Notice of Issuance of Final Determination Concerning Video Teleconferencing Server, 57648-57650 [2013-22765]

Download as PDF 57648 Federal Register / Vol. 78, No. 182 / Thursday, September 19, 2013 / Notices Community Community map repository address City of Houston ......................................................................................... Floodplain Management Office, 1002 Washington Avenue, 3rd Floor, Houston, TX 77002. Jacinto City City Hall, 1301 Mercury Drive, Houston, TX 77029. City Hall, 604 West Fairmont Parkway, La Porte, TX 77571. Building Department, 600 West Walker Street, League City, TX 77573. City Hall, 1415 East Main Street, Morgan’s Point, TX 77571. City Hall, 18100 Upper Bay Road, Nassau Bay, TX 77058. Municipal Services Building, 1114 Davis Street, Pasadena, TX 77506. City Hall, 1700 1st Street, Seabrook, TX 77586. City Hall, 601 Shoreacres Boulevard, Shoreacres, TX 77571. City Hall, 1018 Dallas Street, South Houston, TX 77587. City Hall, 500 Kirby Boulevard, Taylor Lake Village, TX 77586. City Hall, 101 Pennsylvania Avenue, Webster, TX 77598. Harris County Permits Office, 10555 Northwest Freeway, Suite 120, Houston, TX 77092. City of Jacinto City ................................................................................... City of La Porte ........................................................................................ City of League City ................................................................................... City of Morgan’s Point .............................................................................. City of Nassau Bay ................................................................................... City of Pasadena ...................................................................................... City of Seabrook ....................................................................................... City of Shoreacres .................................................................................... City of South Houston .............................................................................. City of Taylor Lake Village ....................................................................... City of Webster ......................................................................................... Unincorporated Areas of Harris County ................................................... Lancaster County, Virginia, and Incorporated Areas Maps Available for Inspection Online at: http://www.fema.gov/preliminaryfloodhazarddata Town of Irvington ...................................................................................... Town of Kilmarnock .................................................................................. Town of White Stone ................................................................................ Unincorporated Areas of Lancaster County ............................................. (Catalog of Federal Domestic Assistance No. 97.022, ‘‘Flood Insurance.’’) Dated: August 30, 2013. Roy E. Wright, Deputy Associate Administrator for Mitigation, Department of Homeland Security, Federal Emergency Management Agency. [FR Doc. 2013–22832 Filed 9–18–13; 8:45 am] BILLING CODE 9110–12–P DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection Notice of Issuance of Final Determination Concerning Video Teleconferencing Server 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 video teleconferencing server Prescient T7–FW. Based upon the facts presented, CBP has concluded in the final determination that China is the country of origin of the video teleconferencing server for purposes of U.S. Government procurement. DATES: The final determination was issued on September 11, 2013. A copy of the final determination is attached. Any party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial review tkelley on DSK3SPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 17:27 Sep 18, 2013 Jkt 229001 Town Hall Town Hall Town Hall Lancaster 22503. Office, 235 Steamboat Road, Irvington, VA 22480. Office, 514 North Main Street, Kilmarnock, VA 22482. Office, 433 Rappahannock Drive, White Stone, VA 22578. County Courthouse, 8311 Mary Ball Road, Lancaster, VA of this final determination on or before October 21, 2013. FOR FURTHER INFORMATION CONTACT: Karen S. Greene, Valuation and Special Programs Branch: (202) 325–0041. SUPPLEMENTARY INFORMATION: Notice is hereby given that on September 11, 2013, pursuant to subpart B of Part 177, Customs and Border Protection Regulations (19 CFR part 177, subpart B), CBP issued a final determination concerning the country of origin of video teleconferencing server Prescient T7–FW, which may be offered to the U.S. Government under an undesignated government procurement contract. This final determination, in HQ H218360, was issued at the request of CyberPoint International 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 concluded that, based upon the facts presented, since the Chinese-origin Video Board and the Filter Board, impart the essential character to the video teleconferencing server, that China is the country of origin of the video teleconferencing server for purposes of U.S. Government procurement. Section 177.29, CBP Regulations (19 CFR 177.29), provides that a notice of final determination 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 PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 final determination within 30 days of publication of such determination in the Federal Register. Dated: September 11, 2013. Sandra L. Bell, Executive Director, Regulations and Rulings, Office of International Trade. Attachment HQ H218360 September 11, 2013 MAR–2 OTF:CTF:VS H218360 KSG Vanessa P. Sciarra Holland & Knight 2099 Pennsylvania Ave. NW Suite 100 Washington, DC 20006 RE: Final determination; country of origin of video teleconferencing server; substantial transformation Dear Ms. Sciarra: This is in response to your letter, submitted May 2, 2012, supplemental submission dated October 22, 2012, and emails on July 22, and August 14, 2013, requesting a final determination on behalf of CyberPoint International Inc., pursuant to subpart B of part 177 of the U.S. Customs and Border Protection (‘‘CBP’’) Regulations (19 CFR 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 video teleconferencing server Prescient T7–FW E:\FR\FM\19SEN1.SGM 19SEN1 Federal Register / Vol. 78, No. 182 / Thursday, September 19, 2013 / Notices tkelley on DSK3SPTVN1PROD with NOTICES (‘‘the Server’’). As a U.S. manufacturer and wholesaler, CyberPoint International LLC. is a party-at-interest within the meaning of 19 CFR 177.22(d)(1), and is entitled to request this final determination. FACTS: This case involves the Server which is designed to communicate in a secure environment. The basic functionality of the product is to capture motion picture images and sound and send them digitally (via Ethernet) to a similar unit at a different location, where the digital data is reconstructed into motion picture and sound. In addition, the Server ensures that digital data (motion picture and sound) is sent securely between the two units, making the ability to infiltrate the unit via eavesdropping or malware through the network connection more difficult. You state that the security feature adds approximately 40 percent of the unit’s value. The Server is comprised of a video processing electronic circuit board (‘‘Video Board’’) which includes the codec; a network filter electronic circuit board (‘‘Filter Board’’); a housing case; a power supply circuit board; minor components, which include a heat sink, standoff hardware and screws, network cables and wire harnesses; and CyberPoint’s proprietary software known as the CyberPoint Linux Firewall (‘‘Linux software’’). The Linux software allows the Filter Board to inspect each Ethernet packet of information as it enters the LAN port of the Video Board, and to accept only those packets needed to perform the video teleconferencing functionality. You state that the Linux software is designed, developed and installed in the United States at great expense and with many man hours in its engineering, development and design by cyber-security professionals with years of experience in creating defensive solutions. The Server can be used with video cameras, microphones and video display; however, these are optional attachments and are not part of the product under consideration. The key hardware components are the Video Board, which converts image and sound into digital data, and the Filter Board, programmed with Linux software, which transmits the digital data via a LAN connector over the Ethernet and protects the connection from malware infiltration. The Video Board, including the codec, is manufactured in China, and has connections for various video input and output formats, two USB connections, and two Ethernet connections. One of the Ethernet connections interfaces with a microphone to capture sound, and the other interfaces with a LAN. Two scenarios are presented. In the first scenario, the Video Board lacks the LAN connection when imported, meaning that it cannot transmit data. In the second scenario, the Video Board is fully functional as imported. Once imported into the U.S., the LAN connection is removed, the hole for this connection in the rear sheet metal of the unit is covered, a modification is made to the rear sheet metal to provide for a new connection point, and CyberPoint installs another cable that connects from the Filter Board to the VerDate Mar<15>2010 17:27 Sep 18, 2013 Jkt 229001 new connection point. The LAN connector hardware is produced in the U.S. and developed by CyberPoint at its facilities in the U.S. CyberPoint states that the purposes of its installation of the LAN connection is to wipe the device clean from any malware residing in the original equipment. The Filter Board is a circuit board that provides the necessary LAN connection of the Server and the secure connection that ensures no malware infiltrates the system during a videoconferencing session or during off hours. The Filter Board is made from a DreamPlug unit manufactured in China, a mini generic computer housed in a plug that contains a blank non-functional