Notice of Issuance of Final Determination Concerning Certain Carbon Dioxide Sampling Line Products, 40772-40774 [2014-16424]

Download as PDF 40772 Federal Register / Vol. 79, No. 134 / Monday, July 14, 2014 / Notices State and county Guadalupe ..... Guadalupe ..... Harris ............. Harris ............. Harris ............. Harris ............. Montgomery ... Terrell ............. Location and case No. Chief executive officer of community City of Cibolo The Honorable Lisa M. (13–06–4035P). Jackson, Mayor, City of Cibolo, 200 South Main Street, Cibolo, TX 78108. Unincorporated The Honorable Larry Areas of GuaJones, Guadalupe dalupe County County Judge, 211 (13–06–4035P). West Court Street, Seguin, TX 78155. City of Houston The Honorable Annise D. (13–06–2759P). Parker, Mayor, City of Houston, P.O. Box 1562, Houston, TX 77251. Unincorporated The Honorable Ed M. EmAreas of Harris mett Harris, County County (13– Judge, 1001 Preston 06–2759P). Street, Suite 911, Houston, TX 77002. Unincorporated The Honorable Ed M. EmAreas of Harris mett Harris, County County (13– Judge, 1001 Preston 06–4636P). Street, Suite 911, Houston, TX 77002. Unincorporated The Honorable Ed M. EmAreas of Harris mett Harris, County County (14– Judge, 1001 Preston 06–1079P). Street, Suite 911, Houston, TX 77002. City of Conroe The Honorable Webb K. (13–06–3145P). Melder, Mayor, City of Conroe, P.O. Box 3066, Conroe, TX 77305. Unincorporated The Honorable Santiago Areas of Flores, Terrell County Terrell County Judge, 105 East (13–06–3003P). Hackberry Street, Sanderson, TX 79848. (Catalog of Federal Domestic Assistance No. 97.022, ‘‘Flood Insurance.’’) Dated: June 17, 2014. Roy E. Wright, Deputy Associate Administrator for Mitigation, Department of Homeland Security, Federal Emergency Management Agency. [FR Doc. 2014–16319 Filed 7–11–14; 8:45 am] BILLING CODE 9110–12–P DEPARTMENT OF HOMELAND SECURITY Federal Emergency Management Agency [Internal Agency Docket No. FEMA–4175– DR; Docket ID FEMA–2014–0003] Mississippi; Amendment No. 4 to Notice of a Major Disaster Declaration Federal Emergency Management Agency, DHS. ACTION: Notice. mstockstill on DSK4VPTVN1PROD with NOTICES AGENCY: This notice amends the notice of a major disaster declaration for State of Mississippi (FEMA–4175–DR), dated May 12, 2014, and related determinations. DATES: Effective Date: June 27, 2014. SUMMARY: VerDate Mar<15>2010 19:25 Jul 11, 2014 Jkt 232001 Community map repository Online location of letter of map revision Effective date of modification 200 South Main Street, Cibolo, TX 78108. https://www.msc.fema.gov/lomc September 3, 2014. 480267 Guadalupe County, 2605 North Guadalupe Street, Seguin, TX 78155. https://www.msc.fema.gov/lomc September 3, 2014. 480266 Public Works and Engineering Department, 611 Walker Street, Houston, TX 77002. https://www.msc.fema.gov/lomc September 15, 2014. 480296 Harris County, 10555 Northwest Freeway, Houston, TX 77092. https://www.msc.fema.gov/lomc September 15, 2014. 480287 Harris County, 10555 Northwest Freeway, Houston, TX 77092. https://www.msc.fema.gov/lomc August 21, 2014 480287 Harris County, 10555 Northwest Freeway, Houston, TX 77092. https://www.msc.fema.gov/lomc September 15, 2014. 480287 City Hall, 505 West Davis Street, Conroe, TX 77301. https://www.msc.fema.gov/lomc August 21, 2014 480484 Terrell County Courthouse, County Clerk’s Office, 105 East Hackberry Street, Sanderson, TX 79848. https://www.msc.fema.gov/lomc September 26, 2014. 480619 FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and Recovery, Federal Emergency Management Agency, 500 C Street SW., Washington, DC 20472, (202) 646–2833. SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency (FEMA) hereby gives notice that pursuant to the authority vested in the Administrator, under Executive Order 12148, as amended, Terry L. Quarles, of FEMA is appointed to act as the Federal Coordinating Officer for this disaster. This action terminates the appointment of Mark H. Landry as Federal Coordinating Officer for this disaster. The following Catalog of Federal Domestic Assistance Numbers (CFDA) are to be used for reporting and drawing funds: 97.030, Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling; 97.033, Disaster Legal Services; 97.034, Disaster Unemployment Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048, Disaster Housing Assistance to Individuals and Households In Presidentially Declared Disaster Areas; 97.049, Presidentially Declared Disaster Assistance— Disaster Housing Operations for Individuals and Households; 97.050, Presidentially Declared Disaster Assistance to Individuals and Households—Other Needs; 97.036, Disaster Grants—Public Assistance PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 Community No. (Presidentially Declared Disasters); 97.039, Hazard Mitigation Grant. W. Craig Fugate, Administrator, Federal Emergency Management Agency. [FR Doc. 2014–16321 Filed 7–11–14; 8:45 am] BILLING CODE 9111–23–P DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection Notice of Issuance of Final Determination Concerning Certain Carbon Dioxide Sampling Line Products U.S. Customs and Border Protection, Department of Homeland Security. ACTION: Notice of final determination. AGENCY: This document provides notice that U.S. Customs and Border Protection (‘‘CBP’’) has issued a final determination concerning the country of origin of certain carbon dioxide sampling line products known as ‘‘FilterLine’’ and ‘‘CapnoLine.’’ Based upon the facts presented, CBP has concluded that Israel is the country of SUMMARY: E:\FR\FM\14JYN1.SGM 14JYN1 Federal Register / Vol. 79, No. 134 / Monday, July 14, 2014 / Notices origin for purposes of U.S. Government procurement. DATES: The final determination was issued on July 8, 2014. A copy of the final determination is attached. Any party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial review of this final determination within August 13, 2014. FOR FURTHER INFORMATION CONTACT: Grace A. Kim, Valuation and Special Programs Branch, Regulations and Rulings, Office of International Trade (202) 325–7941. SUPPLEMENTARY INFORMATION: Notice is hereby given that on July 8, 2014 pursuant to subpart B of Part 177, U.S. Customs and Border Protection Regulations (19 CFR part 177, subpart B), CBP issued a final determination concerning the country of origin of certain carbon dioxide sampling line products known as ‘‘FilterLine’’ and ‘‘CapnoLine,’’ which may be offered to the U.S. Government under an undesignated government procurement contract. This final determination, HQ H248851, was issued under procedures set forth at 19 CFR part 177, subpart B, which implements Title III of the Trade Agreements Act of 1979, as amended (19 U.S.C. 2511–18). In the final determination, CBP concluded that, based upon the facts presented, the assembly operations performed in China, using Israeli components, do not substantially transform the sampling line components. Therefore, the country of origin is Israel for purposes of U.S. Government procurement. Section 177.29, CBP Regulations (19 CFR 177.29), provides that a notice of final determination shall be published in the Federal Register within 60 days of the date the final determination is issued. Section 177.30, CBP Regulations (19 CFR 177.30), provides that any party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial review of a final determination within 30 days of publication of such determination in the Federal Register. Dated: July 8, 2014. Sandra L. Bell, Executive Director, Regulations and Rulings, Office of International Trade. Attachment mstockstill on DSK4VPTVN1PROD with NOTICES HQ H248851 July 8, 2014 OT:RR:CTF:VS H248851 GaK CATEGORY: Origin Michelle L. Butler Hyman, Phelps & McNamara, P.C. 700 13th Street NW., Suite 1200 Washington, DC 20005. VerDate Mar<15>2010 19:25 Jul 11, 2014 Jkt 232001 RE: U.S. Government Procurement; Country of Origin of FilterLine Set and CapnoLine; Substantial Transformation Dear Ms. Butler: This is in response to your letter, dated November 6, 2013, requesting a final determination on behalf of Oridion Medical 1987 Ltd. (‘‘Oridion’’), pursuant to subpart B of part 177 of the U.S. Customs and Border Protection (‘‘CBP’’) Regulations (19 CFR part 177). Under these regulations, which implement Title III of the Trade Agreements Act of 1979 (‘‘TAA’’), as amended (19 U.S.C. § 2511 et seq.), CBP issues country of origin advisory rulings and final determinations as to whether an article is or would be a product of a designated country or instrumentality for the purposes of granting waivers of certain ‘‘Buy American’’ restrictions in U.S. law or practice for products offered for sale to the U.S. Government. Your letter was forwarded to this office by the National Commodity Specialist Division on December 12, 2013. By letters dated February 19, May 15, and May 28, 2014, additional explanation was provided for our consideration in connection with the request for a final determination. This final determination concerns the country of origin of Oridion’s carbon dioxide sampling lines, specifically the FilterLine Set Adult/Pediatric (‘‘FilterLine’’) and the Smart CapnoLine H Plus O2 (‘‘CapnoLine’’). We note that as a foreign manufacturer of the products at issue, Oridion is a party-atinterest within the meaning of 19 CFR § 177.22(d)(1) and is entitled to request this final determination. Photographs were submitted with your request. FACTS The products at issue are referred to as carbon dioxide (‘‘CO2’’) sampling lines: medical devices designed to carry a patient’s breath to a