The country of origin of a battery pack

N347193 April 9, 2025 OT:RR:NC:N1:103 CATEGORY: Origin Rick Van Arnam Barnes, Richardson & Colburn, LLP 100 Williams Street, Suite 305 New York, NY 10038 RE: The country of origin of a battery pack Dear Mr. Van Arnam: In your letter dated March 28, 2025, you requested a country of origin ruling on behalf of your client, Hilti, Inc. The merchandise under consideration is identified as the Hilti B 22-170 Nuron lithium-ion battery pack. It is described as a 22 VDC battery pack that is used to power a variety of Hilti power tools, including cordless rotary hammers, jig saws, and impact drivers. The subject battery pack consists of cylindrical battery cells inside a protective housing with electrical contacts that align with connectors on the power tool. The battery pack will be assembled in Poland using three different scenarios. All three scenarios will follow identical operational assembly steps but use battery cells of different origins. The first scenario will use Chinese battery cells, the second scenario will use Malaysian battery cells, and the third scenario will use South Korean battery cells. Additional components are sourced from Austria, China, Germany, and the United States, with the most notable component being a Chinese-sourced printed circuit board assembly that functions as a cell monitoring system (CMS). The remaining components include various fasteners, wires, clips, plugs, springs, labels, and packaging material. The assembly process occurs over ten discrete steps in a production line. In the first step, battery cells and cell holders are unloaded onto a conveyor belt at the entrance of the production line machinery. Using an automated process, the battery cells are tested and sorted according to their voltages. In the next step, the sorted battery cells are pressed into the cell holders to create a core pack. The cell holder will also function as the base of the finished battery pack. A worker proceeds to place a contact plate onto each core pack and an automatic resistance welding machine welds the contact plate to the cells. Separately, a cell management system subassembly is prepared, which involves welding a fuse and stranded wires to the CMS. In the following steps, the cell management system subassembly is laser welded onto the core pack, then tested to verify that it functions correctly with the connected cells. If successful, a worker installs the springs, attaches the upper shell, presses in the release switch, and secures the housing’s side shells using screws. The final steps are described as laser engraving the battery pack and greasing the contacts. When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (HQ) H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff?d, 989 F.2d 1201 (Fed. Cir. 1993). Based on the manufacturing scenarios presented, the assembly operations that occur in Poland do not result in a substantial transformation. There is no change in the name, use, or character of the battery cells after the assembly process occurs. U.S. Customs and Border Protection (CBP) has previously held that the assembly of battery cells into battery packs does not result in a substantial transformation of the battery cells because the essential identity of the cells does not change simply by being placed together in a plastic housing. See Headquarters Ruling Letters HQ 563045, dated August 9, 2004, and HQ 734393, dated March 20, 1992. Here, the function of the battery cells is to store and provide power, and the function of the battery cells in the finished battery pack is likewise to store and provide power. In view of these facts, and based on the totality of the circumstances, the country of origin of the subject battery pack is China, Malaysia, or South Korea, depending on the origin of the battery cell. 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 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