Notice of Issuance of Final Determination Concerning Military-Grade Flashlight and Replacement Part, 7752-7754 [E8-2429]
Download as PDF
<![CDATA[
7752
Federal Register / Vol. 73, No. 28 / Monday, February 11, 2008 / Notices
6700 B Rockledge Drive, MSC 7616,
Bethesda, MD 20892–7616, 301–435–1614,
aritchie@niaid.nih.gov.
(Catalogue of Federal Domestic Assistance
Program Nos. 93.855, Allergy, Immunology,
and Transplantation Research; 93.856,
Microbiology and Infectious Diseases
Research, National Institutes of Health, HHS)
Applied Toxicological Research and Testing,
National Institutes of Health, HHS)
NW., Suite 1500N, Washington, DC
20229, 202–344–1060.
Dated: January 31, 2008.
Jennifer Spaeth,
Director, Office of Federal Advisory
Committee Policy.
[FR Doc. 08–587 Filed 2–8–08; 8:45 am]
Dated: January 31, 2008.
Ira S. Reese,
Executive Director, Laboratories and
Scientific Services.
[FR Doc. E8–2432 Filed 2–8–08; 8:45 am]
Dated: February, 1, 2008.
Jennifer Spaeth,
Director, Office of Federal Advisory
Committee Policy.
[FR Doc. 08–585 Filed 2–8–08; 8:45 am]
BILLING CODE 4140–01–M
BILLING CODE 9111–14–P
DEPARTMENT OF HOMELAND
SECURITY
DEPARTMENT OF HOMELAND
SECURITY
BILLING CODE 4140–01–M
U.S. Customs and Border Protection
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Accreditation and Approval of
Inspectorate America Corporation, as a
Commercial Gauger and Laboratory
Bureau of Customs and Border
Protection
National Institutes of Health
AGENCY:
National Institute of Environmental
Health Sciences; Notice of Closed
Meeting
rwilkins on PROD1PC63 with NOTICES
Pursuant to section 10(d) of the
Federal Advisory Committee Act, as
amended (5 U.S.C. Appendix 2), notice
is hereby given of the following
meetings.
The meeting will be closed to the
public in accordance with the
provisions set forth in sections
552b(c)(4) and 552b(c)(6), Title 5 U.S.C.,
as amended. The grant applications and
the discussions could disclose
confidential trade secrets or commercial
property such as patentable material,
and personal information concerning
individuals associated with the grant
applications, the disclosure of which
would constitute a clearly unwarranted
invasion of personal privacy.
Name of Committee: National Institute of
Environmental Health Sciences Special
Emphasis Panel; Outstanding New
Environmental Scientist Award.
Date: March 6–7, 2008.
Time: 8 a.m. to 5 p.m.
Agenda: To review and evaluate grant
applications.
Place: The Radisson Governor’s Inn, I–40
at Davis Drive, Exit 280, Research Triangle
Park, NC 27709.
Contact Person: Janice B. Allen, PhD,
Scientific Review Administrator, Scientific
Review Branch, Division of Extramural
Research and Training, Nat. Institute of
Environmental Health Science, P.O. Box
12233, MD EC–30/Room 3170 B, Research
Triangle Park, NC 27709, 919/541–7556.
(Catalogue of Federal Domestic Assistance
Program Nos. 93.115, Biometry and Risk
Estimation—Health Risks from
Environmental Exposures; 93.142, NIEHS
Hazardous Waste Worker Health and Safety
Training; 93.143, NIEHS Superfund
Hazardous Substances—Basic Research and
Education; 93.894, Resources and Manpower
Development in the Environmental Health
Sciences; 93.113, Biological Response to
Environmental Health Hazards; 93.114,
VerDate Aug<31>2005
16:44 Feb 08, 2008
Jkt 214001
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: Notice of accreditation and
approval of Inspectorate America
Corporation, as a commercial gauger
and laboratory.
