CLA-2-85:OT:RR:NC:N2:212
Robert Stang
Husch Blackwell
750 17th Street NW, Suite 900
Washington, DC 20006
RE: The tariff classification of personal vaporizer parts from China
Dear Mr. Stang:
In your letter dated January 24, 2020, you requested a tariff classification ruling on behalf of your client, Kush Supply Company.
There are two items under consideration with this request, identified as the Silo Battery Unit (SKU 1004848) and the M3 Battery Unit (SKU 1002611). You state that both units consist of a metal housing, which contains a rechargeable lithium-ion battery, smart chip, sensor, and LED. The Silo Unit is imported with a USB cable, which can be used to recharge the battery while the M3 Unit is intended to be attached directly to a USB charging station. Both units are specifically designed to be used as a part of a completed personal vaporizer device.
After importation, you state that these units are combined with a vaporizer cartridge and mouthpiece. When the user inhales through the device, the sensor detects the breath and activates the battery, which provides power to the heating element within the cartridge. The heating element or atomizer then vaporizes the liquid within the cartridge. The smart chip prevents overheating, short circuits, and overuse by providing a 10-second cutoff of the power.
In your request, you suggest that the correct classification for the subject units is 8507.60.0020, Harmonized Tariff Schedule of the United States (HTSUS). We disagree.
The suggested classification provides for Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof: Lithium-ion batteries: Other. The subject units have functionality beyond the scope of a rechargeable battery that stores and provides power. This premise is recognized in New York ruling N248890, dated January 16, 2014, which classified a battery unit of an electronic cigarette elsewhere in the tariff schedule.
The applicable subheading for the Silo Battery Unit (SKU 1004848) and the M3 Battery Unit (SKU 1002611) will be 8543.90.8860, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Parts: Other: Other: Other: Of personal electric or electronic vaporizing devices: 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 8543.90.8860, 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 8543.90.8860, 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 Section 301 trade remedy, 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 https://www.cbp.gov/trade/remedies/301-certain-products-china
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.
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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division