer Battery Manufacturing, Inc. At issue is the proper classification of various battery chargers packaged together with rechargeable batteries. Similar battery/charger combinations have been classified in subheading 8504.40.9550, Harmonized Tariff Schedule of the Untied States (“HTSUS”), as sets, with the essential character conferred by the chargers. The importer queries whether it is appropriate to continue classifying batteries together with chargers, or whether they should be classified separately under their respective subheadings, or whether the charger/battery combinations should be classified as rechargeable batteries under subheading 8507.80.8000, HTSUS.
FACTS:
The I/A requestant imports chargers which are packaged together with two or four Energizer brand nickel-metal hydride (NiMH) rechargeable batteries in retail blister packs. Some of the chargers are also packed with separate AC adaptors and/or DC adaptors (for charging in cars). There are four models of chargers under consideration.
The product data sheet for the “Energizer CHCARCP” charger states that this model: charges two or four NiMH AA or AAA size batteries, but will not charge one or three batteries; includes AC and CAR adapters; individually monitors cell condition and terminates charging current when charged (“Smart Charger”); includes “Trickle Charge” – a low rate charge to retain charge level that would otherwise be lost due to self-discharge and storage; has illuminated LED monitoring lights; and, has DC input 12V, 500mA (AC and CAR adapters included). This model is designated as a “Hi-Energy Battery Charger”.
The product data sheet for the “Energizer CHVC” charger states that this model: charges two or four AA and AAA NiMH size batteries; has an illuminated LED that indicates that the unit is operational; and, can charge AA and AAA size batteries at the same time in pairs. This model is designated as a “Hi-Energy Battery Charger”.
The product data sheet for the “Energizer CH15MN” charger states that this model: charges one to four AA or AAA NiMH size batteries in 15 minutes; individually monitors cell condition and terminates charging current when charges (“Smart Charger”); includes “Trickle Charge” – a low rate charge to retain charge level that would otherwise be lost due to self-discharge and storage; has illuminated LED monitoring lights; is ideal for high drain applications; and, has DC input 11-16V, 4A (AC Adapter included). This model is designated as a “Hi-Energy Battery Charger”.
The product data sheet for the “Energizer CHDC” charger states that this model features: compact travel size; AA/AAA charging; automatic detection of AA or AAA batteries; flip down plug; LED charge indicators; and, reverse polarity protection. This model is designated as a “Compact Battery Charger”.
ISSUE:
Whether the various models of battery chargers packaged together with rechargeable batteries should be classified in heading 8504, HTSUS, as static converters, or, in heading 8507, HTSUS, as electric storage batteries batteries, or, separately under the respective headings for rechargeable batteries (8507, HTSUS) and battery chargers (8504, HTSUS).
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof:
8504.40 Static converters:
8504.40.95 Other:
Rectifiers and rectifying apparatus:
8504.40.9550 Other
8507 Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof:
8507.80 Other storage batteries:
Other
The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the official interpretation of the HTSUS. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80.
Heading 8504 provides for, inter alia, static converters. EN 85.04(II) explains
that “[t]he apparatus of this group are used to convert electrical energy in order to adapt it for further use.” Accordingly, we find that the battery chargers are provided for in heading 8504, HTSUS.
Heading 8507 provides for electric storage batteries. EN 85.07 explains that “[e]lectric accumulators (storage batteries or secondary batteries) are characterized by the fact that he electrochemical action is reversible so that the accumulator may be recharged.” As a result, we find that rechargeable batteries are provided for in heading 8507, HTSUS.
Based on the foregoing we find that the battery chargers packaged together with batteries are, prima facie, classifiable under headings 8504 and 8507, HTSUS. Therefore they cannot be classified solely on the basis of GRI 1.
GRI 3 provides in pertinent part that:
When by application of rule 2(b) or for any other reason, goods are, prima facie classifiable under two or more headings, classification shall be effected as follows:
The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the materials or substances contained in mixed or composite goods or to part only on the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good.
Mixtures, composite goods consisting of different materials or made up of different components … which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
Explanatory Note X to GRI 3(b) provides that:
For the purpose of this Rule, the term 'goods put up in sets for retail sale' shall be taken to mean goods which:
(a) consist of at least two different articles which are, prima facie, classifiable in different headings . . .;
(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and
(c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).
We find that all the subject rechargeable batteries and the battery chargers imported together in retail blister packs are sets for classification purposes. They fully satisfy all three requirements of EN 3(b)(X), in that, the batteries and the chargers are classifiable in different headings, are “put up together” to provide a rechargeable power source, and are offered for sale directly to users without repacking. Consequently, the batteries and chargers may not be classified separately under their respective classifications.
Explanatory Note VIII to GRI 3(b) explains, “[t]he factor which determines
essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods.” Court decisions on essential character for GRI 3(b) purposes have looked primarily to the role of the constituent material in relation to the use of the good. See Better Home Plastics Corp. v. U.S., 915 F. Supp. 1265 (CIT 1996), aff’d 119 F. 3d 969 (Fed. Cir. 1997) (“Better Home Plastics”); Mita Copystar America, Inc. v. U.S., 966 F. Supp. 1245 (CIT 1997), rehear’g denied, 994 F. Supp. 393 (1998); Vista Int’l Packing Co. v. U.S., 890 F. Supp. 1095 (CIT 1995). See also Pillowtex Corp. v. U.S., 893 F. Supp. 188 (CIT 1997), aff’d 171 F. 3d 1370 (CAFC 1999); Avenues in Leather, Inc. v. U.S., 2004 Ct. Int’l Trade LEXIS 39, aff’d 423 F.3d 1326 (Fed. Cir. 2005).
We note that, prior to initial use, the rechargeable batteries must be fully charged in order to be useful. Further, every time the batteries need charging, the charger must be used. We find, therefore, that the battery chargers are essential to the effectiveness of the rechargeable batteries. We also note that the rechargeable batteries have a limited shelf life. Once they can no longer hold a charge, they are discarded, and new rechargeable batteries must be purchased. In this sense, the batteries become “disposable” while the charger remains functional.
CBP has previously held, in relation to similar merchandise, that the battery charging component imparts the set’s essential character because the purpose of the set is to charge batteries. The main reason for purchasing the set is not to obtain batteries, but rather to obtain a device which decreases the need to periodically purchase new batteries. See HQ 083672, dated May 16, 1989, NY E80178, dated April 29, 1999. So too, in the instant case, we find that the purpose of the subject battery charger sets is to charge batteries, and that such sets are provided for under subheading 8504.40.9550, HTSUS, as “other” rectifiers and rectifying apparatus.
HOLDING:
By application of GRI 3(b), we find that the subject battery charger sets are provided for in heading 8504, specifically subheading 8504.40.9550, HTSUS, which provides for: “Electrical transformers, static converters (for example, rectifiers) and inductors; …: Static converters: Other: Rectifiers and rectifying apparatus: Other.”
Sincerely,
Myles B. Harmon, Director
Commercial & Trade Facilitation Division