What determines whether lithium batteries are classified as 'contained in equipment' or 'packed with equipment'?

• A. The battery is installed in or shipped with the equipment or shipped separately with the equipment.
• B. The watt-hour rating of the battery.
• C. The presence of a cargo aircraft only label.
• D. The supplier's preference for packaging.

Answer: (A)

The way lithium batteries are classified depends on how they relate to the equipment being shipped. If the battery is part of the device itself—either installed in the equipment, or shipped with the equipment, or shipped separately with the equipment—it's treated as contained in the equipment. This means the shipment’s classification follows the device, not the battery as a separate item.

This distinction matters because packaging, labeling, and handling rules differ between contained-in-equipment and other categories. The deciding factor isn’t the battery’s watt-hour rating, a label, or a supplier’s preference, but whether the battery is part of the equipment’s setup or included with the equipment during transport. For example, a laptop with its battery installed is contained in the equipment; if a spare battery is shipped in the same overall shipment with the laptop but not installed, it’s treated under the same contained-in-equipment category as long as it’s accompanying the equipment.