CLA-2-85:OT:RR:NC:N1:103
Derek Polman-Tuin
Invinity Energy Systems
235 Montgomery Street
San Francisco, CA 94104
RE: The tariff classification, country of origin, and United States-Mexico-Canada Agreement (USMCA)
eligibility of the Endurium Battery Module
Dear Mr. Polman-Tuin:
In your letter dated September 23, 2025, you requested a tariff classification and country of origin
determination ruling.
The Endurium Battery Module, part number 106209, is described as a vanadium flow battery used in an
energy storage system to store electricity that is generated by an electrochemical reaction. The module is
composed of electrical and mechanical assemblies mounted inside a metal container measuring
approximately 20 feet in length, 8 feet in width, and 8.5 feet in height.
The module is available in either a two-power block configuration with 1,310 kilowatt-hours of usable
energy or a three-power block configuration with 1,370 kilowatt-hours of usable energy. During use, the
battery module is connected to additional modules and a separate string controller, which is not part of this
request.
The applicable subheading for the Endurium Battery Module will be 8507.80.8200, 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: Other storage batteries: Other.” The
general rate of duty will be 3.4 percent ad valorem.
In your submission, you also requested a country of origin ruling for the purposes of applying additional
duties. Two production scenarios were presented, both using identical component sourcing and identical
operational steps. In the first scenario, the assembly of the battery module will occur in Canada. In the second
scenario, the assembly process will occur in the United Kingdom.
The operational steps will begin with preparing a battery stack that will be mounted in a power block
assembly. Each power block assembly will have four battery stacks, electrical terminals, fluid connectors,
manifolds, mounting rails, and structural components.
The battery stack consists of block frames, manifold assemblies, hoses, end plates, covers, isolators, bipole
material, felt material, and more. These items are sourced from China, South Korea, or Germany and arrive
in Canada or the United Kingdom as finished components. The operational steps that will occur in Canada or
the United Kingdom are described as cutting the membrane material to shape, arranging the components in a
stacked configuration, and securing everything together using threaded rods.
Four cell stacks are mounted inside a power block subassembly and connected to preinstalled hoses.
Afterwards, brackets and panels are installed, various electrical connectors and receptacles are added, and the
stacks are connected using electrical cables. This process is completed using a small number of tools, such as
screwdrivers, combination wrenches, cable tie cutters, and socket wrenches. Besides some hoses, all of the
components for the power block assembly are sourced from China.
Next, the power block assembly is incorporated into the “balance of the system” for the Endurium Battery
Module, which is described as a prefabricated structural container containing a tank block assembly filled
with liquid electrolyte and a process block assembly, which consists of a power distribution assembly, sensor
panel, fuses, and wire harnesses. The balance of the system is sourced from China as a complete assembly,
requiring only the power block assembly to complete a battery module.
The power block assembly is lifted, aligned with preinstalled rails in the container, and secured in place using
screws. It is then connected to pre-installed wires, cables, and hoses within the balance of the system.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling
Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will
occur is whether an article emerges from a process with a new name, character, or use different from that
possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778
(C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v.
United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
In examining assembly operations, Customs and Border Protection looks to the nature of the assembly
operations and has previously held that assembly operations that are minimal or simple, as opposed to
complex or meaningful, will generally not result in a substantial transformation. Here, the operational steps
that will occur in either Canada or the United Kingdom are not particularly complex, consisting mostly of
positioning, combining, inserting, fastening, and connecting finished components together. Furthermore, the
two subassemblies that are assembled in Canada or the United Kingdom (i.e., the battery stack and power
block assembly) are formed almost exclusively from finished Chinese subcomponents. This results in the
Chinese components accounting for most of the value of the finished Endurium Battery Module. Thus, based
on the totality of the circumstances, the country of origin of the Endurium Battery Module, part number
106209, will be China for both scenarios described above.
You also ask if the subject battery module qualifies under USMCA when produced in Canada. The USMCA
was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The
USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA
Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (GN) 11 of the
HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an
originating good for purposes of the USMCA. GN 11(b) states:
For the purposes of this note, a good imported into the customs territory of the United States from the
territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential
tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the
tariff schedule as a “good originating in the territory of a USMCA country” only if—
(i) the good is a good wholly obtained or produced entirely in the territory of one or more
USMCA countries;
(ii) the good is a good produced entirely in the territory of one or more USMCA countries,
exclusively from originating materials;
(iii) the good is a good produced entirely in the territory of one or more USMCA countries
using non-originating materials, if the good satisfies all applicable requirements set forth in
this note (including the provisions of subdivision (o));
Since the Endurium Battery Module contains non-originating materials, it is not considered a good “wholly
obtained” or “produced entirely in a USMCA country” under GN 11(b)(i) and GN 11(b)(ii). We must next
determine whether the Endurium Battery Module qualifies under GN 11(b)(iii). Since the finished Endurium
Battery Module is classified under subheading 8507.80, HTSUS, the applicable rule of origin is in GN
11(o)/85.18, HTSUS, which provides for “a change to subheading 8507.80 from any other heading, except
from tariff items 8548.10.05 or 8548.10.15” Based on the facts presented, numerous non-originating
components and assemblies, most notably the balance of the system, are classified in heading 8507, HTSUS.
Accordingly, the Endurium Battery Module will not qualify as a USMCA originating good.
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 8507.80.8200, 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 of China, Hong
Kong, and Macau will be subject to an additional ad valorem rate of duty of 10 percent. At the time of entry,
you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition
to subheading 8507.80.8200, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 8507.80.8200, 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 8507.80.8200, 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)
Evan Conceicao
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division