CLA-2-44:OT:RR:NC:1:130
Mr. William Carey
Trans-Border Global Freight Systems Inc.
2103 Route 9
Round Lake, NY 12151
RE: The tariff classification of a steel battery housing container from China
Dear Mr. Carey:
In your letter, dated January 15, 2021, you requested a binding tariff classification ruling on behalf of your client, EOS Energy Storage. The request was returned to you for additional information, which was received by this office on February 28, 2021. The ruling was requested on a steel battery housing container. Product information and photos were submitted for our review.
The item under consideration is a 20-ft. high-cube (approximately 43,000 liters in volume), steel shipping container that has been modified and fitted to be a housing for batteries. The steel shipping container opens at one end by means of double doors, and the sides of the container have been modified to open fully by means of hinged doors. The inside of the container has been fitted with welded steel racks that will hold dozens of batteries in place. You have indicated that the container, in its imported state, does not incorporate any electrical, HVAC, or plumbing components. When batteries and electrical equipment have been installed after importation, the unit functions as a backup energy storage system. The unit does not function to accommodate regular human access or to convey cargo between locations.
In your letter, you suggest multiple potential classifications for the container, including 8507.90.8000 (parts of batteries), 8609.00.0000 (containers specifically equipped for carriage), and 9406.90.0030 (prefabricated buildings of metal), Harmonized Tariff Schedule of the United States (HTSUS). However, we disagree with each of these suggestions. The container is not an integral, constituent, or component part of a battery, but is instead a storage unit that will require additional post-importation processing before it can be used to stage batteries to form an energy storage system. As such, classification under 8507.90.8000, HTSUS, is precluded. It is also not a prefabricated building of 9406.90.0030, HTSUS, as it is not akin to the exemplars for prefabricated buildings set forth in Note 4 to Chapter 94, HTSUS. The unit is not housing, a worksite, an office, a school or the like; it not designed to accommodate regular human access. It is merely a specialized container for holding batteries.
The Explanatory Notes to heading 8609 state that containers classifiable therein “…(including lift vans) are packing receptacles specially designed and equipped for carriage by one or more modes of transport (e.g., road, rail, water or air). They are equipped with fittings (hooks, rings, castors, supports, etc.) to facilitate handling and securing on the transporting vehicle, aircraft or vessel. They are thus suitable for the “door to door” transport of goods without intermediate repacking and, being of robust construction, are intended to be used repeatedly.” (Emphasis added.) The container under consideration is not designed to transport goods, but rather to store batteries in a designated location. As a result, classification of the container in heading 8609 is precluded.
The applicable subheading for the steel battery housing container will be 7309.00.0090, HTSUS, which provides for Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment: Other. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7309.00.0090, HTSUS, unless specifically excluded, are subject to an additional 25 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 subheading 7309.00.0090, HTSUS, listed above.
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 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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division