H329722

H329722 June 16, 2025 OT:RR:CTF:EMAIN H329722 MFT CATEGORY: Classification TARIFF NO.: 7309.00.00 Center Director Electronics Center of Excellence & Expertise 301 E. Ocean Blvd., Suite 1400 Long Beach, CA 90802 ATTN: John Raynes, Import Specialist RE: Application for Further Review of Protest No. 5301-22-108091; Classification of Battery Energy Storage System Containers Dear Center Director: This letter relates to the Application for Further Review (AFR) of Protest No. 5301-22- 108091, which was filed on June 6, 2022, on behalf of Ingeteam, Inc. (protestant), concerning the classification and liquidation by U.S. Customs and Border Protection (CBP) of certain battery energy storage system containers under the Harmonized Tariff Schedule of the United States (HTSUS). FACTS: The items under consideration are battery energy storage system (BESS) containers from China. The BESS containers consist of steel containers that are designed to hold batteries after modifications that are made post-importation. Each container measures 13,716 mm in length; 2,438 mm in width; and 3,200 mm in height. The BESS containers have an internal cubic capacity of 79.7 m3 and a maximum permissible payload of 38,760 pounds. The BESS containers are not fitted with mechanical or thermal equipment but have runners as well as several hinged doors along the side walls. The BESS containers have lifting hooks and supports that the protestant claims “facilitate the handling and securing on [a] transporting vehicle.” However, the protestant also submits that because the BESS containers have “no front [or] rear end wall strength” and “no side wall strength,” they are “special container[s]” and are “only intended for ‘special service’” in transportation. “The container floor,” the protestant states, “is not designed to withstand concentrated dynamic loading imposed during cargo operations involving powered industrial trucks and similar devices.” The protestant further notes that “[t]he special design, including the reduced strength of the front and rear end walls, the absence of any side wall strength given the placement of hinged doors throughout and the addition of runners and hooks within the BESS Containers, highlight[s] the limited functionality and use of these items.” On November 17, 2021, the protestant entered the subject merchandise under heading 8609, HTSUS, which provides for “Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport.” The general column one rate of duty for goods classified under that provision is free. On February 25, 2022, CBP liquidated the subject merchandise under heading 7309, HTSUS, which provides for “Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment.” CBP also liquidated the subject merchandise under subheading 9903.88.03, HTSUS, which corresponds with the Section 301 remedy for certain products of China.1 ISSUE: Whether the subject BESS containers are properly classified under heading 7309, HTSUS, which provides for “Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment,” or under heading 8609, HTSUS, which provides for “Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport.” LAW AND ANALYSIS: We first note that the Protest was properly filed as a decision on classification under 19 U.S.C. § 1514(a)(2). This Protest was timely filed, within 180 days of liquidation of the first entry. See 19 U.S.C. § 1514(c)(3). Further review of Protest No. 5301-22-108091 was properly accorded to the protestant pursuant to 19 C.F.R. § 174.24(b) because the protestant alleges that CBP’s liquidation of the subject merchandise involves questions of law or fact which have not been ruled upon by the Commissioner of CBP or his designee or by the Customs courts. Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order. 1 See U.S. Note 20(e) and U.S. Note 20(f) to Subchapter III to Chapter 99, HTSUS (Revision 2 of 2022 to the HTSUS). 2 The HTSUS headings and subheadings under consideration are as follows: 7309 Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment. * * * * * 8609 Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport. Note 1(g) to Section XV, HTSUS, states, in relevant part, that “…articles of Section XVII…” are excluded from classification in Section XV, which covers heading 7309, HTSUS. As such, the threshold matter in this protest is whether the subject BESS containers fall under the scope of heading 8609, HTSUS, which falls under Section XVII. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of t headings.2 he HTSUS and are generally indicative of the proper interpretation of these The ENs to heading 8609, HTSUS, provide in part: These containers (including lift vans) are packing receptacles specially designed and equipped for carriage by one or more modes of transport (e.g., road, rail, water or air). They are equipped with fittings (hooks, rings, castors, supports, etc.) to facilitate handling and securing on the transporting vehicle, aircraft or vessel. They are thus suitable for the “door-to-door” transport of goods without intermediate repacking and, being of robust construction, are intended to be used repeatedly. To be classifiable under heading 8609, HTSUS, GRI 1 requires that the BESS containers be “specially designed and equipped for carriage by one or more modes of transport.” We find that the BESS containers are not “specially designed and equipped for carriage by one or more modes of transport” and thus cannot be classified under heading 8609, HTSUS. In fact, the protestant’s own description of the merchandise illustrates that the BESS containers are not covered by heading 8609, HTSUS. As the protestant states, these “special containers” do not have any front end, rear end, or side wall strength, indicating that they lack the adequate support to be “specially designed and equipped for carriage.” Furthermore, the fact that the floor of the containers cannot “withstand concentrated dynamic loading imposed during cargo operations involving powered industrial trucks and similar devices” provides additional evidence that the containers are not designed for carriage. The BESS containers may have lifting hooks and supports to aid in transporting the goods, but as the protestant argues, these items have “limited functionality and use” given the weak wall strength. 2 See Treasury Decision (TD) 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). 3 Moreover, although not dispositive, the ENs to heading 8609, HTSUS, advise against classification under that heading. The ENs posi

We first note that the Protest was properly filed as a decision on classification under 19 U.S.C. § 1514(a)(2). This Protest was timely filed, within 180 days of liquidation of the first entry. See 19 U.S.C. § 1514(c)(3). Further review of Protest No. 5301-22-108091 was properly accorded to the protestant pursuant to 19 C.F.R. § 174.24(b) because the protestant alleges that CBP’s liquidation of the subject merchandise involves questions of law or fact which have not been ruled upon by the Commissioner of CBP or his designee or by the Customs courts. Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order. 1 See U.S. Note 20(e) and U.S. Note 20(f) to Subchapter III to Chapter 99, HTSUS (Revision 2 of 2022 to the HTSUS). 2 

 The HTSUS headings and subheadings under consideration are as follows: 7309 Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment. * * * * * 8609 Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport. Note 1(g) to Section XV, HTSUS, states, in relevant part, that “…articles of Section XVII…” are excluded from classification in Section XV, which covers heading 7309, HTSUS. As such, the threshold matter in this protest is whether the subject BESS containers fall under the scope of heading 8609, HTSUS, which falls under Section XVII. The Harmonized Com