The tariff classification of lithium-ion batteries from China; Correction to Ruling Number N305578

 N306030 September 16, 2019 CLA-2-85:OT:RR:NC:N1:102 CATEGORY: Classification TARIFF NO.: 8507.60.0020; 9817.00.60 Mr. Jim Sides Totex Manufacturing, Inc 3050 Lomita Blvd Torrance, CA 90505 RE: The tariff classification of lithium-ion batteries from China; Correction to Ruling Number N305578 Dear Mr. Sides: This replaces Ruling Number N305578, dated August 21, 2019, which contained an error in one of the provided part numbers. A complete correct ruling letter follows. In your letter dated August 1, 2019, you requested a tariff classification ruling. Technical information was included. The items in question are lithium-ion batteries, part numbers U80557-R01, U80557-1R01, U80557-R01A, U80558-R01, and U80558-1R01, all used with portable oxygen concentrators. Part numbers U80557-R01 and U80557-1R01 are eight cell batteries (differentiated by lithium-ion cell type) used with portable oxygen concentrator model Inogen G5 BA-500, while U80557-R01A is an eight cell battery used with portable oxygen concentrator model Inogen Oxygo Next Gen 5. Part numbers U80558-R01 and U80558-1R01 are 16 cell batteries (differentiated by lithium-ion cell type) used with portable oxygen concentrator, model Inogen G5 BA-516. Each battery is exclusively used with an oxygen concentrator that is used in the treatment of certain chronic diseases. The batteries are rectangular in shape and feature status indicators that show the charge level of the battery. In use, each rechargeable battery stores and provides energy to the portable oxygen concentrator. The applicable subheading for the lithium-ion batteries, part numbers U80557-R01, U80557-1R01, U80557-R01A, U80558-R01, and U80558-1R01, will be 8507.60.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof: Lithium-ion batteries; Other. The general rate of duty will be 3.4 percent ad valorem. In your submission you request consideration of a secondary classification for the subject batteries under 9817.00.96, HTSUS, which applies to articles and parts of articles specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped. Chapter 98, Subchapter XVII, U.S. Note 4(a), HTSUS, defines the term “blind or other physically or mentally handicapped persons” as including “any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking breathing, learning, or working.” You state that the subject batteries are specially designed to work exclusively with an oxygen concentrator. Based on the information you provided, oxygen concentrators are intended for use by individuals who suffer from chronic respiratory illnesses who require supplementary oxygen to accomplish their ongoing major life activities. As such, a chronic respiratory illness satisfies the description set forth in Chapter 98, Subchapter XVII, U.S. Note 4(a). Accordingly, a secondary classification will apply to the lithium-ion batteries, part numbers U80557-R01, U80557-1R01, U80557-R01A and U80558-1R01, under 9817.00.96, HTSUS, which affords free duty treatment aside from any additional duties and/or applicable fees upon importation into the United States. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8507.60.0020, HTSUS, unless specifically excluded, are subject to the additional 15 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 8507.60.0020, HTSUS, listed above.  Section XXII, Chapter 99, Subchapter III U.S Note 20(r), HTSUS, states the additional duties imposed by heading 9903.88.15 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under subheadings 9802.00.40, 9802.00.50, and 9802.00.60, and heading 9802.00.80. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80. 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 Section 301 trade remedy, 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 on the World Wide Web at https://hts.usitc.gov/current. 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 Sandra Martinez at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division