Notice of Issuance of Final Determination Concerning Digital Color Multifunctional Systems, 9014-9017 [E7-3482]
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Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices
opportunity for public comment on
proposed collections of information, the
Substance Abuse and Mental Health
Services Administration (SAMHSA)
will publish periodic summaries of
proposed projects. To request more
information on the proposed projects or
to obtain a copy of the information
collection plans, call the SAMHSA
Reports Clearance Officer on (240) 276–
1243.
Comments are invited on: (a) Whether
the proposed collections of information
are necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the proposed collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Proposed Project: Underage Drinking
Prevention: Town Hall Meeting
Feedback Form—New
The Substance Abuse and Mental
Health Services Administration’s
(SAMHSA), Center for Substance Abuse
Prevention (CSAP) is proposing the
project the 2008 Underage Drinking
Prevention: Town Hall Meetings (THM)
Initiative. In 2006, approximately 1,510
THMs were held in 1,262 communitybased organizations (CBO) throughout
the Nation. Each of the THMs strived to
increase the understanding and
awareness of underage alcohol use and
its consequences by encouraging
individuals, families, and communities
to address the problem. The local THMs
gave communities the opportunity to
come together to learn more about the
new research on underage alcohol use
and its impact on both the individuals
and the community. They also
discussed how their communities can
best prevent underage alcohol use.
To help guide decision making and
planning for future THMs, SAMHSA/
CSAP plans to conduct a process
assessment of the THMs to be held in
2008. CBOs who agree to participate in
this initiative will be asked to provide
feedback about the implementation and
results of the THMs in their community.
This information collection is being
implemented under the authority of
Section 501(d) (4) of the Public Health
Service Act (42 U.S.C. 290aa).
The contractor conducting this
information collection will distribute a
brief feedback form to all participating
organizations. The form includes 14
items about the THM, including where,
when, and who conducted the meeting,
number of attendees, format of meeting,
participants in the presentations,
actions planned, media coverage of the
meeting, composition of the audience,
responses of the attendees, materials
provided in the town hall meetings, and
indications of increased awareness and
increased involvement. In addition to
distributing the feedback form, the
contractor will be responsible for
collecting, compiling, analyzing, and
reporting on information requested
through this feedback form.
The feedback form will be completed
by an estimated 1,200 employees from
CBOs. The paper form will take an
average of 10 minutes (.167 hours) to
review instructions, complete the form,
and mail it in a self-addressed, stamped
envelope. This burden estimate is based
on comments from several potential
respondents who reviewed the form and
provided comments on how long it
would take them to complete it.
Form name
Number of
respondents
Responses
per
respondent
Hours per
response
Total hour
burden
Feedback Form ................................................................................................
1,200
1
.167
120
Send comments to Summer King,
SAMHSA Reports Clearance Officer,
Room 7–1044, One Choke Cherry Road,
Rockville, MD 20857. Written comments
should be received within 60 days of
this notice.
Dated: February 22, 2007.
Elaine Parry,
Acting Director, Office of Program Services.
[FR Doc. E7–3468 Filed 2–27–07; 8:45 am]
BILLING CODE 4162–20–P
DEPARTMENT OF HOMELAND
SECURITY
sroberts on PROD1PC70 with NOTICES
Bureau of Customs and Border
Protection
Notice of Issuance of Final
Determination Concerning Digital
Color Multifunctional Systems
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: Notice of final determination.
AGENCY:
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SUMMARY: This document provides
notice that the Bureau of Customs and
Border Protection (CBP) has issued a
final determination concerning the
country of origin of certain digital color
multifunctional systems to be offered to
the United States Government under an
undesignated government procurement
contract. Based on the facts presented,
the final determination found that Japan
is the country of origin of the subject
digital color multifunctional systems for
purposes of U.S. government
procurement.
The final determination was
issued on February 8, 2007. 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 30 days
of February 28, 2007.
FOR FURTHER INFORMATION CONTACT:
Daniel Cornette, Valuation and Special
Programs Branch, Office of International
Trade; telephone (202) 572–8731.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that on February 8, 2007,
DATES:
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pursuant to subpart B of part 177,
Customs Regulations (19 CFR part 177,
subpart B), CBP issued a final
determination concerning the country of
origin of certain digital color
multifunctional systems to be offered to
the United States Government under an
undesignated government procurement
contract. The CBP ruling number is HQ
563491. This final determination was
issued at the request of Sharp
Electronics Corporation 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).
The final determination concluded
that, based upon the facts presented, the
assembly in Japan of Japanese and
foreign components to create the subject
digital color multifunctional systems
substantially transformed the foreign
components into a product of Japan.
Section 177.29, CBP Regulations (19
CFR 177.29), provides that notice of
final determinations shall be published
in the Federal Register within 60 days
of the date the final determination is
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issued. Section 177.30, CBP Regulations
(19 CFR 177.30), states that any partyat-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: February 21, 2007.
