Notice of Issuance of Final Determination Concerning Fairplay Legacy Electric Vehicles, 64318-64320 [2010-26314]
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Federal Register / Vol. 75, No. 201 / Tuesday, October 19, 2010 / Notices
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Health Resources and Services
Administration
Dated: October 12, 2010.
Wendy Ponton,
Director, Office of Management.
[FR Doc. 2010–26205 Filed 10–18–10; 8:45 am]
BILLING CODE 4165–15–P
Advisory Committee on Training in
Primary Care Medicine and Dentistry;
Notice of Meeting
mstockstill on DSKH9S0YB1PROD with NOTICES
In accordance with section 10(a)(2) of
the Federal Advisory Committee Act
(Pub. L. 92–463), notice is hereby given
of the following meeting:
Name: Advisory Committee on Training in
Primary Care, Medicine and Dentistry
(ACTPCMD).
Date and Time: November 15, 2010, 8:30
a.m.–4:30 p.m.
November 16, 2010, 8 a.m.–2 p.m.
Place: Hilton Washington DC/Rockville
Executive Meeting Center, 1750 Rockville
Pike, Rockville, Maryland 20910.
Status: The meeting will be open to the
public.
Purpose: The Advisory Committee
provides advice and recommendations on a
broad range of issues dealing with programs
and activities authorized under section 747
of the Public Health Service Act as amended
by The Patient Protection and Affordable
Care Act, Public Law 111–148. At this
meeting the Advisory Committee will work
on its ninth report about the primary care
pipeline. Reports are submitted to Congress
and to the Secretary of the Department of
Health and Human Services.
Agenda: The meeting on Monday,
November 15 will begin with opening
remarks from the Interim Chair of the
Advisory Committee and welcoming
comments from senior management of the
Health Resources and Services
Administration. The Advisory Committee
will work on its ninth report about
revitalizing primary care by priming the
primary care pipeline. In both plenary
sessions and in small groups, the Advisory
Committee will focus on report
recommendations and the content of the
report. On the first day of the meeting,
annual elections will be held for Chair and
two Vice Chairs. On Tuesday, November 16,
the Advisory Committee will finalize its
ninth report and plan for the next Advisory
Committee meeting. An opportunity will be
provided for public comment.
For further information contact: Anyone
interested in obtaining a roster of members or
other relevant information should write or
contact Jerilyn K. Glass, M.D., Ph.D.,
Advisory Committee Executive Secretary,
Division of Medicine and Dentistry, Bureau
of Health Professions, Health Resources and
Services Administration, Room 9A–27,
Parklawn Building, 5600 Fishers Lane,
Rockville, Maryland 20857, Telephone (301)
443–7271. The Web address for information
on the Advisory Committee and the
November 15–16, 2010 meeting agenda is
https://bhpr.hrsa.gov/medicine-dentistry/
actpcmd.
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DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Health Resources and Services
Administration
National Advisory Council on Nurse
Education and Practice; Notice of
Meeting
In accordance with section 10(a)(2) of
the Federal Advisory Committee Act
(Pub. L. 92–463), notice is hereby given
of the following meetings:
Name: National Advisory Council on
Nurse Education and Practice (NACNEP).
Dates and Times: November 17, 2010,
1 p.m.–5 p.m.
November 18, 2010, 8:30 a.m.–4:30 p.m.
November 19, 2010, 8:30 a.m.–4 p.m.
Place: Hilton Washington DC/Rockville
Hotel & Executive Meeting Center, 1750
Rockville Pike, Rockville, MD 20852.
Status: The meeting will be open to the
public.
Agenda: Agency and Bureau
administrative updates will be provided.
Purpose: The purpose of this meeting is to
address diversity in nurse education and
practice. The objectives of the meeting are to:
(1) Articulate the definition, goals and
implications of diversification of the nursing
workforce; (2) summarize the current data
trends and existing information on diversity
in the nursing workforce including nursing
students; (3) examine existing policies,
practices and legal constraints that influence
or limit the recruitment of diverse students
into the profession of nursing; (4) identify the
key elements of successful programs in
nursing education that have increased the
recruitment and graduation of diverse
individuals; and (5) identify the key elements
of success in innovative models that have
improved the retention, professional
development and promotion of diverse
individuals within the nursing profession.
