CLA-2-85:OT:RR:NC:N1:103
Jim R. Sides
Totex Manufacturing, Inc.
3050 Lomita Boulevard
Torrance, CA 90505
RE: The tariff classification of a lithium-ion battery from China
Dear Mr. Sides:
In your letter dated June 4, 2021 you requested a tariff classification ruling.
The item under consideration is a rechargeable eight cell lithium-ion battery, part number U80618R01. The battery has a nominal voltage of 14.54 V and a nominal capacity of 98.9 watt-hours. The cells are enclosed in a rectangular housing that includes the connector and panel cover for the oxygen concentrator. The battery is designed and built solely for the Eclipse model oxygen concentrator manufactured by Claire Inc. and cannot be used with any other device. This portable oxygen concentrator is solely battery powered and cannot function without a battery. You state the Eclipse oxygen concentrator is used in the treatment of diseases such as heart failure, cystic fibrosis, and chronic obstructive pulmonary disease, a progressive debilitating lung disease. During use, the rechargeable battery stores and provides power to the portable oxygen concentrator.
The applicable subheading for the lithium-ion battery 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% 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 battery 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.” Based on the information you provided, portable 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. In HQ ruling H301481, dated June 14, 2019, customs determined a portable oxygen concentrator is designed or adapted for the use and benefit of physically handicapped persons and qualified for duty-free treatment under subheading 9817.00.96, HTSUS. You state that the subject batteries are specially designed to work exclusively with the Eclipse portable oxygen concentrator.
Accordingly, a secondary classification will apply to the lithium-ion battery, part number U80618R01, under subheading 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, 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