CLA-2-85:OT:RR:NC:N2:212

John Peterson
Neville Peterson LLP
1 Exchange Plaza
55 Broadway, Suite 2602
New York, NY 10006

RE: The tariff classification of e-cigarettes and capsules from China

Dear Mr. Peterson:

In your letter dated March 11, 2025, you requested a tariff classification ruling on behalf of your client, Japan Tobacco, Inc.

There are two items at issue with this request. The first is identified as the LogicPro electronic vaporizing device, which you refer to as an e-cigarette. The device is presented within a kit containing a power unit, capsule case, mouthpiece, and USB charging cable. The power unit contains a battery and the necessary electronics, including the heating element, for the vaporization of the liquid. The device is designed to have a capsule, which contains the substance to be vaporized, placed within the case and attached to the power unit and mouthpiece. The completed device then heats the liquid, turning it into a vapor that is inhaled through the mouthpiece. We note that the capsules with the substance are not packaged with the device.

The second item is identified as the LogicPro capsules, which are the pre-filled liquid capsules used exclusively with the above e-cigarettes. The capsules are filled with an e-liquid with the main ingredients of propylene glycol, glycerol, nicotine, and various added flavors. The capsule is specially designed to contain 20 mg/ml of nicotine. The disposable capsules,which will be imported and sold separately, are designed for use exclusively in the LogicPro Capsule Tank System. LogicPro E-Liquid Capsules will be made available in the following five flavors – regular, menthol, cherry, berry mint and vanilla.

In your request, you suggest that the correct classification for the LogicPro e-cigarette is 8543.40.0030, Harmonized Tariff Schedule of the United States (HTSUS). Though we agree with the suggested classification at the subheading level, we disagree with the suggested statistical suffix.

The statistical breakout is meant to cover those devices “with substances containing nicotine.” However, based on the information provided as well as the samples examined by this office, the e-cigarettes are not imported with any substance. Though the device appears to be designed and marketed for use with substances containing nicotine, they are not presented as having that substance. As such, the classification suggested is not applicable in this case.

The applicable subheading for the LogicPro electronic vaporizing device will be 8543.40.0040, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: electronic cigarettes and similar personal electric vaporizing devices: other.” The general rate of duty will be 2.6% ad valorem.

In your request, you suggest that the correct classification for the LogicPro capsules is 8543.90.8868, HTSUS. We disagree.

The Explanatory Notes (ENs), though not dispositive, constitute the official interpretation to the HTSUS at the international level. The ENs to 85.43 state that the heading excludes “cartridges or tanks that contain liquids or solutions, whether or not presented with other components (e.g. heating elements or atomisers), intended for use in electronic cigarettes or similar personal electric vaporizing devices.” This note points to heading 2404, HTSUS, for the classification of such articles. Further, in order for a device, even if considered a part, to be classified within heading 8543, HTSUS, it must not be more specifically provided for elsewhere in the tariff. In our view, based on these two reasons, heading 8543, HTSUS, is not applicable for the subject cartridges.

The applicable subheading for the LogicPro Capsules will be 2404.12.0500, HTSUS, which provides for “Products containing tobacco, reconstituted tobacco, nicotine, or tobacco or nicotine substitutes, intended for inhalation without combustion; other nicotine containing products intended for the intake of nicotine into the human body: Products intended for inhalation without combustion: Other, containing nicotine: Mixtures for personal electric or electronic vaporizing devices: Mixtures containing 5 percent or more by weight of one or more aromatic or modified aromatic substances.” The applicable rate of duty is 6.5 percent ad valorem.

This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.

Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheadings 2404.12.0500 and 8543.40.0040, HTSUS, listed above.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8543.40.0040, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02 , in addition to subheading 8543.40.0040, HTSUS, listed above.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 2404.12.0500, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 2404.12.0500, 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 Section 301 trade remedy, 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 https://www.cbp.gov/trade/remedies/301-certain-products-china

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 Luke LePage at [email protected].
Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division