Sandra L. Bell,
Executive Director, Office of Regulations and
Rulings, Office of International Trade.
HQ 563491
February 8, 2007.
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MAR–2–05 RR:CTF:VS 563491 DCC
Category: Marking.
Ms. Fusae Nara, Pillsbury Winthrop
Shaw Pittman, 1540 Broadway,
New York, NY 10036–4039.
Reference: U.S. Government
Procurement; Final Determination;
country of origin of digital color
multifunctional systems; substantial
transformation; 19 CFR Part 177.
Dear Ms. Nara: This is in response to
your letter dated April 24, 2006,
requesting a final determination on
behalf of Sharp Electronics Corporation
(‘‘Sharp’’) pursuant to subpart B of Part
177, Customs and Border Protection
(‘‘CBP’’) Regulations (19 CFR 177.21 et
seq.). Under these regulations, which
implement Title III of the Trade
Agreements Act of 1979, as amended
(codified at 19 U.S.C. 2411 et seq.), CBP
issues country of origin advisory rulings
and final determinations on whether an
article is or would be a product of a
designated foreign country or
instrumentality for the purpose of
granting waivers of certain ‘‘Buy
American’’ restrictions in U.S. law or
practice for products offered for sale to
the U.S. Government.
This final determination concerns the
country of origin of certain digital color
multifunctional systems that Sharp may
sell to the U.S. Government. We note
that Sharp is a party-at-interest within
the meaning of 19 CFR 177.22(d)(1) and
is entitled to request this final
determination.
Facts:
The products subject to this ruling are
digital color multifunctional systems
manufactured by Sharp, Model Nos.
MX–2300NJ and MX–2700NJ
(hereinafter the ‘‘J–Models’’), imported
from Japan for the purpose of sales to
U.S. government agencies. The J-Models
have photocopying, printing, faxing,
and scanning functions. The primary
difference between the two models is
the speed at which they are able to
process images. The MX–2300NJ prints
23 pages per minute compared to 27
pages per minute for the MX–2700NJ.
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Sharp’s parent company (‘‘Sharp
Japan’’) developed the J-Model in Japan,
and performs the entire engineering,
development, design, and art work
processes for both models in Japan.
According to your submission, the
production process may be broken
down into four stages. In the first stage,
the following key subassemblies are
assembled: laser scanner unit (‘‘LSU’’)
(assembled in China); first transfer unit
subassembly (assembly begins in China
and is finished in Japan); process unit
subassembly (assembled in China); and
controller unit subassembly (assembled
in Japan). In addition, four minor
subassemblies are assembled in China:
first transfer cleaner unit; cabinet
subassembly; auto document feeder
subassembly, and fuser unit. The
finished systems have one unit each of
five different kinds of applicationspecific integrated circuits (‘‘ASIC’’), all
of which are made in Japan.
The second stage is the final physical
assembly of the J-Models. In the third
stage, Sharp Japan makes adjustments
and conducts testing of the J-Models. In
the fourth stage, the J-Models undergo
final inspection and packaging for
shipment to the United States.
1. Subassembly Preparation
(a) Laser Scanner Unit Subassembly
The LSU writes the image data of the
documents or graphics onto the drum
unit. While the components comprising
the LSU are assembled in China, the
charge coupled device (‘‘CCD’’) and the
ASIC, which are mounted on the cabinet
as well as the laser diodes (‘‘LDs’’), are
made in Japan. Color images are created
by exposing the laser lights of the LDs
to four color-specific drums (black,
cyan, magenta, and yellow). The ASIC is
designed to control the exposure of the
laser lights following the scanned data
with speed and precision.
(b) First Transfer Unit Subassembly
The first transfer unit is where the
four color images, which are created by
the four color drums, are transformed
into an integrated color image that is
then transferred onto paper. The image
is transferred to the paper by a wide belt
known as a transfer belt. The transfer
belt rotates around the first transfer unit
generating print images, while a cleaner
cartridge continuously cleans the
surface of the belt. The unfinished first
transfer unit is manufactured in China
and completed in Japan where the
transfer belt is manufactured and
installed.
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(c) Process Unit Subassembly
The process unit is a combination of
the drum, developer, and toner
cartridges. Because the J-Models are
color multifunctional systems, they
require four sets of the process units,
which includes a drum, developer and
toner for each of the four colors, i.e.,
black, yellow, cyan, and magenta. The
developer and toner materials, as well
as the drums, are produced in Japan.
The process unit subassembly is
assembled by attaching each of the four
drums to the four drum cartridges. The
toner and developer cartridges are filled
with toner and developer and installed
on the subassembly for testing purposes.
(d) Control Box Unit Subassembly
The control box unit is the ‘‘brain’’ of
the J-Model machines. The control
printed wiring board (‘‘PWB’’) and the
mother PWB are populated in China
with diodes, resisters, and condensers.