Experts from professional nursing, public
and private organizations will make
presentations on a range of issues related to
diversity in the nursing workforce and health
professions. Day one of the meeting will be
devoted to new member orientation. During
days two and three of the meeting, the
NACNEP council members will deliberate on
the content presented on diversity in nurse
education and practice. This meeting will
form the basis for NACNEP’s mandated
Eleventh Annual Report to the Secretary of
Health and Human Services and the
Congress. For further information regarding
NACNEP, to obtain a roster of members,
minutes of the meeting, or other relevant
information, contact Lakisha Smith,
Executive Secretary, National Advisory
Council on Nurse Education and Practice,
Parklawn Building, Room 9B–45, 5600
PO 00000
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Fishers Lane, Rockville, Maryland 20857,
telephone (301) 443–5688. Information can
also be found at the following Web site:
https://bhpr.hrsa.gov/nursing/nacnep.htm.
Dated: October 12, 2010.
Wendy Ponton,
Director, Office of Management.
[FR Doc. 2010–26204 Filed 10–18–10; 8:45 am]
BILLING CODE 4165–15–P
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final
Determination Concerning Fairplay
Legacy Electric Vehicles
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: Notice of final determination.
AGENCY:
This document provides
notice that U.S. Customs and Border
Protection (‘‘CBP’’) has issued a final
determination concerning the country of
origin of the Fairplay Legacy line of golf
and recreational electric vehicles. Based
upon the facts presented, CBP has
concluded in the final determination
that the United States is the country of
origin of the Fairplay Legacy line of
electric vehicles for purposes of U.S.
Government procurement.
DATES: The final determination was
issued on October 13, 2010. 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 on or before
November 18, 2010.
FOR FURTHER INFORMATION CONTACT:
Heather K. Pinnock, Valuation and
Special Programs Branch: (202) 325–
0034.
SUMMARY:
Notice is
hereby given that on October 13, 2010,
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 the Fairplay Legacy line of golf
and recreational electric vehicles which
may be offered to the U.S. Government
under an undesignated government
procurement contract. This final
determination, in HQ H118435, was
issued at the request of Fairplay Electric
Cars, LLC (‘‘Fairplay’’), under
procedures set forth at 19 CFR Part 177,
subpart B, which implements Title III of
the Trade Agreements Act of 1979, as
amended (19 U.S.C. 2511–18). In the
final determination, CBP concluded
that, based upon the facts presented, the
SUPPLEMENTARY INFORMATION:
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Federal Register / Vol. 75, No. 201 / Tuesday, October 19, 2010 / Notices
Fairplay Legacy line of electric vehicles,
assembled to completion in the United
States from parts made in non-TAA
countries and TAA countries and/or the
United States, are substantially
transformed in the United States, such
that the United States is the country of
origin of the finished articles 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), 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.
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Dated: October 13, 2010.
Sandra L. Bell,
Executive Director, Regulations and Rulings,
Office of International Trade.
Attachment
HQ H118435
October 13, 2010
CLA–2 OT:RR:CT:VS H118435 HkP
CATEGORY: Marking
Mr. Keith Andrews, President
Fairplay Electric Cars
743 Horizon Ct., Suite 333
Grand Junction, CO 81506
RE: Government Procurement; Country of
Origin of Electric Vehicles; Substantial
Transformation
Dear Mr. Andrews:
This is in response to your letter dated July
20, 2010, requesting a final determination on
behalf of Fairplay Electric Cars, LLC
(‘‘Fairplay’’), pursuant to subpart B of part
177 of the U.S. Customs and Border
Protection Regulations (19 C.F.R. Part 177).
Under these regulations, which implement
Title III of the Trade Agreements Act of 1979
(TAA), as amended (19 U.S.C. § 2511 et seq.),
CBP issues country of origin advisory rulings
and final determinations as to whether an
article is or would be a product of a
designated country or instrumentality for the
purposes of granting waivers of certain ‘‘Buy
American’’ restrictions in U.S. law or practice
for products offered for sale to the U.S.
Government.
