CLA-2:OT:RR:NC:N1:102
TAROFF NO.: 4202.92.9700; 8504.40.9580; 8537.10.9170; 8507.60.0020; 8803.10.0060; 9903.88.01 and 9903.88.03
Ms. Cathy L. Spencer
Freight Expediters
6920 Engle Rd., Suite II
Middleburg Heights, OH 44130
RE: The tariff classification of a drone kit from China
Dear Ms. Spencer:
In your letter dated March 7, 2019, you requested a tariff classification ruling on behalf of your client, International Products Sourcing Group of Hilliard, Ohio. The sample you provided will be returned to your office.
The DJI Mavic 2 Fly More pack (SKU 820357) is described as an accessory kit for the Mavic 2 Pro or Mavic 2 Zoom drones. The kit consists of two Intelligent Flight Batteries, a Mavic 2 Car Charger, a Battery Charging Hub, a Battery to Power Bank Adapter, four Low Noise Propellers and a Mavic 2 Shoulder Bag.
The first item referred to as the Intelligent Flight Batteries function as lithium-ion batteries that feature a built-in DJI Intelligent Battery Management System, which monitors the status of the battery. Each lithium polymer battery is rechargeable and has a discharge temperature not exceeding 40 degrees Celsius.
The second item is the Mavic 2 Car Charger allows the user to charge batteries while driving. The charger has a maximum output power of up to 80W and features low-voltage protection technology.
The third item under consideration is referred to as the Mavic 2 Battery Charging Hub (Hub), which is described as a foldable charging base that provides users with the ability to plug in up to four Mavic batteries for the purpose of recharging. The Hub consists of four multi-contact electrical connectors and is specifically designed to receive the Mavic style battery. It is said that the power applied to the batteries is not altered or rectified by the Hub.
The fourth item is the Battery to Power Bank Adapter. The Battery to Power Bank Adapter is a DC USB power adapter that connects to a Mavic 2 Pro or Mavic 2 Zoom battery creating a high-capacity power bank. The adapter provides two 10 watt, USB Type-A ports, which can be used for powering/charging personal electronics (smart phones, etc.).
The fifth item consists of two pairs of Low-Noise Quiet Propellers used with the Mavic 2 drone.
The sixth item is the “Mavic 2 shoulder bag”. The bag is a zippered case constructed with an outer surface of plastic sheeting material. It is a soft-sided case with a zipper closure along three sides. The front of the bag features a zippered pocket and a padded handle. The item has open pockets on each side and a zippered pocket under the flap. The flap has a hook-and-loop closure. The interior has a divided compartment, two open pockets, and a mesh wall zippered pocket. The case is designed to provide storage, protection, portability, and organization to a drone and its accessories.
The Explanatory Notes (ENs) to the Harmonized Tariff Schedule of the United States (HTSUS) constitute the official interpretation of the tariff at the international level. EN X to General Rule of Interpretation (GRI) 3(b) provides: “for the purposes 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 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).” Sets are classified according to the component, or components taken together, which can be regarded as conferring on the set as a whole its essential character.
The subject kit consists of multiple articles classifiable under separate headings. Furthermore, the items are pictured packaged together for retail sale. Therefore it fulfills the requirements of (a) and (c) above. However, we believe that it fails to meet a particular need or carry out a specific activity. For instance, while the batteries are used with a drone, the car charger may be used to charge a separate battery. Consequently, the items included do not meet a particular need or carry out a specific activity and thus, each item will be separately classified.
As such, the applicable subheading for each Intelligent Flight Battery will be 8507.60.0020, HTSUS, which provides for “Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof: Lithium-ion batteries: Other.” The general rate of duty will be 3.4 percent ad valorem.
The applicable subheading for the Mavic 2 Battery Charging Hub will be 8537.10.9170, HTSUS, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of 8535 or 8536, for electric control or the distribution of electricity…: For a voltage not exceeding 1,000 V: Other: Other: Other.” The general rate of duty will be 2.7 percent ad valorem.
The applicable subheading for both the Mavic 2 Car Charger and the Battery to Power Bank Adapter will be 8504.40.9580, HTSUS, which provides for “Electrical transformers, static converters…: Static converters: Other: Other.” The rate of duty will be 0.3 percent ad valorem.
The applicable subheading for the Mavic quiet propellers will be 8803.10.0060, HTSUS, which provides for “Parts of goods of heading 8801 or 8802: Propellers and rotors and parts thereof: Other.” The rate of duty will be Free.
The applicable subheading for the Mavic 2 shoulder bag will be 4202.92.9700, HTSUS, which provides for “other containers and cases, with outer surface of plastic sheeting material, other, other, other, other.” The duty rate will be 17.6 percent ad valorem.
On July 6, 2018, USTR implemented Section 301 measures on products of China listed in U.S. Note 20(b) of Subchapter III, Chapter 99, HTSUS, which are subject to an additional 25% ad valorem rate of duty. On August 23, 2018, USTR implemented Section 301 measures on products of China listed in U.S. Note 20(d) of Subchapter III, Chapter 99, HTSUS, which are subject to an additional 25% ad valorem rate of duty. On September 24, 2018, USTR implemented Section 301 measures on products of China listed in U.S. Note 20(b) of Subchapter III, Chapter 99, HTSUS, which are subject to an additional 25% ad valorem rate of duty. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8803.10.0060, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8803.10.0060, HTSUS, listed above.
Products of China classified under subheadings 8504.40.95, 8537.10.91, 4202.92.97, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheadings 8504.40.9580, 8537.10.9170 and 4202.92.9700, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
Heading 9902, HTSUS, deals with a wide variety of goods, which have a temporary reduction in their rate of duty by virtue of legislative action. Subheading 9902.16.20 provides for rechargeable lithium batteries, certified by the importer as having a polymer electrolyte layer and composite cathode, designed to complete 800 cumulative battery lifetime hours and operate at sustained temperatures between 45 degrees Celsius and 130 degrees Celsius continuously for a minimum of 1 hour between recharges (provided for in subheading 8507.60.00).
For classification to be proper within this provision of the Nomenclature, the specific prerequisites outlined in subheading 9902.16.20 must be met. In this instance, the lithium-ion batteries do not meet the operational temperature requirements of subheading 9902.16.20, HTSUS, based on the information provided. As such, these batteries are not entitled to beneficial duty treatment under HTSUS subheading 9902.16.20.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division