Protest No. 30041-1000075; Broken Lead-Acid Batteries; Lead Waste and Scrap

HQ 089379 July 8, 1991 CLA-2 CO:R:C:M 089379 DWS CATEGORY: Classification TARIFF NO.: 7802.00.00 District Director of Customs 909 First Avenue, Room 2039 Seattle, WA 98174 RE: Protest No. 30041-1000075; Broken Lead-Acid Batteries; Lead Waste and Scrap Dear Sir: This is our decision on Application for Further Review of Protest No. 30041-1000075, dated March 25, 1991, concerning your action in classifying and assessing duty on lead waste and scrap in the form of broken lead-acid batteries imported from Canada. FACTS: The merchandise was entered under subheading 7802.00.0030, HTSUSA, which provides for Lead waste and scrap: Obtained from lead-acid storage batteries. However, you liquidated the merchandise under 8507.20.0020, HTSUSA, which provides for Other lead-acid storage batteries: Used batteries, for recovery of metal. During a phone conversation with the broker for the importer on June 27, 1991, it was determined that before the "batteries" were imported into the United States from Canada, they were destroyed by the importer with hammers. Since the "batteries" were crushed, the broker stated that they could not be repaired or renovated to function as batteries in the future, and argued that, therefore, subheading 8507.20.0020, HTSUSA, is inapplicable. The articles are being imported into the United States for resmelting. ISSUE: What is the classification of the used, broken batteries under the HTSUSA? LAW AND ANALYSIS: Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes. The broken batteries are classifiable under subheading 7802.00.0030, HTSUSA, which provides for Lead waste and scrap: Obtained from lead-acid storage batteries. In Canada, the batteries were destroyed with hammers, removing all doubt that the merchandise is scrap. The lead scrap is not excluded from classification under heading 7802, HTSUSA, because it is the product of the used batteries, which obviously cannot be repaired or renovated for their former use. HOLDING: The broken batteries are classifiable under subheading 7802.00.00, HTSUSA, which provides for Lead waste and scrap: Obtained from lead-acid storage batteries. The protest should be granted. A copy of this decision should be attached to Form 19, Notice of Action, to be mailed to the protestant. Sincerely, John Durant, Director Commercial Rulings Division