The tariff classification of lithium-ion batteries from China

 N306128 September 24, 2019 CLA-2-85:OT:RR:NC:N1:102 CATEGORY: Classification TARIFF NO.: 8507.60.0020; 9817.00.96 Mr. Jim Sides Totex Manufacturing, Inc 3050 Lomita Blvd Torrance, CA 90505 RE: The tariff classification of lithium-ion batteries from China Dear Mr. Sides: In your letter dated September 5, 2019 you requested a tariff classification ruling. Technical information was included. The items in question are lithium-ion batteries, part numbers U80319 and U80319A. Part numbers U80319 and U80319A are batteries used with a portable ventilator, model Carefusion LTV II The batteries are exclusively used with a portable ventilator that is used in the treatment of certain chronic diseases. The rechargeable batteries store and provide energy to the portable ventilator. The applicable subheading for the lithium-ion batteries, part numbers U80319 and U80319A, 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 especially designed to work exclusively with a portable ventilator. Based on the information you provided, ventilators are inserted through the trachea and intended for use by individuals who suffer from chronic respiratory illnesses who require supplementary oxygen to accomplish their ongoing major life activities. It is further explained that ventilators allow a patient to be mobile outside of a hospital environment. 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 U80319 and U80319A, 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