circuit board. In the U.S., the DreamPlug is disassembled; and the circuit board is removed, mounted on an aluminium heat sink, wired and programmed with Linux software, and configured, reinstalled and mounted on the Server’s metal case. The programming of the Filter Board with Linux software inputs the connectivity functionality, so that digital data can be transmitted securely from one unit to another. The power supply and metal case for the server are produced in China. The heat sink is produced in the U.S. The assembly of the various components in the U.S. involves the following: • As stated above, holes are drilled in the metal case so the Filter Board and LAN connector hardware can be mounted; • The DreamPlug is disassembled and the blank circuit board is removed, the Linux software is downloaded, and the card is then re-installed. This process takes approximately 4.5 hours; • The Video Board is removed from the case and it is connected to the LAN connector with a network cable. Under the second scenario, the existing LAN connection has to be removed as well; • A wire harness is installed to route the cables, and the Filter Board is installed to the heat sink. The LAN network connector is installed through the rear of the metal case. This takes approximately 2.5 hours; • The finished Server is tested, labeled and packaged. Counsel states that the overall assembly process in the U.S. takes approximately 20 hours to complete each unit. ISSUE: What is the country of origin of the Server? 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.) (‘‘TAA’’), 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 PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 57649 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 part 177 consistent with the Federal Acquisition Regulations. See 19 CFR 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 CFR 25.403(c)(1). The Federal Acquisitions 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 In Data General v. United States, 4 CIT 182 (1982), the court determined that for purposes of determining eligibility under item 807.00, Tariff Schedule of the United States (predecessor to subheading 9802.00.80, Harmonized Tariff Schedule of the United States), the programming of a foreign Programmable Read Only Memory Chip (‘‘PROM’’) in the United States substantially transformed the PROM into a U.S. article. In programming the imported PROM’s, the U.S. engineers systematically caused various distinct electronic interconnections to be formed within each integrated circuit. The court noted that it was undisputed that programming altered the character of a PROM and that in that case, the essence of the article, its interconnections or stored memory, was established by programming. In this case, we find that the essence of the imported good is its use as a video conferencing server. The Video Board and the Filter Board, which is a configuration of the DreamPlug unit, are the hardware components that impart the ability of the product to capture sound and image and to transmit that digital data so they impart the essential character to the finished good. While the addition of the U.S. developed software may add 40 percent to the unit’s value, the software only adds a characteristic to the Server, but does not change its main function which is to send images and sound. Since the hardware components that impart the essential character to the finished product are of Chinese origin, we find that the country of origin of the Server for government procurement purposes is China. HOLDING: Based on the facts provided, the Server is considered a product of China for government procurement purposes. Notice of this final determination will be given in the Federal Register, as required by E:\FR\FM\19SEN1.SGM 19SEN1 57650 Federal Register / Vol. 78, No. 182 / Thursday, September 19, 2013 / Notices 19 CFR 177.29. Any party-at-interest other than the party which requested this final determination may request, pursuant to 19 CFR 177.31, that CBP reexamine the matter anew and issue a new final determination. Pursuant to 19 CFR 177.30, any party-atinterest 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. 2013–22765 Filed 9–18–13; 8:45 am] BILLING CODE 9111–14–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5700–FA–11] Announcement of Funding Awards for the Self-Help Homeownership Opportunity Program (SHOP) for Fiscal Year 2013 Office of Community Planning and Development, HUD. ACTION: Announcement of funding awards. AGENCY: In accordance with Section 102(a)(4)(C) of the Department of Housing and Urban Development Reform Act of 1989, this announcement notifies the public of the Department’s funding decisions with respect to the Fiscal Year 2013 (FY2013) Notice of Funding Availability (NOFA) for the Self-Help Homeownership Opportunity Program (SHOP) that was posted on the Grants.gov Web site. This announcement contains the names and addresses of the recipients of the FY2013 SHOP grant awards. FOR FURTHER INFORMATION CONTACT: Ginger Macomber, SHOP Program Manager, Office of Affordable Housing Programs, Department