This final determination concerns the
country of origin of the Fairplay Legacy line
of golf and recreational vehicles. We note
that as a U.S. importer and manufacturer,
Fairplay is a party-at-interest within the
meaning of 19 C.F.R. § 177.22(d)(1) and is
entitled to request this final determination. In
reaching our decision, we have taken into
account additional information submitted to
this office on August 31, 2010.
FACTS:
The models of vehicles at issue are the
following: Legacy Eco 2P, Legacy Eco 2P XR,
Legacy Eco 4P, Legacy Deluxe 2P, Legacy
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Deluxe XR 2P, Legacy Deluxe LTD 2P, Legacy
Deluxe HP 2P, and the Legacy Transport.
According to the information submitted,
Fairplay imports parts for these vehicles from
China. These include chassis, plastic body
parts and various miscellaneous pieces of
plastic trim, which are assembled together in
the United States with U.S.-made battery
packs, motors, electronics, wiring assemblies,
seats, and chargers. The bill of materials
(BOM) submitted with the request indicates
that, depending on the model, a vehicle may
have between approximately 53 and 62
inputs, when items such as logos/decals,
warranty registration cards, and labor are
counted along with the parts. Of these,
between 12 and 17 inputs are of U.S. origin
or are performed in the U.S. Between 44.8%
and 53.5% of actual manufacturing costs are
attributed to U.S. or TAA country
manufacturing operations.
Assembly in the U.S. takes place at five
different stations and takes between 11 hours
(660 minutes) and 14.25 hours (855 minutes).
The operations performed at each assembly
station are described as follows:
Station 0: The electronic controller plate is
assembled and tested. Approximate assembly
time: 90–135 minutes.
Station 1: The chassis is unloaded and given
a vehicle identification number. Wheels,
tires, and the steering column are installed
on the chassis using rivets, nuts, bolts,
screws, and plastic push-ins. Approximate
assembly time: 180–240 minutes.
Station 2: The batteries, motor, controller,
solenoid, wiring harness and other crucial
electronic parts are installed using rivets,
nuts, bolts, and screws or special Molex
connectors and plastic push-ins that must be
soldered. Approximate assembly time: 90–
120 minutes.
Station 3: The plastic front and rear body,
bumpers and dashboard are installed over the
chassis and electronic assembly, which gives
the vehicle its finished appearance. Parts are
attached with rivets, nuts and bolts. The
vehicle is then removed from the assembly
rack. Approximate assembly time: 150–180
minutes.
Station 4: The deep cycle batteries, upright
canopy supports, canopy top, seat bottom
and back, seat belts, lights, reflectors, decals,
logos and final wiring are installed and
tested. The parts are installed using rivets,
Molex connectors, nuts, bolts, screws, and/or
plastic push-ins, as required. Approximate
assembly time: 150–180 minutes.
Testing of the fully assembled vehicle lasts
between 90 and 195 minutes, depending on
the vehicle. In addition, quality control
inspections are performed at each station as
well as randomly. Packing and shipping
operations last between 30 and 45 minutes.
The Standard Operating Procedures to
assemble the vehicles are designed by staff
engineers, who also select, approve and
advise on the appropriate parts to be used for
the manufacture of the vehicles.
ISSUE:
What is the country of origin of the
Fairplay Legacy line of golf and recreational
electric vehicles for purposes of U.S.
Government procurement?
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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 C.F.R. § 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 Part 177 consistent
with the Federal Procurement Regulations.
See 19 C.F.R. § 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
C.F.R. § 25.403(c)(1). The Federal
Procurement Regulations define ‘‘U.S.-made
end product’’ as:
[A]n article that is mined, produces, 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.
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. For
example, 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
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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.
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, the 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.
You believe that the assembly operations
that take place in the U.S. result in a
substantial transformation of the imported
parts. You note that these parts, by
themselves, cannot function and must be
assembled with the U.S.-made parts to
constitute a working electric self-propelled
vehicle. Given these considerations, you
argue that the U.S. content along with the
fact that 100% of the assembly operations
takes place in the U.S. warrants a
determination that the U.S. is the country of
origin of the vehicles. In support of your
argument, you cite Headquarters Ruling
Letter (‘‘HQ’’) H022169 (May 2, 2008) and HQ
558919 (Mar. 20, 1995).