SUMMARY: Notice is hereby given that,
pursuant to 19 CFR 151.12 and 19 CFR
151.13, Inspectorate America
Corporation, 2 Williams Street, Chelsea,
MA 02150, has been approved to gauge
and accredited to test petroleum and
petroleum products, organic chemicals
and vegetable oils for customs purposes,
in accordance with the provisions of 19
CFR 151.12 and 19 CFR 151.13. Anyone
wishing to employ this entity to conduct
laboratory analyses and gauger services
should request and receive written
assurances from the entity that it is
accredited or approved by the U.S.
Customs and Border Protection to
conduct the specific test or gauger
service requested. Alternatively,
inquiries regarding the specific test or
gauger service this entity is accredited
or approved to perform may be directed
to the U.S. Customs and Border
Protection by calling (202) 344–1060.
The inquiry may also be sent to
cbp.labhq@dhs.gov. Please reference the
Web site listed below for a complete
listing of CBP approved gaugers and
accredited laboratories. https://cbp.gov/
xp/cgov/import/operations_support/
labs_scientific_svcs/
commercial_gaugers/.
DATES: The accreditation and approval
of Inspectorate America Corporation, as
commercial gauger and laboratory
became effective on July 24, 2007. The
next triennial inspection date will be
scheduled for July 2010.
FOR FURTHER INFORMATION CONTACT:
Commercial Gauger Laboratory Program
Manager, Laboratories and Scientific
Services, U.S. Customs and Border
Protection, 1300 Pennsylvania Avenue,
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
Notice of Issuance of Final
Determination Concerning MilitaryGrade Flashlight and Replacement Part
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: Notice of final determination.
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 militarygrade flashlights and their replacement
parts to be offered to the United States
Government under an undesignated
government procurement contract.
Based on the facts presented, the final
determination found that the United
States is the country of origin of both
the subject flashlights and their
replacement parts for purposes of U.S.
Government procurement.
DATES: The final determination was
issued on February 5, 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 February 11, 2008.
FOR FURTHER INFORMATION CONTACT:
Holly Files, Valuation and Special
Programs Branch, Regulations and
Rulings, Office of International Trade
(202–572–8740).
SUPPLEMENTARY INFORMATION: Notice is
hereby given that on February 5, 2008,
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 military-grade
flashlights and their replacement parts
to be offered to the United States
Government under an undesignated
government procurement contract. The
CBP ruling number is H017620. This
final determination was issued at the
request of Energizer Battery, Inc. under
procedures set forth at 19 CFR part 177,
subpart B, which implements Title III of
E:\FR\FM\11FEN1.SGM
11FEN1
Federal Register / Vol. 73, No. 28 / Monday, February 11, 2008 / Notices
the Trade Agreements Act of 1979, as
amended (19 U.S.C. 2511–18).
The final determination concluded
that, based upon the facts presented,
assembly in the United States of various
foreign-origin components with a U.S.origin light emitting diode (LED)
substantially transforms both the subject
flashlight and its replacement part into
products of the United States. Therefore,
the country of origin of both the
military-grade flashlight and the
replacement part is the United States for
purposes of U.S. Government
procurement.
Section 177.29, Customs 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), 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 5, 2008.
Myles B. Harmon,
Acting Executive Director, Office of
Regulations and Rulings, Office of
International Trade.
HQ H017620
rwilkins on PROD1PC63 with NOTICES
February 5, 2008.
[MAR–02 OT:RR:CTF:VS H017620 HEF]
Category: Marking.
Mr. Steven P. Sonnenberg, Sonnenberg
& Anderson, 300 South Wacker Drive,
12th Floor, Chicago, Illinois 60606.
RE: U.S. Government Procurement;
Final Determination; Country of
origin of a flashlight and
replacement part; 19 CFR. part 177
Dear Mr. Sonnenberg:
This is in response to your letter
dated September 13, 2007, requesting a
final determination on behalf of
Energizer Battery, Inc. (‘‘Energizer’’),
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. 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 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 a military-grade
flashlight and replacement part. We
VerDate Aug<31>2005
16:44 Feb 08, 2008
Jkt 214001
note that Energizer is a party-at-interest
within the meaning of 19 CFR
177.22(d)(1) and is entitled to request
this final determination. Confidential
treatment for certain business
information identified in your request
for a final determination will be
extended in accordance with your
request. Photographs of the flashlight
and the replacement part, at various
stages of manufacture, were submitted
with your request.