In Japan, Sharp forms a harness for the
hard disk (either from Malaysia or
China) that is then fastened to the
harness board of the control box unit
with screws. The hard disk is affixed to
the harness and then to the PWB.
Cushioning is installed around the hard
disk and flash memory chips (i.e., the
boot flash ROM, and the program flash
ROM) are inserted into designated slots
on the control box.
2. Final Assembly
The final Japanese assembly process
begins with the cabinet that houses the
middle section of the finished product.
The cabinet is fabricated in China and
contains certain components, such as
Japanese ASICs, that are installed in
China. The major subassemblies
described above are assembled into the
cabinet as follows:
a. The side panel of the cabinet is
opened and the LSU subassembly is
inserted and fastened to the cabinet
with screws.
b. The front panel of the cabinet is
opened and the first transfer unit
assembly is inserted into a slot and
fastened to the cabinet with screws.
c. Four drum cartridges, four
developer cartridges, and four toner
cartridges—one for each of the four
colors (i.e., black, yellow, cyan, and
magenta)—are installed.
d. A small panel on the back of the
cabinet is removed and the control box
unit is inserted into a slot in the cabinet
assembly and secured with screws.
e. The automatic document feeder is
fastened to the hinge on top of the
cabinet assembly with screws.
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3. Testing
In Japan, extensive tests are
conducted and adjustments are made to
all functions, including scanning, image
placement, color and darkness.
a. Adjustments. The following
adjustments are made to each unit:
• Confirm data input circuitry by
connecting the printer/scanner unit to a
computer based on the destination of
the finished unit.
• Inspect the card reader by running
a test card with a simulation program.
• Apply high voltage to the printer
unit and adjust it to be within the
permitted range for each color.
• Measure the bias voltage to confirm
that the voltage used to remove excess
toner is proper.
• Confirm the rotation of the toner
motor.
• Confirm the functioning of the hard
disk and the hard disk output on the
LCD display panel of the operation unit.
• Measure the distance between the
drum ‘‘sleep’’ position and the toner
cartridge magnet roller to ensure even
print quality.
• Adjust the amount of developer by
connecting the developer unit for each
color.
• Attach the toner cartridge and
adjust the darkness sensor.
b. Test Copying. After the assembly
adjustments are complete, the unit
undergoes alignments by running test
copies to confirm the following
functions: Paper placement; print
darkness; optical images; print
placement; color balance for printer
engine and print output; color pattern
chart; manual copy; print and image
output; two-sided copying; feeder
functions; intermediate tone process
control for various printing modes (i.e.,
letter, photograph, and combination);
print output from an attached computer;
USB cable connection; and memory.
After testing is complete, each unit is
reset to the default position to prepare
for final inspection and packaging for
shipment.
4. Final Inspection and Packaging
The finished assembly is prepared for
shipment by removing the drum
cartridges, toner cartridges, and
developer cartridges used for testing
purposes and by cleaning the color
toner pipes, printing mechanism,
scanner surface, and exterior. New drum
and developer cartridges are inserted
and secured to the unit. An operator
conducts a final inspection that
includes testing the power supply, the
LCD display panel, sensors, and proper
operation of the unit. After final
inspection, the finished unit is packaged
for shipping.
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Issue:
Whether the multifunctional systems
manufactured by Sharp (Model Nos.
MX–2300NJ and MX–2700NJ) are
products of Japan for purposes of U.S.
Government procurement.
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 on 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). A
substantial transformation ‘‘results in an
article having a name, character, or use
differing from that of the imported
article.’’ Uniroyal, Inc. v. United States,
542 F. Supp. 1026, 1029 (Ct. Int’l Trade
1982), aff’d, 702 F.2d 1022 (Fed. Cir.
1983).
In determining whether the
combining of parts or materials
constitutes a substantial transformation,
the determinative issue is the extent of
operations performed and whether the
parts lose their identity and become an
integral part of the new article. See
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. In C.S.D. 85–25, 19 Cust. Bull.
844 (1985), CBP held that for purposes
of the Generalized System of
Preferences (‘‘GSP’’), the assembly of a
large number of fabricated components
onto a printed circuit board in a process
involving a considerable amount of time
and skill resulted in a substantial
transformation. In that case, in excess of
50 discrete fabricated components (such
as resistors, capacitors, diodes,
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integrated circuits, sockets, and
connectors) were assembled.