In HQ H022169, CBP found that an
imported mini-truck glider was substantially
transformed as a result of assembly
operations performed in the United States to
produce an electric mini-truck. Our decision
was based on the fact that, under the
described assembly process, the imported
glider lost its individual identity and became
an integral part of a new article possessing
a new name, character and use. In addition,
a substantial number of the components
added to the imported glider were of U.S.
origin.
In HQ 558919, a country of origin marking
case relied upon in HQ H022169, U.S.
Customs (now CBP) held that an extruder
assembly manufactured in England was
substantially transformed in the United
States when it was wired and combined with
U.S. components (motor, electric controls
and extruder screw) to create a vertical
extruder. In reaching that decision, Customs
emphasized that the imported extruder
subassembly and the U.S. components each
had important attributes that were
functionally necessary to the operation of the
extruder. Consequently, we found that the
imported subassemblies should be excepted
from individual marking, provided that the
cartons in which the U.S. manufacturer
received them were properly marked with
their country of origin.
In both HQ 558919 and HQ H022169, CBP
found that assembly of the imported parts
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together with the U.S. made components
were ‘‘functionally necessary’’ to the
operation of the finished product. The same
is true in this situation. None of the imported
parts, on their own, can function as an
electric vehicle but must be assembled with
other necessary U.S. components, such as the
battery pack, motor, electronics, wiring
assemblies and charger. Moreover, given the
complexity and duration of the U.S.
manufacturing process, we consider those
operations to be more than mere assembly.
Based on the information before us, and
consistent with the CBP rulings cited above,
we find that the Chinese-origin chassis,
plastic body parts and plastic pieces of trim
are substantially transformed by the assembly
operations performed in the United States to
produce electric vehicles. Under the
described assembly process, the imported
parts lose their individual identities and
become integral parts of a new article
possessing a new name, character and use.
Further, components crucial to the making of
an electric vehicle (the battery pack, motor,
electronics, wiring assemblies, and charger)
are of U.S. origin. We conclude, based upon
these specific facts, that the country of origin
of the Fairplay Legacy line of electric
vehicles for purposes of U.S. Government
procurement is the United States.
HOLDING:
The chassis, plastic body parts and plastic
pieces of trim imported from China are
substantially transformed when they are
assembled in the United States with domestic
components. As a result, the country of
origin of Fairplay’s line of golf and
recreational electric vehicles, specifically the
Legacy Eco 2P, Legacy Eco 2P XR, Legacy Eco
4P, Legacy Deluxe 2P, Legacy Deluxe XR 2P,
Legacy Deluxe LTD 2P, Legacy Deluxe HP 2P,
and the Legacy Transport, for purposes of
U.S. Government procurement is the United
States.
Notice of this final determination will be
given in the Federal Register, as required by
19 C.F.R. § 177.29. Any party-at-interest other
than the party which requested this final
determination may request, pursuant to 19
C.F.R. § 177.31, that CBP reexamine the
matter anew and issue a new final
determination. Pursuant to 19 C.F.R.
§ 177.30, any party-at-interest may, within 30
days of publication of the Federal Register
Notice referenced above, seek judicial review
of this final determination before the Court
of International Trade.
Sincerely,
Sandra L. Bell, Executive Director
Regulations and Rulings
Office of International Trade
[FR Doc. 2010–26314 Filed 10–18–10; 8:45 am]
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DEPARTMENT OF HOMELAND
SECURITY
Federal Emergency Management
Agency
[Internal Agency Docket No. FEMA–1940–
DR; Docket ID FEMA–2010–0002]
Arizona; Major Disaster and Related
Determinations
Federal Emergency
Management Agency, DHS.
ACTION: Notice.
AGENCY:
This is a notice of the
Presidential declaration of a major
disaster for the State of Arizona (FEMA–
1940–DR), dated October 4, 2010, and
related determinations.
DATES: Effective Date: October 4, 2010.
FOR FURTHER INFORMATION CONTACT:
Peggy Miller, Office of Response and
Recovery, Federal Emergency
Management Agency, 500 C Street, SW.,
Washington, DC 20472, (202) 646–3886.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that, in a letter dated
October 4, 2010, the President issued a
major disaster declaration under the
authority of the Robert T. Stafford
Disaster Relief and Emergency
Assistance Act, 42 U.S.C. 5121 et seq.
