The tariff classification of lithium-ion battery from China

N323866 February 3, 2022 CLA-2-85:OT:RR:NC:N1:103 CATEGORY: Classification TARIFF NO.: 8507.60.0020; 9903.88.15 Angela M. Santos Arent Fox LLP 1301 Avenue of the Americas, 42nd Floor New York, NY 10019 RE: The tariff classification of lithium-ion battery from China Dear Ms. Santos: In your letter dated January 24, 2022, you requested a tariff classification ruling on behalf of your client, Our Next Energy, Inc. The item under consideration is a prismatic lithium-ion battery with a nominal voltage of 3.2 V and a capacity of 228 Ah. The battery consists of a rectangular aluminum housing with metal contacts that contains two rechargeable lithium-ion cells welded together in series. Each lithium-ion cell includes an anode layer, separator layer, and cathode layer rolled into a jelly roll design. You state the battery is designed for general use and can be used to power small appliances or a large tool. Users may also connect several units in series or in parallel to form a battery with a greater voltage or capacity. Your letter suggests the prismatic lithium-ion battery is classified under subheading 8507.60, Harmonized Tariff Schedule of the United States (“HTSUS”). We agree. The applicable subheading for the prismatic lithium-ion battery will be 8507.60.0020, 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. 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, including information on exclusions and their effective dates, 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