CLA-2-85:OT:RR:NC:N1:103
Bryan Poellot
Wilson Sonsini Goodrich & Rosati, PC
1700 K St. NW Washington, DC 20006
RE: The tariff classification of a rechargeable lithium-ion battery from China
Dear Mr. Poellot:
In your letter dated September 14, 2023, you requested a tariff classification ruling on behalf of your client, Lunar Energy, Inc.
The item under consideration is referred to as a rechargeable lithium-ion battery, part number E41, which is constructed as a rectangular pouch cell with opposing tabs. Each unit has a nominal voltage of 3.65 V, a nominal capacity of 65 Ah, and measures approximately 301.5 mm in length, 99.7 mm in width, and 14.3 mm in thickness. After the subject lithium-ion battery is imported into the United States, it will be incorporated into a residential energy storage solution, which requires a battery management system, additional battery units, enclosures, and other components.
In your letter, you suggest the subject rechargeable lithium-ion battery is classified under subheading 8507.60.0020, Harmonized Tariff Schedule of the United States ("HTSUS"). Although we agree the lithium-ion battery 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 battery 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. Although you provided several examples of potential applications for the battery outside of a residential energy storage solution, you also state that you do not have access to information regarding actual applications. Based on the described physical characteristics, we find the subject battery must be connected to other cells to form a battery module or pack of a greater electric capacity to function in an energy storage solution.
As such, the applicable subheading for the lithium-ion battery cell, part number E41, 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