(the ‘‘Stafford Act’’), as follows:
SUMMARY:
I have determined that the damage in
certain areas of the State of Arizona resulting
from severe storms and flooding during the
period of July 20 to August 7, 2010, is of
sufficient severity and magnitude to warrant
a major disaster declaration under the Robert
T. Stafford Disaster Relief and Emergency
Assistance Act, 42 U.S.C. 5121 et seq. (the
‘‘Stafford Act’’). Therefore, I declare that such
a major disaster exists in the State of Arizona.
In order to provide Federal assistance, you
are hereby authorized to allocate from funds
available for these purposes such amounts as
you find necessary for Federal disaster
assistance and administrative expenses.
You are authorized to provide Public
Assistance in the designated areas and
Hazard Mitigation throughout the State.
Consistent with the requirement that Federal
assistance is supplemental, any Federal
funds provided under the Stafford Act for
Public Assistance and Hazard Mitigation will
be limited to 75 percent of the total eligible
costs.
Further, you are authorized to make
changes to this declaration for the approved
assistance to the extent allowable under the
Stafford Act.
The Federal Emergency Management
Agency (FEMA) hereby gives notice that
pursuant to the authority vested in the
Administrator, under Executive Order
12148, as amended, Sandy Coachman,
of FEMA is appointed to act as the
Federal Coordinating Officer for this
major disaster.
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]]>Agencies
[Federal Register Volume 75, Number 201 (Tuesday, October 19, 2010)]
[Notices]
[Pages 64318-64320]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-26314]
=======================================================================
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final Determination Concerning Fairplay
Legacy Electric Vehicles
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: Notice of final determination.
-----------------------------------------------------------------------
SUMMARY: This document provides notice that U.S. Customs and Border
Protection (``CBP'') has issued a final determination concerning the
country of origin of the Fairplay Legacy line of golf and recreational
electric vehicles. Based upon the facts presented, CBP has concluded in
the final determination that the United States is the country of origin
of the Fairplay Legacy line of electric vehicles for purposes of U.S.
Government procurement.
DATES: The final determination was issued on October 13, 2010. 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 on or before November 18, 2010.
FOR FURTHER INFORMATION CONTACT: Heather K. Pinnock, Valuation and
Special Programs Branch: (202) 325-0034.
SUPPLEMENTARY INFORMATION: Notice is hereby given that on October 13,
2010, 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 the Fairplay Legacy line of golf and recreational
electric vehicles which may be offered to the U.S. Government under an
undesignated government procurement contract. This final determination,
in HQ H118435, was issued at the request of Fairplay Electric Cars, LLC
(``Fairplay''), under procedures set forth at 19 CFR Part 177, subpart
B, which implements Title III of the Trade Agreements Act of 1979, as
amended (19 U.S.C. 2511-18). In the final determination, CBP concluded
that, based upon the facts presented, the
[[Page 64319]]
Fairplay Legacy line of electric vehicles, assembled to completion in
the United States from parts made in non-TAA countries and TAA
countries and/or the United States, are substantially transformed in
the United States, such that the United States is the country of origin
of the finished articles 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), 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: October 13, 2010.
Sandra L. Bell,
Executive Director, Regulations and Rulings, Office of International
Trade.
Attachment
HQ H118435
October 13, 2010
CLA-2 OT:RR:CT:VS H118435 HkP
CATEGORY: Marking
Mr. Keith Andrews, President
Fairplay Electric Cars
743 Horizon Ct., Suite 333
Grand Junction, CO 81506
RE: Government Procurement; Country of Origin of Electric Vehicles;
Substantial Transformation
Dear Mr. Andrews:
This is in response to your letter dated July 20, 2010,
requesting a final determination on behalf of Fairplay Electric
Cars, LLC (``Fairplay''), pursuant to subpart B of part 177 of the
U.S. Customs and Border Protection Regulations (19 C.F.R. Part 177).
Under these regulations, which implement Title III of the Trade
Agreements Act of 1979 (TAA), as amended (19 U.S.C. Sec. 2511 et
seq.), CBP issues country of origin advisory rulings and final
determinations as to whether an article is or would be a product of
a designated country or instrumentality for the purposes of granting
waivers of certain ``Buy American'' restrictions in U.S. law or
practice for products offered for sale to the U.S. Government.
This final determination concerns the country of origin of the
Fairplay Legacy line of golf and recreational vehicles. We note that
as a U.S. importer and manufacturer, Fairplay is a party-at-interest
within the meaning of 19 C.F.R. Sec. 177.22(d)(1) and is entitled
to request this final determination. In reaching our decision, we
have taken into account additional information submitted to this
office on August 31, 2010.
FACTS:
The models of vehicles at issue are the following: Legacy Eco
2P, Legacy Eco 2P XR, Legacy Eco 4P, Legacy Deluxe 2P, Legacy Deluxe
XR 2P, Legacy Deluxe LTD 2P, Legacy Deluxe HP 2P, and the Legacy
Transport.
According to the information submitted, Fairplay imports parts
for these vehicles from China. These include chassis, plastic body
parts and various miscellaneous pieces of plastic trim, which are
assembled together in the United States with U.S.-made battery
packs, motors, electronics, wiring assemblies, seats, and chargers.
The bill of materials (BOM) submitted with the request indicates
that, depending on the model, a vehicle may have between
approximately 53 and 62 inputs, when items such as logos/decals,
warranty registration cards, and labor are counted along with the
parts. Of these, between 12 and 17 inputs are of U.S. origin or are
performed in the U.S. Between 44.8% and 53.5% of actual
manufacturing costs are attributed to U.S. or TAA country
manufacturing operations.
Assembly in the U.S. takes place at five different stations and
takes between 11 hours (660 minutes) and 14.25 hours (855 minutes).
The operations performed at each assembly station are described as
follows:
Station 0: The electronic controller plate is assembled and tested.
Approximate assembly time: 90-135 minutes.
Station 1: The chassis is unloaded and given a vehicle
identification number. Wheels, tires, and the steering column are
installed on the chassis using rivets, nuts, bolts, screws, and
plastic push-ins. Approximate assembly time: 180-240 minutes.
Station 2: The batteries, motor, controller, solenoid, wiring
harness and other crucial electronic parts are installed using
rivets, nuts, bolts, and screws or special Molex connectors and
plastic push-ins that must be soldered. Approximate assembly time:
90-120 minutes.
Station 3: The plastic front and rear body, bumpers and dashboard
are installed over the chassis and electronic assembly, which gives
the vehicle its finished appearance. Parts are attached with rivets,
nuts and bolts. The vehicle is then removed from the assembly rack.
Approximate assembly time: 150-180 minutes.
Station 4: The deep cycle batteries, upright canopy supports, canopy
top, seat bottom and back, seat belts, lights, reflectors, decals,
logos and final wiring are installed and tested. The parts are
installed using rivets, Molex connectors, nuts, bolts, screws, and/
or plastic push-ins, as required. Approximate assembly time: 150-180
minutes.
Testing of the fully assembled vehicle lasts between 90 and 195
minutes, depending on the vehicle. In addition, quality control
inspections are performed at each station as well as randomly.
Packing and shipping operations last between 30 and 45 minutes. The
Standard Operating Procedures to assemble the vehicles are designed
by staff engineers, who also select, approve and advise on the
appropriate parts to be used for the manufacture of the vehicles.
ISSUE:
What is the country of origin of the Fairplay Legacy line of
golf and recreational electric vehicles for purposes of U.S.
Government procurement?
LAW AND ANALYSIS:
Pursuant to Subpart B of Part 177, 19 CFR Sec. 177.21 et seq.,
which implements Title III of the Trade Agreements Act of 1979, as
amended (19 U.S.C. Sec. 2511 et seq.), CBP issues country of origin
advisory rulings and final determinations as to whether an article
is or would be a product of a designated country or instrumentality
for the purposes of granting waivers of certain ``Buy American''
restrictions in U.S. law or practice for products offered for sale
to the U.S. Government.
Under the rule of origin set forth under 19 U.S.C. Sec.
2518(4)(B):
An article is a product of a country or instrumentality only if
(i) it is wholly the growth, product, or manufacture of that country
or instrumentality, or (ii) in the case of an article which consists
in whole or in part of materials from another country or
instrumentality, it has been substantially transformed into a new
and different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was so
transformed.
