Notice of Issuance of Final Determination Concerning the Country of Origin of Certain Office Chairs, 35007-35009 [2011-14842]
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Federal Register / Vol. 76, No. 115 / Wednesday, June 15, 2011 / Notices
Authority: 42 U.S.C. 5121–5207; 44 CFR
part 206.
David J. Kaufman,
Director, Office of Policy and Program
Analysis, Federal Emergency Management
Agency.
[FR Doc. 2011–14867 Filed 6–14–11; 8:45 am]
BILLING CODE 9111–23–P
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final
Determination Concerning the Country
of Origin of Certain Office Chairs
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: Notice of final determination.
AGENCY:
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Dated: June 9, 2011.
Sandra L. Bell,
Executive Director, Regulations and Rulings,
Office of International Trade.
Attachment
HQ H154135
This document provides
notice that U.S. Customs and Border
Protection (‘‘CBP’’) has issued a final
determination concerning the country of
origin of certain office chairs. Based
upon the facts presented, CBP has
concluded in the final determination
that the U.S. is the country of origin of
the office chairs for purposes of U.S.
government procurement.
DATES: The final determination was
issued on June 9, 2011. 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
July 15, 2011.
FOR FURTHER INFORMATION CONTACT: Elif
Eroglu, Valuation and Special Programs
Branch: (202) 325–0277.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that on June 9, 2011,
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 SAYL task chair and the
SAYL side chair which may be offered
to the U.S. Government under an
undesignated government procurement
contract. This final determination,
Headquarters Ruling Letter (‘‘HQ’’)
H154135, was issued at the request of
Herman Miller, Inc. 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 has concluded that,
based upon the facts presented, the
assembly of the SAYL task chair and the
SAYL side chair in the U.S., from parts
made in China, Canada, and the U.S.,
constitutes a substantial transformation,
such that the U.S. is the country of
SUMMARY:
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.
June 9, 2011
OT:RR:CTF:VS H154135 EE
CATEGORY: Marking
Lisa A. Crosby
Sidley Austin, LLP
1501 K Street, NW
Washington, D.C. 20005
RE: U.S. Government Procurement; Title III,
Trade Agreements Act of 1979 (19 U.S.C.
§ 2511); Subpart B, Part 177, CBP
Regulations; Office Chairs
Dear Ms. Crosby:
This is in response to your correspondence
of March 4, 2011, requesting a final
determination on behalf of Herman Miller,
Inc. (‘‘Herman Miller’’), pursuant to subpart
B of part 177, U.S. Customs and Border
Protection (‘‘CBP’’) Regulations (19 C.F.R.
§ 177.21 et seq.). Under the pertinent
regulations, which implement 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 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 the SAYL task chair and
the SAYL side chair (collectively, the SAYL
office chairs). We note that Herman Miller 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.
FACTS:
Herman Miller is a U.S. supplier of
furniture products and accessories for home,
office, healthcare and learning environments.
The merchandise at issue is the Herman
Miller SAYL task chair and the SAYL side
chair. You state that Herman Miller
engineered and designed the office chairs
wholly within the U.S. The assembly of the
office chairs, from U.S. and imported
components, occurs in the U.S.
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The SAYL task chair is intended for the
principal occupant in an office and it swivels
and has casters. The SAYL side chair is
intended to serve as a guest chair in an office;
it does not swivel, although it can be
equipped with casters. Both SAYL office
chairs have a variety of ergonomic features.
For example, the SAYL task chair provides
pelvic stabilization and the height may be
adjusted and tilted to allow the body to
naturally pivot at the ankles, knees, and hips.
The seat depth adjusts. Two back support
options are available to improve posture and
lower back comfort. Three arm choices are
also available—fixed, height-adjustable and
fully-adjustable (i.e., pivot, fore/aft slide, in/
out slide).
The SAYL chairs are offered in several
aesthetic configurations: 1) upholstered back,
2) single surface elastomeric thermo-plastic
urethane (‘‘TPU’’) (i.e., mesh) back, and 3) an
injection molded hard plastic back (not the
subject of this final determination request).
All configurations offer two leg options: a
four-leg base and a cantilever base.
The SAYL task chair, depending on its
specific configuration, comprises
approximately 35 components (excluding
fasteners). The SAYL side chair, depending
on its specific configuration, comprises
approximately 15 components (excluding
fasteners). All of the components are of U.S.,
Chinese, or Canadian origin.
