OT:RR:CTF:EMAIN H356254 TPB
Ms. Jacquelyn Votra
Trans-Border Global Freight Systems, Inc.
2103 Route 9, Round Lake NY 12151
Re: Tariff classification of steel cube for batteries fitted with electrical apparatus.
Dear Ms. Votra:
This in response to your eRuling request in which you requested a prospective
binding tariff classification ruling from U.S. Customs and Border Protection (CBP) on
behalf of EOSE Energy Storage (EOSE / Requestor). Your ruling request, which was
forwarded to our office for a response, concerns the tariff classification of a certain steel
housing for batteries fitted with electrical apparatus, under the Harmonized Tariff
Schedule of the United States (HTSUS).
FACTS:
The product at issue is described as a 16-foot, custom-made steel cube that has
been fitted to be a housing for batteries. The steel cube opens at one end by means of
double doors. The inside of the container has been fitted with welded steel racks that
will hold dozens of batteries in place. The container, in its imported state, will have
incorporated numerous electrical components, including wires, connectors, sockets, bus
bars, etc. You provided a Bill of Materials and online links to the technical specifications
of the product at issue with your request, which we have consulted.
ISSUE:
What is the tariff classification of the product in question?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States is
determined in accordance with the General Rules of Interpretation (GRIs). 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. In the
event that the goods cannot be classified solely on the basis of GRI 1, and if the
headings and legal notes do not otherwise require, the remaining GRIs may then be
applied in their appropriate order.
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 Treasury Decision (T.D.) 89-80, 54 Fed. Reg.
35127, 35127–28 (Aug. 23, 1989).
The HTSUS provisions under consideration are, in relevant part, as follows:
7309 Reservoirs, tanks, vats and similar containers for any material (other than
compressed or liquefied gas), of iron or steel, of a capacity exceeding 300
liters, whether or not lined or heat insulated, but not fitted with mechanical
or thermal equipment:
* * *
8507 Electric storage batteries, including separators therefor, whether or not
rectangular (including square); parts thereof:
* * *
8537 Boards, panels, consoles, desks, cabinets and other bases, equipped with
two or more apparatus of heading 8535 or 8536, for electric control or the
distribution of electricity, including those incorporating instruments or
apparatus of chapter 90, and numerical control apparatus, other than
switching apparatus of heading 8517:
You note that the product under consideration is similar to a product which EOSE
had previously received a ruling, i.e., New York ruling letter (NY) N317967, dated March
10, 2021, which classified that product in heading 7309, subheading 7309.00, HTSUS,
which provides for reservoirs, tanks, vats and similar containers for any material (other
than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 liters,
whether or not lined or heat insulated, but not fitted with mechanical or thermal
equipment. The current item under consideration, however, will include certain
electrical wiring and apparatus at the time of its importation. As such, you propose that
the product should be classified under heading 8507, subheading 8507.90, HTSUS, as
a part of a battery.
We note that the term “part” is not defined in the HTSUS. The courts have
considered the nature of “parts” under the HTSUS, and two distinct though not
inconsistent tests have resulted. 1 The first, articulated in United States v. Willoughby
Camera Stores, Inc., (Willoughby), 21 C.C.P.A. 322, 324 (1933), requires a
determination of whether the imported item is an “integral, constituent, or component
part, without which the article to which it is to be joined, could not function as such
1
See Bauerhin Tech’s Ltd. v. United States (Bauerhin), 110 F.3d 774, 779 (Fed. Cir. 1997).
2
article.” 2 The second, set forth in United States v. Pompeo, (Pompeo), 43 C.C.P.A. 9,
14 (1955), provides that when an imported item is dedicated solely for use with another
article, and when applied to that use, the item meets the definition of a “part”
established in Willoughby, the item constitutes a “part” of the article. Under either line of
cases, an imported item is not a part if it is “a distinct and separate commercial entity.” 3
In this case, the steel cube is not an integral, constituent, or component part of a
battery cell, battery pack, battery module or basic electrochemical unit and does not
contribute to the storing or supplying of electrical energy. It is a 16-foot outdoor-rated
shipping container for housing finished battery modules. In its condition as imported, it
neither contains the battery modules nor contains any auxiliary equipment (e.g., BMS,
electrical control devices, electrical distribution equipment, etc.) to supply or store
electrical energy, despite the presence of electrical connectors.
While the ENs to heading 8507 indicate that certain containers can be parts,
specifically identifying “parts of accumulators, e.g., containers and covers; lead plates
and grids…and hence ready for use”, our view is that this reference to containers was
intended to be limited in scope, covering housings that directly hold or contain the
cathode, electrode, electrolyte, and separators in a basic battery unit (e.g., a single
electrochemical cell or lead-acid battery with subdivided cells). When reviewing the
structure of the paragraph for parts, we note that the exemplars (i.e., lead plates, grids,
separators, etc.) are all internal components of an electrochemical cell. While
subheading 8507.90 may cover certain specially shaped housings, such as those use to
house electric vehicle battery assemblies, there is no indication that the word
“containers” covers building-like protective enclosures. This product is more akin to a
storage unit than a cover for an accumulator.
Based on the foregoing, we rule out classification of the product at issue under
heading 8507.
As noted in the description, the product at issue is a 16-foot steel container that
will ultimately be used to store battery modules as a complete energy storage system.
At importation, the container is equipped with electrical cables, terminal blocks, and bus
bars. However, no batteries or electrical control devices are present at the time of
importation.
As you noted in your submission, while the present merchandise is similar to
goods previously classified in heading 7309, the product at issue contains electronic
elements at the time of importation. The presence of these additional elements
incorporated into the steel cube would take it outside of the scope of heading 7309.
Heading 8537 provides for boards, panels, consoles, desks, cabinets and other
bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric
2
See Bauerhin, 110 F.3d at 778, quoting Willoughby, supra.
3
See Baxter Healthcare Corp. v. United States, 182 F.3d 1333, 1338–39 (Fed. Cir. 1999) (quoting Willoughby, 21
C.C.P.A. at 325).
3
control or the distribution of electricity, including those incorporating instruments or
apparatus of Chapter 90, and numerical control apparatus, other than switching
apparatus of heading 85.17.
Based upon the terms of the heading, in order for a good to be classified within
heading 8537, it must meet several requirements. It must be built upon a board, panel,
console, desk, cabinet or other base. It must incorporate multiple electrical articles
classified within headings 8535 or 8536. And it must be used for the distribution of
electricity or electrical control.
In its condition as imported, the steel cube serves as a cabinet “or other base”
that contains the incorporated electrical apparatuses. The electrical apparatuses within
the steel cube include cables, terminal blocks, and bus bars. Terminal blocks are
insulated electrical connectors used to secure and electrically connect two or more
wires together. They are constructed of metal bars within an insulated plastic coating.
Essentially, these devices are used as connection points for the various wires within the
device. Terminal blocks are classified under heading 8536 (see, for example, NY
N305447, dated August 8, 2019, and NY N292404, dated December 15, 2017). In
review of the information, including the supplied Bill of Materials (BOM), there are 11
terminal blocks. As such, the product also satisfies that requirement of heading 8537.
Finally, we must determine whether the product at issue is used for electrical
control or the distribution of electricity. The term “electrical distribution” is not defined in
the HTSUS. Undefined tariff terms may be construed for tariff classification purposes
according to their common and commercial meanings. See Millennium Lumber Distrib.
Ltd., v. United States, 558 F.3d 1326, 1329 (Fed. Cir. 2009). In ascertaining the
common and commercial meaning of a tariff term, CBP “may rely on its own
understanding of the term as well as lexicographic and scientific authorities.” See Lon-
Ron Mft. Co. v. United States, 334 F.3d 1304, 1309 (Fed. Cir. 2003). Our research
indicates various definitions, mostly noted as the act of delivering electricity from a
transmission component, through a network of equipment, to an end-user. See, for
example, U.S. Department of Energy 4, and
https://www.sciencedirect.com/topics/engineering/electric-power-distribution 5. Based
upon this understanding, we must decide whether the particular product, in this case, a
steel cube with certain electrical components, is considered a network of equipment
through which electricity is transferred. In our view, at the time of importation, the
subject steel cube with its electrical components would be considered a network of
equipment through which electricity is transferred and as such, satisfy the final
requirement of heading 8537.
4
https://www.energy.gov/sites/default/files/2023-
11/FINAL_CESER%20Electricity%20Grid%20Backgrounder_508.pdf#:~:text=The%20electricity%20supply%20c
hain%20consists%20of%20three,end%20users%20(homes,%20businesses,%20industrial%20sites,%20etc.)
(verified April 14, 2026).
5
Verified April 14, 2026.
4
Based on the foregoing analysis, this particular product meets the terms of
heading 8537 and would be classified therein, specifically under sub-
heading 8537.20.00, HTSUS.
HOLDING:
By application of GRIs 1 and 6, the subject steel cube for batteries is classified
under subheading 8537.20.00, HTSUS, which provides for “Boards, panels, consoles,
desks, cabinets and other bases, equipped with two or more apparatus of heading 8535
or 8536, for electric control or the distribution of electricity, including those incorporating
instruments or apparatus of chapter 90, and numerical control apparatus, other than
switching apparatus of heading 8517: For a voltage exceeding 1,000 V.” The general,
column rate of duty applicable to goods is 2.7% ad valorem.
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 http://www.usitc.gov/.
A copy of this ruling letter should be attached to the entry documents filed at the
time the goods are entered. If the documents have been filed without a copy, this ruling
should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Gregory Connor, Chief
Electronics, Machinery, Automotive,
and International Nomenclature Branch
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