CBP has held in a number of cases
involving similar merchandise that
complex and meaningful assembly
operations involving a large number of
components will generally result in a
substantial transformation. In
Headquarters Ruling Letter (‘‘HRL’’)
562936, 69 FR 13577 (March 23, 2004),
we addressed the country of origin of
certain multifunction printers
assembled in Japan of various Japaneseand Chinese-origin parts. In that ruling,
we determined that the multifunction
printer was a product of Japan based on
the fact that a ‘‘substantial portion of the
printer’s individual components and
subassemblies [were] of Japanese
origin.’’ Furthermore, we noted that
some of the Japanese components and
subassemblies were essential parts of
the finished article, and other Japanese
parts, including the reader scanner unit
and the control panel unit, were critical
to the production of the printer. Finally,
HRL 562936 noted that the Japanese
processing operations were complex
and meaningful, that required ‘‘the
assembly of a large number of
components, and render[ed] a new and
distinct article of commerce that
possesse[d] a new name, character, and
use.’’
In HRL 562495, dated November 13,
2002, color ink jet printers were
assembled in Singapore of components
imported from a number of other
countries. In that ruling, we determined
that the imported components were
substantially transformed during
assembly such that the country of origin
of the assembled ink jet printers was
Singapore. In support of this
determination, we considered the
processing occurring within Singapore
to be complex and extensive, requiring
the integration of 13 major
subassemblies to the chassis, and that
the resulting product was a new and
distinct article of commerce that
possessed a new name, character, and
use.
In HRL 561734, dated March 22, 2001,
published in the Federal Register on
March 29, 2001 (66 FR 17222), we held
that certain multifunctional machines
(consisting of printer, copier, and fax
machines) assembled in Japan were a
product of that country for purposes of
U.S. Government procurement. The
multifunctional machines were
assembled from 227 parts (108 parts
obtained from Japan, 92 from Thailand,
3 from China, and 24 from other
countries) and eight subassemblies, each
of which was assembled in Japan. One
of the subassemblies produced in Japan,
referred to as the scanner unit, was
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described as the ‘‘heart of the machine.’’
In finding that the imported parts were
substantially transformed in Japan, we
stated that the individual parts and
components lost their separate identities
when they became part of the
multifunctional machine. See also HRL
561568, dated March 22, 2001,
published in the Federal Register on
March 29, 2001 (66 FR 17222).
By contrast, assembly operations that
are minimal or simple will generally not
result in a substantial transformation.
For example, in HRL 734050, dated June
17, 1991, we determined that Japaneseorigin components were not
substantially transformed in China
when assembled in that country to form
finished printers. The printers consisted
of five main components identified as
the ‘‘head,’’ ‘‘mechanism,’’ ‘‘circuit,’’
‘‘power source,’’ and ‘‘outer case.’’ The
circuit, power source and outer case
units were entirely assembled or
molded in Japan. The head and
mechanical units were made in Japan
but exported to China in an
unassembled state. All five units were
exported to China where the head and
mechanical units were assembled with
screws and screwdrivers. Thereafter, the
head, mechanism, circuit, and power
source units were mounted onto the
outer case with screws. In holding that
the country of origin for marking
purposes was Japan, CBP recognized
that the vast majority of the printer’s
parts were of Japanese origin and that
the operations performed in China were
relatively simple assembly operations.
In order to determine whether a
substantial transformation occurs when
components of various origins are
assembled to form multifunctional
machines, CBP considers the totality of
the circumstances and makes such
decisions on a case-by-case basis. The
primary considerations in such cases are
the country of origin of the machine’s
components and subassemblies, extent
of processing that occurs within a given
country, and whether such processing
renders a product with a new name,
character, and use. In addition, facts
such as resources expended on product
design and development, extent and
nature of post-assembly inspection
procedures, and worker skills required
during the actual manufacturing process
will be considered when analyzing
whether a substantial transformation
has occurred; however, no single factor
is determinative.
Based on the facts and law of this
case, we find that the assembled JModel multifunctional systems are
products of Japan for purposes of U.S.
Government procurement. Although
several of the subassemblies are
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assembled in China, we find that
enough of the Japanese subassemblies
and individual components serve major
functions and are high in value, in
particular, the transfer belt, control box
unit, application-specific integrated
circuits, charged couple device, and
laser diodes. The process unit
subassembly is also crucial in the
performance of the multifunctional
systems. While it is assembled in China,
its key components, the developer and
toner materials, and drums are
produced in Japan.
Furthermore, it is significant that
although the PWB is of Chinese origin,
the firmware for the control box unit
subassembly is developed in Japan. This
firmware programming controls the
print engine, readout mechanism,
processes images for the copier, printer,
fax, and scanner, and controls the
operation panel display. We further note
that the testing and adjustments
performed in Japan are technical and
complex. Finally, the assembly
operations that occur in Japan are
sufficiently complex and meaningful.
Through the product assembly and
testing and adjustment operations, the
individual components and
subassemblies of Japanese and foreignorigin are subsumed into a new and
distinct article of commerce that has a
new name, character, and use.
Therefore, we find that the country of
origin of the J-Models digital color
multifunctional systems for purposes of
U.S. Government procurement is Japan.
