CLA-2-85:OT:RR:NC:N1:103
Sharon Rossi Ensminger
Sy Kessler Sales, Inc.
10455 Olympic Dr
Dallas, TX 75220
RE: The tariff classification of a lithium-ion rechargeable battery from China
Dear Ms. Ensminger:
In your letter dated April 9, 2020 you requested a tariff classification ruling.
The item under consideration is a 3.7V lithium-ion rechargeable battery, model AHB331242PG and part number 1122088-001 Rev B, exclusive to the Medtronic MiniMed 670G Insulin Pump. The function of the battery is to provide backup power to the insulin pump, and is only used if the primary AA battery is low and/or being replaced. The battery is attached to a printed circuit board via a connector inside the insulin pump. You state the internal circuitry of the insulin pump is designed to only work with this battery.
The applicable subheading for the battery, model AHB331242PG, part number 1122088-001 Rev B 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.
In your submission you request consideration of a secondary classification for the subject battery under the Nairobi Protocol. The Nairobi Protocol to the Agreement on the Importation of Educational, Scientific, and Cultural Materials Act of 1982, established the duty-free treatment for certain articles for the handicapped. Presidential Proclamation 5978 and Section 1121 of the Omnibus Trade and Competitiveness Act of 1988, provided for the implementation of the Nairobi Protocol into subheadings 9817.00.92, 9817.00.94, and 9817.00.96, HTSUS. These tariff provisions specifically state that "[a]rticles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons" are eligible for duty-free treatment. U.S. Note 4(a), subchapter XVII, Chapter 98, HTSUS, states that, "the term 'blind or other physically or mentally handicapped persons' includes any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working."
U.S. Note 4(b), subchapter XVII, Chapter 98, HTSUS, which establishes limits on classification of products in these subheadings, states as follows: Subheadings 9817.00.92, 9817.00.94 and 9817.00.96 do not cover-- (i) articles for acute or transient disability; (ii) spectacles, dentures, and cosmetic articles for individuals not substantially disabled; (iii) therapeutic and diagnostic articles; or (iv) medicine or drugs. Although the legislative history of the Nairobi Protocol discusses the concerns of Congress that the design, modification or adaptation of an article must be significant so as to clearly render the article for use by handicapped individuals, no specific definition of these terms was established by Congress. See, Senate Report (Finance Committee) No. 97-564, September 21, 1982). See also, Headquarters Ruling Letter (HRL) 951004 dated March 3, 1992. Since it is difficult to establish a clear definition of what is “specially designed or adapted," various factors must be utilized on a case-by-case basis to determine whether a given article is "specially designed or adapted" within the meaning of this statute.
The Medtronic MiniMed 670G Insulin Pump is used by individuals to self-manage diabetes, other diseases or conditions resulting in an abnormal or poor glucose level by delivering insulin doses to the bloodstream of a user whose pancreas is not functioning normally. CBP previously reviewed the MiniMed Insulin Pump, for which the subject battery packs are used, under HQ ruling 562869, dated December 23, 2003 and stated, in pertinent part, "The fact that the insulin pump is solely dedicated for use by those individuals suffering from diabetes or glucose control problems, is conclusive evidence that the pump is an article ‘specially designed or adapted’ for the handicapped for purposes of the Nairobi Protocol." The issue under consideration is whether the battery is specially designed and adapted for use in the MiniMed Insulin Pump. You state that the subject battery is specially designed with an internal circuitry to work solely with the insulin pump. Based on the information provided, we believe the subject battery, model AHB331242PG, part number 1122088-001 Rev B is exclusively used with the MiniMed 670G Insulin Pump, and therefore eligible for secondary classification in subheading 9817.00.96, HTSUS, which provides for Articles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons; parts and accessories (except parts and accessories of braces and artificial limb prosthetics) that are specially designed or adapted for use in the foregoing articles: Other, free of duty and the Merchandise Processing Fee (MPF).
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.
Section XXII, Chapter 99, Subchapter III U.S Note 20(r), HTSUS, states the additional duties imposed by heading 9903.88.15 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under subheadings 9802.00.40, 9802.00.50, and 9802.00.60, and heading 9802.00.80. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.
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 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.
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