CLA-2-85:OT:RR:NC:N1:103
Jeremy Page
Page Fura, P.C.
939 W. North Avenue, Suite 750
Chicago, IL 60642
RE: The tariff classification of lithium-ion pouch cells and battery modules from Germany and China
Dear Mr. Page:
In your letter dated June 1, 2021 you requested a tariff classification ruling on behalf of your client, Farasis Energy USA, Inc.
The first item under consideration, part number 1004038, is a rechargeable lithium-ion battery pouch cell with a nominal voltage of 3.7 V and a nominal capacity of 74 Ah. The pouch cell is rectangular, fully sealed, and has conductive positive and negative foil-tabs welded to battery electrodes. You state the pouch cell has a proprietary design for installation solely in a Farasis battery module that has specific interfaces and a specialized battery management system. Specifically, the cells must be arranged in a group to achieve the required operating voltage and capacity of the battery module and has no alternative application. Without the pouch cells, the battery module would not be able to function as a power source for an electrical vehicle.
The applicable subheading for the lithium-ion pouch cells will be 8507.90.8000, 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: Parts: Other.” The rate of duty will be 3.4 percent ad valorem.
The second item under consideration is a battery module, part number 1008006, with a nominal voltage of 66.6 V and consists of 36 individual lithium-ion pouch cells connected in series and in parallel to achieve the operating voltage. The lithium-ion pouch cells are enclosed in a housing together with a temperature sensor, voltage sensor, terminals, connectors, insulators, and other electrical components. No additional post-importation processing is required before the battery modules are integrated into a vehicle's battery pack and battery management system.
In your submission, you suggested the battery module is classified under subheading 8507.60.0010, HTSUS, which provides for “Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof: Lithium-ion batteries: Of a kind used as the primary source of electrical power for electrically powered vehicles of subheadings 8703.40, 8703.50, 8703.60, 8703.70 or 8703.80.” However, you state the vehicle in which the battery module is designed to be used is still under development and specifications are not available. In this case, we will require additional information in order to issue a ruling. Please provide the complete vehicle specifications once available.
If you decide to resubmit your request regarding the classification of the battery module, please include all of the material that we have returned to you and mail your request to Director, National Commodity Specialist Division, Customs and Border Protection, 201 Varick Street, Suite 501, New York NY 10014, Attn: Binding Ruling Request. If your request was submitted electronically and the information required does not involve sending a sample, you can re-submit your request and the additional information electronically.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8507.90.8000, 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., 9903.88.01, in addition to subheading 8507.90.8000, 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, including information on exclusions and their effective dates, 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