H342925

H342925 February 3, 2026 OT:RR:CTF:EMAIN H342925 JER CATEGORY: Classification TARIFF NO.: 8504.40.95; 9903.88.03 Mark S. Baxa Fernia Creek Global Supply Chain Consulting Group 2208 Missouri Blvd., Suite 102 Jefferson City, MS 65109 RE: Request to reconsider NY N340642 (June 26, 2024); Classification of a lithium-ion battery and charger set from China Dear Mr. Baxa: This is regarding your reconsideration request for New York Ruling Letter (“NY”) N340642, on behalf of your client, Chevron North America, submitted on October 4, 2024, in which U.S. Customs and Border Protection (“CBP”) classified a certain lithium-ion battery and battery charger set under heading 8504 of the Harmonized Tariff Schedule of the United States (“HTSUS”). Upon reconsideration, we find the classification of the subject merchandise in NY N340642 to be correct. For the reasons set forth below, we hereby affirm NY N340642. FACTS: The facts of NY N340642 are as follows: The merchandise under consideration is identified as the 20 Volt – 4.0Ah Rechargeable Lithium- Ion Battery Pack and Battery Charger Set, Model Number CB5196B-11, which consists of a retail package containing one lithium-ion battery and one battery charger. The battery pack is described as a plastic case containing lithium-ion batteries, a stored power gauge, and is said to be used with power tools such as drills and saws. The charger is described as a plastic charging base having a charging indicator and fault monitoring circuitry. The charger functions to charge the battery pack, which is said to only supply power to the battery and cannot be used to provide power to other electrical machinery or apparatus. ISSUE: Whether the subject battery pack and charger set is appropriately classified under heading 8504, HTSUS, or heading 8507, HTSUS. LAW AND ANALYSIS: Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (ARI). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings and any relative section or chapter notes.” If the goods cannot be classified solely using GRI 1, and the headings and legal notes do not otherwise require, GRIs 2 through 6 may be applied in order. GRI 3 provides: When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. The HTSUS headings at issue are the following: 8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: * * * 8507 Electric storage batteries, including separators therefor, whether or not rectangular (including square); parts thereof: In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs, though not dispositive or legally binding, provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). EN VIII to GRI 3 provides: The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods. In your request for reconsideration, you assert that the essential character of the subject merchandise is provided by the lithium-ion battery pack (“the rechargeable batteries”), because you believe that the set’s “primary function” is to store and supply energy. You contend that “the consumer is not buying this set for the charger, but for the battery to charge multiple kinds 2 of power tools” and because the battery is rechargeable. Similarly, you note that the lithium-ion battery pack constitutes 63% of the set’s total value, while the charger only accounts for 37% of the set’s total value. As such, you argue that the set should be classified in heading 8507, HTSUS, which provides, in relevant part, for, “Electric storage batteries.” In support of your argument, you cite to Headquarters Ruling Letter (“HQ”) 9540611, dated May 13, 1993, HQ H2492992, July 13, 2015 and New York Ruling Letter (“NY”) N3068413, dated November 12, 2019, where CBP classified battery pack retail sets under heading 8507, HTSUS, because the battery provided the essential character of the set at issue under GRI 3(b). You also cite to HQ H298118, dated September 25, 2018, NY N301461, dated November 20, 2018, NY N282039, dated January 11, 2017, however, none of these rulings involved merchandise that was considered to be a set for retail sale and, as such, classification was not determined pursuant to a GRI 3(b) analysis. Instead, the batteries in these rulings were rechargeable power banks or power stations that were neither imported with chargers nor did they require proprietary chargers. Therefore, they are distinguishable and not applicable to the analysis before us. Alternatively, you contend that both the battery and the charger are of equal importance and thus each provide the essential character of the set. Consequently, you argue that the set must be classified pursuant to GRI 3(c) under heading 8507, HTSUS, because it is the heading which occurs last in numerical order of the headings being considered. There is no dispute that the subject merchandise is imported as a set for retail sale being comprised of a lithium-ion battery pack of heading 8507, HTSUS, and a charger of heading 8504, HTSUS. Given the lithium-ion battery pack and charger are prima facie classifiable in 1 The merchandise at issue in HQ 954061 was described as follows: The merchandise consists of the “Statpack-8” battery pack. The pack is comprised of a 12 volt (V) lead-acid battery and a 13V battery charger, both fitted in a nylon carrying case. Connected to the battery is a cigarette lighter output socket. The purpose of the battery pack is to provide a power source. 2 HQ H249299 concerned the revocation of four rulings and the modification of another (NY N233370, dated Oct. 15, 2012). In the four revoked rulings, NY N004618 (Dec. 26, 2006), NY N231545 (Sept. 11, 2012), NY N232914 (Sept. 11, 2012) and NY N233902 (Oct. 16, 2012), the merchandise concerned a set or composite good and was classified in heading 8504, HTSUS. 3 The merchandise at issue in NY N306841 is described as follows: The two items under consideration are the ChargeUp Auto 12V Jump Starter and Power Pack and the ChargeUp Ultra 20K. The ChargeUp Auto 12V Jump Starter and Power Pack, product number CY2075CHAUT, consists of battery terminal alligator clips with an adapter, a wall charger, a micro USB charge cable, a female 12V output adapter, and

Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (ARI). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings and any relative section or chapter notes.” If the goods cannot be classified solely using GRI 1, and the headings and legal notes do not otherwise require, GRIs 2 through 6 may be applied in order. GRI 3 provides: When, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. The HTSUS headings at issue are the following: 8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: * * * 8507 Electric storage batteries, including separators therefor, whether or not rectangular (i