CLA-2 OT:RR:CTF:EMAIN H322074 PF
U.S. Customs and Border Protection
Consumer Products and Mass Merchandising Center
Validation and Compliance: Team HBZ
9901 Pacific Hwy
Blaine, WA 98230
Attn: Rachel Scott, Supervisory Import Specialist
RE: Request for Internal Advice; Classification of Electrical Hand Warmers
Dear Ms. Scott:
This is in reference to your request for internal advice, initiated by counsel for Zippo Manufacturing Company (“requestor”), pertaining to the tariff classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of electrical hand warmers. Our decision follows.
FACTS:
The subject merchandise is the Heatbank 9S Rechargeable Hand Warmer and a Power Bank and the Heatbank 9S Plus Rechargeable Hand Warmer and Power Bank (“Electrical Hand Warmers”). The electric hand warmers are described as portable devices with internal warming capability and the ability to charge electronic devices. The 9S model is comprised of a 5200 mAh rechargeable lithium-ion battery, one output USB used for charging compatible devices, one input USB for charging the rechargeable lithium-ion battery, an LED light bar to show the heat setting and remaining charge in the lithium battery, a heating element, and a thermocouple wire within a handheld plastic enclosure. When powered on, the heating element and the thermocouple wire heat the entire device so that it can be used as a handwarmer. The LED light bar displays the heat setting and remaining charge on the battery. The 9S Plus model is comprised of the same components with an additional output USB, an LED flashlight bulb, and an LCD screen instead of an LED light bar to show the heat setting and remaining charge in the lithium-ion battery.
On the requestor’s website, the electrical hand warmer model 9s, is described as a “rechargeable hand warmer keeps you warm from the office to the woods.” The electrical hand warmer model 9s features “[d]ual sided heat up to 120°F / 50°C operating temperature with six (6) heat settings for adjustable and comfortable warmth”and a rechargeable battery ”for lasting warmth- up to 9 hour run time.” Moreover, the electrical hand warmer model 9s Plus, is described as “a high tech solution for low temperatures . . . [t]his perfect portable companion keeps you warm, connected, and comfortable with its six heating settings. . . .” In addition, the electrical hand warmer model 9s Plus is described as having “[d]ual sided heat up to 120°F / 50°C operating temperature with six (6) heat settings for adjustable and comfortable warmth” and a rechargeable battery for “lasting reliable warmth- up to 9 hour run time.” The benefits of the subject electrical hand warmers are indicated as:
Perfect for staying warm inside offices or extended outdoor activities
Quickly shows the selected heat setting & battery charge remaining
Plenty of heat to keep your hands warm in cold weather
Lets you adjust the heat to your environment
ISSUE:
Whether the electrical hand warmers are classified in heading 8507, HTSUS, as electric storage batteries, or in heading 8543, HTSUS, as electrical machines and apparatus, having individual functions, not specified or included elsewhere.
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUSA. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation (AUSRIs). The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes.
GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration in this case are as follows:
8507 Electric storage batteries, including separators therefor, whether or not rectangular
(including square); parts thereof:
8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof:
Note 3 to Section XVI of the HTSUS states 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.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the HTSUS at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The EN to heading 8543, HTSUS, provides in pertinent part:
This heading covers all electrical appliances and apparatus, not falling in any other heading of this Chapter, nor covered more specifically by a heading of any other Chapter of the Nomenclature, nor excluded by the operation of a Legal Note to Section XVI or to this Chapter.
The electrical appliances and apparatus of this heading must have individual functions. The introductory provisions of Explanatory Note to heading 84.79 concerning machines and mechanical appliances having individual functions apply, mutatis mutandis, to the appliances and apparatus of this heading.
The EN to heading 8479, HTSUS, provides, in relevant part:
For this purpose the following are to be regarded as having “individual functions”:
Mechanical devices, with or without motors or other driving force, whose function can be performed distinctly from and independently of any other machine or appliance.
The requestor asserts that the electrical hand warmers are classified in heading 8507, HTSUS, which provides for in part for “electric storage batteries.” The requestor cites to several rulings in support of classification in heading 8507, HTSUS. See New York Ruling (“NY”) N274804, dated May 3, 2016, NY N279196, dated October 5, 2016, and NY N306841, dated November 12, 2019. NY N274804 discusses portable Infinitive power banks that have no other function but to store and supply electricity. NY N279196 involved a portable power pack that included a flashlight, but no additional functions other than storing and supplying electricity. NY N306841, addressed 12V Jump Starter and Power Packs that were packaged with various accessories and sold as retail sets. The Jump Starter and Power Pack within the retail set did not perform any additional functions other than supplying and providing energy.
On the other hand, CBP has classified electric hand warmers in heading 8543, HTSUS, which provides for “electrical machines and apparatus, having individual functions, not specified or included elsewhere.” See NY N297929, dated July 6, 2018 and NY N305975, dated September 17, 2019. In NY N297929, CBP evaluated the classification of a hand warmer which contained a 4400MAh rechargeable lithium battery, resistors, capacitors, and a head generating film. The hand warmer also had two LED status indicators, a power switch, and a mini-USB connector. The device was described as intended to be used as a personal warming device for outdoor activities, where the user would benefit from receiving the heat generated while outdoors. CBP determined that the electric hand warmer was an electrical device with an individual function not provided for elsewhere in the tariff and as such, it was classified in heading 8543, HTSUS. Moreover, in NY N305975, the item at issue was described as a rechargeable heat bank that contained a portable hand warmer with six heat settings. and was powered by a 5200 MAh lithium-ion battery which allowed for up to nine hours of heat per change. The heat bank used heating elements that could warm on either one or both sides and could heat up to 120 degrees Fahrenheit. The heat bank’s lithium-ion battery could also be used to charge external devices, such as smart phones or tablets, via a USB connection. CBP classified the rechargeable heat bank in heading 8543, HTSUS.
The rulings cited by the requester in support of heading 8507, HTSUS, pertain only to batteries or battery packs intended to charge other electronic devices. The portable electric hand warmers classified under heading 8543, HTSUS, in the remaining rulings cited above do not charge other devices. As such, the question before us is which function is the principal function.
The subject merchandise’s principal function is to perform a hand warming function. When powered on, the heating element and the thermocouple wire heat the entire device so that it is used as a handwarmer. The LED light bar displays the heating setting and the remaining charge on the battery. Both models are marketed as keeping their users “warm inside offices or extended outdoor activities,” quickly showing “the selected heat setting”, having “[p]lenty of heat to keep your hands warm in cold weather,” and allowing a user to “adjust the heat to your environment.” In this case, the battery charging function is subsidiary to the electrical hand warming function. As a result, we find that the subject electrical hand warmers are classified in heading 8543, HTSUS, and specifically in subheading 8543.70.99, HTSUS.
HOLDING:
By application of GRI 1 and Note 3 to Section XVI, the electrical hand warmers are classified in heading 8543, HTSUS. By application of GRI 6, they are specifically provided for in subheading 8543.70.99, HTSUS, as “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; Other machines and apparatus: Other: Other: Other.” The column one, general rate of duty is 2.6% ad valorem.
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 internet at www.usitc.gov/tata/hts/.
Sixty days from the date of this decision, the Office of Trade, Regulations and Rulings, will make this decision available for CBP personnel, and to the public on the CBP Home Page at http://www.cbp.gov by means of the Freedom of Information Act, and other methods of publication.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division