CLA-2-85:OT:RR:NC:N1:103

Jennifer Horvath
Braumiller Law Group, PLLC
5220 Spring Valley Road, Suite 200
Dallas, TX 75254

RE: The tariff classification of a cold plate from China

Dear Ms. Horvath:

In your letter dated May 1, 2025, you requested a tariff classification ruling on behalf of your client, XALT Energy MI, LLC.

The merchandise under consideration is referred to as an aluminum cold plate, part number XP-119582, and is described as a rectangular microchannel plate with manifolds. Coolant enters the first manifold, flows through coolant channels in the microchannel plate, and exits via a second manifold. The cold plate is installed directly against battery modules inside the XRANGE lithium-ion battery pack (a battery assembly used in an electric vehicle) and connected to a circulating coolant circuit in the vehicle. As the coolant flows through the cold plate, it removes thermal energy and carries it away from the battery assembly. While referred to as a “cold plate,” it can also be used to warm a battery module by circulating a heated transfer medium.

In your submission, you suggest that the cold plate is classifiable under subheading 8419.89.9540, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof: Other machinery, plant or equipment: Other: Other: Other: Designed for cooling: Other.” We disagree. The subject cold plate is not a machine or system, but an interface for a liquid coolant to absorb or supply heat within a heating/cooling circuit. As such, heading 8419 would not be appropriate.

Alternatively, you suggest the cold plate is classifiable as a part under subheading 8507.90, HTSUS. According to your description, the cold plate is attached directly to the battery modules inside the XRANGE lithium-ion battery pack, and the cold plate is only used with this battery assembly. As such, the applicable subheading for the cold plate, part number XP-119582, will be 8507.90.8000, HTSUS, which provides for “Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof: Parts: Other.” The general rate of duty will be 3.4% ad valorem.

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 subheading 8507.90.8000, HTSUS, listed above.

Effective May 3, 2025, Presidential proclamation 10908 imposed additional tariffs on certain automobile parts. Additional duties on automobile parts of 25 percent are reflected in Chapter 99, heading 9903.94.05, as provided in subdivision (g) of U.S. note 33 to this subchapter. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.94.05, in addition to subheading 8507.90.8000, HTSUS, listed above. Articles that are eligible for special tariff treatment under the United States-Mexico-Canada Agreement (USMCA), other than automobile knock-down kits or parts compilations; or are not parts of passenger vehicles (sedans, sport utility vehicles, crossover vehicles, minivans or cargo vans) and light trucks, will not be subject to the additional ad valorem duties provided for in heading 9903.94.05. If your product is entered duty free as originating under the USMCA, you must report heading 9903.94.06, HTSUS, in addition to subheading 8507.90.8000, HTSUS, listed above.

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries will be subject to an additional 10 percent ad valorem rate of duty. Your product falls within an excepted subheading. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.33, in addition to subheading 8507.90.8000, HTSUS, listed above.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8507.90.8000, 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., 9903.88.01, in addition to subheading 8507.90.8000, 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/programs-administration/trade-remedies, respectively.

The tariffs and additional duties cited above are current as of this ruling’s issuance. 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,

(for)
Steven A. Mack
Director
National Commodity Specialist Division