The tariff classification of lithium-ion batteries from China

N339124 April 12, 2024 CLA-2-85:OT:RR:NC:N1:103 CATEGORY: Classification TARIFF NO.: 8507.60.0020; 9817.00.96 Jim Sides Totex Manufacturing, Inc. 3050 Lomita Blvd.Torrance, CA 90505 RE:  The tariff classification of lithium-ion batteries from China Dear Mr. Sides: In your letter dated March 26, 2024, you requested a tariff classification ruling. The first item under consideration is a rechargeable lithium-ion battery, part number U80515-2R01. The battery has a nominal voltage of 14.4 VDC, a capacity of 95.04 watt-hours, and contains eight lithium-ion cells encased in a contoured housing. Affixed to the battery is an electrical connector specific to the Freestyle Comfort portable oxygen concentrator manufactured by Caire Inc. The Freestyle Comfort runs exclusively on battery power and is used in the treatment of diseases such as heart failure, cystic fibrosis, and chronic obstructive pulmonary disease (COPD), a progressive debilitating lung disease. The second item under consideration is a rechargeable lithium-ion battery, part number U80618R01. The battery has a nominal voltage of 14.54 VDC, a capacity of 98.9 watt-hours, and contains eight lithium-ion cells encased in a specially shaped rectangular housing. Extending from the battery is an electrical connector specific to the Eclipse Oxygen System, a portable oxygen concentrator. The Eclipse Oxygen System runs exclusively on battery power and is used in the treatment of diseases such as heart failure, cystic fibrosis, and COPD, a progressive debilitating lung disease. The applicable subheading for the lithium-ion batteries, part numbers U80515-2R01 and U80618R01, will be 8507.60.0020, 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: 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, 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/remedies/301-certain-products-china, respectively. In your submission you request consideration of a secondary classification for the subject batteries under 9817.00.96, HTSUS, which applies to articles and parts of articles specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped. Chapter 98, Subchapter XVII, U.S. Note 4(a), HTSUS, defines the term “blind or other physically or mentally handicapped persons” as including “any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working.” Based on the information you provided, portable oxygen concentrators are intended for use by individuals who suffer from chronic respiratory illnesses and require supplementary oxygen to accomplish their ongoing major life activities. In HQ ruling H301481, dated June 14, 2019, customs determined that a portable oxygen concentrator is designed or adapted for the use and benefit of physically handicapped persons and qualified for duty-free treatment under subheading 9817.00.96, HTSUS. You state that the subject batteries are specially designed to work exclusively with the Freestyle Comfort portable oxygen concentrator and the Eclipse Oxygen System. Accordingly, a secondary classification will apply to the lithium-ion batteries, part numbers U80515-2R01 and U80618R01, under 9817.00.96, HTSUS, which affords free duty treatment aside from any additional duties and/or applicable fees upon importation into the United States. Section XXII, Chapter 99, Subchapter III U.S Note 20(r), HTSUS, states the additional duties imposed by heading 9903.88.15 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under subheadings 9802.00.40, 9802.00.50, and 9802.00.60, and heading 9802.00.80. For subheadings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable subheading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80. 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 paul.huang@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division