Notice of Issuance of Final Determination Concerning Printers, 5862-5864 [E8-1685]
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Federal Register / Vol. 73, No. 21 / Thursday, January 31, 2008 / Notices
scenarios will result in the goods being
considered products of the Netherlands.
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
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.
Total Burden Hours: 78.25 annual
burden hours.
Total Burden Cost (capital/startup):
None.
Total Burden Cost (operating/
maintaining): None.
Scott Charbo,
Chief Information Officer.
[FR Doc. E8–1808 Filed 1–30–08; 8:45 am]
BILLING CODE 4410–10–P
DEPARTMENT OF HOMELAND
SECURITY
Dated: January 25, 2008.
Sandra L. Bell,
Executive Director, Office of Regulations and
Rulings, Office of International Trade.
Bureau of Customs and Border
Protection
Notice of Issuance of Final
Determination Concerning Printers
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: Notice of final determination.
rwilkins on PROD1PC63 with NOTICES
AGENCY:
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 printers
which may be offered to the United
States Government under an
undesignated government procurement
contract. CBP has concluded that the
operations performed in each of two
scenarios will result in the goods being
considered products of the Netherlands.
DATES: The final determination was
issued on January 25, 2008. 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 January 31, 2008.
FOR FURTHER INFORMATION CONTACT:
Gerry O’Brien, Valuation and Special
Programs Branch, Regulations and
Rulings, Office of International Trade
(202–572–8792).
SUPPLEMENTARY INFORMATION: Notice is
hereby given that on January 25, 2008,
pursuant to subpart B of part 177, CBP
Regulations (19 CFR part 177, subpart
B), CBP issued a final determination
concerning the country of origin of
certain printers which may be offered to
the United States Government under an
undesignated government procurement
contract. This final determination, in
HQ H013150, was issued at the request
´
of Oce North America 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 the
operations performed in each of two
VerDate Aug<31>2005
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HQ H013150
January 25, 2008
MAR–2–05 OT:RR:CTF:VS H013150 GOB
Category: Marking
David M. Murphy, Esq. Grunfeld, Desiderio,
Lebowitz, Silverman & Klestadt LLP, 399
Park Avenue, 25th Floor, New York, NY
10022–4877
RE: U.S. Government Procurement; Title III,
Trade Agreements Act of 1979 (19 U.S.C.
2511); Subpart B, Part 177, CBP
Regulations; Country of Origin of
Printers
Dear Mr. Murphy:
This is in response to your letter dated May
30, 2007, which we received by facsimile
transmission on June 19, 2007, requesting a
´
final determination on behalf of Oce North
´
America (‘‘Oce’’), pursuant to subpart B of
Part 177, Customs and Border Protection
(‘‘CBP’’) Regulations (19 CFR 177.21 et seq.).
We received your revised submission on July
17, 2007. Pursuant to our request for
additional information, you submitted
correspondence of September 28, 2007,
November 2, 2007, and November 26, 2007.
Under the pertinent 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 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. You state that Oce will be
the importer of the subject merchandise.
This final determination concerns the
country of origin of certain ‘‘Cobalt’’ printers.
´
We note that Oce is a party-at-interest within
the meaning of 19 CFR 177.22(d)(1) and is
entitled to request this final determination.
Facts:
You describe the pertinent facts as follows.
The Cobalt printer is a newly-designed wideformat printer, incorporating revolutionary
print technology which was developed by
´
Oce Technologies BV in the Netherlands. The
printer will be capable of printing wide
´
format color documents using Oce’s
advanced imaging devices. The
subassemblies for this printer are: Imaging
devices; upper module; printer cartridges; cut
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and receiving unit; frame lower unit; power
supply unit; controller, including embedded
software; and media drawer. Based upon
customer needs, customized software
options, developed in the Netherlands and
France, will be available. Some of the printer
subassemblies will be assembled in the
Netherlands, some will be assembled in
Malaysia. You state that, after the
subassemblies are completed, they will
undergo a ‘‘substantial configuration’’ in
either the Netherlands or the United States.
You claim that the imaging devices and the
printer cartridges are the most important
components of the printer system. The
imaging devices are claimed to be the
printer’s most complex component and are
the key to its function and capabilities
because this particular printer is designed to
create wide format printed sheets. The
printer functions by converting a computer
image signal into numerous signals and then
steering each of the imaging devices, which
perform the actual print process. The
printing unit is steered by the printed board
assembly of the imaging devices, which
creates a fixed print onto a sheet of paper.
The process allows the movement of the
paper under the imaging devices, which
require the use of printer ink/toner which is
replenished with ink/toner from the
cartridges when the ink/toner level lowers.
´
The imaging devices will be produced in Oce
Technologies’ new manufacturing site in the
Netherlands from parts of European origin
obtained from European suppliers, including
a printed board assembly. Each imaging
device is filled with blank ink/toner and
tested in the Netherlands. You state that
´
‘‘Oce Technologies employs trained and
highly skilled operators and technicians to
manufacture the imaging devices in its high
tech manufacturing facility.’’ The imaging
devices comprise fifty three percent (53%) of
the printer’s value.
The printer cartridges contain color ink/
toner which is used to print the image. The
´
ink/toner cartridge will be produced in Oce
Technologies’ manufacturing facility in the
Netherlands, using plastic parts sourced in
China. The cartridges will be filled with ink/
toner and an EPROM (chip) inserted in the
Netherlands. The chip controls
communication with the engine controller.
The following subassemblies will be
assembled in Malaysia. The upper module,
which is constructed from subunits
consisting of various plates, guides, shafts,
motors, printed circuit boards, and bundles,
moves and guides the imaging devices along
in a carriage. The upper module will be
assembled in Malaysia from approximately
600 parts in a process primarily involving
screwing operations using workers who are
‘‘low trained and low skilled.’’ European
parts constitute forty percent (40%) of the
value of the upper module. The upper
module comprises approximately twenty
seven percent (27%) of the printer’s value.
´
The controller, developed by Oce
Technologies, converts the raw computer
signal into specific signals to each imaging
device. The keys to the controller are the
mainboard, which will be sourced from a
European supplier and of European origin,
´
and its software, developed by Oce
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Federal Register / Vol. 73, No. 21 / Thursday, January 31, 2008 / Notices
Technologies. The controller is assembled in
Malaysia.
In Malaysia, the cut and receiving unit, the
frame lower unit, the power supply unit, the
controller, and the media drawer will be
assembled. In the near future, the two
customer options—the roll holder and the
roll loader—will be assembled in Malaysia.
The Malaysian assembly costs are
approximately one-half of one percent (0.5%)
of the value of the printer. You state that ‘‘[a]
‘fool proof assembly design’ will be used by
the Malaysian manufacturer in its assembly
operations. Unskilled workers with minimal
training will use simple tools to perform
manufacturing operations involving mainly
screwing and similarly simple processing.’’
After the Malaysian operations, the
´
subassemblies will either be sent to Oce
Technologies’ configuration center in the
Netherlands or to the United States for
‘‘substantial configuration.’’ The
subassemblies will be unpacked and
integrated into a printer. The first steps are
the affixing and positioning of the imaging
devices to the upper module and the
mounting of the upper module on the frame
lower unit. The controller unit, power supply
unit, media drawers, and cut and receiving
unit are added. Blank ink/toner is flushed out
of the imaging devices, which are filled with
colored ink/toner. The printer is precision
´
adjusted using Oce Technologies’ calibration
software. After testing and fine-tuning, the
printer is packed and transported to the
customer. The cost of this operation is
approximately three percent (3%) of the
value of the printer.
The values of the components relative to
the finished printer are as follows: printer
cartridge (includes toner and the chip)—one
percent (1%); cut and receiving unit—four
percent (4%); frame lower unit—three
percent (3%); power supply unit—three
percent (3%); media drawer—four percent
(4%); imaging device—fifty three percent
(53%); module upper—twenty seven percent
(27%); and controller—five percent (5%).
You request an origin determination that
the subject printer is either country of origin
United States or country of origin
Netherlands under the TAA, i.e., if the
‘‘substantial configuration’’ is performed in
the United States, you request that the United
States is the country of origin and if the
‘‘substantial configuration’’ is performed in
the Netherlands, you request that the
Netherlands is the country of origin.
Issue:
What is the country of origin of the subject
printers for the purpose 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 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):
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18:07 Jan 30, 2008
Jkt 214001
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 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. 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.
Whether an operation is complex and
meaningful depends on the nature of the
operation, including the number of
components assembled, number of different
operations, time, skill level required,
attention to detail, quality control, the value
added to the article, and the overall
employment generated by the manufacturing
process.
The courts and CBP have also considered
the essential character of the imported article
in making these determinations. See, for
example, Uniroyal, Inc. v. United States, 542
F. Supp. 1026, 3 CIT 220, 224–225 (1982)
(where it was determined that imported
uppers were the essence of a completed shoe)
and National Juice Products Association, et
al v. United States, 628 F. Supp. 978, 10 CIT
48, 61 (1986) (where the court addressed
each of the factors (name, character, and use)
in finding that no substantial transformation
occurred in the production of retail juice
products from manufacturing concentrate).
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. Additionally, factors such as
the resources expended on product design
and development, extent and nature of postassembly inspection and testing procedures,
and worker skill required during the actual
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5863
manufacturing process will be considered
when determining whether a substantial
transformation has occurred. No one factor is
determinative.
As stated above, there are eight
subassemblies which form the completed
printer: Imaging devices; upper module;
cartridges; cut and receiving unit; frame
lower unit; power supply unit; controller;
and media drawer. The imaging devices and
the cartridges will be assembled in the
Netherlands; the other six subassemblies will
be assembled in Malaysia.
After certain of the operations are
performed in Malaysia, the subassemblies
´
will either be sent to Oce Technologies’
configuration center in the Netherlands or to
the United States. Under this procedure, the
operations performed will be the same
whether they are performed in the
Netherlands or the United States. You
request a determination with respect to each
of these scenarios, i.e., the country of origin
if the configuration is performed in the
Netherlands and the country of origin if the
configuration is performed in the United
States.
You state that the imaging devices and the
cartridges are the most important
components of the printer. You state that the
imaging devices are the printer’s most
complex component and are the heart of the
printer’s function and capabilities. The
printer functions by converting a computer
image signal into numerous signals and then
steering each of the imaging devices, which
perform the actual print process. We have
stated that the origin of components is a
relevant factor in substantial transformation
determinations and that the outcome may
change depending on where the various
components originate and where they are
assembled. See, for example, HQ 734256,
dated July 1, 1992. Based upon the
description of the printer, which is designed
to create wide format printed sheets, we
agree that the essential character of the
printer is imparted by the imaging device,
which is produced in the Netherlands. Based
upon this fact, in connection with the final
assembly operations performed in the
Netherlands, we find that the country of
origin for government procurement purposes
is the Netherlands, i.e., the goods which are
imported into the Netherlands from Malaysia
and combined with the goods already in the
Netherlands are substantially transformed in
the Netherlands. The cumulative effect of the
operations performed in the Netherlands and
the fact that the imaging devices and the
printer cartridges, both of which will be
assembled in the Netherlands, are the most
important components of the printer, allow
us to conclude that the origin is the
Netherlands. The imaging devices, which
comprise approximately 53% of the printer’s
value, are the key to the printer’s function
and capabilities.
Further, we find that if the above-described
operations are performed in the United
States, the country of origin for government
procurement purposes is the Netherlands,
i.e., a substantial transformation does not
occur in the United States. We note that none
of these subassemblies is produced in the
United States. We find that the assembly
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5864
Federal Register / Vol. 73, No. 21 / Thursday, January 31, 2008 / Notices
operations to be performed in the United
States are not of such complexity and
meaningfulness that they result in a
substantial transformation of any of the
subassemblies in the United States and that
the origin of the printer will be imparted by
the essential character of the printer, the
imaging device.
Holdings:
In the situation in which the final assembly
of the printer is performed in the
Netherlands, the country of origin for
government procurement purposes is the
Netherlands, the country in which the
imaging device and toner cartridge are
produced and in which the final assembly is
performed.
In the instance in which the final assembly
of the printer is performed in the United
States, the country of origin for government
procurement purposes is the Netherlands, the
country in which the imaging device and
toner cartridge are produced.