monitor. Each sampling line includes tubing, a means of connecting to the patient, referred to as the patient interface, and a means of connection to a monitor. These sampling lines are classified into two product families: (1) The Filterline set sampling lines for intubated patients, designed to connect to ventilator tubing carrying oxygenated air from a ventilator to a patient through an airway adaptor, and (2) the Capnoline sets for non-intubated patients, which provide a nasal or oral/ nasal ‘‘interface’’ for the patient. PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 40773 FilterLine The components of the FilterLine include: (1) CO2 tube (manufactured in Israel and cut to length in China), (2) Universal Airway Adapter (manufactured in China), and (3) Quick Seal Connector (itself assembled in China using an Israeli origin Quick Seal Filter Housing, Chinese origin Hollofiber and an end connector called the Quick Seal LD Orange Golden). The Hollofiber is a fiber membrane filter that prevents liquids, particles, or bacteria from reaching the monitor which can contaminate the breath sample. The Hollofiber is placed inside the Quick Seal Filter Housing, which is connected to the Quick Seal LD Orange Golden. The Universal Airway Adapter is connected to the CO2 tube and the Quick Seal Connector is adhered to the other end of the CO2 tube. The CO2 tube delivers the patient’s breath to the monitor, which you claim is the essential function of the finished product. The tube is of a patented design. In order to prevent blockage from mucus and blood, the tube must be able to handle moisture in a very precise manner. In addition, the tube’s diameter cannot be too narrow, which would increase the likelihood of blockage, or too wide, which would create a delay in measurements. The FilterLine is assembled in China. It is then sent to Israel for quality control, final inspections, and packaging. CapnoLine The Components of the CapnoLine Include (1) CO2 tube (manufactured in Israel and cut to length in China), (2) Cannula, which is connected to the patient (manufactured in Israel), (3) Quick Seal Connector (itself assembled in China using an Israeli origin Quick Seal Filter Housing, Chinese origin Hollofiber and an end connector called the Quick Seal LD Yellow Golden), (4) O2 tube (manufactured in Israel and cut to length in Israel), (5) Miscellaneous tubing (manufactured in Israel), (6) Nafion dryer, used to reduce the humidity of the breath (manufactured in the U.S.), (9) connector/slides to hold the O2 and CO2 tubing in place (manufactured in China). In China, the cannula is connected to the Nafion dryer on the right side and to the tubing on the left side. The other end of the Nafion dryer is attached to E:\FR\FM\14JYN1.SGM 14JYN1 40774 Federal Register / Vol. 79, No. 134 / Monday, July 14, 2014 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES the CO2 tube. The CO2 tube and the miscellaneous tubing from the Cannula are held together with a connector/slide and connected to the O2 tube. Then, the Quick Seal Connector, is attached to the end of the CO2 tube. As with the FilterLine, the CO2 tube and in this case the O2 tube deliver the patient’s breath to the monitor, which you claim is the essential function of the finished product. The finished CapnoLine is sent to Israel for quality control and packaging. LAW AND ANALYSIS: Pursuant to Subpart B of Part 177, 19 CFR § 177.21 et seq., which implements Title III of the Trade Agreements Act of 1979, as amended (19 U.S.C. § 2511 et seq.), CBP issues country of origin advisory rulings and final determinations as to whether an article is or would be a product of a designated country or instrumentality for the purposes of granting waivers of certain ‘‘Buy American’’ restrictions in U.S. law or practice for products offered for sale to the U.S. Government. Under the rule of origin set forth under 19 U.S.C. § 2518(4)(B): An article is a product of a country or instrumentality only if (i) it is wholly the growth, product, or manufacture of that country or instrumentality, or (ii) in the case of an article which consists in whole or in part of materials from another country or instrumentality, it has been substantially transformed into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was so transformed. See also 19 CFR § 177.22(a). In order to determine whether a substantial transformation occurs when components of various origins are assembled into completed products, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases. No one factor is decisive, the key issue is the extent of operations performed and whether the parts lose their identity and become an integral part of the new article. Belcrest Linens v. United States, 573 F.Supp. 1149 (Ct. Int’l Trade 1983), aff’d, 741 F.2d 1368 (Fed. Cir. 1984). Assembly operations that are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. See C.S.D. 80–111, C.S.D. 85–25, C.S.D. 89–110, C.S.D. 89– VerDate Mar<15>2010 19:25 Jul 11, 2014 Jkt 232001 118, C.S.D. 90–51, and C.S.D. 90–97. Additionally factors such as the resources expended on product design and development, extent and nature of post-assembly inspection and testing procedures, and the degree of skill required during the actual manufacturing process may be relevant when determining whether a substantial transformation has occurred. In HQ 560613, dated October 28, 1997, CBP held that U.S.