Facts
You advise that Energizer intends to
sell the subject flashlight to consumers
and to the U.S. military. A
subcomponent of the flashlight, the lens
head subassembly, may be sold
separately as a replacement part for the
subject flashlights. You indicate that the
flashlight has many features that render
it suitable for military use. The
flashlight provides long-lasting light
emitting diode (‘‘LED’’) lighting and
infrared lighting, the latter of which is
invisible to the naked eye. It has a
heavy-duty design and can withstand
the impact of being dropped twenty or
more feet. In addition, it can also be
clipped to a standard issue military vest.
Both the subject military flashlight
and the replacement lens head
subassembly are manufactured in the
United States from U.S. and foreignorigin components. The following
operations occur within the United
States:
Assembly of Lens Head Subassembly
1. The LED is manufactured to
Energizer’s specifications by a third
party in the United States.
2. The LED is mounted to a foreignorigin ‘‘hex board’’ by another third
party in the United States and shipped
to an Energizer facility in Vermont.
3. A foreign-origin, partially
assembled half lens and separate
printed circuit board (‘‘PCB’’) are
imported to Energizer’s Vermont
facility. At the facility, the LED/hex
board subassembly is mounted to a heat
sink on the half lens with the use of two
small screws.
4. Wires are spot soldered to the
positive and negative terminals of the
LED.
5. The following foreign-origin
components are assembled together: a
lens reflector, lens, and rubber gasket.
6. The resulting subassembly from
step 5 is attached to the LED and half
lens to form the lens head subassembly
that will be used either in the flashlight
or sold separately as a replacement part.
7. The lens head subassembly’s
wiring, soldering, and physical
connections are inspected.
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
7753
Assembly of the Flashlight
1. If the lens head subassembly
described above will be incorporated
into a finished flashlight, its wires are
routed through a foreign-origin plastic
body or case to corresponding battery
contacts.
2. Foreign-origin gaskets are attached
for weatherproofing.
3. The second half of the body or case
is attached with six screws.
4. Final testing is performed, which
includes the use of devices capable of
perceiving infrared light.
You explain that all final products
undergo testing of their white, red, blue
and infrared lights by the use of an
infrared detection device.
Manufacturing and inspection staff at
the Vermont facility will use
troubleshooting skills to identify and, if
possible, correct any mechanical or
electronic deficiencies revealed by the
testing. In addition, you state that
Energizer has expended significant
resources in connection with the design
exploration, development, detailing,
and modeling of this product in the
United States.
Issue
What are the countries of origin of the
flashlight and the replacement part for
purposes of U.S. Government
procurement?
Law and Analysis
Pursuant to subpart B of part 177,
Customs Regulations (19 CFR 177.21 et
seq.), which implements Title III of the
Trade Agreements Act of 1979, as
amended (‘‘TAA,’’ codified at 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
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.
Under the rule of origin set forth at 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 rendering advisory rulings and
final determinations for purposes of
U.S. Government procurement, CBP
applies the provisions of subpart B of
E:\FR\FM\11FEN1.SGM
11FEN1
7754
Federal Register / Vol. 73, No. 28 / Monday, February 11, 2008 / Notices
part 177 consistent with the Federal
Procurement Regulations. See 19 CFR
177.21. In this regard, CBP recognizes
that the Federal Procurement
Regulations restrict the U.S.
Government’s purchase of products to
U.S.-made or designated country end
products for acquisitions subject to the
TAA. See 48 CFR 25.403(c)(1). The
Federal Procurement Regulations define
‘‘U.S.-made end product’’ as:
rwilkins on PROD1PC63 with NOTICES
* * * an article that is mined, produced,
or manufactured in the United States or that
is substantially transformed in the United
States 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 transformed.
48 CFR 25.003
Therefore, the question presented in
this final determination is whether, as a
result of the operations performed in the
United States, the flashlight and
replacement part are substantially
transformed into products of the United
States.
In determining whether the
combining of parts or materials
constitutes a substantial transformation,
the determinative issue is the extent of
the operations performed and whether
the parts lose their identity and become
an integral part of the new article.
Belcrest Linens v. United States, 6 Ct.
Int’l Trade 204, 573 F. Supp. 1149
(1983), aff’d, 741 F.2d 1368 (Fed. Cir.
1984). If the manufacturing or
combining process is a minor one that
leaves the identity of the imported
article intact, a substantial
transformation has not occurred.
Uniroyal, Inc. v. United States, 3 Ct.
Int’l Trade 220, 542 F. Supp. 1026
(1982). Assembly operations that are
minimal or simple, as opposed to
complex or meaningful, generally will
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 order to determine whether a
substantial transformation occurs when
components of various origins are
assembled to form completed articles,
CBP considers the totality of the
circumstances and makes such
decisions on a case-by-case basis. The
country of origin of the article’s
components, the extent of the
processing that occurs within a given
country, and whether such processing
renders a product with a new name,
character, and use are primary
considerations in such cases.
Additionally, facts such as resources
expended on product design and
development, the extent and nature of
post-assembly inspection procedures,
and the worker skill required during the
VerDate Aug<31>2005
16:44 Feb 08, 2008
Jkt 214001
actual manufacturing process will be
considered when analyzing whether a
substantial transformation has occurred;
however, no one such factor is
determinative.
You assert that the U.S.-origin LED
imparts the essential character to the
flashlight and the replacement lens head
subassembly. In addition to having a
high monetary value relative to the
other components, it generates the
primary light in both products. The LED
is manufactured to Energizer’s
specifications in order to provide
certain desirable characteristics
regarding the light’s color, intensity,
durability, coverage, and efficiency. You
also note that the foreign-origin reflector
is engineered to maximize these
particular characteristics.
You claim that as a result of the
manufacturing, assembly, and testing
processes performed in the United
States, the foreign-origin components
undergo a substantial transformation
such that both the flashlight and the
replacement lens head subassembly
become products of the United States
for purposes of U.S. Government
procurement.
In Headquarters Ruling Letter
(‘‘HRL’’) 563236, dated July 6, 2005,
CBP examined whether multi-line
telephone sets assembled in Mexico
from parts of Mexican and foreign origin
were products of Mexico for purposes of
U.S. Government procurement. Among
the foreign components imported into
Mexico for the assembly of the
telephone sets were printed circuit
assemblies (‘‘PCAs’’) from Malaysia. The
handsets, liquid crystal displays,
microphone assemblies, and stands
incorporated into the telephones were of
Mexican origin. In reaching a
determination that the telephone sets
were products of Mexico, CBP noted
that the telephone sets were comprised
of certain essential parts (such as the
handsets) that were of Mexican origin.
Moreover, many of the components
lacked any functionality prior to their
assembly within the telephone set.
In HRL 962528, dated February 18,
2000, CBP considered the eligibility of
a rechargeable power failure light for
duty free treatment under the
Generalized System of Preferences. In
that case, the power failure light was
assembled in Thailand from various
Thai and foreign origin components,
including a PCB assembled in Thailand.
CBP found that the process of
assembling various components into a
PCB resulted in a substantial
transformation of the imported
components. Moreover, CBP found that
the assembly of the PCB with a bulb
holder assembly, a plug blade assembly,
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
and the upper and lower housing
assemblies to make the finished power
failure light substantially transformed
the PCB.
Based on the totality of the
circumstances and consistent with the
CBP rulings cited above, we find that
the various imported components
(individual parts and subassemblies) are
substantially transformed as a result of
the operations performed in the United
States to produce both the replacement
lens head subassembly and the finished
flashlight. Under each manufacturing
scenario, the imported components lose
their individual identities and become
an integral part of a new article
possessing a new name, character, and
use. In support of this conclusion, we
agree that the U.S.-origin LED imparts
the essential character to both the
replacement part and the finished
product, as it generates the primary light
of both products. We also recognize that
Energizer has expended significant
resources in connection with the design
and development of the subject
flashlight in the United States.
