The tariff classification of an “aluminum can” from China

N233887 October 26, 2012 CLA-2-85:OT:RR:NC:N1:109 CATEGORY: Classification TARIFF NO.: 8506.90.0000 Mr. John F. Peterson C.H. Powell Company 20013 South Rancho Way Rancho Dominguez, CA 90220 RE: The tariff classification of an “aluminum can” from China Dear Mr. Peterson: In your letter dated September 25, 2012, you requested a tariff classification ruling on behalf of your client, Targray Technology, Incorporated. A sample was submitted for classification purposes and is being returned. The merchandise in question is referred to as an “aluminum can” to be used in the manufacture of lithium ion cells. Upon importation, the can does not contain any mechanical, thermal, or electrical equipment. The material from which the container is made is aluminum 3003-H14. The finished battery cell will remain in the container (can) when it is incorporated into the module. The container is manufactured specifically for the purpose of making lithium ion cells. Its shape and size are defined by the lithium ion cell manufacturer. The container is required for the battery to function. It becomes an integral part of the cell and is the skin of the cell; it holds the electrodes, the separator and the electrolyte solution in place. The manufacturing process starts with a sheet metal blank which is drawn into a forming die by the mechanical action of a punch. It is thus a shape transformation process with material retention. This is achieved by redrawing the part through a series of dies. You have suggested that the classification of the aluminum can should be Harmonized Tariff Schedule of the United States (HTSUS) subheading 7612.90.1030, which provides for “aluminum casks, drums, cans, boxes and similar containers … for any material … other: of a capacity not exceeding 20 liters: cans of a capacity not exceeding 355 ml..” However, the “aluminum can” is not a container used for the commercial conveyance and packing of goods, nor is it installed as a fixture. Rather, the “aluminum can” is manufactured specifically for the purpose of making lithium ion cells (battery) and is designed as a housing to hold the electrodes, separator and electrolyte solution in place inside of the lithium ion battery, which is more specifically provided for in HTSUS subheading 8506.90.0000, which provides for Primary cells and primary batteries; parts thereof: Parts.” As such, HTSUS subheading 7612.90.1030 is inapplicable. The applicable subheading for the “aluminum can” will be 8506.90.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Primary cells and primary batteries; parts thereof: Parts.” The rate of duty will be 2.7 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 on World Wide Web at http://www.usitc.gov/tata/hts/. 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 Linda Hackett at (646) 733-3015. Sincerely, Thomas J. Russo Director National Commodity Specialist Division