NCS/ARS/CL/10222

You have applied for the tariff classification of a Lithium Assembly Production Line and Equipment. They include Forklift trucks (SFT-ASSEMBLY), Towed vehicle (TV-ASSEMBLY), Computer with a switch (G08030004), Ironing machines and extruders, Assembly lines (ASSEMBLY-LINE-001), Test equipment Ageing Machine (AGE-100A60V-4CH), (AGE-200A60V-4CH), and Battery Management System Testing Machine (BMSTEST-001).

PRODUCT ANALYSIS
According to the supporting documents you provided, the items to be set up in the Lithium Assembly Production Line and Equipment have individual functions necessary for the assembling of lithium batteries as stated below:

Assembly line: A continuous conveyor table for material assembling.

Test Equipment Ageing Machine: Charge Discharge equipment for battery charging. 

Battery Management System (BMS) Testing Machine: For checking the functionality of the BMS

Ironing Machines & Extruders: For binding and strapping lithium-ion battery cells.

Computer with switch: For data processing on the assembly line.

The forklifts and Towed Vehicles are for the transportation of the battery materials from one location to the other within the factory. 

TARIFF CLASSIFICATION
The General Interpretative Rules (1) of the Harmonized System Nomenclature states inter alia, ‘for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes’. Note 4 to section XVI provides that, ‘Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function’.

On this basis the Assembly line, Test equipment Ageing Machine, BMS testing machine, ironing machine and extruders and Computer with Switch which work together for the assembly of lithium battery will be classified as functional units within the scope of Note 4 to Section XVI.

However, the Forklifts and Towed Vehicle serve only in an auxiliary capacity and will be classified in their individual headings.

Accordingly, the tariff classification based on your application will be effected as follows: 

1. Lithium Battery Production Line which consists of (Test equipment Ageing Machine, BMS Testing Machine, Ironing machine & Extruders and Computer with Switch) is effectively classified under HS Code 8479.89.00.00 - ‘Machines and mechanical appliances having individual functions, not specified or included elsewhere in this Chapter - -Other’ at 5% Rate of Duty and 0% VAT, 
2. The Towed Vehicle is classified under HS Code 8428.90.00.00 - Other lifting, handling, loading or unloading machinery (for example, lifts, escalators, conveyors, teleferics) - Other machinery at 5% Rate of Duty and 0% VAT. 
3. The Forklift is effectively classified under HS Code 8427.90.00.00 - ‘Fork-lift trucks; other works trucks fitted with lifting or handling equipment - Other trucks’ at 5% Rate of Duty and 0% VAT in the ECOWAS CET 2022 - 2027.

LEGAL FRAMEWORK AND JUSTIFICATION

GIR 1 & 6