Notice of Issuance of Final Determination Concerning Certain Toner Cartridge Products, 38327-38329 [2014-15765]
Download as PDF
<![CDATA[
Federal Register / Vol. 79, No. 129 / Monday, July 7, 2014 / Notices
Estimated Time per Response: 15
minutes.
Estimated Total Annual Burden
Hours: 1,014,726.
CBP Form 7501A—Document/Payment
Transmittal
Estimated Number of Respondents:
20.
Estimated Number of Responses per
Respondent: 60.
Estimated Total Annual Responses:
1,200.
Estimated Time per Response: 15
minutes.
Estimated Total Annual Burden
Hours: 300.
Dated: June 30, 2014.
Tracey Denning,
Agency Clearance Officer, U.S. Customs and
Border Protection.
[FR Doc. 2014–15740 Filed 7–3–14; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
[1651–0106]
Agency Information Collection
Activities: Application to Pay Off or
Discharge an Alien Crewman
U.S. Customs and Border
Protection, Department of Homeland
Security.
ACTION: 30-Day notice and request for
comments; extension of an existing
collection of information.
AGENCY:
U.S. Customs and Border
Protection (CBP) of the Department of
Homeland Security will be submitting
the following information collection
request to the Office of Management and
Budget (OMB) for review and approval
in accordance with the Paperwork
Reduction Act: Application to Pay Off
or Discharge an Alien Crewman. This is
a proposed extension of an information
collection that was previously
approved. CBP is proposing that this
information collection be extended with
no change to the burden hours or to the
information collected. This document is
published to obtain comments from the
public and affected agencies.
DATES: Written comments should be
received on or before August 6, 2014 to
be assured of consideration.
ADDRESSES: Interested persons are
invited to submit written comments on
this proposed information collection to
the Office of Information and Regulatory
Affairs, Office of Management and
Budget. Comments should be addressed
mstockstill on DSK4VPTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
15:59 Jul 03, 2014
Jkt 232001
to the OMB Desk Officer for Customs
and Border Protection, Department of
Homeland Security, and sent via
electronic mail to oira_submission@
omb.eop.gov or faxed to (202) 395–5806.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information
should be directed to Tracey Denning,
U.S. Customs and Border Protection,
Regulations and Rulings, Office of
International Trade, 90 K Street NE.,
10th Floor, Washington, DC 20229–
1177, at 202–325–0265.
SUPPLEMENTARY INFORMATION: This
proposed information collection was
previously published in the Federal
Register (79 FR 22521) on April 22,
2014, allowing for a 60-day comment
period. This notice allows for an
additional 30 days for public comments.
This process is conducted in accordance
with 5 CFR 1320.10. CBP invites the
general public and other Federal
agencies to comment on proposed and/
or continuing information collections
pursuant to the Paperwork Reduction
Act of 1995 (Public Law 104–13; 44
U.S.C. 3507). The comments should
address: (a) Whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s
estimates of the burden of the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; (d) ways to
minimize the burden, including the use
of automated collection techniques or
the use of other forms of information
technology; and (e) the annual costs to
respondents or record keepers from the
collection of information (total capital/
startup costs and operations and
maintenance costs). The comments that
are submitted will be summarized and
included in the CBP request for OMB
approval. All comments will become a
matter of public record. In this
document, CBP is soliciting comments
concerning the following information
collection:
Title: Application to Pay Off or
Discharge Alien Crewman.
OMB Number: 1651–0106.
Form Number: I–408.
Abstract: CBP Form I–408,
Application to Pay Off or Discharge
Alien Crewman, is used as an
application by the owner, agent,
consignee, charterer, master, or
commanding officer of any vessel or
aircraft arriving in the United States to
obtain permission from the Secretary of
the Department of Homeland Security to
pay off or discharge alien crewmen.
This form is submitted to the CBP
PO 00000
Frm 00052
Fmt 4703
Sfmt 4703
38327
officer having jurisdiction over the area
in which the vessel or aircraft is located
at the time of application. CBP Form I–
408 is authorized by Section 256 of the
Immigration and Nationality Act (8
U.S.C. 1286) and provided for by 8 CFR
252.1(h). This form is accessible at:
https://www.cbp.gov/sites/default/files/
documents/CBP%20Form%20I-408.pdf.
Current Actions: CBP proposes to
extend the expiration date of this
information collection with no change
to the burden hours or to the
information collected.
Type of Review: Extension (without
change).
Affected Public: Businesses.
Estimated Number of Respondents:
85,000.
Estimated Time per Respondent: 25
minutes.
Estimated Total Annual Burden
Hours: 35,360.
Dated: June 30, 2014.
Tracey Denning,
Agency Clearance Officer, U.S. Customs and
Border Protection.
[FR Doc. 2014–15741 Filed 7–3–14; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOMELAND
SECURITY
Customs and Border Protection
Notice of Issuance of Final
Determination Concerning Certain
Toner Cartridge Products
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 certain toner cartridge products
known as All-In-One Toner Cartridges.
Based upon the facts presented, CBP has
concluded in the final determination
that Japan is the country of origin of the
All-In-One Toner Cartridges for
purposes of U.S. Government
procurement.
DATES: The final determination was
issued on June 24th, 2014. A copy of the
final determination is attached. Any
party-at-interest, as defined in 19 CFR
177.22(d), may seek judicial review of
this final determination within August
6, 2014.
FOR FURTHER INFORMATION CONTACT:
Grace A. Kim, Valuation and Special
Programs Branch, Regulations and
Rulings, Office of International Trade
(202) 325–7941.
SUMMARY:
E:\FR\FM\07JYN1.SGM
07JYN1
38328
Federal Register / Vol. 79, No. 129 / Monday, July 7, 2014 / Notices
Notice is
hereby given that on June 24, 2014
pursuant to subpart B of Part 177, U.S.
Customs and Border Protection
Regulations (19 CFR part 177, subpart
B), CBP issued a final determination
concerning the country of origin of
certain toner cartridge products known
as All-In-One Toner Cartridges, which
may be offered to the U.S. Government
under an undesignated government
procurement contract. This final
determination, HQ H251592, was issued
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 assembly processes
performed in Japan, substantially
transform non-TAA country All-In-One
Toner Cartridges. Therefore, the country
of origin of the All-In-One Toner
Cartridges is Japan 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
SUPPLEMENTARY INFORMATION:
Dated: June 24, 2014.
Sandra L. Bell,
Executive Director, Regulations and Rulings,
Office of International Trade.
Attachment
HQ H251592
June 24, 2014
OT:RR:CTF:VS H251592 GaK
CATEGORY: Origin
Fusae Nara
Pillsbury Winthrop Shaw Pittman LLP
1540 Broadway
New York, NY 10036–4039
RE: U.S. Government Procurement; Country
of Origin of All-In-One Toner Cartridges;
Substantial Transformation
Dear Ms. Nara:
This is in response to your letter, dated
February 21, 2014, requesting a final
determination on behalf of Ricoh Company
Ltd. (‘‘Ricoh’’), pursuant to subpart B of part
177 of the U.S. Customs and Border
Protection (‘‘CBP’’) 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
VerDate Mar<15>2010
15:59 Jul 03, 2014
Jkt 232001
‘‘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 Ricoh’s allin-one (‘‘AIO’’) toner cartridge (‘‘AIO
cartridge’’). We note that as a foreign
manufacturer, Ricoh 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:
Ricoh designed and developed the AIO
cartridge in Japan, which is used with
Ricoh’s Aficio multifunctional products
(‘‘MFP’’) as well as printers. The AIO
cartridge can be distinguished from
conventional toner cartridge in that it does
not only contain the toner powder, but also
a cleaning unit and a development unit. It
serves multiple functions by storing and
transporting the toner, then transferring and
affixing letters and images onto paper. The
AIO cartridge also cleans the surface of the
Organic Photo Conductor (‘‘OPC drum’’),
which converts the light signal to the electric
charge, enabling the toner particles to be
affixed onto the paper. In contrast, in a
conventional cartridge, the cleaning of the
OPC drum is done by the MFP or printers.
As stated above, the AIO cartridge has
three main components: toner powder,
development unit, and cleaning unit. The
toner powder is the ink that forms the letters
and images on paper and is claimed to be the
most critical element of the AIO cartridge.
Ricoh developed and produces the toner
powder in Japan and the formula for the
toner is proprietary and patented. The
production process involves pre-mixing the
chemical ingredients using a highly
sophisticated chemical mixer; mixing and
kneading the toner powder by adding air
pressure, followed by a cooling process;
pulverizing the toner; equalizing the toner
particles into the same size; and final mixing
and packaging.
The development unit has a container
called a ‘‘hopper,’’ that holds the toner
powder. The development unit is assembled
in China and imported to Japan, where the
hopper will be filled with toner powder.
After the hopper is filled with toner powder,
the hopper is sealed and cleaned to avoid any
contamination of the MFPs and printers.
The cleaning unit is assembled in Japan
and contains the OPC drum, cleaning blade,
charge rollers and other miscellaneous parts.
With the exception of the OPC drum, all
components are made in Japan. The OPC
drum is produced in Thailand with parts
from various countries. It is stated that the
assembly of the cleaning unit requires
experienced technicians, as the assembly is
of a delicate nature. The assembly process
includes assembling the cleaning blade,
applying black toner powder on the cleaning
blade for a smooth contact with the OPC
drum, setting the waste toner case,
assembling the cleaning blade to the spent
toner case, and assembling the OPC drum
and charger roller into the cleaning unit.