of Housing and Urban Development, 451 Seventh Street SW., Washington, DC 20410–4500, telephone (202) 402–4605. Hearing or speech-impaired individuals may access this number via TTY by calling the tollfree Federal Information Service at (800) 877–8339. SUPPLEMENTARY INFORMATION: The SHOP program provides federal grants on a competitive basis to national and regional nonprofit organizations and consortia to undertake self-help homeownership housing programs. Grantees may carry out SHOP activities directly and/or distribute SHOP funds to local nonprofit affiliate organizations. SHOP Grant funds must be used for land acquisition, infrastructure tkelley on DSK3SPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 17:27 Sep 18, 2013 Jkt 229001 improvements, and for reasonable and necessary planning, administration and management costs (not to exceed 20 percent). The average SHOP Grant expenditure for the combined costs of land acquisition and infrastructure improvements must not exceed $15,000 per SHOP unit. The construction or rehabilitation costs of each SHOP unit must be funded with other leveraged public and private funds. Low-income homebuyers must contribute a significant amount of sweat equity towards the development of the SHOP units. Sweat equity involves participation in the construction of the housing, which can include, but is not limited to, assisting in the painting, carpentry, trim work, drywall, roofing, and siding for the housing. Reasonable accommodations must be made for homebuyers with disabilities. Labor is also contributed by community volunteers. The SHOP funds together with the homebuyer’s sweat equity and volunteer labor contributions significantly reduce the cost of the housing for the low-income homebuyers. SHOP units must be decent, safe, and sanitary non-luxury dwellings that comply with state and local codes, ordinances, and zoning requirements, and with the SHOP requirements (including requirements for energyefficiency and water conservation). The SHOP units must be sold to homebuyers at prices below the prevailing market price. A homebuyer’s sweat equity contribution must not be mortgaged or otherwise restricted upon future sale of the SHOP unit. HUD awarded FY2013 SHOP grants to the following self-help housing organizations in accordance with the competitive criteria set forth in the FY2013 SHOP NOFA. over a hundred local affiliates and consortium members that will acquire and prepare land for development, provide homebuyer counseling, select homebuyers, coordinate the homebuyer sweat equity and volunteer labor efforts, and assist in arranging interim and permanent financing. At least 718 units of self-help homeownership housing will be completed and conveyed to lowincome homebuyers. Dated: September 11, 2013. Mark Johnston, Deputy Assistant Secretary for Special Needs. [FR Doc. 2013–22817 Filed 9–18–13; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE INTERIOR Fish and Wildlife Service [FWS–R8–ES–2013–N240; FXES11130800000–134–FF08E00000] Endangered Species Recovery Permit Applications Fish and Wildlife Service, Interior. ACTION: Notice of receipt of permit applications; request for comment. AGENCY: We, the U.S. Fish and Wildlife Service, invite the public to comment on the following applications to conduct certain activities with endangered species. With some exceptions, the Endangered Species Act (Act) prohibits activities with endangered and threatened species unless a Federal permit allows such activity. The Act also requires that we invite public comment before issuing these permits. DATES: Comments on these permit applications must be received on or before October 21, 2013. Community Frameworks, 409 ADDRESSES: Written data or comments Pacific Avenue Suite 105, should be submitted to the Endangered Bremerton, WA 98337 ...... $1,579,500 Species Program Manager, U.S. Fish and Habitat for Humanity InterWildlife Service, Region 8, 2800 Cottage national, 270 Peachtree Way, Room W–2606, Sacramento, CA Street NW., Atlanta, GA 95825 (telephone: 916–414–6464; fax: 30303 ................................ 7,700,637 916–414–6486). Please refer to the Housing Assistance Council, respective permit number for each 1025 Vermont Avenue application when submitting comments. NW., Washington, DC 20005 ................................ 2,846,803 FOR FURTHER INFORMATION CONTACT: Tierra del Sol Housing CorDaniel Marquez, Fish and Wildlife poration (lead entity), Biologist; see ADDRESSES (telephone: Western States Housing 760–431–9440; fax: 760–431–9624). Consortium, 210 East SUPPLEMENTARY INFORMATION: The Idaho Avenue, 880 Anfollowing applicants have applied for thony Drive, Las Cruces, NM 88005 ......................... 666,929. scientific research permits to conduct certain activities with endangered Total ............................... 12,793,869 species under section 10(a)(1)(A) of the These organizations propose to Act (16 U.S.C. 1531 et seq.). We seek distribute their SHOP grant funds to review and comment from local, State, PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 SUMMARY: E:\FR\FM\19SEN1.SGM 19SEN1

Agencies

[Federal Register Volume 78, Number 182 (Thursday, September 19, 2013)]
[Notices]
[Pages 57648-57650]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-22765]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Video 
Teleconferencing Server

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 video teleconferencing server Prescient T7-FW. 
Based upon the facts presented, CBP has concluded in the final 
determination that China is the country of origin of the video 
teleconferencing server for purposes of U.S. Government procurement.

DATES: The final determination was issued on September 11, 2013. 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 October 21, 2013.

FOR FURTHER INFORMATION CONTACT: Karen S. Greene, Valuation and Special 
Programs Branch: (202) 325-0041.

SUPPLEMENTARY INFORMATION: Notice is hereby given that on September 11, 
2013, pursuant to subpart B of Part 177, Customs and Border Protection 
Regulations (19 CFR part 177, subpart B), CBP issued a final 
determination concerning the country of origin of video 
teleconferencing server Prescient T7-FW, which may be offered to the 
U.S. Government under an undesignated government procurement contract. 
This final determination, in HQ H218360, was issued at the request of 
CyberPoint International 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 concluded that, based upon the facts presented, since the Chinese-
origin Video Board and the Filter Board, impart the essential character 
to the video teleconferencing server, that China is the country of 
origin of the video teleconferencing server for purposes of U.S. 
Government procurement.
    Section 177.29, CBP Regulations (19 CFR 177.29), provides that a 
notice of final determination 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: September 11, 2013.
Sandra L. Bell,
Executive Director, Regulations and Rulings, Office of International 
Trade.

Attachment

HQ H218360

September 11, 2013

MAR-2 OTF:CTF:VS H218360 KSG

Vanessa P. Sciarra
Holland & Knight
2099 Pennsylvania Ave. NW
Suite 100
Washington, DC 20006

RE: Final determination; country of origin of video teleconferencing 
server; substantial transformation

Dear Ms. Sciarra:

    This is in response to your letter, submitted May 2, 2012, 
supplemental submission dated October 22, 2012, and emails on July 
22, and August 14, 2013, requesting a final determination on behalf 
of CyberPoint International Inc., pursuant to subpart B of part 177 
of the U.S. Customs and Border Protection (``CBP'') Regulations (19 
CFR 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 
video teleconferencing server Prescient T7-FW

[[Page 57649]]

(``the Server''). As a U.S. manufacturer and wholesaler, CyberPoint 
International LLC. is a party-at-interest within the meaning of 19 
CFR 177.22(d)(1), and is entitled to request this final 
determination.

FACTS:

    This case involves the Server which is designed to communicate 
in a secure environment. The basic functionality of the product is 
to capture motion picture images and sound and send them digitally 
(via Ethernet) to a similar unit at a different location, where the 
digital data is reconstructed into motion picture and sound. In 
addition, the Server ensures that digital data (motion picture and 
sound) is sent securely between the two units, making the ability to 
infiltrate the unit via eavesdropping or malware through the network 
connection more difficult. You state that the security feature adds 
approximately 40 percent of the unit's value.
    The Server is comprised of a video processing electronic circuit 
board (``Video Board'') which includes the codec; a network filter 
electronic circuit board (``Filter Board''); a housing case; a power 
supply circuit board; minor components, which include a heat sink, 
standoff hardware and screws, network cables and wire harnesses; and 
CyberPoint's proprietary software known as the CyberPoint Linux 
Firewall (``Linux software''). The Linux software allows the Filter 
Board to inspect each Ethernet packet of information as it enters 
the LAN port of the Video Board, and to accept only those packets 
needed to perform the video teleconferencing functionality. You 
state that the Linux software is designed, developed and installed 
in the United States at great expense and with many man hours in its 
engineering, development and design by cyber-security professionals 
with years of experience in creating defensive solutions.
    The Server can be used with video cameras, microphones and video 
display; however, these are optional attachments and are not part of 
the product under consideration.
    The key hardware components are the Video Board, which converts 
image and sound into digital data, and the Filter Board, programmed 
with Linux software, which transmits the digital data via a LAN 
connector over the Ethernet and protects the connection from malware 
infiltration. The Video Board, including the codec, is manufactured 
in China, and has connections for various video input and output 
formats, two USB connections, and two Ethernet connections. One of 
the Ethernet connections interfaces with a microphone to capture 
sound, and the other interfaces with a LAN.
    Two scenarios are presented. In the first scenario, the Video 
Board lacks the LAN connection when imported, meaning that it cannot 
transmit data. In the second scenario, the Video Board is fully 
functional as imported. Once imported into the U.S., the LAN 
connection is removed, the hole for this connection in the rear 
sheet metal of the unit is covered, a modification is made to the 
rear sheet metal to provide for a new connection point, and 
CyberPoint installs another cable that connects from the Filter 
Board to the new connection point. The LAN connector hardware is 
produced in the U.S. and developed by CyberPoint at its facilities 
in the U.S. CyberPoint states that the purposes of its installation 
of the LAN connection is to wipe the device clean from any malware 
residing in the original equipment.
    The Filter Board is a circuit board that provides the necessary 
LAN connection of the Server and the secure connection that ensures 
no malware infiltrates the system during a videoconferencing session 
or during off hours. The Filter Board is made from a DreamPlug unit 
manufactured in China, a mini generic computer housed in a plug that 
contains a blank non-functional circuit board. In the U.S., the 
DreamPlug is disassembled; and the circuit board is removed, mounted 
on an aluminium heat sink, wired and programmed with Linux software, 
and configured, reinstalled and mounted on the Server's metal case. 
The programming of the Filter Board with Linux software inputs the 
connectivity functionality, so that digital data can be transmitted 
securely from one unit to another.
    The power supply and metal case for the server are produced in 
China. The heat sink is produced in the U.S.
    The assembly of the various components in the U.S. involves the 
following:
     As stated above, holes are drilled in the metal case so 
the Filter Board and LAN connector hardware can be mounted;
     The DreamPlug is disassembled and the blank circuit 
board is removed, the Linux software is downloaded, and the card is 
then re-installed. This process takes approximately 4.5 hours;
     The Video Board is removed from the case and it is 
connected to the LAN connector with a network cable. Under the 
second scenario, the existing LAN connection has to be removed as 
well;
     A wire harness is installed to route the cables, and 
the Filter Board is installed to the heat sink. The LAN network 
connector is installed through the rear of the metal case. This 
takes approximately 2.5 hours;
     The finished Server is tested, labeled and packaged.
    Counsel states that the overall assembly process in the U.S. 
takes approximately 20 hours to complete each unit.

ISSUE:

    What is the country of origin of the Server?

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.) (``TAA''), CBP issues country of origin 
advisory rulings and final determinations as to whether an article 
is or would be a product of a designated country or instrumentality 
for the purposes of granting waivers of certain ``Buy American'' 
restrictions in U.S. law or practice for products offered for sale 
to the U.S. government. Under the rule of origin set forth under 19 
U.S.C. 2518(4)(B), an article is a product of a country or 
instrumentality only if (i) it is wholly the growth, product, or 
manufacture of that country or instrumentality, or (ii) in the case 
of an article which consists in whole or in part of materials from 
another country or instrumentality, it has been substantially 
transformed into a new and different article of commerce with a 
name, character, or use distinct from that of the article or 
articles from which it was so transformed. See also 19 CFR 
177.22(a).
    In 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 CFR 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 CFR 25.403(c)(1). The 
Federal Acquisitions 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

    In Data General v. United States, 4 CIT 182 (1982), the court 
determined that for purposes of determining eligibility under item 
807.00, Tariff Schedule of the United States (predecessor to 
subheading 9802.00.80, Harmonized Tariff Schedule of the United 
States), the programming of a foreign Programmable Read Only Memory 
Chip (``PROM'') in the United States substantially transformed the 
PROM into a U.S. article.
    In programming the imported PROM's, the U.S. engineers 
systematically caused various distinct electronic interconnections 
to be formed within each integrated circuit.
    The court noted that it was undisputed that programming altered 
the character of a PROM and that in that case, the essence of the 
article, its interconnections or stored memory, was established by 
programming.
    In this case, we find that the essence of the imported good is 
its use as a video conferencing server. The Video Board and the 
Filter Board, which is a configuration of the DreamPlug unit, are 
the hardware components that impart the ability of the product to 
capture sound and image and to transmit that digital data so they 
impart the essential character to the finished good. While the 
addition of the U.S. developed software may add 40 percent to the 
unit's value, the software only adds a characteristic to the Server, 
but does not change its main function which is to send images and 
sound. Since the hardware components that impart the essential 
character to the finished product are of Chinese origin, we find 
that the country of origin of the Server for government procurement 
purposes is China.

HOLDING:

    Based on the facts provided, the Server is considered a product 
of China for government procurement purposes.
    Notice of this final determination will be given in the Federal 
Register, as required by

[[Page 57650]]

19 CFR 177.29. Any party-at-interest other than the party which 
requested this final determination may request, pursuant to 19 CFR 
177.31, that CBP reexamine the matter anew and issue a new final 
determination. Pursuant to 19 CFR 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. 2013-22765 Filed 9-18-13; 8:45 am]
BILLING CODE 9111-14-P