-origin components were not substantially transformed in Ireland when made into a pregnancy test kit. The test kit was made from the following U.S. components: top and bottom housing, paper, antibody, wick, laminate, and nitrocellulose. In addition, a splash guard from Ireland and rayon from Germany was used. The critical components of the pregnancy test kit were found to be the three U.S.-origin antibodies. CBP recognized that the U.S.-origin components imparted the essential character of the pregnancy test kit and that the simple assembly of placing the antibodies onto the rayon membrane, and subsequent assembly of the strips into a plastic housing did not result in a substantial transformation. FilterLine You believe that the country of origin of the FilterLine is Israel because it is the country in which the CO2 tube was manufactured. We agree that the CO2 tube performs the essential function of the finished product, which is the delivery of breath for monitoring the CO2 level in a patient’s breath. The assembly process in China consists of cutting to length and attaching the CO2 tube with four other components from Israel and China. Under the described assembly process, the CO2 tube is attached to other components that facilitate its function and it does not lose its individual identity. Consistent with HQ 560613, we find that the Israelorigin CO2 tube is not substantially transformed by the cutting to length and assembly operations performed in China to produce the FilterLine. We conclude, based upon these specific facts, that the country of origin of the FilterLine for purposes of U.S. Government procurement is Israel. CapnoLine You believe that the country of origin of the CapnoLine is Israel because it is the country in which the CO2 tube and O2 tube were manufactured. As with the FilterLine, the CO2 tube and O2 tubes in the CapnoLine perform the essential function, which is the delivery of breath for monitoring the CO2 level in a patient’s breath while delivering O2 to PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 the patient. The assembly process in China consists of cutting to length and connecting the CO2 tube to several different components from Israel, U.S. and China by inserting components and adhering them with a solvent. The CO2 tube is not physically altered, aside from being cut to length. Based on the information before us, and consistent with HQ 560613, we find that the Israelorigin CO2 tube and the O2 tube impart the essential character of the CapnoLine and is not substantially transformed by the assembly operations performed in China. We note that the Cannula and Quick Seal Filter Housing are also of Israeli origin. Therefore, based upon these specific facts, the country of origin of the CapnoLine for purposes of U.S. Government procurement is Israel. HOLDING The FilterLine and the CapnoLine are not substantially transformed when they are assembled in China with Israeli and U.S. components. As a result, the country of origin of Oridion’s sampling lines, specifically the FilterLine and the CapnoLine, for purposes of U.S. Government procurement is Israel. Notice of this final determination will be given in the Federal Register, as required by 19 CFR § 177.29. Any partyat-interest other than the party which requested this final determination may request, pursuant to 19 CFR § 177.31, that CBP reexamine the matter anew and issue a new final determination. Pursuant to 19 CFR § 177.30, any partyat-interest may, within 30 days of publication of the Federal Register Notice referenced above, seek judicial review of this final determination before the Court of International Trade. Sincerely, Sandra L. Bell, Executive Director, Regulations and Rulings, Office of International Trade. [FR Doc. 2014–16424 Filed 7–11–14; 8:45 am] BILLING CODE 9111–14–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5752–N–56] 30-Day Notice of Proposed Information Collection: Record of Employee Interview Office of the Chief Information Officer, HUD. ACTION: Notice. AGENCY: HUD has submitted the proposed information collection requirement described below to the SUMMARY: E:\FR\FM\14JYN1.SGM 14JYN1

Agencies

[Federal Register Volume 79, Number 134 (Monday, July 14, 2014)]
[Notices]
[Pages 40772-40774]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16424]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Certain 
Carbon Dioxide Sampling Line Products

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: Notice of final determination.

-----------------------------------------------------------------------

SUMMARY: This document provides notice that U.S. Customs and Border 
Protection (``CBP'') has issued a final determination concerning the 
country of origin of certain carbon dioxide sampling line products 
known as ``FilterLine'' and ``CapnoLine.'' Based upon the facts 
presented, CBP has concluded that Israel is the country of

[[Page 40773]]

origin for purposes of U.S. Government procurement.

DATES: The final determination was issued on July 8, 2014. A copy of 
the final determination is attached. Any party-at-interest, as defined 
in 19 CFR 177.22(d), may seek judicial review of this final 
determination within August 13, 2014.

FOR FURTHER INFORMATION CONTACT: Grace A. Kim, Valuation and Special 
Programs Branch, Regulations and Rulings, Office of International Trade 
(202) 325-7941.

SUPPLEMENTARY INFORMATION: Notice is hereby given that on July 8, 2014 
pursuant to subpart B of Part 177, U.S. Customs and Border Protection 
Regulations (19 CFR part 177, subpart B), CBP issued a final 
determination concerning the country of origin of certain carbon 
dioxide sampling line products known as ``FilterLine'' and 
``CapnoLine,'' which may be offered to the U.S. Government under an 
undesignated government procurement contract. This final determination, 
HQ H248851, was issued under procedures set forth at 19 CFR part 177, 
subpart B, which implements Title III of the Trade Agreements Act of 
1979, as amended (19 U.S.C. 2511-18). In the final determination, CBP 
concluded that, based upon the facts presented, the assembly operations 
performed in China, using Israeli components, do not substantially 
transform the sampling line components. Therefore, the country of 
origin is Israel for purposes of U.S. Government procurement.
    Section 177.29, CBP Regulations (19 CFR 177.29), provides that a 
notice of final determination shall be published in the Federal 
Register within 60 days of the date the final determination is issued. 
Section 177.30, CBP Regulations (19 CFR 177.30), provides that any 
party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial 
review of a final determination within 30 days of publication of such 
determination in the Federal Register.

    Dated: July 8, 2014.
Sandra L. Bell,
Executive Director, Regulations and Rulings, Office of International 
Trade.

Attachment

HQ H248851
July 8, 2014
OT:RR:CTF:VS H248851 GaK
CATEGORY: Origin
Michelle L. Butler
Hyman, Phelps & McNamara, P.C.
700 13th Street NW., Suite 1200
Washington, DC 20005.
RE: U.S. Government Procurement; Country of Origin of FilterLine Set 
and CapnoLine; Substantial Transformation

Dear Ms. Butler:

    This is in response to your letter, dated November 6, 2013, 
requesting a final determination on behalf of Oridion Medical 1987 Ltd. 
(``Oridion''), pursuant to subpart B of part 177 of the U.S. Customs 
and Border Protection (``CBP'') Regulations (19 CFR part 177). Under 
these regulations, which implement Title III of the Trade Agreements 
Act of 1979 (``TAA''), as amended (19 U.S.C. Sec.  2511 et seq.), CBP 
issues country of origin advisory rulings and final determinations as 
to whether an article is or would be a product of a designated country 
or instrumentality for the purposes of granting waivers of certain 
``Buy American'' restrictions in U.S. law or practice for products 
offered for sale to the U.S. Government. Your letter was forwarded to 
this office by the National Commodity Specialist Division on December 
12, 2013. By letters dated February 19, May 15, and May 28, 2014, 
additional explanation was provided for our consideration in connection 
with the request for a final determination.
    This final determination concerns the country of origin of 
Oridion's carbon dioxide sampling lines, specifically the FilterLine 
Set Adult/Pediatric (``FilterLine'') and the Smart CapnoLine H Plus 
O2 (``CapnoLine''). We note that as a foreign manufacturer 
of the products at issue, Oridion is a party-at-interest within the 
meaning of 19 CFR Sec.  177.22(d)(1) and is entitled to request this 
final determination. Photographs were submitted with your request.
FACTS
    The products at issue are referred to as carbon dioxide 
(``CO2'') sampling lines: medical devices designed to carry 
a patient's breath to a monitor. Each sampling line includes tubing, a 
means of connecting to the patient, referred to as the patient 
interface, and a means of connection to a monitor.
    These sampling lines are classified into two product families: (1) 
The Filterline set sampling lines for intubated patients, designed to 
connect to ventilator tubing carrying oxygenated air from a ventilator 
to a patient through an airway adaptor, and (2) the Capnoline sets for 
non-intubated patients, which provide a nasal or oral/nasal 
``interface'' for the patient.

FilterLine

The components of the FilterLine include:
    (1) CO2 tube (manufactured in Israel and cut to length 
in China),
    (2) Universal Airway Adapter (manufactured in China), and
    (3) Quick Seal Connector (itself assembled in China using an 
Israeli origin Quick Seal Filter Housing, Chinese origin Hollofiber and 
an end connector called the Quick Seal LD Orange Golden).
    The Hollofiber is a fiber membrane filter that prevents liquids, 
particles, or bacteria from reaching the monitor which can contaminate 
the breath sample. The Hollofiber is placed inside the Quick Seal 
Filter Housing, which is connected to the Quick Seal LD Orange Golden. 
The Universal Airway Adapter is connected to the CO2 tube 
and the Quick Seal Connector is adhered to the other end of the 
CO2 tube.
    The CO2 tube delivers the patient's breath to the 
monitor, which you claim is the essential function of the finished 
product. The tube is of a patented design. In order to prevent blockage 
from mucus and blood, the tube must be able to handle moisture in a 
very precise manner. In addition, the tube's diameter cannot be too 
narrow, which would increase the likelihood of blockage, or too wide, 
which would create a delay in measurements. The FilterLine is assembled 
in China. It is then sent to Israel for quality control, final 
inspections, and packaging.

CapnoLine

The Components of the CapnoLine Include
    (1) CO2 tube (manufactured in Israel and cut to length 
in China),
    (2) Cannula, which is connected to the patient (manufactured in 
Israel),
    (3) Quick Seal Connector (itself assembled in China using an 
Israeli origin Quick Seal Filter Housing, Chinese origin Hollofiber and 
an end connector called the Quick Seal LD Yellow Golden),
    (4) O2 tube (manufactured in Israel and cut to length in 
Israel),
    (5) Miscellaneous tubing (manufactured in Israel),
    (6) Nafion dryer, used to reduce the humidity of the breath 
(manufactured in the U.S.),
    (9) connector/slides to hold the O2 and CO2 
tubing in place (manufactured in China).
    In China, the cannula is connected to the Nafion dryer on the right 
side and to the tubing on the left side. The other end of the Nafion 
dryer is attached to

[[Page 40774]]

the CO2 tube. The CO2 tube and the miscellaneous 
tubing from the Cannula are held together with a connector/slide and 
connected to the O2 tube. Then, the Quick Seal Connector, is 
attached to the end of the CO2 tube.
    As with the FilterLine, the CO2 tube and in this case 
the O2 tube deliver the patient's breath to the monitor, 
which you claim is the essential function of the finished product. The 
finished CapnoLine is sent to Israel for quality control and packaging.
LAW AND ANALYSIS:
    Pursuant to Subpart B of Part 177, 19 CFR Sec.  177.21 et seq., 
which implements Title III of the Trade Agreements Act of 1979, as 
amended (19 U.S.C. Sec.  2511 et seq.), CBP issues country of origin 
advisory rulings and final determinations as to whether an article is 
or would be a product of a designated country or instrumentality for 
the purposes of granting waivers of certain ``Buy American'' 
restrictions in U.S. law or practice for products offered for sale to 
the U.S. Government.
    Under the rule of origin set forth under 19 U.S.C. Sec.  
2518(4)(B):
    An article is a product of a country or instrumentality only if (i) 
it is wholly the growth, product, or manufacture of that country or 
instrumentality, or (ii) in the case of an article which consists in 
whole or in part of materials from another country or instrumentality, 
it has been substantially transformed into a new and different article 
of commerce with a name, character, or use distinct from that of the 
article or articles from which it was so transformed.
    See also 19 CFR Sec.  177.22(a).
    In order to determine whether a substantial transformation occurs 
when components of various origins are assembled into completed 
products, CBP considers the totality of the circumstances and makes 
such determinations on a case-by-case basis. The country of origin of 
the item's components, extent of the processing that occurs within a 
country, and whether such processing renders a product with a new name, 
character, and use are primary considerations in such cases. No one 
factor is decisive, the key issue is the extent of operations performed 
and whether the parts lose their identity and become an integral part 
of the new article. Belcrest Linens v. United States, 573 F.Supp. 1149 
(Ct. Int'l Trade 1983), aff'd, 741 F.2d 1368 (Fed. Cir. 1984). Assembly 
operations that are minimal or simple, as opposed to complex or 
meaningful, will generally not result in a substantial transformation. 
See C.S.D. 80-111, C.S.D. 85-25, C.S.D. 89-110, C.S.D. 89-118, C.S.D. 
90-51, and C.S.D. 90-97. Additionally factors such as the resources 
expended on product design and development, extent and nature of post-
assembly inspection and testing procedures, and the degree of skill 
required during the actual manufacturing process may be relevant when 
determining whether a substantial transformation has occurred.
    In HQ 560613, dated October 28, 1997, CBP held that U.S.-origin 
components were not substantially transformed in Ireland when made into 
a pregnancy test kit. The test kit was made from the following U.S. 
components: top and bottom housing, paper, antibody, wick, laminate, 
and nitrocellulose. In addition, a splash guard from Ireland and rayon 
from Germany was used. The critical components of the pregnancy test 
kit were found to be the three U.S.-origin antibodies. CBP recognized 
that the U.S.-origin components imparted the essential character of the 
pregnancy test kit and that the simple assembly of placing the 
antibodies onto the rayon membrane, and subsequent assembly of the 
strips into a plastic housing did not result in a substantial 
transformation.