You submitted the costed bills of materials
for the SAYL task chair and the SAYL side
chair. Each bill of material represents a
different aesthetic configuration. The two
types of SAYL office chairs share many of the
same components. The components from
China of the SAYL chairs include: casters, tilt
assembly, cylinder, arm supports, and plastic
back (including the TPU mesh). The
component from Canada is a five-star base
subassembly. The components from the U.S.
include: foam seat assembly, crossing, seat
pan, spine, pelvis, mid-back foam assembly,
leg base, glides, back frame, arms, and back
assembly.
You state that the manufacture of both
types of SAYL office chairs involves similar
processes. The production in the U.S.
involves approximately 35 individual steps
to convert the components into a finished
chair. From start to finish, including quality
testing and packaging, it takes approximately
19 minutes to manufacture the TPU mesh
configuration and 17 minutes to manufacture
the upholstered configuration.
TPU Mesh Configuration
You state that the production of both types
of SAYL chairs with the TPU mesh
configuration begins with Herman Miller
receiving a sheet of Chinese-origin TPU mesh
from its supplier in the exact size and shape
requested by Herman Miller. The TPU mesh
is placed in a custom-made machine, which
is designed to stretch the mesh into the
required shape.
Two arrow hangers are then added to the
two top points of the TPU mesh. Using a
special fixture, the hangers are pressed into
place and the TPU mesh is stretched into a
secure position in each hanger. Next, two
strips of plastic featuring a dozen tabs are
placed at the bottom of the TPU mesh, with
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one strip on each side of the mesh. Using a
special hand tool, each tab is bent upward in
order to attach each strip of plastic to the
TPU mesh. The TPU mesh is then ready for
assembly with the spine and back. The Yshaped spine is placed on top of the TPU
mesh. The pelvis is then inserted into the Yshaped spine. Next, the TPU mesh is
stretched horizontally using a special tool.
Arm sleeves are affixed to the TPU mesh.
Using the stretcher fixture, the TPU mesh is
stretched over the Y-shaped spine so that the
two hangers at the top of the mesh fit over
the spine. The TPU mesh is stretched until
it snaps into place.
The next step is to prepare the seat
subassembly to which the TPU mesh-spinepelvis subassembly is attached. Each seat
consists of a foam base that is upholstered.
The foam base is assembled with a plastic
frame in advance. The seat upholstery is also
cut and sewn into shape in advance. The
upholstery is placed tightly over the foam
base and is stapled into place. Then, the
bottom frame and seat subassembly are
secured into place by hand-driven screws.
Next, the legs are prepared for insertion
into the bottom frame. The five-star base
subassembly is fitted with a top. Two
adjustment levers, which permit the chair to
tilt, are inserted into the top of the five-star
subassembly. A mechanical subassembly,
which houses the tilting mechanism and
other aspects of the chair’s ergonomic
features, is fitted onto the top. The
mechanical subassembly, top and five-star
base subassembly are then joined with the
seat.
Next, the arm pads are inserted into the
arms and secured with hand-driven screws.
The arms are fitted into the arm sleeves. The
components are pressed together until they
snap into place.
Upholstered Configuration
The first step in the production of both
types of SAYL chairs with the upholstered
configuration is to sew the cover of the chair
back from U.S.-origin fabric. Depending on
the fabric chosen, a liner may be sewn into
the back side of the cover. A button hole also
is sewn into the back side of the cover.
Next, the foam base for the chair back is
upholstered with the cover. A plug or control
handle which controls the adjustability of the
seat back is inserted into the buttonhole on
the backside of the cover. A ‘‘doghouse,’’ or
half circle, is then aligned inside the center
back of the foam base. Using the doghouse as
a guide, the fabric in the interior of the
doghouse is cut, folded over and stapled in
place.
Next, the joints for attaching the spine are
affixed to the chair back. A Y-shaped spine
is then prepared for attachment to the pivot
joints by inserting tabs into the spine. The
top of the spine is then forced down onto the
pivot joints until they click into place. The
bottom of the spine fits into the opening
created by the doghouse operation previously
described. Then, nut plates are installed on
either side of the chair. Arm sleeves are
affixed to the nut plates using hand-driven
screws.