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 which requested the 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 referenced above, seek judicial review
of this final determination before the Court
of International Trade.
Sincerely,
Sandra L. Bell,
Executive Director, Office of Regulations and
Rulings, Office of International Trade.
[FR Doc. E8–1685 Filed 1–30–08; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5193–N–03]
Notice of Proposed Information
Collection for Public Comment:
Housing Counseling Outcome
Evaluation
Office of the Policy
Development and Research, HUD.
ACTION: Notice.
rwilkins on PROD1PC63 with NOTICES
AGENCY:
SUMMARY: The proposed information
collection requirement described below
will be submitted to the Office of
Management and Budget (OMB) for
review, as required by the Paperwork
Reduction Act. The Department is
soliciting public comments on the
subject proposal.
DATES: Comments Due Date: March 31,
2008.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. Comments should refer to
the proposal by name and/or OMB
Control number and should be sent to:
Reports Liaison Officer, Office of Policy
VerDate Aug<31>2005
18:07 Jan 30, 2008
Jkt 214001
Development & Research, Department of
Housing and Urban Development, 451
7th Street, SW., Room 8226,
Washington, DC 20410–5000.
FOR FURTHER INFORMATION CONTACT:
Marina L. Myhre, (202) 708–3700,
extension 5705 for copies of the
proposed forms and other available
documents. (This is not a toll-free
number.)
SUPPLEMENTARY INFORMATION: The
Department will submit the proposed
information collection to OMB for
review, as required by the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35, as amended). This Notice is
soliciting comments from members of
the public and affected agencies
concerning the proposed collection of
information to: (1) Evaluate whether the
proposed collection of information is
necessary for the proper performance of
the functions of the agency, including
whether the information will have
practical utility; (2) Evaluate the
accuracy of the agency’s estimate of the
burden of the proposed collection of
information; (3) Enhance the quality,
utility, and clarity of the information to
be collected; and (4) Minimize the
burden of the collection of information
on those who are to respond, including
through the use of appropriate
automated collection techniques or
other forms of information technology
(e.g., permitting electronic submission
of responses).
This Notice also lists the following
information:
Title of Proposal: Housing Counseling
Outcome Evaluation.
Description of the need for the
information and proposed use: This
request is for the clearance of survey
instruments designed to provide
statistically accurate information on the
outcomes realized by clients of housing
counseling agencies seeking assistance
to either purchase a home (pre-purchase
clients) or to resolve or prevent
mortgage delinquency (post-purchase
clients). Up to 60 housing counseling
agencies will be recruited to voluntarily
participate in the study. These agencies
will be asked to seek the voluntary
participation of all of their prepurchase, post-purchase, and mortgage
foreclosure mitigation and prevention
clients over an eight-week period, with
the goal of enrolling up to 1,000 prepurchase clients; up to 1,000 postpurchase clients; and up to 2,000
mortgage foreclosure mitigation and
prevention clients. Participating clients
will be asked to complete a baseline
survey providing demographic and
financial information on their
household and their reasons for seeking
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counseling. The participating
counseling agencies will be asked to
provide information on the
characteristics of all counseling services
provided to participating clients over a
six-month period. Counseling agencies
will also be asked to provide
information on all of their educators and
counselors providing services to these
clients, including basic demographics
and information on their experience and
training as educators and counselors.
The purpose of these surveys is to
gather information needed to both
document the share of clients realizing
different outcomes following counseling
and to analyze how these outcomes vary
with the characteristics of clients and
the services they receive.
OMB Approval Number: Pending.
Agency form numbers: None.
Members of Affected Public: Up to 60
housing Counseling Agencies and up to
4,000 counseling clients.
Estimation of the total number of
hours needed to prepare the information
collection including number of
respondents, frequency of response, and
hours of response: The average time per
client for counseling agencies to
document the services provided over a
six-month period is two hours. The
average time for counseling agencies to
complete the survey on educator and
counselor characteristics is one-quarter
of an hour (with an expected average of
eight counselors per agency). The
average time for clients to complete the
baseline survey instrument is one-half
hour. Total burden hours are 8,120 for
counseling agencies and 2,000 for
counseling clients, or 10,120 total
burden hours.
Status of the proposed information
collection: Pending OMB approval.
Authority: Section 3506 of the Paperwork
Reduction Act of 1995, 44 U.S.C. Chapter 35,
as amended.
Dated: January 24, 2008.
Darlene F. Williams,
Assistant Secretary for Policy Development
and Research.
[FR Doc. E8–1699 Filed 1–30–08; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5187–N–02]
Consolidated Plan and Annual
Performance Report for Grantees
Office of the Chief Information
Officer, HUD.
ACTION: Notice.
AGENCY:
SUMMARY: The proposed information
collection requirement described below
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]]>Agencies
[Federal Register Volume 73, Number 21 (Thursday, January 31, 2008)]
[Notices]
[Pages 5862-5864]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-1685]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
Notice of Issuance of Final Determination Concerning Printers
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 printers which may be offered to the
United States Government under an undesignated government procurement
contract. CBP has concluded that the operations performed in each of
two scenarios will result in the goods being considered products of the
Netherlands.
DATES: The final determination was issued on January 25, 2008. 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 January 31, 2008.
FOR FURTHER INFORMATION CONTACT: Gerry O'Brien, Valuation and Special
Programs Branch, Regulations and Rulings, Office of International Trade
(202-572-8792).
SUPPLEMENTARY INFORMATION: Notice is hereby given that on January 25,
2008, pursuant to subpart B of part 177, CBP Regulations (19 CFR part
177, subpart B), CBP issued a final determination concerning the
country of origin of certain printers which may be offered to the
United States Government under an undesignated government procurement
contract. This final determination, in HQ H013150, was issued at the
request of Oc[eacute] North America 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 the operations performed in each of
two scenarios will result in the goods being considered products of the
Netherlands.
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 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: January 25, 2008.
Sandra L. Bell,
Executive Director, Office of Regulations and Rulings, Office of
International Trade.
HQ H013150
January 25, 2008
MAR-2-05 OT:RR:CTF:VS H013150 GOB
Category: Marking
David M. Murphy, Esq. Grunfeld, Desiderio, Lebowitz, Silverman &
Klestadt LLP, 399 Park Avenue, 25th Floor, New York, NY 10022-4877
RE: U.S. Government Procurement; Title III, Trade Agreements Act of
1979 (19 U.S.C. 2511); Subpart B, Part 177, CBP Regulations; Country
of Origin of Printers
Dear Mr. Murphy:
This is in response to your letter dated May 30, 2007, which we
received by facsimile transmission on June 19, 2007, requesting a
final determination on behalf of Oc[eacute] North America
(``Oc[eacute]''), pursuant to subpart B of Part 177, Customs and
Border Protection (``CBP'') Regulations (19 CFR 177.21 et seq.). We
received your revised submission on July 17, 2007. Pursuant to our
request for additional information, you submitted correspondence of
September 28, 2007, November 2, 2007, and November 26, 2007.
Under the pertinent 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 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. You state that Oc[eacute] will be the importer of the
subject merchandise.
This final determination concerns the country of origin of
certain ``Cobalt'' printers. We note that Oc[eacute] is a party-at-
interest within the meaning of 19 CFR 177.22(d)(1) and is entitled
to request this final determination.
Facts:
You describe the pertinent facts as follows. The Cobalt printer
is a newly-designed wide-format printer, incorporating revolutionary
print technology which was developed by Oc[eacute] Technologies BV
in the Netherlands. The printer will be capable of printing wide
format color documents using Oc[eacute]'s advanced imaging devices.
The subassemblies for this printer are: Imaging devices; upper
module; printer cartridges; cut and receiving unit; frame lower
unit; power supply unit; controller, including embedded software;
and media drawer. Based upon customer needs, customized software
options, developed in the Netherlands and France, will be available.
Some of the printer subassemblies will be assembled in the
Netherlands, some will be assembled in Malaysia. You state that,
after the subassemblies are completed, they will undergo a
``substantial configuration'' in either the Netherlands or the
United States.
