CLA-2 OT:RR:CTF:EMAIN H206455 DSR
Ms. Rachel Debrosse
Overseas Administrator
Rally Manufacturing, Inc.
5255 NW 159th Street
Miami, FL 33014
Mr. Derek K. Sakaguchi
President
Micom CHB, Inc.
460 S. Hindry Ave.
Unit C
Inglewood, CA 90301
Mr. Harley Allen
Manager Customs Compliance
Black & Decker Corp.
Porter Cable/Delta Devilbiss Divisions
4825 Highway 45 North
Jackson, TN 38305
Ms. Joan Jerome
Allied International
13207 Bradley Ave.
Sylmar CA 91342
RE: Revocation of NY H82059, NY R04727, NY N005077, NY N081177 and NY N034766; Classification of composite portable storage batteries.
Dear Ms. Debrosse and Ms. Jerome, and Messrs. Sakaguchi and Allen:
This letter is in reference to New York Ruling Letters (NY) H82059 (June 28, 2001); NY R04727 (September 14, 2006); NY N005077 (January 23, 2007); NY N034766 (August 12, 2008); and NY N081177 (November 4, 2009), regarding the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of composite portable storage batteries. The rulings classified the devices under subheading 8504.40.95 HTSUS, which provides for static converters, other.
We have reviewed the tariff classification of the devices and have determined that the cited rulings are in error. Therefore, we are revoking NY H82059, NY R04727, NY N005077, NY N034766 and NY N081177 for the reasons set forth in this ruling.
FACTS:
The device at issue in NY H82059 (June 28, 2001) is described as a “Jumper with 260PSI Compressor.” The item has three main features: jumper cable clamps, battery jumper (with lead-acid battery, including housing) and a 260PSI compressor. The item is for use in automobiles, boats and other moving vehicles to provide battery power to dead batteries, cell phones and charges along with lighting. It can also be used to inflate tires and recreation inflatables such as beach balls, soccer balls and more.
The device at issue in NY R04727 (September 14, 2006) is described as a portable 12-volt rechargeable power station jump-start for vehicles (JNS 1800). The unit is designed for auxiliary and emergency use and has the following features: 12-volt DC sockets with overload protection, an on/off switch, a 15-amp fuse, a battery condition indicator light, a work light, a light switch and a charging adaptor input. A 120-volt AC power supply with one spare 3-watt light bulb and one spare 15-amp fuse are included in the accessories compartment found on the back of the JNS 1800 unit, which is secured by two heavy-duty plastic handle battery clamps (red = positive (+) and black = negative (-)). The battery charging life is as high as 36 months and can be recycled after its use.
The device at issue in NY N005077 (January 23, 2007) is described as a 12-volt AC/DC portable power supply, jump starter and inflator. It is identified as product number VEC026BD. The VEC026BD is cordless and rechargeable. It powers and/or charges AC/DC appliances (includes two 120-volt receptacles and two 12-volt receptacles), jump starts vehicles, functions as an air compressor for inflating tires and sports equipment and includes an LED work light for emergency roadside assistance.
The device at issue in NY N034766 (August 12, 2008) is described as a 12-volt DC portable power supply, jump starter, and inflator, all within one housing. This item is identified within your letter as product number VEC012CBD. The VEC012CBD has a 12-volt DC accessory outlet to power and/or charge DC electronics. The jump starter jump-starts vehicles without the need of another vehicle’s battery. The air compressor can be used to inflate tires and sports equipment. The VEC012CBD, which is cordless and rechargeable, includes an LED light for emergency roadside assistance, a 12-volt DC charger, a 120-volt AC charger, heavy-duty cables & clamps, and an adapter nozzle set.
The device at issue in NY N081177 (November 4, 2009) is described as a 5-In-1 portable power pack. It is identified within the product literature as ITEM 96157-1VGA. It contains a 12V, 17-amp hour rechargeable lead acid battery with dual 12V outlets. It has 36” jump-start cables with copper-plated clamps, a 260 PSI air compressor with gauge, a 400-watt power inverter with dual AC outlets, an LED map light, AC and DC power ports and a battery level indicator. The 5-In-1 portable power pack is housed in a heavy-duty rubberized case. This product is used in automobiles, on boats, and other types of vehicles to provide battery power to dead batteries, cell phones, and other devices that require power. It can also be used to inflate tires, and recreation inflatables, such as sports balls. The LED light can be used to read a map or for emergency lighting.
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. The HTSUS provisions under consideration are as follows:
8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof:
8507 Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof:
Note 3 to Section XVI, HTSUS, of which headings 8504 and 8507, HTSUS, are a part, provides that:
Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The EN to heading 8504, HTSUS, states, in pertinent part, the following:
The apparatus of this group are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements (e.g., valves) of different types. They may also incorporate various auxiliary devices (e.g., transformers, induction coils, resistors, command regulators, etc.). Their operation is based on the principle that the converting elements act alternatively as conductors and non-conductors.
The fact that these apparatus often incorporated auxiliary circuits to regulate the voltage of the emerging current does not affect their classification in this group, nor does the fact that they are sometimes referred to as voltage or current regulators.
This group includes: …
(D) Direct current converters by which direct current is converted to a different voltage…
This heading also includes stabilized suppliers (rectifiers combined with a regulator), e.g., uninterruptible power supply units for a range of electronic equipment.
