CLA-2-85:OT:RR:NC:N1:103
Toni Owens
Hyundai Motor Manufacturing Alabama, LLC
700 Hyundai Blvd. Montgomery, AL 36105
RE: The tariff classification of a battery assembly from South Korea
Dear Ms. Owens:
In your letter dated April 6, 2023, you requested a tariff classification ruling.
The item under consideration is the JK EV Battery System Assembly ("BSA"). The assembly has a nominal voltage of 696.96 V, a nominal energy of 77.4 kWh, and weighs approximately 480 kilograms. The function of the BSA is to store and supply the electricity that is used to power a fully electric vehicle. A battery management unit (“BMU”), cell monitoring unit (“CMU”), power relay assembly, fuse box assembly, and 384 lithium-ion battery cells are enclosed in a housing that is contoured to a vehicle's chassis. The power relay assembly and fuse box assembly support the primary function of storing and supplying energy by protecting the battery cells from damage. The fuse box assembly cuts off electricity in the event of an external short circuit while the power relay assembly controls the electric circuits and the subsequent flow of electricity to the BSA. The BMU manages the operation of the overall BSA, which involves controlling the power relay assembly, monitoring the state of charge of the battery pack assemblies, and communicating diagnostic information. The CMU monitors the temperature, voltage, current, and resistance of the battery cells. You state that the battery cells are sourced from China and that the electric vehicle is classifiable under subheading 8703.80, Harmonized Tariff Schedule of the United States (“HTSUS”).
In your letter, you suggest the BSA is classified under subheading 8507.60.0010, HTSUS. We agree. Provided the BSA is used in a vehicle classified under subheading 8703.80, HTSUS, the applicable subheading will be 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.” 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 8507.60.0010, 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 8507.60.0010, 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 at https://hts.usitc.gov/current
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division