CLA-2-85:OT:RR:NC:N1:103
Samir Varma
Thompson Hine LLP
1919 M Street NW Washington, DC 20036
RE: The tariff classification of lithium-ion battery assemblies from China
Dear Mr. Varma:
In your letter dated September 22, 2023, you requested a tariff classification ruling on behalf of your client, Windrose Technology, Inc.
The first item under consideration is identified as a rechargeable Ternary-Lithium Battery System that will be used to power an electric road tractor. The system will be imported in two variations: (1) Model number 2101100X9D01, which has a nominal voltage of 752.76 V, a nominal capacity of 163 Ah, and weighs approximately 613 kilograms; and (2) Model number 2101700X9D01, which has a nominal voltage of 754.8 V, a nominal capacity of 161 Ah, and weighs approximately 610 kilograms. Both models are described as being encased in a housing designed to be installed under a vehicle’s chassis. The main components include 204 lithium-ion battery cells, a power relay assembly, a battery management unit, and a cell management unit. The cell management unit collects battery cell data, including voltage, current, and temperature data. The battery management unit is responsible for monitoring the state of charge of the battery packs and communicating diagnostic information.
The second item under consideration is identified as a rechargeable Lithium Iron Phosphate Battery System, model number 2101100X9D06, used to power an electric road tractor. As imported, the system will have a nominal voltage of 749.7 V, a nominal capacity of 230 Ah, and weigh approximately 1150 kilograms. The system is described as being encased in a housing designed to be installed under a vehicle’s chassis. The main components include 238 lithium-ion battery cells, a power relay assembly, a battery management unit, and a cell management unit. The cell management unit collects battery cell data, including voltage, current, and temperature data. The battery management unit monitors the state of charge of the battery packs and communicates diagnostic information.
In your letter, you suggest the Ternary-Lithium Battery System and the Lithium Iron Phosphate Battery System are classifiable under subheading 8507.60.0020, Harmonized Tariff Schedule of the United States (“HTSUS”). We agree.
The applicable subheading for the Ternary-Lithium Battery System, model numbers 2101100X9D01 and 2101700X9D01, and the Lithium Iron Phosphate Battery System, model number 2101100X9D06, will be 8507.60.0020, 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, 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 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 and Border Protection 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, please contact National Import Specialist Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division