FilterLine

    You believe that the country of origin of the FilterLine is Israel 
because it is the country in which the CO2 tube was 
manufactured. We agree that the CO2 tube performs the 
essential function of the finished product, which is the delivery of 
breath for monitoring the CO2 level in a patient's breath. 
The assembly process in China consists of cutting to length and 
attaching the CO2 tube with four other components from 
Israel and China. Under the described assembly process, the 
CO2 tube is attached to other components that facilitate its 
function and it does not lose its individual identity. Consistent with 
HQ 560613, we find that the Israel-origin CO2 tube is not 
substantially transformed by the cutting to length and assembly 
operations performed in China to produce the FilterLine. We conclude, 
based upon these specific facts, that the country of origin of the 
FilterLine for purposes of U.S. Government procurement is Israel.

CapnoLine

    You believe that the country of origin of the CapnoLine is Israel 
because it is the country in which the CO2 tube and 
O2 tube were manufactured. As with the FilterLine, the 
CO2 tube and O2 tubes in the CapnoLine perform 
the essential function, which is the delivery of breath for monitoring 
the CO2 level in a patient's breath while delivering 
O2 to the patient. The assembly process in China consists of 
cutting to length and connecting the CO2 tube to several 
different components from Israel, U.S. and China by inserting 
components and adhering them with a solvent. The CO2 tube is 
not physically altered, aside from being cut to length. Based on the 
information before us, and consistent with HQ 560613, we find that the 
Israel-origin CO2 tube and the O2 tube impart the 
essential character of the CapnoLine and is not substantially 
transformed by the assembly operations performed in China. We note that 
the Cannula and Quick Seal Filter Housing are also of Israeli origin. 
Therefore, based upon these specific facts, the country of origin of 
the CapnoLine for purposes of U.S. Government procurement is Israel.
HOLDING
    The FilterLine and the CapnoLine are not substantially transformed 
when they are assembled in China with Israeli and U.S. components. As a 
result, the country of origin of Oridion's sampling lines, specifically 
the FilterLine and the CapnoLine, for purposes of U.S. Government 
procurement is Israel.
    Notice of this final determination will be given in the Federal 
Register, as required by 19 CFR Sec.  177.29. Any party-at-interest 
other than the party which requested this final determination may 
request, pursuant to 19 CFR Sec.  177.31, that CBP reexamine the matter 
anew and issue a new final determination. Pursuant to 19 CFR Sec.  
177.30, any party-at-interest may, within 30 days of publication of the 
Federal Register Notice referenced above, seek judicial review of this 
final determination before the Court of International Trade.

Sincerely,

Sandra L. Bell,
Executive Director,
Regulations and Rulings, Office of International Trade.

[FR Doc. 2014-16424 Filed 7-11-14; 8:45 am]
BILLING CODE 9111-14-P
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