Holding:
Based on the facts of this case, we
find that the processing in Japan
substantially transforms the nonJapanese components. Therefore, the
country of origin of the Sharp digital
color multifunctional systems (Model
Nos. MX–2300NJ and MX–2700NJ) is
Japan for purposes of U.S. Government
procurement.
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 that
requested this final determination may
request, pursuant to 19 CFR 177.31, that
CBP reexamine the matter anew and
issue a new final determination. Any
party-at-interest may, within 30 days
after publication of the Federal Register
notice reference above, seek judicial
review of this final determination before
the U.S. Court of International Trade.
Sincerely,
Sandra L. Bell,
Executive Director, Office of Regulations and
Rulings, Office of International Trade.
[FR Doc. E7–3482 Filed 2–27–07; 8:45 am]
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DEPARTMENT OF HOMELAND
SECURITY
U.S. Citizenship and Immigration
Services
[CIS No. 2394–06; DHS Docket No. USCIS–
2006–0051]
RIN 1615–ZA40
Special FOIA Processing Track for
Individuals Appearing Before an
Immigration Judge
U.S. Citizenship and
Immigration Services, DHS.
ACTION: Notice.
AGENCY:
SUMMARY: U.S. Citizenship and
Immigration Services (USCIS) is
improving its processing of Freedom of
Information Act (FOIA) requests from
the general public by establishing a
third processing track for individuals
appearing before an immigration court.
Currently, a large portion of FOIA
requests are submitted by individuals
who have received a Notice To Appear
for a hearing before an immigration
judge or by such individuals’ attorneys
or representatives. By creating an
additional processing track, USCIS will
be able to provide the public with more
expeditious service and to thereby
improve customer satisfaction.
DATES: This notice is effective March 30,
2007.
FOR FURTHER INFORMATION CONTACT:
Brian J. Welsh, Chief, Freedom of
Information Act and Privacy Act, U.S.
Citizenship and Immigration Services,
Department of Homeland Security, P.O.
Box 648010, Lee’s Summit, Missouri
64064, Phone: 816–350–5785, E-Mail:
uscis.foia@dhs.gov .
SUPPLEMENTARY INFORMATION:
Background:
Under the Freedom of Information
Act, 5 U.S.C. 552 (‘‘FOIA’’), the Privacy
Act, 5 U.S.C. 552a, and the Department
of Homeland Security’s implementing
regulations located at 6 CFR 5.5(b), the
Secretary of Homeland Security may use
two or more processing tracks for
responding to FOIA requests. Currently,
USCIS has two tracks: Track 1 is for less
complex requests that can be processed
in 20 working days or less. Track 2 is
for complex requests that may require
more than 20 working days to process
and that include searching and line-byline review of numerous pages of
information. With this notice, USCIS
will establish a third processing track,
the ‘‘Notice To Appear’’ track, which
will allow for accelerated access to the
Alien-File (A–File) for those individuals
who have been served with a charging
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]]>Agencies
[Federal Register Volume 72, Number 39 (Wednesday, February 28, 2007)]
[Notices]
[Pages 9014-9017]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3482]
=======================================================================
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DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
Notice of Issuance of Final Determination Concerning Digital
Color Multifunctional Systems
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: Notice of final determination.
-----------------------------------------------------------------------
SUMMARY: This document provides notice that the Bureau of Customs and
Border Protection (CBP) has issued a final determination concerning the
country of origin of certain digital color multifunctional systems to
be offered to the United States Government under an undesignated
government procurement contract. Based on the facts presented, the
final determination found that Japan is the country of origin of the
subject digital color multifunctional systems for purposes of U.S.
government procurement.
DATES: The final determination was issued on February 8, 2007. 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 30 days of February 28, 2007.
FOR FURTHER INFORMATION CONTACT: Daniel Cornette, Valuation and Special
Programs Branch, Office of International Trade; telephone (202) 572-
8731.
SUPPLEMENTARY INFORMATION: Notice is hereby given that on February 8,
2007, pursuant to subpart B of part 177, Customs Regulations (19 CFR
part 177, subpart B), CBP issued a final determination concerning the
country of origin of certain digital color multifunctional systems to
be offered to the United States Government under an undesignated
government procurement contract. The CBP ruling number is HQ 563491.
This final determination was issued at the request of Sharp Electronics
Corporation 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).
The final determination concluded that, based upon the facts
presented, the assembly in Japan of Japanese and foreign components to
create the subject digital color multifunctional systems substantially
transformed the foreign components into a product of Japan.
Section 177.29, CBP Regulations (19 CFR 177.29), provides that
notice of final determinations shall be published in the Federal
Register within 60 days of the date the final determination is
[[Page 9015]]
issued. Section 177.30, CBP Regulations (19 CFR 177.30), states 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: February 21, 2007.
Sandra L. Bell,
Executive Director, Office of Regulations and Rulings, Office of
International Trade.