Moreover, the U.S.-origin LED and the
labor performed in the United States
during the assembly and testing
operations represent a majority of the
costs associated with the production of
both the replacement lens head
subassembly and the finished flashlight.
Holding
Based upon the specific facts of this
case, we find that the imported
components of the flashlight and
replacement lens head subassembly are
substantially transformed as a result of
the described manufacturing operations
performed in the United States. The
country of origin of the flashlight and
the replacement lens head subassembly
is the United States.
Sincerely,
Myles B. Harmon,
Acting Executive Director, Office of
Regulations and Rulings, Office of
International Trade.
[FR Doc. E8–2429 Filed 2–8–08; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5202–N–01]
Mortgage and Loan Insurance
Programs Under the National Housing
Act—Debenture Interest Rates
Office of the Assistant
Secretary for Housing—Federal Housing
Commissioner, HUD.
ACTION: Notice.
AGENCY:
E:\FR\FM\11FEN1.SGM
11FEN1
]]>Agencies
[Federal Register Volume 73, Number 28 (Monday, February 11, 2008)]
[Notices]
[Pages 7752-7754]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-2429]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Bureau of Customs and Border Protection
Notice of Issuance of Final Determination Concerning Military-
Grade Flashlight and Replacement Part
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 military-grade flashlights and their
replacement parts to be offered to the United States Government under
an undesignated government procurement contract. Based on the facts
presented, the final determination found that the United States is the
country of origin of both the subject flashlights and their replacement
parts for purposes of U.S. Government procurement.
DATES: The final determination was issued on February 5, 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 February 11, 2008.
FOR FURTHER INFORMATION CONTACT: Holly Files, Valuation and Special
Programs Branch, Regulations and Rulings, Office of International Trade
(202-572-8740).
SUPPLEMENTARY INFORMATION: Notice is hereby given that on February 5,
2008, 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 military-grade flashlights and their
replacement parts to be offered to the United States Government under
an undesignated government procurement contract. The CBP ruling number
is H017620. This final determination was issued at the request of
Energizer Battery, Inc. under procedures set forth at 19 CFR part 177,
subpart B, which implements Title III of
[[Page 7753]]
the Trade Agreements Act of 1979, as amended (19 U.S.C. 2511-18).
The final determination concluded that, based upon the facts
presented, assembly in the United States of various foreign-origin
components with a U.S.-origin light emitting diode (LED) substantially
transforms both the subject flashlight and its replacement part into
products of the United States. Therefore, the country of origin of both
the military-grade flashlight and the replacement part is the United
States for purposes of U.S. Government procurement.
Section 177.29, Customs 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), 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 5, 2008.
Myles B. Harmon,
Acting Executive Director, Office of Regulations and Rulings, Office of
International Trade.
HQ H017620
February 5, 2008.
[MAR-02 OT:RR:CTF:VS H017620 HEF]
Category: Marking.
Mr. Steven P. Sonnenberg, Sonnenberg & Anderson, 300 South Wacker
Drive, 12th Floor, Chicago, Illinois 60606.
RE: U.S. Government Procurement; Final Determination; Country of origin
of a flashlight and replacement part; 19 CFR. part 177
Dear Mr. Sonnenberg:
This is in response to your letter dated September 13, 2007,
requesting a final determination on behalf of Energizer Battery, Inc.
(``Energizer''), 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. 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 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 a
military-grade flashlight and replacement part. We note that Energizer
is a party-at-interest within the meaning of 19 CFR 177.22(d)(1) and is
entitled to request this final determination. Confidential treatment
for certain business information identified in your request for a final
determination will be extended in accordance with your request.
Photographs of the flashlight and the replacement part, at various
stages of manufacture, were submitted with your request.
