OT:RR:CTF:EMAIN H342925 JER
Mark S. Baxa
Fernia Creek Global Supply Chain Consulting Group
2208 Missouri Blvd., Suite 102
Jefferson City, MS 65109
RE: Request to reconsider NY N340642 (June 26, 2024); Classification of a lithium-ion
battery and charger set from China
Dear Mr. Baxa:
This is regarding your reconsideration request for New York Ruling Letter (“NY”)
N340642, on behalf of your client, Chevron North America, submitted on October 4, 2024, in
which U.S. Customs and Border Protection (“CBP”) classified a certain lithium-ion battery and
battery charger set under heading 8504 of the Harmonized Tariff Schedule of the United States
(“HTSUS”). Upon reconsideration, we find the classification of the subject merchandise in NY
N340642 to be correct. For the reasons set forth below, we hereby affirm NY N340642.
FACTS:
The facts of NY N340642 are as follows:
The merchandise under consideration is identified as the 20 Volt – 4.0Ah Rechargeable Lithium-
Ion Battery Pack and Battery Charger Set, Model Number CB5196B-11, which consists of a retail
package containing one lithium-ion battery and one battery charger. The battery pack is described
as a plastic case containing lithium-ion batteries, a stored power gauge, and is said to be used with
power tools such as drills and saws. The charger is described as a plastic charging base having a
charging indicator and fault monitoring circuitry. The charger functions to charge the battery pack,
which is said to only supply power to the battery and cannot be used to provide power to other
electrical machinery or apparatus.
ISSUE:
Whether the subject battery pack and charger set is appropriately classified under heading
8504, HTSUS, or heading 8507, HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of
Interpretation (GRIs) and, in the absence of special language or context which otherwise
requires, by the Additional U.S. Rules of Interpretation (ARI). GRI 1 provides that the
classification of goods shall be “determined according to the terms of the headings and any
relative section or chapter notes.” If the goods cannot be classified solely using GRI 1, and the
headings and legal notes do not otherwise require, GRIs 2 through 6 may be applied in order.
GRI 3 provides:
When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under
two or more headings, classification shall be effected as follows:
(a) The heading which provides the most specific description shall be preferred to headings
providing a more general description. However, when two or more headings each refer to part only
of the materials or substances contained in mixed or composite goods or to part only of the items in
a set put up for retail sale, those headings are to be regarded as equally specific in relation to those
goods, even if one of them gives a more complete or precise description of the goods.
(b) Mixtures, composite goods consisting of different materials or made up of different components,
and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be
classified as if they consisted of the material or component which gives them their essential
character, insofar as this criterion is applicable.
(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the
heading which occurs last in numerical order among those which equally merit consideration.
The HTSUS headings at issue are the following:
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:
In understanding the language of the HTSUS, the Harmonized Commodity Description
and Coding System Explanatory Notes (ENs) may be utilized. The ENs, though not dispositive
or legally binding, provide commentary on the scope of each heading of the HTSUS, and are the
official interpretation of the Harmonized System at the international level. See T.D. 89-80, 54
Fed. Reg. 35127, 35128 (August 23, 1989). EN VIII to GRI 3 provides:
The factor which determines essential character will vary as between different kinds of goods. It
may, for example, be determined by the nature of the material or component, its bulk, quantity,
weight or value, or by the role of a constituent material in relation to the use of the goods.
In your request for reconsideration, you assert that the essential character of the subject
merchandise is provided by the lithium-ion battery pack (“the rechargeable batteries”), because
you believe that the set’s “primary function” is to store and supply energy. You contend that
“the consumer is not buying this set for the charger, but for the battery to charge multiple kinds
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of power tools” and because the battery is rechargeable. Similarly, you note that the lithium-ion
battery pack constitutes 63% of the set’s total value, while the charger only accounts for 37% of
the set’s total value. As such, you argue that the set should be classified in heading 8507,
HTSUS, which provides, in relevant part, for, “Electric storage batteries.”