The EN to heading 8507, HTSUS, states, in pertinent part, the following:
Electric accumulators (storage batteries or secondary batteries) are characterized by the fact that the electrochemical action is reversible so that the accumulator may be recharged. They are used to store electricity and supply it when required. A direct current is passed through the accumulator producing certain chemical changes (charging); when the terminals of the accumulator are subsequently connected to an external circuit these chemical changes reverse and produce a direct current in the external circuit (discharging). This cycle of operations, charging and discharging, can be repeated for the life of the accumulator.
Accumulators consist essentially of a container holding the electrolyte in which are immersed two electrodes fitted with terminals for connection to an external circuit. In many cases the container may be subdivided, each subdivision (cell) being an accumulator in itself; these cells are usually connected together in series to produce a higher voltage. A number of cells so connected is called a battery. A number of accumulators may also be assembled in a larger container. Accumulators may be of the wet or dry cell type…
Accumulators are used for supplying current for a number of purposes, e.g., motor vehicles, golf carts, fork-lift trucks, power hand-tools, cellular telephones, portable automatic data processing machines, portable lamps….
Accumulators containing one or more cells and the circuitry to interconnect the cells amongst themselves, often referred to as "battery packs", are covered by this heading, whether or not they include any ancillary components which contribute to the accumulator’s function of storing and supplying energy, or protect it from damage, such as electrical connectors, temperature control devices (e.g., thermistors), circuit protection devices, and protective housings. They are classified in this heading even if they are designed for use with a specific device.
The devices of the subject rulings NY R04727, NY N005077, NY N034766 and NY N081177, were each classified as static converters of heading 8504, HTSUS. In HQ H176833 (November 17, 2011), CBP defined a “static converter” as:
… [a] unit that employs solid state devices such as semiconductor rectifiers or controlled rectifiers (thyristors), gated power transistors, electron tubes, or magnetic amplifiers to change ac power to dc power, dc power to ac power, or fixed frequency ac power to variable frequency ac power.” According to EN 85.04(II), a static converter is “used to convert electrical energy in order to adapt it for further use.” EN 85.04(II) further states that rectifiers, inverters, alternating current converters, cycle converters and direct current converters are all examples of static converters.
See also ENI Technology Inc. v. United States, 641 F. Supp. 2d 1337, 1353 -1354 (Ct. Int’l Trade 2009), citing The Authoritative Dictionary of IEEE Standards Terms (IEEE 100) 912, 1103 (7th ed. 2000).
Heading 8507, HTSUS, provides for “Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof.” Electric accumulators of the heading, which the ENs specifically call storage batteries or secondary batteries, are characterized by the fact that the electrochemical action is reversible so that the accumulator may be recharged. Furthermore, the merchandise of the heading is used to store electricity and supply it when required, and functions by way of a direct current passing through the accumulator and producing certain chemical changes (i.e., the charging function of the battery itself). When the terminals of the accumulator are later connected to an external circuit, these chemical changes reverse and produce a direct current in the external circuit (i.e., the charging of the device to which it is connected). This cycle of operations, charging and discharging, can be repeated for the life of the accumulator.
Each device under consideration is capable of performing multiple functions (such as jump-starting vehicles and providing power and lighting, and also functioning as an inflator in one case), with each function provided for under a different heading, e.g., headings 8504 or 8507, HTSUS. As such, the devices meet the terms of Note 3 to Section XVI, HTSUS, because each device is designed for the purpose of performing two or more complementary or alternative functions, and each device is therefore classified according to the device’s principal function.
With respect to the devices’ principal functions, we note that none of the functions, e.g., the provision of power for external devices, lighting, or jump-starting motor vehicles or inflating tires, would be possible without the devices’ ability to store power or serve as a battery. Ultimately, we conclude that the principal function is indeed to maintain an independent source of electricity to use for one of these other secondary purposes. The subject merchandise is properly classified under heading 8507, HTSUS.
We note that the instant merchandise differs from products that merely serve to charge other devices but lack a battery. These products are properly classified under heading 8504, HTSUS. See, e.g., NY N018172 (October 31, 2007). The classification of the instant composite portable storage batteries, on the other hand, is consistent with prior CBP rulings. See, e.g., HQ H070632 (January 10, 2011) (classifying lithium-ion cell phone battery packs in heading 8507, HTSUS); HQ 966268 (May 21, 2003) (classifying battery packs for cell phones in heading 8507, HTSUS, and holding that battery packs are “essentially electric storage batteries”). See also HQ 966328 (March 31, 2003); HQ H176833 (November 17, 2011); HQ H155376 (June 22, 2011); HQ 963870 (July 14, 2000); HQ H136116 (March 2, 2011); NY N152037 (April 1, 2011); NY N240050 (April 18, 2013).
Finally, with regard to the comment submitted in response to the published Notice of Proposed Rulemaking, we note that the commentator supports the revocation of the cited rulings.
HOLDING:
By application of GRI 1 (Note 3 to Section XVI), the subject composite portable storage batteries are classifiable under heading 8507, HTSUS. Specifically, by application of GRI 6, they are classifiable under subheading 8507.20.80, HTSUS, which provides for “Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof: Other lead-acid storage batteries: Other.” The column one, general rate of duty is 3.5% ad valorem. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY H82059 (June 28, 2001), NY R04727 (September 14, 2006), NY N005077 (January 23, 2007), NY N034766 (August 12, 2008) and NY N081177 (November 4, 2009) are hereby revoked. In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
To the extent that the devices subject to this ruling are products of China, note that pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8507.20.80, HTSUS, unless specifically excluded, are subject to an additional xx percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8507.20.80, 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.
Sincerely,
Gregory Connor, Acting Director
Commercial and Trade Facilitation Division