HQ 954867: Lithium Batteries; Rechargeable Storage Batteries; Heading 8506; EN 85.07; PC 851623; PC 886290, modified

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 954867

                        December 21, 1993

CLA-2 CO:R:C:M 954867 RFA

CATEGORY:  Classification

TARIFF NO.: 8507.80.00

Ms. Gendy Allbrook, M/S 36IE 
Apple Computer, Inc.
20525 Mariani Avenue
Cupertino, CA  95014 

RE:  Lithium Batteries; Rechargeable Storage Batteries; Heading
     8506; EN 85.07; PC 851623; PC 886290, modified

Dear Ms. Allbrook:

     In letters dated June 15 and June 29, 1993, to the Regional
Commissioner of Customs in New York, you requested
reconsideration of PC 886290, dated May 28, 1993, as to the
tariff classification of lithium batteries under the Harmonized
Tariff Schedule of the United States (HTSUS).  Your letters were
referred to this office for a response.

FACTS:

     In PC 851623, dated May 16, 1990, issued to you by Customs
in San Francisco, lithium batteries (model # 630-6546) were
classified under subheading 8507.80.00, HTSUS, as storage
batteries.  In PC 886290, also issued to you by Customs in San
Francisco, the same lithium batteries were classified under
subheading 8506.19.00, HTSUS, as other primary batteries.  

     According to the information provided, the subject lithium
batteries, measuring 2 cm x 0.4 cm, are used in the Apple
notebook personal computers.  The lithium batteries use a lithium
aluminum alloy which is considerably safer than pure lithium as
the negative electrode.  As a result of using lithium aluminum
alloy, the batteries are readily and efficiently rechargeable
storage batteries which store electricity and supply it when
required.  The cycle of charging and discharging current in the
lithium batteries can be repeated for the life of the
accumulator.

 ISSUE:

     Are the subject lithium batteries classifiable as storage
batteries or as primary cells under the HTSUS?

LAW AND ANALYSIS:

     Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order.  GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relative section or chapter notes.

     The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Cooperation
Council's official interpretation of the HTSUS.  While not
legally binding, the ENs provide a commentary on the scope of
each heading of the HTSUS and are generally indicative of the
proper interpretation of these headings.  EN 85.07, page 1343,
states:

          Electric accumulators (storage batteries) are used
     to store electricity and supply it when required.  A
     direct current is passed through the accumulator
     producing certain chemical changes (charging); when the
     terminals of the accumulator are subsequently connected
     to an external circuit these chemical changes reverse
     and produce a direct current in the external circuit
     (discharging).  This cycle of operations, charging and
     discharging, can be repeated for the life of the
     accumulator.

     In your letters, you indicate that the subject lithium
batteries contains a chemical composition which enables the
batteries to be recharged.  The subject batteries are electric
accumulators or storage batteries because the cycle of charging
and discharging current can be repeated for the life of the
accumulator.  We find that the lithium batteries (model # 630-
6546) are classifiable under subheading 8507.80.00, HTSUS as
other storage batteries.  Classification of the lithium batteries
under heading 8506, HTSUS, as primary batteries is therefore
precluded.

     Based upon the above analysis, PC 886290 is modified as to
the classification of the lithium batteries only.  

HOLDING:

     The lithium batteries are classifiable under subheading
8507.80.00, HTSUS, which provides for other storage batteries. 
The general, column one rate of duty is 5.1 percent ad valorem.  
 EFFECT ON OTHER RULINGS:

     PC 886290, dated May 28, 1993, no longer reflects the
position of Customs Service and is modified, in regards to the
classification of the lithium batteries, pursuant to section
177.9(d) of the Customs Regulations [19 CFR 177.9(d)].

                              Sincerely,



                              John Durant, Director
                              Commercial Rulings Division


cc:  District Director, San Francisco