Tariff Classification Advance Ruling
Lithium polymer batteries

Applicant

Crowin Senchuk
Hobby Alley Inc
12451 – 97th Street
Edmonton, AB T5G 1Z6

Date of issuance of ruling: April 23, 2015

This is in response to a request submitted on your behalf by Mike Neville from Russell A Farrow Ltd., for an advance ruling on the tariff classification of lithium polymer batteries.  This product is manufactured in China.

TRS Number: 270224
Classification Number: 8507.60.90.00
Effective Date: April 23, 2015

Product Description

The products of this advance ruling are lithium polymer batteries also known as "power cells."  They are used to power electric toys, typically remote control cars, vehicles and aircrafts.  They consist of multiple cells of electric accumulators which are wired in series or parallel and fitted with an external connector which is specific to the appropriate toy to which it is designed.  These cells are held together by plastic housings on each end and bound with thermoplastic or contained in a hard plastic shell.  There are various sizes and capacities depending on use.

Analysis and Justification

Heading 85.07 provides for electric accumulators, including separators therefor, whether or not rectangular (including square). The Explanatory Notes to heading 85.07 states "Accumulators containing one or more cells and the circuitry to interconnect the cells amongst themselves, often referred to as "battery packs", are covered by this heading, whether or not they include any ancillary components which contribute to the accumulator's function of storing and supplying energy, or protect it from damage, such as electrical connectors, temperature control devices (e.g., thermistors), circuit protection devices, and protective housings. They are classified in this heading even if they are designed for use with a specific device.

The lithium polymer batteries meet the terms of heading 85.07.

In regards to the CITT decision put forward that the batteries should be classified under 9503, both types of batteries in issue are not the same as the batteries that were described in AP-2002-116 nor do they contain printed circuit boards or form a part (complete unit) of the housing of the remote control car, as the batteries described in AP-99-082.  As such, neither AP-99-082 and AP-2002-116 merit consideration with regards to the tariff classification of the goods in issue.

The Section Notes to Section XVI dictate that even if an article is determined to be a part of a machine of Chapter 84 or 85, for the purposes of tariff classification, if it is being imported on its own (without the machine) and there is a heading that provides for the good elsewhere in the Tariff, it is to be classified under its own respective heading and not as a part of a machine.

Decision

Section 10 of the Customs Tariff directs that classification of imported goods shall be determined in accordance with the General Rules for the Interpretation of the Harmonized System.  Section 11 of the Customs Tariff states that in interpreting the headings and subheadings, regard shall be had to the World Customs Organization's (WCO) Explanatory Notes to the Harmonized Commodity Description and Coding System.

General Interpretative Rule 1 (GIR 1) directs that titles of Sections, Chapters and sub-Chapters are provided for ease of reference only.  For legal purposes, classification shall be determined according to the terms of the heading and any relative Section and Chapter Notes.  Similarly, General Interpretative Rule 6 (GIR 6) directs that classification shall be determined according to the terms of those subheadings and any related Subheading Notes.

In accordance with GIR 1 and 6, the lithium polymer batteries are appropriately classified under 8507.60.90.00.

Legislative/Administrative References

This ruling has been issued under paragraph 43.1(1)(c) of the Customs Act and will be honoured by the CBSA for future importations of the goods specified, provided the material facts and circumstances remain as originally presented; all conditions in the ruling have been met; the ruling has not been modified, revoked, revised, or cancelled; and the Customs Tariff legislation has not changed.  Should there be a change in the material facts or circumstances pertaining to the goods, you must notify the CBSA as soon as possible.  You may request that the advance ruling be modified or revoked as of the date of the change.

Importers should quote the advance ruling number at the time of importation in either the description field of the B3 entry document or on the Canada Customs Invoice.  Exporters or producers should quote the advance ruling number on the Certificate of Origin or commercial invoice accompanying the goods.

Should you disagree with this advance ruling, you may file a dispute notice under subsection 60(2) of the Customs Act within 90 days of the date of issuance.  Please see the procedures outlined in Appendix C of the CBSA's Memorandum D11-11-3, Advance Rulings for Tariff Classification.

This advance ruling is considered 'reason to believe' for the purposes of section 32.2 of the Customs Act and the CBSA's Administrative Monetary Penalty System, described in Memorandum D22-1-1.

All Memoranda referenced in this letter may be accessed on the CBSA website.

Consent to the Public Release of the Advance Ruling

As per your consent statement, we will release this advance ruling to the public, in both official languages, in accordance with the procedures described in Memorandum D11-11-3. The ruling will be published on the CBSA website in 30 days.

CBSA Contact

Mark Grant
Manager, Tariff Policy Unit 'B'
Trade Policy Division
Headquarters, Ottawa

File Number

-2015-003014

Date modified: