CLA-2-85:OT:RR:NC:N2:220
Mark S. Baxa
Fernia Creek Global Supply Chain Consulting Group
2208 Missouri Blvd, Suite 102
Jefferson City, MS 65109
RE: The tariff classification of battery and charger set from China
Dear Mr. Baxa:
In your letter dated June 11, 2024, you requested a tariff classification ruling on behalf of your client, Chevron North America.
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.
General Rule of Interpretation (GRI) 1, HTSUS, which states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3.
GRI 3 (a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good or set is to be determined by GRI 3 (b) or GRI 3 (c) taken in the appropriate order in which they are set out in GRI 3. GRI 3 (b) states in part that composite goods or sets, which cannot be classified by reference to GRI 3 (a), are to be classified as if they consisted of the component that gives them their essential character.
The Explanatory Notes to the Harmonized Tariff System, although not legally binding, provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3 (b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without re-packing. Goods classifiable under GRI 3 (b) are classified as if they consisted of the material or component which gives them their essential character, which may 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 article.
The subject battery and charger set consists of two or more different articles that are, prima facie, classifiable in different headings headings. The set also consists of articles put up together to carry out a specific activity. Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the battery and charger set is described within the meaning of "goods put up in sets for retail sale".
In accordance with GRI 3 (b), which states in part that goods put up in sets for retail sale, that cannot be classified by reference to GRI 3 (a), are to be classified as if they consisted of the component which gives them their essential character. In our view, the article(s) that provides the essential character of the battery and charger set is the charger.
The applicable subheading for the the 20 Volt – 4.0Ah Rechargeable Lithium-Ion Battery Pack and Battery Charger Set, Model Number CB5196B-11, will be 8504.40.9550, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical transformers and static converters…: Other: Rectifiers and rectifying apparatus: Other.” The general rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8504.40.9550, HTSUS, unless specifically excluded, are subject to an additional 25 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 8504.40.9550, HTSUS, listed above.
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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division