Next, the pelvis is assembled with the
chair back. The pelvis and chair back then
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are joined with the seat. The seat is
assembled in a manner similar to the chair
back. Fabric is cut and sewn into a cover,
which is fitted over a foam base. The cover
is stretched tight over the foam base. Then,
the seat handle is installed.
Next, the arm pads are inserted into the
arms and secured with hand-driven screws.
The arms are then fitted into the arm sleeves.
The components are pressed together until
they snap into place.
You provided a copy of the product
brochure for the SAYL office chairs.
Additionally, you submitted an example of
Herman Miller’s research in the field of
ergonomics; sample job instructions which
explain each step involved in the
manufacturing process of the SAYL office
chairs; and a DVD which depicts the
assembly procedures for the SAYL office
chairs. You also provided a list of patents
applicable to the SAYL office chairs.
ISSUE:
What is the country of origin of the SAYL
task chair and the SAYL side chair for the
purpose of U.S. government procurement?
LAW AND ANALYSIS:
Pursuant to subpart B of part 177, 19 C.F.R.
§ 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 Acquisition Regulations.
See 19 C.F.R. § 177.21. In this regard, CBP
recognizes that the Federal Acquisition
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 Acquisition
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.
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48 C.F.R. § 25.003.
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 the degree of skill required during the
actual manufacturing process may be
relevant when determining whether a
substantial transformation has occurred. No
one factor is determinative.
In Carlson Furniture Industries v. United
States, 65 Cust. Ct. 474 (1970), the U.S.
Customs Court ruled that U.S. operations on
imported chair parts constituted a substantial
transformation, resulting in the creation of a
new article of commerce. After importation,
the importer assembled, fitted, and glued the
wooden parts together, inserted steel pins
into the key joints, cut the legs to length and
leveled them, and in some instances,
upholstered the chairs and fitted the legs
with glides and casters. The court
determined that the importer had to perform
additional work on the imported chair parts
and add materials to create a functional
article of commerce. The court found that the
operations were substantial in nature, and
more than the mere assembly of the parts
together.
In Headquarters Ruling Letter (‘‘HQ’’)
W563456, dated July 31, 2006, CBP held that
certain office chairs assembled in the U.S.
were a product of the U.S. for purposes of
U.S. government procurement. The office
chairs were assembled from over 70 U.S. and
foreign components. In finding that the
imported parts were substantially
transformed in the U.S., CBP stated that the
assembly processing that occurred in the U.S.
was complex and meaningful, required the
assembly of a large number of components,
and rendered a new and distinct article of
commerce that possessed a new name,
character, and use. CBP noted that the U.S.origin seat and back frame assemblies, which
were made with the importer’s trademark
fabric, together with the tilt assembly, were
of U.S. origin and gave the chair its unique
design profile and essential character.
In this case, the SAYL task chair comprises
approximately 35 components and the SAYL
side chair has approximately 15 components,
which are assembled in the U.S. We note that
some of the major components of the office
chairs such as the spine, seat pan, and glides
are of U.S. origin. You state that as in HQ
W563456, the U.S.-origin fabric and the
Chinese-origin TPU mesh, used in most
aesthetic configurations of the SAYL office
chairs, impart the essential identity of the
chairs and that the backs were designed by
Herman Miller in the U.S. and are
trademarked. We note the Chinese-origin
TPU mesh is extensively processed in the
U.S. by stretching and fitting it into the
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Federal Register / Vol. 76, No. 115 / Wednesday, June 15, 2011 / Notices
required shape using special tools. Other
U.S.-sourced components of the SAYL chairs
include the foam seat assembly, crossing, seat
pan, spine, pelvis, mid-back foam assembly,
leg base, glides, back frame, arms, and back
assembly. It takes approximately 19 minutes
to manufacture the TPU mesh configuration
of the office chairs and 17 minutes to
manufacture the upholstered configuration.
Under the described assembly process, we
find that the foreign components lose their
individual identities and become an integral
part of a new article, the SAYL task chair or
the SAYL side chair, possessing a new name,
character and use. Based upon the
information before us, we find that the
imported components that are used to
manufacture the SAYL task chair and the
SAYL side chair, when combined with the
U.S. origin components, are substantially
transformed as a result of the assembly
operations performed in the U.S., and that
the country of origin of the SAYL task chair
and the SAYL side chair for government
procurement purposes will be the U.S.
