The tariff classification of a detachable battery module from China

N317373 February 26, 2021 CLA-2-85:OT:RR:NC:N1:103 CATEGORY: Classification TARIFF NO.: 8507.60.0020; 9817.00.96; 9903.88.15 Robert Leo Meeks, Sheppard, Leo & Pillsbury 570 Lexington Ave, Suite 2405 New York, NY 10022 RE: The tariff classification of a detachable battery module from China Dear Mr. Leo: In your letter dated February 4, 2021, you requested a tariff classification ruling on behalf of your client Respironics Inc. The item under consideration is a detachable battery module used exclusively with Respironics’ BiPAP A40 series ventilators. The module, part number 3000DBM, is composed of eight lithium-ion rechargeable battery cells and a PCA enclosed in a rectangular housing. The BiPAP A40 series ventilator is intended to provide invasive and non-invasive ventilatory support to adult and pediatric patients weighing over 10 kg with Obstructive Sleep Apnea (OSA), Respiratory Insufficiency, or Respiratory Failure. You state the battery module has been specially designed and contains a number ID that is programmed to the battery circuitry and is checked by the BiPAP A40 device upon installation. If the ID is determined to be invalid, the device will not power up. You state this also ensures the battery cannot be used on a non-Philips device. The applicable subheading for the detachable battery module 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. 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. In your submission you request consideration of a secondary classification for the subject detachable battery module 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 detachable battery modules are specially designed to work exclusively with a ventilator. Based on the information you provided, the ventilators are intended for use by individuals who suffer from chronic respiratory insufficiency and require supplementary oxygen to accomplish their ongoing major life activities. It is further explained that the ventilators are intended to be used in portable applications, homes, and hospitals. 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 detachable battery module, part number 3000DBM, 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. 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. 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