The U.S. Customs & Border Protection (CBP) published a Notice that would revoke the Agency’s previous rulings on lithium ion cells in favor of classifying cells in the U.S. harmonized tariff schedule (HTS) applicable to batteries. Until 2018, the CBP’s tariff classification position on cells and batteries was of little practical importance because there was no difference in the duties applicable to imports under any of the applicable codes. However, the CBP’s stance took on heightened importance beginning in 2018, when the first Trump Administration imposed additional tariffs of 25% on Chinese lithium ion battery parts while imposing lower additional duties of 7.5% on Chinese lithium ion batteries.
CBP’s ruling revocations generally become effective 60 days after publication of the final revocation Notice. However, consistent with its general practice regarding ruling revocations, CBP has not identified a specific date for final adoption of its new proposal. Rather, the timeline will likely depend on the number and scope of comments received.