Tariff classification of Clamshell Battery Housing Device for Hand-held Transceiver

HQ H265006 March 3, 2016 CLA-2 OT:RR:CTF:TCM H265006 HvB CATEGORY: Classification TARIFF NO.: 8537.10.90 Mr. Eric Schenck Vice President Finance Midland Radio Corporation 5900 Parretta Drive Kansas City, MO 64120 RE: Tariff classification of Clamshell Battery Housing Device for Hand-held Transceiver Dear Mr. Schenck: This letter is in response to your request for a classification ruling of a battery housing device, identified as the “Clamshell,” model 901015NC, under the Harmonized Tariff Schedule of the United States (HTSUS). The Clamshell is a plastic battery housing that is equipped with electrical apparatuses, which enables a person to simultaneously recharge and operate a hand-held transceiver radio, when the radio is attached to the Clamshell. The Clamshell has no operational function without the radio. Your submission included a sample of the Clamshell, which we are returning to you. FACTS: The Clamshell is constructed from durable plastic and is rectangular in shape. You state that the durability of the Clamshell is a desired feature by its users, for example, forest rangers and fire fighters, who work in difficult conditions. The Clamshell is designed to hold six non-rechargeable alkaline batteries, which are stored in a latched and hinged battery compartment. When loaded with batteries, the Clamshell produces 9 volts of electrical current. A Printed Circuit Board (PCB) mounts and directs the electrical current to the radio, via three electrical contact pads on the Clamshell and the corresponding contact pins on the attachment radio. The battery compartment has multiple electrical contacts that are soldered to the PCB, which has an additional twelve electrical contacts on one side and two electrical spring contacts on another side. . ISSUE: Whether the Clamshell is classified under the HTSUS in heading 8506, which provides for “Primary cells and primary batteries; parts thereof”, in heading 8536, which provides for “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 volts[…]”, or in heading 8537, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517”? LAW AND ANALYSIS Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI’s 2 through 6 may then be applied in order. The HTSUS provisions under consideration in this case are as follows: 8506 Primary cells and primary batteries; parts thereof 8536 Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 volts; connectors for optical fibres, optical fibre bundles or cables. 8537 Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517 * * * * The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). EN 85.37 provides: These consist of an assembly of apparatus of the kind referred to in the two preceding headings (e.g., switches and fuses) on a board, panel, console, etc., or mounted in a cabinet, desk, etc.  They usually also incorporate meters, and sometimes also subsidiary apparatus such as transformers, valves, voltage regulators, rheostats or luminous circuit diagrams.   The goods of this heading vary from small switchboards with only a few switches, fuses, etc. (e.g., for lighting installations) to complex control panels for machinetools, rolling mills, power stations, radio stations, etc., including assemblies of several of the articles cited in the text of this heading. * * * You submit that the subject Clamshell is classified in heading 8506, HTSUS, specifically subheading 8506.90, HTSUS, which provides for “Primary cells and primary batteries; parts thereof: Parts.” In support, you cite to Headquarters Ruling Letter (HQ) 951242, dated June 22, 1993, in which we classified a plastic battery housing, which after importation, was to be assembled with electrical contacts, wires, and batteries, in subheading 8506.90, as part of a battery. In HQ 951242, we stated that the article served no other function other than that of a housing. The instant Clamshell is distinguishable from the case that we classified in HQ 951242, because the Clamshell is not a mere housing for batteries. Rather, the batteries are already housed in the case; they are removable and replaceable from the case. The Clamshell itself serves as a connector. We therefore disagree that the Clamshell is analogous to the housing classified in heading 8506, HTSUS. Accordingly, it is not classifiable in heading 8506, HTSUS, because it is not a housing for a battery. We note that the subject Clamshell contains multiple electrical contacts. Heading 8536, HTSUS, covers electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 volts. The subject Clamshell includes several individual, but interconnected, switches intended to contribute together to electrically control or provide power (not exceeding 1,000 volts) to the radio, i.e., the electrical contact dots, which are mounted on a base and distribute electricity. Each of the contacts meets the plain language of heading 8536, HTSUS. In HQ 958380, dated February 5, 1996, we classified a battery housing for alkaline batteries in heading 8536, HTSUS, which differs from the instant Clamshell in that the battery housing consisted of only two electrical contacts. Similarly, the subject Clamshell is distinguishable from the battery tube assembly that CBP classified in New York Ruling Letter (NY) N249601, dated February 3, 2014, in heading 8536. Unlike the instant Clamshell, the battery tube assembly contained only two contacts. The subject Clamshell, however, is distinguishable from the battery tube assembly since it contains multiple electrical contacts. In order to be classified in heading 8537, HTSUS, a device must be equipped with two or more apparatus of heading 8535 or 8536, HTSUS, per the terms of heading 8537. See HQ H083278, dated July 16, 2014, in which CBP classified a motor vehicle controller assembly in heading 8537. The ENs to heading 8537, HTSUS, explain that: [The goods of the heading] consist of an assembly of apparatus of the kind referred to in the two preceding headings (e.g., switches and fuses) on a board, panel, console, etc., or mounted in a cabinet, desk, etc. They usually also incorporate meters, and sometimes also subsidiary apparatus such as transformers, valves, voltage regulators, rheostats or luminous circuit diagram. The subject Clamshell is equipped with at least three types of electrical apparatuses, namely, twelve battery connections, three electrical contacts, and two spring contacts on the CBP board, that are classified in heading 8536, HTSUS. As such, it meets the plain language of heading 8537, HTSUS. HOLDING: By application of GRI 1, the subject merchandise identified as the “Clamshell,” model 901015NC is classifiable under heading 8537, HTSUS. Specifically, it is classifiable under subheading 8537.10.90, HTSUS, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517: For a voltage not exceeding 1,000 volts: Other.” The column one, general rate of duty is 2.7%. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov. A copy of this decision should be filed with the port of entry at the time of entry. Sincerely, Ieva K. O’Rourke Tariff, Classification & Marking Branch