The tariff classification of lithium-ion battery packs from China

 N312651 July 7, 2020 CLA-2-85:OT:RR:NC:N1:103 CATEGORY: Classification TARIFF NO.: 8507.60.0020; 9817.00.96; 9903.88.15 Mr. Jim Sides Totex Manufacturing, Inc. 3050 Lomita Blvd Torrance, CA 90505 RE: The tariff classification of lithium-ion battery packs from China Dear Mr. Sides: In your letter dated June 19, 2020 you requested a tariff classification ruling. The items in question are cylindrically shaped, single cell, shrink wrapped lithium-ion battery packs, part numbers U80319-1R01 and U80319-1R01A. You state both battery packs are identical besides packaging. Both battery packs are designed to be used with the Carefusion LTV II portable ventilator, and provide back-up power to preserve settings should the ventilator temporarily lose power. The applicable subheading for the lithium-ion battery packs, part numbers U80319-1R01 and U80319-1R01A 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 rate of duty will be 3.4 percent ad valorem. In your submission you request consideration of a secondary classification for the subject battery packs under 9817.00.96, HTSUS, which applies to articles and parts of articles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons. Chapter 98, Subchapter XVII, U.S. Note 4(a), HTSUS, states that the term “blind or other physically or mentally handicapped persons” includes 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 lithium-ion battery packs are designed to work exclusively with the Carefusion LTV II portable ventilator. Based on the information you provided, the Carefusion LTV II portable ventilator is intended for use by individuals who are unable to breathe on their own due to serious chronic respiratory illnesses. It is the opinion of this office, chronic respiratory illnesses would substantially limit a major life activity as set forth in Chapter 98, Subchapter XVII, U.S. Note 4(a). For that reason, a secondary classification will apply to the lithium-ion battery packs, part numbers U80319-1R01 and U80319-1R01A, 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 an additional 7.5% 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 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 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 Paul Huang at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division