The tariff classification of a Nittetsu-Elex Formation System from Japan

N106837 June 2, 2010 CLA-2-85:OT:RR:NC:N1:109 CATEGORY: Classification TARIFF NO.: 8504.40.9550 Ms. Kelly Sides Nissin International 609 Dempster Street Mt. Prospect, IL 60056 RE: The tariff classification of a Nittetsu-Elex Formation System from Japan Dear Ms. Sides: In your letter dated received in this office on May 21, 2010 you requested a tariff classification ruling on behalf of your client, Enerdel, Inc. The merchandise subject to this ruling is a Nittetsu-Elex Formation System. It takes uncharged assembled batteries and charges them to a specified voltage. The system is comprised of over 10,000 independent channels or individual charging stations. A charging channel is a physical location to place a battery, establish an electrical connection through grippers, charge the battery via a power source, and measure the resulting voltage and amperage via an electrical metering system. The Nittetsu-Elex Formation System consists of a robotic loading/unloading unit, a power source, fixturing/grippers, and a metering system. The robotic loading/unloading unit is a robotic elevator that picks up plastic totes which contain pre-loaded batteries. The robotic elevator moves the plastic tote to a designated charging station and moves the plastic tote containing the batteries to an unloading area upon completion of charging the batteries. There are multiple power sources to charge the batteries. The power source is fed from outside utility electric power. The power coming from the outside utility is converted to a usable voltage and channeled to the batteries through a series of relays and connections. The fixturing/grippers establish the electrical connection via pneumatic grippers. The metering system is comprised of connections made to the batteries via the pneumatic grippers and voltage meters that feed their outputting data to a PC collection system. Note 4 to Section XVI of the Harmonized Tariff Schedule of the United States (HTSUS) states: “Where a machine (including a combination of machines) consists of individual components intended to contribute together to a clearly defined function by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.” The Nittetsu-Elex Formation System consists of a robotic loading/unloading unit, a power source, fixturing/grippers, and a metering system, which all contribute to charging lithium-ion batteries. As such, it meets the meaning of Note 4 to Section XVI and the heading appropriate to the function of charging batteries is heading 8504, specifically as a static converter. The applicable subheading for the Nittetsu-Elex Formation System will be 8504.40.9550, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical transformers, static converters (for example rectifiers) and inductors; parts thereof: Static Converters: Other: Rectifiers and rectifying apparatus: Other.” The rate of duty will be 1.5 percent ad valorem. 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 on World Wide Web at http://www.usitc.gov/tata/hts/. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Linda M. Hackett at (646) 733-3015. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division