The tariff classification of a battery module from South Korea or China

N336711 December 6, 2023 CLA-2-85:OT:RR:NC:N1:103 CATEGORY: Classification TARIFF NO.: 8507.60.0020; 9903.88.15 Jeongwon Seo SK On Co. Ltd. 51, Jong-ro, Jongno-guSeoul 03161South Korea RE:  The tariff classification of a battery module from South Korea or China Dear Mr. Seo: In your letter dated November 22, 2023, you requested a tariff classification ruling. The merchandise under consideration is identified as a rechargeable Lithium Nickel Cobalt Manganese Battery Module, model number MS58770001A, which will be used in an energy storage system to accumulate and supply electricity. The main components of the battery module include a battery management system, printed circuit board assembly, 132 battery cells, busbars, fuses, and other electrical devices. The function of the printed circuit board assembly is to monitor the battery cells, while the function of the battery management system is to monitor the state of the battery module. The components are enclosed in a rectangular housing assembly that will measure approximately 1408.8 millimeters in length, 642.8 millimeters in width, 246 millimeters in height, and weigh 390 kilograms. Each battery module has a nominal voltage of 80.74 VDC, a nominal capacity of 721.2 Ah, and a nominal energy capacity of 58.22 kWh. In your submission, you suggest the subject battery module is classified under subheading 8507.60, Harmonized Tariff Schedule of the United States ("HTSUS"). We agree. The applicable subheading for the Lithium Nickel Cobalt Manganese Battery Module, model number MS58770001A, will be 8507.60.0020, HTSUS, which provides for “Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof: Lithium-ion batteries: Other.” The rate of duty will be 3.4 percent ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8507.60.0020, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8507.60.0020, 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, 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/remedies/301-certain-products-china respectively. 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/current. 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 paul.huang@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division