CLA-2-85:OT:RR:NC:N1:103
Jim Sides
Totex Manufacturing
3050 Lomita Boulevard
Torrance, CA 90505
RE: The tariff classification of a lithium-ion battery from China
Dear Mr. Sides:
In your letter dated October 3, 2024, you requested a tariff classification ruling.
The merchandise under consideration is referred to as a rechargeable lithium-ion battery, part number
U80546-1R01, and described as a 2800 mAh battery used with the Chorus sound processor sold by Advanced
Bionics. The Chorus sound processor is a body-worn device that communicates wirelessly with Clarion 1.0
and 1.2 cochlear implants in a cochlear implant system. A sample was submitted with your request, which
included a battery encased within a specially shaped housing that completes the lower body of the sound
processor unit when installed.
The applicable subheading for the lithium-ion battery, part number U80546-1R01, 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.
In your submission you request consideration of a secondary classification under subheading 9817.00.96,
HTSUS, which applies to articles and parts of articles specifically designed or adapted for the use or benefit
of the permanently or chronically physically or mentally handicapped. Subheading 9817.00.96, HTSUS,
covers: “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.” U.S. Note
4(a), Subchapter XVII, Chapter 98, HTSUS, defines the term “blind or other physically or mentally
handicapped persons” as including “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, excludes from subheading 9817.00.96, HTSUS, “(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.”
In Sigvaris, Inc. v. United States, 227 F. Supp 3d 1327, 1336 (Ct. Int’l Trade 2017), aff’d, 899 F.3d 1308
(Fed. Cir. 2018), the U.S. Court of International Trade (CIT) explained that “specially” means “to an extent
greater than in other cases or towards others” and “designed” means something that is “done, performed, or
made with purpose and intent often despite an appearance of being accidental, spontaneous, or natural.” We
must first evaluate “for whose, if anyone’s, use and benefit is the article specially designed,” and then,
whether “those persons [are] physically handicapped [].” Sigvaris, 899 F.3d at 1314.
The Court of Appeals for the Federal Circuit CAFC) clarified in Sigvaris, 899 F.3d at 1314-15 that to be
“specially designed,” the merchandise “must be intended for the use or benefit of a specific class of persons
to an extent greater than for the use or benefit of others” and adopted the five factors used by U.S. Customs
and Border Protection (CBP): (1) the physical properties of the article itself (i.e., whether the article is easily
distinguishable by properties of the design, form, and the corresponding use specific to this unique design,
from articles useful to non-handicapped persons); (2) whether any characteristics are present that create a
substantial probability of use by the chronically handicapped so that the article is easily distinguishable from
articles useful to the general public and any use thereof by the general public is so improbable that it would
be fugitive; (3) whether articles are imported by manufacturers or distributors recognized or proven to be
involved in this class or kind of articles for the handicapped; (4) whether the articles are sold in specialty
stores which serve handicapped individuals; and, (5) whether the condition of the articles at the time of
importation indicates that these articles are for the handicapped.
In this instance, you state that the subject battery is designed to work exclusively with the sound processor of
an Advanced Bionics cochlear implant system, a system that allows the profoundly deaf or severely
hard-of-hearing patients to regain their ability to hear. In HQ ruling H305925, dated November 12, 2019,
CBP determined that a hearing impairment satisfies the description set forth in Chapter 98, Subchapter XVII,
U.S. Note 4(a), and that cochlear implant systems are eligible for the secondary classification under
9817.00.96, HTSUS.
The subject battery is specifically designed and adapted for use in a cochlear implant system, cannot be used
with any other product, and is not for use by the general public. Based on the information supplied, a
secondary classification will apply to the lithium-ion battery, part number U80546-1R01, under 9817.00.96,
HTSUS, which affords duty free treatment aside from any additional duties and/or applicable fees upon
importation into the United States.
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 at https://hts.usitc.gov/.
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