Facts
You advise that Energizer intends to sell the subject flashlight to
consumers and to the U.S. military. A subcomponent of the flashlight,
the lens head subassembly, may be sold separately as a replacement part
for the subject flashlights. You indicate that the flashlight has many
features that render it suitable for military use. The flashlight
provides long-lasting light emitting diode (``LED'') lighting and
infrared lighting, the latter of which is invisible to the naked eye.
It has a heavy-duty design and can withstand the impact of being
dropped twenty or more feet. In addition, it can also be clipped to a
standard issue military vest.
Both the subject military flashlight and the replacement lens head
subassembly are manufactured in the United States from U.S. and
foreign-origin components. The following operations occur within the
United States:
Assembly of Lens Head Subassembly
1. The LED is manufactured to Energizer's specifications by a third
party in the United States.
2. The LED is mounted to a foreign-origin ``hex board'' by another
third party in the United States and shipped to an Energizer facility
in Vermont.
3. A foreign-origin, partially assembled half lens and separate
printed circuit board (``PCB'') are imported to Energizer's Vermont
facility. At the facility, the LED/hex board subassembly is mounted to
a heat sink on the half lens with the use of two small screws.
4. Wires are spot soldered to the positive and negative terminals
of the LED.
5. The following foreign-origin components are assembled together:
a lens reflector, lens, and rubber gasket.
6. The resulting subassembly from step 5 is attached to the LED and
half lens to form the lens head subassembly that will be used either in
the flashlight or sold separately as a replacement part.
7. The lens head subassembly's wiring, soldering, and physical
connections are inspected.
Assembly of the Flashlight
1. If the lens head subassembly described above will be
incorporated into a finished flashlight, its wires are routed through a
foreign-origin plastic body or case to corresponding battery contacts.
2. Foreign-origin gaskets are attached for weatherproofing.
3. The second half of the body or case is attached with six screws.
4. Final testing is performed, which includes the use of devices
capable of perceiving infrared light.
You explain that all final products undergo testing of their white,
red, blue and infrared lights by the use of an infrared detection
device. Manufacturing and inspection staff at the Vermont facility will
use troubleshooting skills to identify and, if possible, correct any
mechanical or electronic deficiencies revealed by the testing. In
addition, you state that Energizer has expended significant resources
in connection with the design exploration, development, detailing, and
modeling of this product in the United States.
Issue
What are the countries of origin of the flashlight and the
replacement part for purposes of U.S. Government procurement?
Law and Analysis
Pursuant to subpart B of part 177, Customs Regulations (19 CFR
177.21 et seq.), which implements Title III of the Trade Agreements Act
of 1979, as amended (``TAA,'' codified at 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 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.
Under the rule of origin set forth at 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 rendering advisory rulings and final determinations for purposes
of U.S. Government procurement, CBP applies the provisions of subpart B
of
[[Page 7754]]
part 177 consistent with the Federal Procurement Regulations. See 19
CFR 177.21. In this regard, CBP recognizes that the Federal Procurement
Regulations restrict the U.S. Government's purchase of products to
U.S.-made or designated country end products for acquisitions subject
to the TAA. See 48 CFR 25.403(c)(1). The Federal Procurement
Regulations define ``U.S.-made end product'' as:
* * * an article that is mined, produced, or manufactured in the
United States or that is substantially transformed in the United
States 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 transformed.
48 CFR 25.003
Therefore, the question presented in this final determination is
whether, as a result of the operations performed in the United States,
the flashlight and replacement part are substantially transformed into
products of the United States.
In determining whether the combining of parts or materials
constitutes a substantial transformation, the determinative issue is
the extent of the operations performed and whether the parts lose their
identity and become an integral part of the new article. Belcrest
Linens v. United States, 6 Ct. Int'l Trade 204, 573 F. Supp. 1149
(1983), aff'd, 741 F.2d 1368 (Fed. Cir. 1984). If the manufacturing or
combining process is a minor one that leaves the identity of the
imported article intact, a substantial transformation has not occurred.
Uniroyal, Inc. v. United States, 3 Ct. Int'l Trade 220, 542 F. Supp.
1026 (1982). Assembly operations that are minimal or simple, as opposed
to complex or meaningful, generally will 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 order to determine whether a substantial transformation occurs
when components of various origins are assembled to form completed
articles, CBP considers the totality of the circumstances and makes
such decisions on a case-by-case basis. The country of origin of the
article's components, the extent of the processing that occurs within a
given country, and whether such processing renders a product with a new
name, character, and use are primary considerations in such cases.
Additionally, facts such as resources expended on product design and
development, the extent and nature of post-assembly inspection
procedures, and the worker skill required during the actual
manufacturing process will be considered when analyzing whether a
substantial transformation has occurred; however, no one such factor is
determinative.
You assert that the U.S.-origin LED imparts the essential character
to the flashlight and the replacement lens head subassembly. In
addition to having a high monetary value relative to the other
components, it generates the primary light in both products. The LED is
manufactured to Energizer's specifications in order to provide certain
desirable characteristics regarding the light's color, intensity,
durability, coverage, and efficiency. You also note that the foreign-
origin reflector is engineered to maximize these particular
characteristics.
You claim that as a result of the manufacturing, assembly, and
testing processes performed in the United States, the foreign-origin
components undergo a substantial transformation such that both the
flashlight and the replacement lens head subassembly become products of
the United States for purposes of U.S. Government procurement.
In Headquarters Ruling Letter (``HRL'') 563236, dated July 6, 2005,
CBP examined whether multi-line telephone sets assembled in Mexico from
parts of Mexican and foreign origin were products of Mexico for
purposes of U.S. Government procurement. Among the foreign components
imported into Mexico for the assembly of the telephone sets were
printed circuit assemblies (``PCAs'') from Malaysia. The handsets,
liquid crystal displays, microphone assemblies, and stands incorporated
into the telephones were of Mexican origin. In reaching a determination
that the telephone sets were products of Mexico, CBP noted that the
telephone sets were comprised of certain essential parts (such as the
handsets) that were of Mexican origin. Moreover, many of the components
lacked any functionality prior to their assembly within the telephone
set.
In HRL 962528, dated February 18, 2000, CBP considered the
eligibility of a rechargeable power failure light for duty free
treatment under the Generalized System of Preferences. In that case,
the power failure light was assembled in Thailand from various Thai and
foreign origin components, including a PCB assembled in Thailand. CBP
found that the process of assembling various components into a PCB
resulted in a substantial transformation of the imported components.
Moreover, CBP found that the assembly of the PCB with a bulb holder
assembly, a plug blade assembly, and the upper and lower housing
assemblies to make the finished power failure light substantially
transformed the PCB.
Based on the totality of the circumstances and consistent with the
CBP rulings cited above, we find that the various imported components
(individual parts and subassemblies) are substantially transformed as a
result of the operations performed in the United States to produce both
the replacement lens head subassembly and the finished flashlight.
Under each manufacturing scenario, the imported components lose their
individual identities and become an integral part of a new article
possessing a new name, character, and use. In support of this
conclusion, we agree that the U.S.-origin LED imparts the essential
character to both the replacement part and the finished product, as it
generates the primary light of both products. We also recognize that
Energizer has expended significant resources in connection with the
design and development of the subject flashlight in the United States.
Moreover, the U.S.-origin LED and the labor performed in the United
States during the assembly and testing operations represent a majority
of the costs associated with the production of both the replacement
lens head subassembly and the finished flashlight.
Holding
Based upon the specific facts of this case, we find that the
imported components of the flashlight and replacement lens head
subassembly are substantially transformed as a result of the described
manufacturing operations performed in the United States. The country of
origin of the flashlight and the replacement lens head subassembly is
the United States.
Sincerely,
Myles B. Harmon,
Acting Executive Director, Office of Regulations and Rulings, Office of
International Trade.
[FR Doc. E8-2429 Filed 2-8-08; 8:45 am]
BILLING CODE 9111-14-P