HOLDING:
The imported components that are used to
manufacture the SAYL task chair and SAYL
side chair are substantially transformed as a
result of the assembly operations performed
in the U.S. Therefore, we find that the
country of origin of the SAYL task chair and
SAYL side chair for government procurement
purposes is the U.S.
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 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
Regulations and Rulings
Office of International Trade
[FR Doc. 2011–14842 Filed 6–14–11; 8:45 am]
BILLING CODE P
35009
1001 Indian School Road, NW., Suite
312, Albuquerque, NM 87104.
FOR FURTHER INFORMATION CONTACT:
Michele F. Singer, telephone (505) 563–
3805; fax (505) 563–3811.
SUPPLEMENTARY INFORMATION:
I. Background
DEPARTMENT OF THE INTERIOR
Office of the Secretary
Tribal Consultation on Implementation
of Indian Land Consolidation Program
Under Cobell Settlement
Office of the Secretary, Interior.
Notice of Tribal consultation
meeting.
AGENCY:
ACTION:
The Office of the Secretary is
announcing that it will conduct a series
of consultation meetings with Indian
Tribes to obtain oral and written
comments concerning the
implementation of the Indian Land
Consolidation Program (ILCP) under the
terms of the Cobell Settlement. The first
Regional consultation meeting will take
place in July in Billings, Montana for
the Rocky Mountain and Great Plains
Regions. There will be five additional
consultations in other Regions. See the
SUPPLEMENTARY INFORMATION section of
this notice for details.
DATES: The first Regional Tribal
consultation meeting will take place on
Friday, July 15, 2011, in Billings,
Montana. Comments must be received
by September 16, 2011.
ADDRESSES: Michele F. Singer, Director,
Office of Regulatory Affairs and
Collaborative Action, Office of the
Assistant Secretary—Indian Affairs,
SUMMARY:
The Bureau of Indian Affairs’ ILCP
purchases fractionated interests of
individually owned trust or restricted
fee lands and transfers those
consolidated interests into Tribal
ownership pursuant to the Indian Land
Consolidation Act, 25 U.S.C. 2201 et
seq. The Indian Claims Resolution Act
of 2010, Public Law 111–291, makes
available $1.9 billion, the majority of
which will be used by the Secretary to
operate the ILCP with the purpose of
addressing the problem of fractionation.
The Act requires consultation with
Indian Tribes to identify fractional
interests within the respective
jurisdictions of the Indian Tribes that
the Department may want to consider
purchasing.
Information and statistics regarding
the issue of land fractionation will be
distributed to the Federally-recognized
Indian Tribes prior to the consultations.
The information will also be made
available to attendees on the day of each
consultation. The Cobell Settlement
must be approved by the Federal
District Court, and a fairness hearing
before the Court is scheduled for June
20, 2011, in Washington, DC.
II. Meeting Details
The Office of the Secretary will hold
the first of a series of Tribal consultation
meetings on the following schedule:
Date
Time
Location
Friday, July 15, 2011 ..........
9 a.m.–4 p.m. ...................
Holiday Inn Grand Montana Hotel & Convention Center, 5500 Midland Road, Billings,
Montana 59101, (406) 248–7701 https://www.billingsholidayinn.com.
jlentini on DSK4TPTVN1PROD with NOTICES
We will announce additional Tribal
consultation meetings by future
publication in the Federal Register.
Written comments will be accepted
through September 16, 2011, and may
be sent to the official listed in the
ADDRESSES section above.
Dated: June 9, 2011.
David J. Hayes,
Deputy Secretary of the Interior.
DEPARTMENT OF THE INTERIOR
National Park Service
[5130–0400–NZM]
Draft Oil and Gas Management Plan/
Environmental Impact Statement for
Big South Fork National River and
Recreation Area and Obed Wild and
Scenic River
AGENCY:
National Park Service, Interior.
Notice of Availability of a Draft
Oil and Gas Management Plan/
Environmental Impact Statement for Big
South Fork National River and
ACTION:
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Pursuant to the National
Environmental Policy Act of 1969, 42
U.S.C. 4332(2)(C), and the Council on
Environmental Quality regulations (40
CFR part 1500–1508), the National Park
Service (NPS), Department of the
Interior, announces the availability of
the draft oil and gas management plan/
environmental impact statement
(OGMP/DEIS) for the proposed Big
South Fork National River and
Recreation Area (BISO) and Obed Wild
and Scenic River (OBRI). This OGMP/
DEIS will guide the various actions that
could be implemented for current and
SUMMARY:
[FR Doc. 2011–14923 Filed 6–13–11; 11:15 am]
BILLING CODE 4310–W7–P
Recreation Area and Obed Wild and
Scenic River.