In support of your argument, you cite to Headquarters Ruling Letter (“HQ”) 954061 1,
dated May 13, 1993, HQ H249299 2, July 13, 2015 and New York Ruling Letter (“NY”)
N306841 3, dated November 12, 2019, where CBP classified battery pack retail sets under
heading 8507, HTSUS, because the battery provided the essential character of the set at issue
under GRI 3(b). You also cite to HQ H298118, dated September 25, 2018, NY N301461, dated
November 20, 2018, NY N282039, dated January 11, 2017, however, none of these rulings
involved merchandise that was considered to be a set for retail sale and, as such, classification
was not determined pursuant to a GRI 3(b) analysis. Instead, the batteries in these rulings were
rechargeable power banks or power stations that were neither imported with chargers nor did
they require proprietary chargers. Therefore, they are distinguishable and not applicable to the
analysis before us. Alternatively, you contend that both the battery and the charger are of equal
importance and thus each provide the essential character of the set. Consequently, you argue that
the set must be classified pursuant to GRI 3(c) under heading 8507, HTSUS, because it is the
heading which occurs last in numerical order of the headings being considered.
There is no dispute that the subject merchandise is imported as a set for retail sale being
comprised of a lithium-ion battery pack of heading 8507, HTSUS, and a charger of heading
8504, HTSUS. Given the lithium-ion battery pack and charger are prima facie classifiable in
1
The merchandise at issue in HQ 954061 was described as follows:
The merchandise consists of the “Statpack-8” battery pack. The pack is comprised of a 12 volt (V)
lead-acid battery and a 13V battery charger, both fitted in a nylon carrying case. Connected to the
battery is a cigarette lighter output socket. The purpose of the battery pack is to provide a power
source.
2
HQ H249299 concerned the revocation of four rulings and the modification of another (NY N233370, dated Oct.
15, 2012). In the four revoked rulings, NY N004618 (Dec. 26, 2006), NY N231545 (Sept. 11, 2012), NY N232914
(Sept. 11, 2012) and NY N233902 (Oct. 16, 2012), the merchandise concerned a set or composite good and was
classified in heading 8504, HTSUS.
3
The merchandise at issue in NY N306841 is described as follows:
The two items under consideration are the ChargeUp Auto 12V Jump Starter and Power Pack and
the ChargeUp Ultra 20K. The ChargeUp Auto 12V Jump Starter and Power Pack, product number
CY2075CHAUT, consists of battery terminal alligator clips with an adapter, a wall charger, a micro
USB charge cable, a female 12V output adapter, and a 12V car charger and a portable battery unit
that features USB ports and a connector that directly connects to the adapter of the battery terminal
alligator clips. The battery unit consists of a 12,000 mAh lithium polymer battery and is designed
to store and provide power to electronic devices and vehicles with an engine capacity up to 5.0L
(5,000cc) petrol or 2.5L (2,500cc) diesel. The items of the ChargeUP Auto12V Jump Starter and
Power Pack are packaged together in a protective carrying case. The ChargeUp Ultra 20K, product
number CY2099PBCHE, is a portable power bank designed to power electronic devices, such as
smartphones and tablets. The power bank device consists of a 20,000 mAh rechargeable lithium-ion
battery that is housed, has a micro-USB cable and features a power button, USB ports, a digital
display and LED indicator lights.
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separate headings; consists of products put up together to carry out a specific need; and are put
up in a manner suitable for sale directly to users without repacking, the threshold inquiry
concerns whether the lithium-ion battery pack or the charger imparts the essential character of
the set, pursuant to GRI 3(b).
The determination as to which component represents the “essential character” is driven
by the particular facts of the case at hand. See Alcan Food Packaging (Shelbyville) v. United
States, 771 F.3d 1364, at 1366 (Fed. Cir. 2014) (“The ‘essential character’ of merchandise is a
fact-intensive issue.”). Moreover, “the factor which determines essential character will vary as
between different kinds of goods.” EN(VIII) to GRI 3(b). That said, the essential character of
an article has traditionally been understood as “that which is indispensable to the structure, core
or condition of the article, i.e., what it is.” Structural Indus. v. United States, 360 F. Supp. 2d
1330, 1336 (Ct. Int’l Trade 2005). Additionally, EN(VIII) to GRI 3(b) provides that essential
character “may, for example, be determined by the nature of the material or component, its bulk,
quantity, weight or value, or by the role of a constituent material in relation to the use of the
goods.” See Home Depot USA, Inc. v. United States, 491 F.3d 1334, 1337 (Fed. Cir. 2007)
(“Many factors should be considered when determining the essential character . . . specifically
including but not limited to those factors enumerated in Explanatory Note (VIII) to GRI 3(b).”).
