CLA-2-85:OT:RR:NC:N1:103
Jim Sides
Totex Manufacturing
3050 Lomita Blvd
Torrance, CA 90505
RE: The tariff classification of lithium-ion batteries from China
Dear Mr. Sides:
In your letter dated October 1, 2020 you requested a tariff classification ruling.
Item 1, a four cell lithium-ion battery, part number U80603R01, is said to be specially designed and built solely for use with the Inogen G4 portable oxygen concentrator, which is used in the treatment of certain chronic diseases. Each battery features a rectangular housing, electrical contacts, and status indicators that display the charge level of the battery. While in use, the rechargeable batteries store electricity and supply it to the portable oxygen concentrator when required.
Item 2, a four cell lithium-ion battery, part number U80603R01A, is said to be specially designed and built solely for use with the Inogen Oxygo Fit G4 portable oxygen concentrator, which is used in the treatment of certain chronic diseases. Each battery features a rectangular housing, electrical contacts, and status indicators that display the charge level of the battery. During operation, the rechargeable batteries store electricity and supply it to the portable oxygen concentrator when required.
The applicable subheading for the lithium-ion batteries 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 rate of duty will be 3.4 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8507.60.0020, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8507.60.0020, HTSUS, listed above.
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 and 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 U80603R01 and U80603R01A, 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.
Section XXII, Chapter 99, Subchapter III U.S Note 20(r), HTSUS, states the additional duties imposed by heading 9903.88.15 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 HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division