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]]>Agencies
[Federal Register Volume 76, Number 115 (Wednesday, June 15, 2011)]
[Notices]
[Pages 35007-35009]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-14842]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final Determination Concerning the Country
of Origin of Certain Office Chairs
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: Notice of final determination.
-----------------------------------------------------------------------
SUMMARY: This document provides notice that U.S. Customs and Border
Protection (``CBP'') has issued a final determination concerning the
country of origin of certain office chairs. Based upon the facts
presented, CBP has concluded in the final determination that the U.S.
is the country of origin of the office chairs for purposes of U.S.
government procurement.
DATES: The final determination was issued on June 9, 2011. 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 July 15, 2011.
FOR FURTHER INFORMATION CONTACT: Elif Eroglu, Valuation and Special
Programs Branch: (202) 325-0277.
SUPPLEMENTARY INFORMATION: Notice is hereby given that on June 9, 2011,
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 SAYL task chair and the SAYL side chair which
may be offered to the U.S. Government under an undesignated government
procurement contract. This final determination, Headquarters Ruling
Letter (``HQ'') H154135, was issued at the request of Herman Miller,
Inc. 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 has concluded
that, based upon the facts presented, the assembly of the SAYL task
chair and the SAYL side chair in the U.S., from parts made in China,
Canada, and the U.S., constitutes a substantial transformation, such
that the U.S. 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: June 9, 2011.
Sandra L. Bell,
Executive Director, Regulations and Rulings, Office of International
Trade.
Attachment
HQ H154135
June 9, 2011
OT:RR:CTF:VS H154135 EE
CATEGORY: Marking
Lisa A. Crosby
Sidley Austin, LLP
1501 K Street, NW
Washington, D.C. 20005
RE: U.S. Government Procurement; Title III, Trade Agreements Act of
1979 (19 U.S.C. Sec. 2511); Subpart B, Part 177, CBP Regulations;
Office Chairs
Dear Ms. Crosby:
This is in response to your correspondence of March 4, 2011,
requesting a final determination on behalf of Herman Miller, Inc.
(``Herman Miller''), pursuant to subpart B of part 177, U.S. Customs
and Border Protection (``CBP'') Regulations (19 C.F.R. Sec. 177.21
et seq.). Under the pertinent regulations, which implement 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 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 the
SAYL task chair and the SAYL side chair (collectively, the SAYL
office chairs). We note that Herman Miller 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.
FACTS:
Herman Miller is a U.S. supplier of furniture products and
accessories for home, office, healthcare and learning environments.
The merchandise at issue is the Herman Miller SAYL task chair and
the SAYL side chair. You state that Herman Miller engineered and
designed the office chairs wholly within the U.S. The assembly of
the office chairs, from U.S. and imported components, occurs in the
U.S.
The SAYL task chair is intended for the principal occupant in an
office and it swivels and has casters. The SAYL side chair is
intended to serve as a guest chair in an office; it does not swivel,
although it can be equipped with casters. Both SAYL office chairs
have a variety of ergonomic features. For example, the SAYL task
chair provides pelvic stabilization and the height may be adjusted
and tilted to allow the body to naturally pivot at the ankles,
knees, and hips. The seat depth adjusts. Two back support options
are available to improve posture and lower back comfort. Three arm
choices are also available--fixed, height-adjustable and fully-
adjustable (i.e., pivot, fore/aft slide, in/out slide).
The SAYL chairs are offered in several aesthetic configurations:
1) upholstered back, 2) single surface elastomeric thermo-plastic
urethane (``TPU'') (i.e., mesh) back, and 3) an injection molded
hard plastic back (not the subject of this final determination
request). All configurations offer two leg options: a four-leg base
and a cantilever base.
The SAYL task chair, depending on its specific configuration,
comprises approximately 35 components (excluding fasteners). The
SAYL side chair, depending on its specific configuration, comprises
approximately 15 components (excluding fasteners). All of the
components are of U.S., Chinese, or Canadian origin.
You submitted the costed bills of materials for the SAYL task
chair and the SAYL side chair. Each bill of material represents a
different aesthetic configuration. The two types of SAYL office
chairs share many of the same components. The components from China
of the SAYL chairs include: casters, tilt assembly, cylinder, arm
supports, and plastic back (including the TPU mesh). The component
from Canada is a five-star base subassembly. The components from the
U.S. include: foam seat assembly, crossing, seat pan, spine, pelvis,
mid-back foam assembly, leg base, glides, back frame, arms, and back
assembly.
You state that the manufacture of both types of SAYL office
chairs involves similar processes. The production in the U.S.
involves approximately 35 individual steps to convert the components
into a finished chair. From start to finish, including quality
testing and packaging, it takes approximately 19 minutes to
manufacture the TPU mesh configuration and 17 minutes to manufacture
the upholstered configuration.
TPU Mesh Configuration
You state that the production of both types of SAYL chairs with
the TPU mesh configuration begins with Herman Miller receiving a
sheet of Chinese-origin TPU mesh from its supplier in the exact size
and shape requested by Herman Miller. The TPU mesh is placed in a
custom-made machine, which is designed to stretch the mesh into the
required shape.
Two arrow hangers are then added to the two top points of the
TPU mesh. Using a special fixture, the hangers are pressed into
place and the TPU mesh is stretched into a secure position in each
hanger. Next, two strips of plastic featuring a dozen tabs are
placed at the bottom of the TPU mesh, with
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one strip on each side of the mesh. Using a special hand tool, each
tab is bent upward in order to attach each strip of plastic to the
TPU mesh. The TPU mesh is then ready for assembly with the spine and
back. The Y-shaped spine is placed on top of the TPU mesh. The
pelvis is then inserted into the Y-shaped spine. Next, the TPU mesh
is stretched horizontally using a special tool. Arm sleeves are
affixed to the TPU mesh. Using the stretcher fixture, the TPU mesh
is stretched over the Y-shaped spine so that the two hangers at the
top of the mesh fit over the spine. The TPU mesh is stretched until
it snaps into place.
The next step is to prepare the seat subassembly to which the
TPU mesh-spine-pelvis subassembly is attached. Each seat consists of
a foam base that is upholstered. The foam base is assembled with a
plastic frame in advance. The seat upholstery is also cut and sewn
into shape in advance. The upholstery is placed tightly over the
foam base and is stapled into place. Then, the bottom frame and seat
subassembly are secured into place by hand-driven screws.
Next, the legs are prepared for insertion into the bottom frame.
The five-star base subassembly is fitted with a top. Two adjustment
levers, which permit the chair to tilt, are inserted into the top of
the five-star subassembly. A mechanical subassembly, which houses
the tilting mechanism and other aspects of the chair's ergonomic
features, is fitted onto the top. The mechanical subassembly, top
and five-star base subassembly are then joined with the seat.
Next, the arm pads are inserted into the arms and secured with
hand-driven screws. The arms are fitted into the arm sleeves. The
components are pressed together until they snap into place.
Upholstered Configuration
The first step in the production of both types of SAYL chairs
with the upholstered configuration is to sew the cover of the chair
back from U.S.-origin fabric. Depending on the fabric chosen, a
liner may be sewn into the back side of the cover. A button hole
also is sewn into the back side of the cover.
Next, the foam base for the chair back is upholstered with the
cover. A plug or control handle which controls the adjustability of
the seat back is inserted into the buttonhole on the backside of the
cover. A ``doghouse,'' or half circle, is then aligned inside the
center back of the foam base. Using the doghouse as a guide, the
fabric in the interior of the doghouse is cut, folded over and
stapled in place.
Next, the joints for attaching the spine are affixed to the
chair back. A Y-shaped spine is then prepared for attachment to the
pivot joints by inserting tabs into the spine. The top of the spine
is then forced down onto the pivot joints until they click into
place. The bottom of the spine fits into the opening created by the
doghouse operation previously described. Then, nut plates are
installed on either side of the chair. Arm sleeves are affixed to
the nut plates using hand-driven screws.
Next, the pelvis is assembled with the chair back. The pelvis
and chair back then are joined with the seat. The seat is assembled
in a manner similar to the chair back. Fabric is cut and sewn into a
cover, which is fitted over a foam base. The cover is stretched
tight over the foam base. Then, the seat handle is installed.
Next, the arm pads are inserted into the arms and secured with
hand-driven screws. The arms are then fitted into the arm sleeves.
The components are pressed together until they snap into place.
You provided a copy of the product brochure for the SAYL office
chairs. Additionally, you submitted an example of Herman Miller's
research in the field of ergonomics; sample job instructions which
explain each step involved in the manufacturing process of the SAYL
office chairs; and a DVD which depicts the assembly procedures for
the SAYL office chairs. You also provided a list of patents
applicable to the SAYL office chairs.
ISSUE:
What is the country of origin of the SAYL task chair and the
SAYL side chair for the purpose of U.S. government procurement?
LAW AND ANALYSIS:
Pursuant to subpart B of part 177, 19 C.F.R. 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 Acquisition
Regulations. See 19 C.F.R. Sec. 177.21. In this regard, CBP
recognizes that the Federal Acquisition 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 Acquisition 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 C.F.R. Sec. 25.003.
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 the
degree of skill required during the actual manufacturing process may
be relevant when determining whether a substantial transformation
has occurred. No one factor is determinative.
In Carlson Furniture Industries v. United States, 65 Cust. Ct.
474 (1970), the U.S. Customs Court ruled that U.S. operations on
imported chair parts constituted a substantial transformation,
resulting in the creation of a new article of commerce. After
importation, the importer assembled, fitted, and glued the wooden
parts together, inserted steel pins into the key joints, cut the
legs to length and leveled them, and in some instances, upholstered
the chairs and fitted the legs with glides and casters. The court
determined that the importer had to perform additional work on the
imported chair parts and add materials to create a functional
article of commerce. The court found that the operations were
substantial in nature, and more than the mere assembly of the parts
together.
In Headquarters Ruling Letter (``HQ'') W563456, dated July 31,
2006, CBP held that certain office chairs assembled in the U.S. were
a product of the U.S. for purposes of U.S. government procurement.
The office chairs were assembled from over 70 U.S. and foreign
components. In finding that the imported parts were substantially
transformed in the U.S., CBP stated that the assembly processing
that occurred in the U.S. was complex and meaningful, required the
assembly of a large number of components, and rendered a new and
distinct article of commerce that possessed a new name, character,
and use. CBP noted that the U.S.-origin seat and back frame
assemblies, which were made with the importer's trademark fabric,
together with the tilt assembly, were of U.S. origin and gave the
chair its unique design profile and essential character.
In this case, the SAYL task chair comprises approximately 35
components and the SAYL side chair has approximately 15 components,
which are assembled in the U.S. We note that some of the major
components of the office chairs such as the spine, seat pan, and
glides are of U.S. origin. You state that as in HQ W563456, the
U.S.-origin fabric and the Chinese-origin TPU mesh, used in most
aesthetic configurations of the SAYL office chairs, impart the
essential identity of the chairs and that the backs were designed by
Herman Miller in the U.S. and are trademarked. We note the Chinese-
origin TPU mesh is extensively processed in the U.S. by stretching
and fitting it into the
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required shape using special tools. Other U.S.-sourced components of
the SAYL chairs include the foam seat assembly, crossing, seat pan,
spine, pelvis, mid-back foam assembly, leg base, glides, back frame,
arms, and back assembly. It takes approximately 19 minutes to
manufacture the TPU mesh configuration of the office chairs and 17
minutes to manufacture the upholstered configuration. Under the
described assembly process, we find that the foreign components lose
their individual identities and become an integral part of a new
article, the SAYL task chair or the SAYL side chair, possessing a
new name, character and use. Based upon the information before us,
we find that the imported components that are used to manufacture
the SAYL task chair and the SAYL side chair, when combined with the
U.S. origin components, are substantially transformed as a result of
the assembly operations performed in the U.S., and that the country
of origin of the SAYL task chair and the SAYL side chair for
government procurement purposes will be the U.S.
HOLDING:
The imported components that are used to manufacture the SAYL
task chair and SAYL side chair are substantially transformed as a
result of the assembly operations performed in the U.S. Therefore,
we find that the country of origin of the SAYL task chair and SAYL
side chair for government procurement purposes is the U.S.
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 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
Regulations and Rulings
Office of International Trade
[FR Doc. 2011-14842 Filed 6-14-11; 8:45 am]
BILLING CODE P
