CLA-2-85:OT:RR:NC:N1:103
Jeongwon Seo
SK On Co. Ltd.
51, Jong-ro, Jongno-gu Seoul 03161 South Korea
RE: The tariff classification of a rechargeable lithium-ion secondary battery from South Korea
Dear Mr. Seo:
In your letter dated September 26, 2023, you requested a tariff classification ruling.
The item under consideration is identified as a rechargeable lithium nickel-cobalt-manganese battery, part number CS0003C001A, which is described as a pouch-type cell with opposing positive and negative tabs. Each cell measures approximately 531 millimeters in length, 102.5 millimeters in width, 14.5 millimeters in thickness, and weighs 1710 grams. The subject battery cell is used in Energy Storage applications, which you describe as systems that store surplus energy generated from wind and solar power sources, and then release that stored energy during periods of high-power demand. Each cell has a nominal voltage of 3.67 V and a nominal capacity of 120.2 Ah.
You suggest the subject lithium nickel-cobalt-manganese battery is classified under subheading 8507.60.0020, Harmonized Tariff Schedule of the United States ("HTSUS"). We agree. You state the cells are primarily designed to be assembled into modules, which will subsequently be utilized in an Energy Storage Station. 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. The physical characteristics of the subject cells indicate they are designed to be incorporated into an Energy Storage Station, and 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 rechargeable lithium nickel-cobalt-manganese battery, part number CS0003C001A, 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.
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