HQ 563491
February 8, 2007.
MAR-2-05 RR:CTF:VS 563491 DCC
Category: Marking.
Ms. Fusae Nara, Pillsbury Winthrop Shaw Pittman, 1540 Broadway, New
York, NY 10036-4039.
Reference: U.S. Government Procurement; Final Determination; country of
origin of digital color multifunctional systems; substantial
transformation; 19 CFR Part 177.
Dear Ms. Nara: This is in response to your letter dated April 24,
2006, requesting a final determination on behalf of Sharp Electronics
Corporation (``Sharp'') pursuant to subpart B of Part 177, Customs and
Border Protection (``CBP'') Regulations (19 CFR 177.21 et seq.). Under
these regulations, which implement Title III of the Trade Agreements
Act of 1979, as amended (codified at 19 U.S.C. 2411 et seq.), CBP
issues country of origin advisory rulings and final determinations on
whether an article is or would be a product of a designated foreign
country or instrumentality for the purpose of granting waivers of
certain ``Buy American'' restrictions in U.S. law or practice for
products offered for sale to the U.S. Government.
This final determination concerns the country of origin of certain
digital color multifunctional systems that Sharp may sell to the U.S.
Government. We note that Sharp is a party-at-interest within the
meaning of 19 CFR 177.22(d)(1) and is entitled to request this final
determination.
Facts:
The products subject to this ruling are digital color
multifunctional systems manufactured by Sharp, Model Nos. MX-2300NJ and
MX-2700NJ (hereinafter the ``J-Models''), imported from Japan for the
purpose of sales to U.S. government agencies. The J-Models have
photocopying, printing, faxing, and scanning functions. The primary
difference between the two models is the speed at which they are able
to process images. The MX-2300NJ prints 23 pages per minute compared to
27 pages per minute for the MX-2700NJ.
Sharp's parent company (``Sharp Japan'') developed the J-Model in
Japan, and performs the entire engineering, development, design, and
art work processes for both models in Japan. According to your
submission, the production process may be broken down into four stages.
In the first stage, the following key subassemblies are assembled:
laser scanner unit (``LSU'') (assembled in China); first transfer unit
subassembly (assembly begins in China and is finished in Japan);
process unit subassembly (assembled in China); and controller unit
subassembly (assembled in Japan). In addition, four minor subassemblies
are assembled in China: first transfer cleaner unit; cabinet
subassembly; auto document feeder subassembly, and fuser unit. The
finished systems have one unit each of five different kinds of
application-specific integrated circuits (``ASIC''), all of which are
made in Japan.
The second stage is the final physical assembly of the J-Models. In
the third stage, Sharp Japan makes adjustments and conducts testing of
the J-Models. In the fourth stage, the J-Models undergo final
inspection and packaging for shipment to the United States.
1. Subassembly Preparation
(a) Laser Scanner Unit Subassembly
The LSU writes the image data of the documents or graphics onto the
drum unit. While the components comprising the LSU are assembled in
China, the charge coupled device (``CCD'') and the ASIC, which are
mounted on the cabinet as well as the laser diodes (``LDs''), are made
in Japan. Color images are created by exposing the laser lights of the
LDs to four color-specific drums (black, cyan, magenta, and yellow).
The ASIC is designed to control the exposure of the laser lights
following the scanned data with speed and precision.
(b) First Transfer Unit Subassembly
The first transfer unit is where the four color images, which are
created by the four color drums, are transformed into an integrated
color image that is then transferred onto paper. The image is
transferred to the paper by a wide belt known as a transfer belt. The
transfer belt rotates around the first transfer unit generating print
images, while a cleaner cartridge continuously cleans the surface of
the belt. The unfinished first transfer unit is manufactured in China
and completed in Japan where the transfer belt is manufactured and
installed.
(c) Process Unit Subassembly
The process unit is a combination of the drum, developer, and toner
cartridges. Because the J-Models are color multifunctional systems,
they require four sets of the process units, which includes a drum,
developer and toner for each of the four colors, i.e., black, yellow,
cyan, and magenta. The developer and toner materials, as well as the
drums, are produced in Japan. The process unit subassembly is assembled
by attaching each of the four drums to the four drum cartridges. The
toner and developer cartridges are filled with toner and developer and
installed on the subassembly for testing purposes.
(d) Control Box Unit Subassembly
The control box unit is the ``brain'' of the J-Model machines. The
control printed wiring board (``PWB'') and the mother PWB are populated
in China with diodes, resisters, and condensers. In Japan, Sharp forms
a harness for the hard disk (either from Malaysia or China) that is
then fastened to the harness board of the control box unit with screws.
The hard disk is affixed to the harness and then to the PWB. Cushioning
is installed around the hard disk and flash memory chips (i.e., the
boot flash ROM, and the program flash ROM) are inserted into designated
slots on the control box.
