CLA-2-85:OT:RR:NC:N1:102
Mr. Jim Sides
Totex Manufacturing, Inc
3050 Lomita Blvd
Torrance, CA 90505
RE: The tariff classification of a lithium-ion batteries from China
Dear Mr. Sides:
In your letter dated August 1, 2019 you requested a tariff classification ruling. Technical information was included.
The items in question are lithium-ion batteries, part numbers U80282-5A01, U80283-4R1, U80283-5R01, U80283-4R2 and U80283-5A01. Part number U80282-5A01 is an eight cell battery used with a portable oxygen concentrator, model Inogen Oxygo. Part numbers U80283-4R1, and U80283-5R01 are sixteen cell batteries used with a portable oxygen concentrator, model Inogen G3. Part numbers U80283-4R2 and U80283-5A01 are sixteen cell batteries used with portable oxygen concentrator, model Inogen Oxygo.
Each battery is exclusively used with an oxygen concentrator that is used in the treatment of certain chronic diseases. Each rechargeable battery stores and provides energy to the portable oxygen concentrator.
The applicable subheading for the lithium-ion batteries, part numbers U80282-5A01, U80283-4R1, U80283-5R01, U80283-4R2 and U80283-5A01, will be 8507.60.0020, Harmonized Tariff Schedule of the United States (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.
In your submission you request consideration of a secondary classification for the subject batteries under 9817.00.96, HTSUS, which applies to articles and parts of articles specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped. Chapter 98, Subchapter XVII, U.S. Note 4(a), HTSUS, defines the term “blind or other physically or mentally handicapped persons” as including “any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking breathing, learning, or working.” You state that the subject batteries are specially designed to work exclusively with an oxygen concentrator. Based on the information you provided, oxygen concentrators are intended for use by individuals who suffer from chronic respiratory illnesses who require supplementary oxygen to accomplish their ongoing major life activities. As such, a chronic respiratory illness satisfies the description set forth in Chapter 98, Subchapter XVII, U.S. Note 4(a).
Accordingly, a secondary classification will apply to the lithium-ion batteries, part numbers U80282-5A01, U80283-4R1, U80283-5R01, U80283-4R2 and U80283-5A01, under 9817.00.96, HTSUS, which affords free duty treatment aside from any additional duties and/or applicable fees upon importation into the United States.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. 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). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). 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 8507.60.0020, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty, Chapter 99 subheading, i.e., 9903.88.03, HTSUS, listed above. Section XXII, Chapter 99, Subchapter III U.S Note 20(e), HTSUS, states the additional duties imposed by heading 9903.88.03 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under subheadings 9802.00.40, 9802.00.50, and 9802.00.60, and heading 9802.00.80. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.
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.
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 the 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, contact National Import Specialist Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division