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 battery pouch cells from China
Dear Mr. Page:
In your letter dated September 14, 2023, you requested a tariff classification ruling on behalf of your client, Kia Georgia, Inc.
The item under consideration is identified as a rechargeable lithium-ion battery pouch cell, part number SK E603. Each cell has a nominal voltage of 3.66 V, a capacity of 60.3 Ah, and measures approximately 354 mm in length, 101 mm in width, and 9.5 mm in thickness. Each cell is encased in an aluminum pouch fitted with battery tabs and weighs between 738 grams and 758 grams. In the United States, each cell is incorporated into a battery module that will be used in an electric vehicle. It is explained that each cell is specially designed to be used in an automotive application and is not interchangeable with pouches designed and developed for other commercial applications.
You suggest the subject lithium-ion battery pouch cell is classified under subheading 8507.60.0010, Harmonized Tariff Schedule of the United States ("HTSUS"). Although we agree the subject battery pouch cell is classified in heading 8507, HTSUS, we disagree on the subheading. In HQ ruling H155376, dated June 22, 2011, Customs and Border Protection reviewed the classification of rechargeable lithium-ion cells used in a power source. We find the function of the subject cells to be similar to that of the cells discussed in HQ ruling H155376. In both instances, the cells need to be combined with additional cells to fulfill their intended function. At this time, you explain there is no identifiable application where the subject cells can be used on their own. Rather, they must be connected to other cells to form a battery module or pack of a greater electric capacity.
As such, the applicable subheading for the lithium-ion battery pouch cell, part number SK E603, will be 8507.90.8000, 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.
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, 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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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