2. Final Assembly
The final Japanese assembly process begins with the cabinet that
houses the middle section of the finished product. The cabinet is
fabricated in China and contains certain components, such as Japanese
ASICs, that are installed in China. The major subassemblies described
above are assembled into the cabinet as follows:
a. The side panel of the cabinet is opened and the LSU subassembly
is inserted and fastened to the cabinet with screws.
b. The front panel of the cabinet is opened and the first transfer
unit assembly is inserted into a slot and fastened to the cabinet with
screws.
c. Four drum cartridges, four developer cartridges, and four toner
cartridges--one for each of the four colors (i.e., black, yellow, cyan,
and magenta)--are installed.
d. A small panel on the back of the cabinet is removed and the
control box unit is inserted into a slot in the cabinet assembly and
secured with screws.
e. The automatic document feeder is fastened to the hinge on top of
the cabinet assembly with screws.
[[Page 9016]]
3. Testing
In Japan, extensive tests are conducted and adjustments are made to
all functions, including scanning, image placement, color and darkness.
a. Adjustments. The following adjustments are made to each unit:
Confirm data input circuitry by connecting the printer/
scanner unit to a computer based on the destination of the finished
unit.
Inspect the card reader by running a test card with a
simulation program.
Apply high voltage to the printer unit and adjust it to be
within the permitted range for each color.
Measure the bias voltage to confirm that the voltage used
to remove excess toner is proper.
Confirm the rotation of the toner motor.
Confirm the functioning of the hard disk and the hard disk
output on the LCD display panel of the operation unit.
Measure the distance between the drum ``sleep'' position
and the toner cartridge magnet roller to ensure even print quality.
Adjust the amount of developer by connecting the developer
unit for each color.
Attach the toner cartridge and adjust the darkness sensor.
b. Test Copying. After the assembly adjustments are complete, the
unit undergoes alignments by running test copies to confirm the
following functions: Paper placement; print darkness; optical images;
print placement; color balance for printer engine and print output;
color pattern chart; manual copy; print and image output; two-sided
copying; feeder functions; intermediate tone process control for
various printing modes (i.e., letter, photograph, and combination);
print output from an attached computer; USB cable connection; and
memory. After testing is complete, each unit is reset to the default
position to prepare for final inspection and packaging for shipment.
4. Final Inspection and Packaging
The finished assembly is prepared for shipment by removing the drum
cartridges, toner cartridges, and developer cartridges used for testing
purposes and by cleaning the color toner pipes, printing mechanism,
scanner surface, and exterior. New drum and developer cartridges are
inserted and secured to the unit. An operator conducts a final
inspection that includes testing the power supply, the LCD display
panel, sensors, and proper operation of the unit. After final
inspection, the finished unit is packaged for shipping.
Issue:
Whether the multifunctional systems manufactured by Sharp (Model
Nos. MX-2300NJ and MX-2700NJ) are products of Japan for purposes of
U.S. Government procurement.
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 on 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). A substantial transformation ``results
in an article having a name, character, or use differing from that of
the imported article.'' Uniroyal, Inc. v. United States, 542 F. Supp.
1026, 1029 (Ct. Int'l Trade 1982), aff'd, 702 F.2d 1022 (Fed. Cir.
1983).
In determining whether the combining of parts or materials
constitutes a substantial transformation, the determinative issue is
the extent of operations performed and whether the parts lose their
identity and become an integral part of the new article. See 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. In
C.S.D. 85-25, 19 Cust. Bull. 844 (1985), CBP held that for purposes of
the Generalized System of Preferences (``GSP''), the assembly of a
large number of fabricated components onto a printed circuit board in a
process involving a considerable amount of time and skill resulted in a
substantial transformation. In that case, in excess of 50 discrete
fabricated components (such as resistors, capacitors, diodes,
integrated circuits, sockets, and connectors) were assembled.
CBP has held in a number of cases involving similar merchandise
that complex and meaningful assembly operations involving a large
number of components will generally result in a substantial
transformation. In Headquarters Ruling Letter (``HRL'') 562936, 69 FR
13577 (March 23, 2004), we addressed the country of origin of certain
multifunction printers assembled in Japan of various Japanese- and
Chinese-origin parts. In that ruling, we determined that the
multifunction printer was a product of Japan based on the fact that a
``substantial portion of the printer's individual components and
subassemblies [were] of Japanese origin.'' Furthermore, we noted that
some of the Japanese components and subassemblies were essential parts
of the finished article, and other Japanese parts, including the reader
scanner unit and the control panel unit, were critical to the
production of the printer. Finally, HRL 562936 noted that the Japanese
processing operations were complex and meaningful, that required ``the
assembly of a large number of components, and render[ed] a new and
distinct article of commerce that possesse[d] a new name, character,
and use.''
