CLA-2-85:OT:RR:NC:N1:103
Randy Rucker
Faegre Drinker Biddle & Reath
191 N. Wacker Dr.
Chicago, IL 60126
RE: The tariff classification of a lead-acid cell from China
Dear Mr. Rucker:
In your letter dated April 14, 2021 you requested a tariff classification ruling on behalf of your client, 639LLC.
The item under consideration is a rechargeable lead-acid battery cell, item REXC-1200. Each battery cell is composed of sixteen positively charged plates, seventeen negatively charged plates, absorbed glass mat separators, busbars, a safety valve, and four copper terminals, housed in a rectangular plastic tank containing a sulfuric acid solution. You state all positive and negative lead plates are contained in the same housing and are not further subdivided within the cell’s housing. Each cell has a nominal voltage of 2 Volts and a 1200 Ampere hours capacity. You state the cell is designed to be solely used in a storage battery system that will power electrical equipment such as servers in a data center building. The assembly of a storage battery system begins with battery cells arranged into modules. The modules are then connected to create a stack, wired in series, and together with a battery management system, form a finished storage battery system with a higher voltage.
You suggested classification of the lead-acid battery cell under 8507.90.4000, Harmonized Tariff Schedule of the United States (“HTSUS”), as parts of electric storage batteries. We agree.
In HQ ruling 963870, dated July 14, 2000, CBP determined lead-acid battery cells that must be arranged in a group to provide their intended function, and designed to be used in rechargeable storage batteries, are parts of accumulators classifiable in heading 8507, HTSUS. In the instant case, the rechargeable lead-acid cells are integral to the storage battery system. The storage battery system provides power to electrical equipment and could not function as a power source without the lead-acid cells. Furthermore, you state the cells are specially designed to be used in industrial storage battery systems and weigh 89 kgs each, making them incapable of use in portable devices that typically run on a low voltage. As such, the lead-acid cells are parts of electric accumulators.
The applicable subheading for the lead-acid battery cell will be 8507.90.4000, HTSUS, which provides for “Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof: Parts: Of lead-acid storage batteries.” The rate of duty will be 3.5 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8507.90.4000, HTSUS, unless specifically excluded, are subject to an additional 7.5% percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8507.90.4000, 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 trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, 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 and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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 Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division