In the cases you cited, CBP found that the essential character of the battery charger set,
kit or battery pack was imparted by the battery because the battery stored and provided power to
the electronic devices for which they were used. However, HQ 954061, HQ H249299 and NY
N306841 are distinguishable from the instant case because, among other factors, those rulings
classified rechargeable battery packs that functioned as universal power sources for a variety of
different electronic products. In particular, the decision in NY N306841 stated that the
ChargeUp Auto 12V Jump Starter battery was designed to provide power to electronic devices
and automotive batteries adding that the ChargeUp Ultra 20K was designed to power electronic
devices such as smartphones and tablets. By contrast, the subject merchandise only powers a
specific range of power tools sold by Chevron. The battery packs in NY N306841 and HQ
954061, on the other hand, were general power sources with a variety of general applications.
As such, CBP determined that the essential character of the retail sets in NY N306841 and HQ
954061 was imparted by the battery because they could provide power to a variety of devices,
many of which had other options for power sources or internal batteries. Unlike the batteries in
that line of cases, the subject battery/charger set serves as the sole power source for a limited
universe of tools and appliances. Also, the decision in HQ 954061 found that the primary
purpose of the battery pack set was to provide a power source and that the rechargeable battery
fulfilled that purpose.
Lastly, it is important to note that the battery packs of the HQ 954061 and NY N306841
utilized alternative power sources for which to recharge the battery. For example, in HQ 954601
the merchandise could be charged by a cigarette lighter output socket and in NY N306841, a
wall charger or car charger could recharge the battery. Hence, these chargers were not the sole
means by which to recharge the battery, thus reducing the chargers’ value, role and prominence
relative to the overall set.
4
Similarly, unlike the subject merchandise, the electronic devices in HQ H249299, for
which the battery packs were used, featured internal batteries located inside the devices
themselves. The battery packs 4 discussed in HQ H249299 functioned by storing electricity and
supplying it to the batteries inside the electronic devices and cars to which they were connected.
In practice, the consumer charged the battery pack before use. Once it was charged, the battery
pack was then connected to an iPhone, iPad, car battery, or other item that needed recharging,
and its charge flowed into that item (thus recharging the internal battery of that particular
device). HQ H249299 reasoned that this cycle could be repeated continuously throughout the
life of the battery pack. Likewise, in HQ H249299 CBP noted that the article in NY N004618
was a rechargeable power station that did not have the capability to recharge the battery. Once
the energy within the battery was exhausted, the battery would have to be recharged at home
(using the120-volts DC adaptor via an AC outlet) or in a car (via the cigarette lighter socket).
Based on this pattern of use, HQ H249299 found that the battery function constituted the
principal function of the merchandise. In the instant case, the power tools do not contain an
internal battery that can be recharged. Likewise, the subject rechargeable battery is not an
internal component of the tool to be charged and is not a power station by which a device can be
recharged. Instead, once charged, the subject rechargeable battery attaches to the power tool and
then becomes the power source which allows the power tool to function.
In cases such as the one before us, CBP has consistently determined that the charger was
essential to the purpose and function of the battery/charger set. For instance, in HQ 968226, 5
and HQ 968227, 6 both dated August 8, 2006, CBP determined that the charger rather than the
battery imparted the essential character of the set. In these decisions, CBP found that the charger
was essential to the use and effectiveness of the storage battery because the battery relied on the
charger in order to function. Without the charger, HQ 968226 explained, the battery could not
function, noting that the battery relied upon receiving the power that it then supplied. Under our
facts, the battery’s dependence upon the charger to store power outweighs the chargers’ reliance
on the battery to be useful.
