Kumpan Electric Inc.
1250, rue Boucher
Marieville, QC J3M 1C1
Date of issuance of ruling:
This is in response to a request submitted on your behalf by Customs Trade Management W2C for an advance ruling on the tariff classification of Electric Scooter Lithium Iron Phosphate (LiFePO4) Battery, Model #PBI-48-18. This product is manufactured by/exported from e-Bility GmbH, Remagen, Germany.
According to the documentation provided, the product is a rechargeable battery that uses lithium ferrophosphate (LiFePO4) as a cathode material (negative electrode) in a lithium-ion system. It has a voltage of 48V with a capacity of 18Ah/864Wh and is used exclusively with electric powered scooters classified under subheading 8711.90.
Analysis and Justification
The term “lithium-ion” in heading 85.07 refers to the operation principle of an electric accumulator where, in such accumulators, lithium ions move from the negative electrode to the positive electrode when discharging and back when charging. The lithium iron phosphate battery at issue utilizes this principle.
The lithium iron phosphate (LiFePO4) battery, Model #PBI-48-18 is used in the Kumpan Electric electric scooters, which are classified in subheading 8711.90. Consequently, the battery is not eligible for classification in 8507.60.10.00, as that classification number is for batteries “For use as the primary source of electrical power for electrically-powered vehicles of subheading 8703.90”. Therefore, the Lithium Iron Phosphate battery is classified in 8507.60.90.00.
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.
The Lithium Iron Phosphate (LiFePO4) Battery, Model #PBI-48-18, a rechargeable electric accumulator designed to be the primary energy source of power for an electric scooter classified in subheading 8711.90, is classified under 8507.60.90.00, in accordance with General Interpretative Rules 1 and 6.
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.
Manager, Tariff Policy Unit 'B'
Trade Policy Division
- Date modified: