CLA-2-85:OT:RR:NC:N1:103
Gennady Spirin
Averia Electronics, Inc.
142 W. 57th Street
New York, NY 10019
RE: The tariff classification of a lithium-polymer battery from China
Dear Mr. Spirin:
In your letter dated April 12, 2022, you requested a tariff classification ruling.
The item under consideration is a lithium-polymer battery, model ACB01, used as a power source for the Averia pet collar. The rechargeable battery has a nominal voltage of 3.7 volts and a capacity of 500 mAh. The primary components of the battery include a polycarbonate enclosure, a battery cell, a USB Type C port, and pogo pin connectors. The specially shaped enclosure and pogo connectors allow a user to insert the battery into the Averia interactive pet collar. The battery is imported in retail packaging and sold separately to consumers as a replacement part for the pet collar.
The applicable subheading for the lithium-polymer battery, model ACB01, will be 8507.60.0020, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof: Lithium-ion batteries: Other.” The rate of duty will be 3.4 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8507.60.0020, 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 8507.60.0020, 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.
Included with your submission is a diagram depicting the marking that will appear on the battery. The diagram shows the marking “Assembled in PRC” alongside the name of the company, model number, and a serial number. Also submitted were images of the proposed marking on the retail packaging, which is marked “Designed in Russia / Made in PRC” using the same color, font, and size. A marked sample was not submitted with your letter for review.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
We note the battery is marked “Assembled in PRC” and the retail packaging is marked “Made in PRC.” U.S. Customs and Border Protection (“CBP”) has repeatedly found that the abbreviation “PRC” is not acceptable for country of origin marking purposes. See HQ ruling 560693, dated March 6, 1998, HQ ruling 562901, dated November 6, 2003, and HQ ruling W968266, dated September 19, 2006. You state the abbreviation will be changed to “China” prior to importation. Furthermore, in HQ ruling 560604, dated August 8, 1997, CBP determined the use of the marking "Made in" and "Assembled in" on a single article is acceptable provided only a single country is named and the requirements of 19 CFR 134.43(e) are satisfied.
Provided the abbreviation “PRC” is changed to “China,” the proposed marking of the imported lithium-polymer battery, as described above, is an acceptable country of origin marking if conspicuously, legibly, and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134.
Regarding the marking of the retail packaging, in HQ ruling 734144, dated July 5, 1991, CBP held that a label marked "Designed in U.S.A." with the words "Made in (Country of Origin)" in close proximity and in the same size and color as the words "Designed in U.S.A." satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR 134.46. Provided the abbreviation “PRC” is changed to “China,” the proposed retail packaging marked "Made in (Country of Origin)" in close proximity and in the same size and color as the words "Designed in Russia" satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR 134.46 if the words "Made in (Country of Origin)" are legible, conspicuous, and permanent.
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