CBP has also found that longevity and lifespan weigh heavily when evaluating the
relative importance of the role of each article in a battery/charger retail set. This is so because
the rate of depreciation as between the two articles is skewed against the battery in favor of the
charger. For instance, in HQ 968171, dated June 1, 2006, CBP explained that prior to initial use,
1) rechargeable batteries must be fully charged in order provide power; 2) each time the batteries
need charging, the charger must be used; and 3) once the battery can no longer hold a charge, the
battery is discarded and a new rechargeable battery must be purchased. As such, the decision in
HQ 968171 determined that the battery chargers were essential to the effectiveness of the
rechargeable batteries. Similarly, in HQ 96822, CBP explained, that once the battery could no
4
In NY N233902, CBP described the performance of the battery pack as follows, “When the Fuel Cell Lite is
plugged into an external power source, the internal battery in the battery pack is charging first; once that is
completely charged, the power is transferred to charge the phone battery, thus bypassing the battery in the pack.”
5
HQ 968226 concerned the revocation of HQ 955105 (Dec. 10, 1993) in which CBP classified a retail set comprised
of a storage battery and a battery charger in heading 8507, HTSUS, finding that the battery imparted the retail set’s
essential character.
6
HQ 968227 concerned the revocation of NY G87863 (March 26, 2001) in which CBP classified a retail set
comprised of a rechargeable battery and a solar powered battery charger in heading 8507, HTSUS, finding that the
battery imparted the retail set’s essential character.
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longer “hold a charge” that the battery was discarded and replaced. Meanwhile, the charger
remained fully functional and ready for use. Hence, lifespan was the defining factor for HQ
968171 and HQ 96822 determining that the charger imparted the essential character of the set.
While lithium-ion batteries are rechargeable, they do have a finite lifecycle. As each
battery pack is continuously drained and recharged, the internal cells degrade until they can no
longer provide an electrical charge of consequence. Hence, rechargeable batteries often do not
outlast the charger and are discarded well before the charger reaches the end of its useful life. In
HQ 968226, CBP noted that that since the batteries can become disposable, the main reason for
purchasing the set cannot be to obtain batteries, but rather to obtain a device which decreases the
need to periodically purchase new batteries. 7 This rationale led to HQ 968226 determining that
the charging component imparted the essential character because the purpose of the set is to have
the ability to charge the batteries (via the charger). See HQ 968227 (Where CBP noted that, in
this sense, the battery is disposable while the charger remains functional). Here we note that
replacement batteries for the subject 20 Volt – 4.0Ah Rechargeable Lithium-Ion Battery are
available for purchase. Replacement batteries for the subject batteries implies that the lifespan of
the batteries is limited and likely less than the lifespan of the charger.
In the instant case, the set provides a rechargeable power supply for a range of electric
handheld tools. While the lithium-ion battery pack may be the article providing power to the
tool, the charger is essential to the use of the battery. The charger provides both the initial
charge to the battery and each subsequent charge. Moreover, the battery cannot be charged using
a universal connector, such as a USB or wall outlet charger and as such is dependent on the
charger. Without the charger, the battery becomes a single use article, undermining the set’s
rechargeability and thus the set’s intended purpose. In keeping with the decisions in HQ 968226,
HQ 968227, HQ 968171, and HQ 083672, we find that the essential character of the subject Skil
20 Volt 4.0Ah Rechargeable Lithium Battery Pack and Battery Charger Set is imparted by the
battery charger.
HOLDING:
By application of GRI 3(b), and the subject lithium-ion battery pack and charger set is
properly classified under heading 8504, HTSUS, and specifically under subheading 8504.40.95,
HTSUS, which provides “Electrical transformers, static converters (for example, rectifiers) and
inductors; parts thereof: Static converters: Other.” The general, column one rate of duty is Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China
classified under subheading 8504.40.95, HTSUS, unless specifically excluded, are subject to an
additional 25 percent ad valorem rate of duty under secondary tariff number 9903.88.03,
HTSUS, pursuant to Section 301 of the Trade Act of 1974. At the time of importation, an
importer must report the Chapter 99 subheading, i.e., 9903.88.03, HTSUS, in addition to
subheading 8504.40.95, HTSUS, noted above, for products of China.
7
“Industry-Leading Batteries & Chargers for Cordless Tools _ SKIL” - https://www.skil.com/collections/batteries-
chargers (last visited February 3, 2026).
6
This ruling does not address the applicability of any additional duties that may apply to
the goods discussed herein. Likewise, 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 at www.usitc.gov.
EFFECT ON OTHER RULINGS:
In accordance with the foregoing, NY N340642, dated June 26, 2024, is hereby
AFFIRMED.
Sincerely,
for Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
7