You claim that the imaging devices and the printer cartridges
are the most important components of the printer system. The imaging
devices are claimed to be the printer's most complex component and
are the key to its function and capabilities because this particular
printer is designed to create wide format printed sheets. The
printer functions by converting a computer image signal into
numerous signals and then steering each of the imaging devices,
which perform the actual print process. The printing unit is steered
by the printed board assembly of the imaging devices, which creates
a fixed print onto a sheet of paper. The process allows the movement
of the paper under the imaging devices, which require the use of
printer ink/toner which is replenished with ink/toner from the
cartridges when the ink/toner level lowers. The imaging devices will
be produced in Oc[eacute] Technologies' new manufacturing site in
the Netherlands from parts of European origin obtained from European
suppliers, including a printed board assembly. Each imaging device
is filled with blank ink/toner and tested in the Netherlands. You
state that ``Oc[eacute] Technologies employs trained and highly
skilled operators and technicians to manufacture the imaging devices
in its high tech manufacturing facility.'' The imaging devices
comprise fifty three percent (53%) of the printer's value.
The printer cartridges contain color ink/toner which is used to
print the image. The ink/toner cartridge will be produced in
Oc[eacute] Technologies' manufacturing facility in the Netherlands,
using plastic parts sourced in China. The cartridges will be filled
with ink/toner and an EPROM (chip) inserted in the Netherlands. The
chip controls communication with the engine controller.
The following subassemblies will be assembled in Malaysia. The
upper module, which is constructed from subunits consisting of
various plates, guides, shafts, motors, printed circuit boards, and
bundles, moves and guides the imaging devices along in a carriage.
The upper module will be assembled in Malaysia from approximately
600 parts in a process primarily involving screwing operations using
workers who are ``low trained and low skilled.'' European parts
constitute forty percent (40%) of the value of the upper module. The
upper module comprises approximately twenty seven percent (27%) of
the printer's value.
The controller, developed by Oc[eacute] Technologies, converts
the raw computer signal into specific signals to each imaging
device. The keys to the controller are the mainboard, which will be
sourced from a European supplier and of European origin, and its
software, developed by Oc[eacute]
[[Page 5863]]
Technologies. The controller is assembled in Malaysia.
In Malaysia, the cut and receiving unit, the frame lower unit,
the power supply unit, the controller, and the media drawer will be
assembled. In the near future, the two customer options--the roll
holder and the roll loader--will be assembled in Malaysia. The
Malaysian assembly costs are approximately one-half of one percent
(0.5%) of the value of the printer. You state that ``[a] `fool proof
assembly design' will be used by the Malaysian manufacturer in its
assembly operations. Unskilled workers with minimal training will
use simple tools to perform manufacturing operations involving
mainly screwing and similarly simple processing.''
After the Malaysian operations, the subassemblies will either be
sent to Oc[eacute] Technologies' configuration center in the
Netherlands or to the United States for ``substantial
configuration.'' The subassemblies will be unpacked and integrated
into a printer. The first steps are the affixing and positioning of
the imaging devices to the upper module and the mounting of the
upper module on the frame lower unit. The controller unit, power
supply unit, media drawers, and cut and receiving unit are added.
Blank ink/toner is flushed out of the imaging devices, which are
filled with colored ink/toner. The printer is precision adjusted
using Oc[eacute] Technologies' calibration software. After testing
and fine-tuning, the printer is packed and transported to the
customer. The cost of this operation is approximately three percent
(3%) of the value of the printer.
The values of the components relative to the finished printer
are as follows: printer cartridge (includes toner and the chip)--one
percent (1%); cut and receiving unit--four percent (4%); frame lower
unit--three percent (3%); power supply unit--three percent (3%);
media drawer--four percent (4%); imaging device--fifty three percent
(53%); module upper--twenty seven percent (27%); and controller--
five percent (5%).
You request an origin determination that the subject printer is
either country of origin United States or country of origin
Netherlands under the TAA, i.e., if the ``substantial
configuration'' is performed in the United States, you request that
the United States is the country of origin and if the ``substantial
configuration'' is performed in the Netherlands, you request that
the Netherlands is the country of origin.
Issue:
What is the country of origin of the subject printers for the
purpose 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 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 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. 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. Whether an operation is complex and
meaningful depends on the nature of the operation, including the
number of components assembled, number of different operations,
time, skill level required, attention to detail, quality control,
the value added to the article, and the overall employment generated
by the manufacturing process.
The courts and CBP have also considered the essential character
of the imported article in making these determinations. See, for
example, Uniroyal, Inc. v. United States, 542 F. Supp. 1026, 3 CIT
220, 224-225 (1982) (where it was determined that imported uppers
were the essence of a completed shoe) and National Juice Products
Association, et al v. United States, 628 F. Supp. 978, 10 CIT 48, 61
(1986) (where the court addressed each of the factors (name,
character, and use) in finding that no substantial transformation
occurred in the production of retail juice products from
manufacturing concentrate).
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. Additionally, factors such as the
resources expended on product design and development, extent and
nature of post-assembly inspection and testing procedures, and
worker skill required during the actual manufacturing process will
be considered when determining whether a substantial transformation
has occurred. No one factor is determinative.
As stated above, there are eight subassemblies which form the
completed printer: Imaging devices; upper module; cartridges; cut
and receiving unit; frame lower unit; power supply unit; controller;
and media drawer. The imaging devices and the cartridges will be
assembled in the Netherlands; the other six subassemblies will be
assembled in Malaysia.
After certain of the operations are performed in Malaysia, the
subassemblies will either be sent to Oc[eacute] Technologies'
configuration center in the Netherlands or to the United States.
Under this procedure, the operations performed will be the same
whether they are performed in the Netherlands or the United States.
You request a determination with respect to each of these scenarios,
i.e., the country of origin if the configuration is performed in the
Netherlands and the country of origin if the configuration is
performed in the United States.
You state that the imaging devices and the cartridges are the
most important components of the printer. You state that the imaging
devices are the printer's most complex component and are the heart
of the printer's function and capabilities. The printer functions by
converting a computer image signal into numerous signals and then
steering each of the imaging devices, which perform the actual print
process. We have stated that the origin of components is a relevant
factor in substantial transformation determinations and that the
outcome may change depending on where the various components
originate and where they are assembled. See, for example, HQ 734256,
dated July 1, 1992. Based upon the description of the printer, which
is designed to create wide format printed sheets, we agree that the
essential character of the printer is imparted by the imaging
device, which is produced in the Netherlands. Based upon this fact,
in connection with the final assembly operations performed in the
Netherlands, we find that the country of origin for government
procurement purposes is the Netherlands, i.e., the goods which are
imported into the Netherlands from Malaysia and combined with the
goods already in the Netherlands are substantially transformed in
the Netherlands. The cumulative effect of the operations performed
in the Netherlands and the fact that the imaging devices and the
printer cartridges, both of which will be assembled in the
Netherlands, are the most important components of the printer, allow
us to conclude that the origin is the Netherlands. The imaging
devices, which comprise approximately 53% of the printer's value,
are the key to the printer's function and capabilities.
Further, we find that if the above-described operations are
performed in the United States, the country of origin for government
procurement purposes is the Netherlands, i.e., a substantial
transformation does not occur in the United States. We note that
none of these subassemblies is produced in the United States. We
find that the assembly
[[Page 5864]]
operations to be performed in the United States are not of such
complexity and meaningfulness that they result in a substantial
transformation of any of the subassemblies in the United States and
that the origin of the printer will be imparted by the essential
character of the printer, the imaging device.
Holdings:
In the situation in which the final assembly of the printer is
performed in the Netherlands, the country of origin for government
procurement purposes is the Netherlands, the country in which the
imaging device and toner cartridge are produced and in which the
final assembly is performed.
In the instance in which the final assembly of the printer is
performed in the United States, the country of origin for government
procurement purposes is the Netherlands, the country in which the
imaging device and toner cartridge are produced.
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 which requested the 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 referenced
above, seek judicial review of this final determination before the
Court of International Trade.
Sincerely,
Sandra L. Bell,
Executive Director, Office of Regulations and Rulings, Office of
International Trade.
[FR Doc. E8-1685 Filed 1-30-08; 8:45 am]
BILLING CODE 9111-14-P