See also 19 C.F.R. Sec. 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 Part 177 consistent with the Federal Procurement
Regulations. See 19 C.F.R. Sec. 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
C.F.R. Sec. 25.403(c)(1). The Federal Procurement Regulations
define ``U.S.-made end product'' as:
[A]n article that is mined, produces, 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.
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. For example, 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
[[Page 64320]]
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.
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, the 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.
You believe that the assembly operations that take place in the
U.S. result in a substantial transformation of the imported parts.
You note that these parts, by themselves, cannot function and must
be assembled with the U.S.-made parts to constitute a working
electric self-propelled vehicle. Given these considerations, you
argue that the U.S. content along with the fact that 100% of the
assembly operations takes place in the U.S. warrants a determination
that the U.S. is the country of origin of the vehicles. In support
of your argument, you cite Headquarters Ruling Letter (``HQ'')
H022169 (May 2, 2008) and HQ 558919 (Mar. 20, 1995).
In HQ H022169, CBP found that an imported mini-truck glider was
substantially transformed as a result of assembly operations
performed in the United States to produce an electric mini-truck.
Our decision was based on the fact that, under the described
assembly process, the imported glider lost its individual identity
and became an integral part of a new article possessing a new name,
character and use. In addition, a substantial number of the
components added to the imported glider were of U.S. origin.
In HQ 558919, a country of origin marking case relied upon in HQ
H022169, U.S. Customs (now CBP) held that an extruder assembly
manufactured in England was substantially transformed in the United
States when it was wired and combined with U.S. components (motor,
electric controls and extruder screw) to create a vertical extruder.
In reaching that decision, Customs emphasized that the imported
extruder subassembly and the U.S. components each had important
attributes that were functionally necessary to the operation of the
extruder. Consequently, we found that the imported subassemblies
should be excepted from individual marking, provided that the
cartons in which the U.S. manufacturer received them were properly
marked with their country of origin.
In both HQ 558919 and HQ H022169, CBP found that assembly of the
imported parts together with the U.S. made components were
``functionally necessary'' to the operation of the finished product.
The same is true in this situation. None of the imported parts, on
their own, can function as an electric vehicle but must be assembled
with other necessary U.S. components, such as the battery pack,
motor, electronics, wiring assemblies and charger. Moreover, given
the complexity and duration of the U.S. manufacturing process, we
consider those operations to be more than mere assembly.
Based on the information before us, and consistent with the CBP
rulings cited above, we find that the Chinese-origin chassis,
plastic body parts and plastic pieces of trim are substantially
transformed by the assembly operations performed in the United
States to produce electric vehicles. Under the described assembly
process, the imported parts lose their individual identities and
become integral parts of a new article possessing a new name,
character and use. Further, components crucial to the making of an
electric vehicle (the battery pack, motor, electronics, wiring
assemblies, and charger) are of U.S. origin. We conclude, based upon
these specific facts, that the country of origin of the Fairplay
Legacy line of electric vehicles for purposes of U.S. Government
procurement is the United States.
HOLDING:
The chassis, plastic body parts and plastic pieces of trim
imported from China are substantially transformed when they are
assembled in the United States with domestic components. As a
result, the country of origin of Fairplay's line of golf and
recreational electric vehicles, specifically the Legacy Eco 2P,
Legacy Eco 2P XR, Legacy Eco 4P, Legacy Deluxe 2P, Legacy Deluxe XR
2P, Legacy Deluxe LTD 2P, Legacy Deluxe HP 2P, and the Legacy
Transport, for purposes of U.S. Government procurement is the United
States.
Notice of this final determination will be given in the Federal
Register, as required by 19 C.F.R. Sec. 177.29. Any party-at-
interest other than the party which requested this final
determination may request, pursuant to 19 C.F.R. Sec. 177.31, that
CBP reexamine the matter anew and issue a new final determination.
Pursuant to 19 C.F.R. Sec. 177.30, any party-at-interest may,
within 30 days of publication of the Federal Register Notice
referenced above, seek judicial review of this final determination
before the Court of International Trade.
Sincerely,
Sandra L. Bell, Executive Director
Regulations and Rulings
Office of International Trade
[FR Doc. 2010-26314 Filed 10-18-10; 8:45 am]
BILLING CODE 9111-14-P