In HRL 562495, dated November 13, 2002, color ink jet printers were
assembled in Singapore of components imported from a number of other
countries. In that ruling, we determined that the imported components
were substantially transformed during assembly such that the country of
origin of the assembled ink jet printers was Singapore. In support of
this determination, we considered the processing occurring within
Singapore to be complex and extensive, requiring the integration of 13
major subassemblies to the chassis, and that the resulting product was
a new and distinct article of commerce that possessed a new name,
character, and use.
In HRL 561734, dated March 22, 2001, published in the Federal
Register on March 29, 2001 (66 FR 17222), we held that certain
multifunctional machines (consisting of printer, copier, and fax
machines) assembled in Japan were a product of that country for
purposes of U.S. Government procurement. The multifunctional machines
were assembled from 227 parts (108 parts obtained from Japan, 92 from
Thailand, 3 from China, and 24 from other countries) and eight
subassemblies, each of which was assembled in Japan. One of the
subassemblies produced in Japan, referred to as the scanner unit, was
[[Page 9017]]
described as the ``heart of the machine.'' In finding that the imported
parts were substantially transformed in Japan, we stated that the
individual parts and components lost their separate identities when
they became part of the multifunctional machine. See also HRL 561568,
dated March 22, 2001, published in the Federal Register on March 29,
2001 (66 FR 17222).
By contrast, assembly operations that are minimal or simple will
generally not result in a substantial transformation. For example, in
HRL 734050, dated June 17, 1991, we determined that Japanese-origin
components were not substantially transformed in China when assembled
in that country to form finished printers. The printers consisted of
five main components identified as the ``head,'' ``mechanism,''
``circuit,'' ``power source,'' and ``outer case.'' The circuit, power
source and outer case units were entirely assembled or molded in Japan.
The head and mechanical units were made in Japan but exported to China
in an unassembled state. All five units were exported to China where
the head and mechanical units were assembled with screws and
screwdrivers. Thereafter, the head, mechanism, circuit, and power
source units were mounted onto the outer case with screws. In holding
that the country of origin for marking purposes was Japan, CBP
recognized that the vast majority of the printer's parts were of
Japanese origin and that the operations performed in China were
relatively simple assembly operations.
In order to determine whether a substantial transformation occurs
when components of various origins are assembled to form
multifunctional machines, CBP considers the totality of the
circumstances and makes such decisions on a case-by-case basis. The
primary considerations in such cases are the country of origin of the
machine's components and subassemblies, extent of processing that
occurs within a given country, and whether such processing renders a
product with a new name, character, and use. In addition, facts such as
resources expended on product design and development, extent and nature
of post-assembly inspection procedures, and worker skills required
during the actual manufacturing process will be considered when
analyzing whether a substantial transformation has occurred; however,
no single factor is determinative.
Based on the facts and law of this case, we find that the assembled
J-Model multifunctional systems are products of Japan for purposes of
U.S. Government procurement. Although several of the subassemblies are
assembled in China, we find that enough of the Japanese subassemblies
and individual components serve major functions and are high in value,
in particular, the transfer belt, control box unit, application-
specific integrated circuits, charged couple device, and laser diodes.
The process unit subassembly is also crucial in the performance of the
multifunctional systems. While it is assembled in China, its key
components, the developer and toner materials, and drums are produced
in Japan.
Furthermore, it is significant that although the PWB is of Chinese
origin, the firmware for the control box unit subassembly is developed
in Japan. This firmware programming controls the print engine, readout
mechanism, processes images for the copier, printer, fax, and scanner,
and controls the operation panel display. We further note that the
testing and adjustments performed in Japan are technical and complex.
Finally, the assembly operations that occur in Japan are sufficiently
complex and meaningful. Through the product assembly and testing and
adjustment operations, the individual components and subassemblies of
Japanese and foreign-origin are subsumed into a new and distinct
article of commerce that has a new name, character, and use. Therefore,
we find that the country of origin of the J-Models digital color
multifunctional systems for purposes of U.S. Government procurement is
Japan.
Holding:
Based on the facts of this case, we find that the processing in
Japan substantially transforms the non-Japanese components. Therefore,
the country of origin of the Sharp digital color multifunctional
systems (Model Nos. MX-2300NJ and MX-2700NJ) is Japan for purposes of
U.S. Government procurement.
Notice of this final determination will be given in the Federal
Register as required by 19 CFR 177.29. Any party-at-interest other than
the party that requested this final determination may request, pursuant
to 19 CFR 177.31, that CBP reexamine the matter anew and issue a new
final determination. Any party-at-interest may, within 30 days after
publication of the Federal Register notice reference above, seek
judicial review of this final determination before the U.S. Court of
International Trade.
Sincerely,
Sandra L. Bell,
Executive Director, Office of Regulations and Rulings, Office of
International Trade.
[FR Doc. E7-3482 Filed 2-27-07; 8:45 am]
BILLING CODE 9111-14-P