The next step in producing the AIO
cartridge involves making a frame assembly
in Japan, which is the outer structure of the
AIO cartridge. The arm shutter is assembled
to both the right and left sides of the frame;
PO 00000
Frm 00053
Fmt 4703
Sfmt 4703
a spring is attached to each arm shutter; the
right frame is assembled by attaching the arm
shutter and electrode sheets, which connect
the cleaning unit and development units to
the toner hopper; a memory chip and radiofrequency identification tag (‘‘RFID chip’’) is
installed to the side of the right frames. The
same processes are repeated for the left
frame, except that the left frame does not
include a memory chip or RFID chip. After
the outer structure is assembled, the toner
hopper, developer unit and cleaning unit are
assembled together in Japan. The assembly
process involves mounting the right and left
frames onto the assembled development unit
and cleaning unit combination, assembling
gears connecting the frame to the
development and cleaning units, and
installing the OPC drum shutter. The AIO
cartridge is inspected and data is input onto
the RFID chip, which allows the MFP or
printer to recognize the AIO cartridge and
informs the user when the AIO cartridge
should be replaced.
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 or 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 in 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 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.
In determining whether the combining of
parts or materials constitutes a substantial
transformation, the determinative issue is the
extent of the operations performed and
whether the parts lose their identity and
E:\FR\FM\07JYN1.SGM
07JYN1
mstockstill on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 129 / Monday, July 7, 2014 / Notices
become an integral part of the new article.
Belcrest Linens v. United States, 6 Ct. Int’l
Trade 204, 573 F. Supp. 1149 (1983), aff ’d,
741 F.2d 1368 (Fed. Cir. 1984). If the
manufacturing or combining process is a
minor one that leaves the identity of the
imported article intact, a substantial
transformation has not occurred. Uniroyal,
Inc. v. United States, 3 Ct. Int’l Trade 220,
542 F. Supp. 1026 (1982). Assembly
operations that are minimal or simple, as
opposed to complex or meaningful, generally
will not result in a substantial
transformation. See C.S.D. 80–111, C.S.D. 85–
25, C.S.D. 89–110, C.S.D. 89–118, C.S.D. 90–
51, and C.S.D. 90–97.
CBP has held in a number of cases
involving similar merchandise that complex
and meaningful operations involving a large
number of components result in a substantial
transformation. Ricoh states that the toner for
the cartridge is the most valuable component
citing Headquarters Ruling Letter (HQ)
W563548 (Nov. 9, 2009). In that case, CBP
considered the country of origin of toner
cartridges and image drums which were
remanufactured in the U.S. The toner
cartridges comprised 52 parts plus toner and
20 new parts were used to remanufacture the
toner cartridges: 14 from the U.S., 1 from the
U.K., and 5 from China. The remaining 32
parts were salvaged from used cartridges,
which were cleaned for reassembly. The
components with mechanical function such
as the shutters, mixing gear, mixing bar, and
spiral attachments were simply cleaned and
not replaced. The cartridges were filled with
new toner of Japanese origin and tested. CBP
found that the cartridges were not
substantially transformed in the U.S. because
the remanufacturing processes were rather
simple. Rather, the toner was the only
significant component replaced during the
remanufacturing operation. CBP concluded
that since the toner imparted the essential
character of the remanufactured toner
cartridge, the country of origin was Japan.
HQ W563548 also considered the
remanufacture of image drums in the U.S.
The image drums were comprised of 110
parts and 56 new parts were used from
various countries: 12 in the U.S., 1 in
Canada, 5 in Japan, and 38 in Thailand.
Several of the newly manufactured parts
were significant to the functionality of the
image drum, such as the organic
photoreceptor drum (claimed to be the most
valuable component of the image drum), the
developing roller, the charge roller, and the
cleaning blade, which were all manufactured
in Japan including new lubricating toner
powder. Unlike the toner cartridge in
W563548, the remanufacturing of the image
drums required replacement of most of the
components that contributed to the
functionality of the image drum. Based on
these facts, CBP concluded that the image
drum was substantially transformed in the
U.S.
We find that substantial manufacturing
operations are performed in Japan in
producing the AIO cartridge. While the OPC
drum is manufactured in Thailand, the other
parts of the cleaning unit originate in Japan.
As a result of the assembly of the cleaning
unit in Japan, the OPC drum becomes an
VerDate Mar<15>2010
15:59 Jul 03, 2014
Jkt 232001
integral part of the cleaning unit such that it
may be considered a product of Japan. This
is analogous to the remanufactured image
drum assembly process described in HQ
W563548. The development unit is
manufactured in China. The toner powder is
manufactured in Japan and as found in
W563548, it is the most critical element of
the AIO cartridge. These three components
(two of Japanese origin and one from China)
are brought together by the frame assembly
also performed in Japan. Therefore, we find
that the country of origin of the Ricoh AIO
cartridge is Japan.
HOLDING:
Based on the facts of this case, we find that
the processing in Japan substantially
transforms the non-Japanese components.
Therefore, the country of origin of the AIO
cartridge is Japan for purposes of U.S.
Government procurement.
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. 2014–15765 Filed 7–3–14; 8:45 am]
BILLING CODE P
DEPARTMENT OF THE INTERIOR
Bureau Of Land Management
[LLORP00000.L10200000.DF0000.14X.
HAG14–0153]
Notice of Public Meeting for the John
Day—Snake Resource Advisory
Council
Bureau of Land Management,
Interior.
ACTION: Notice of public meeting.
AGENCY:
In accordance with the
Federal Land Policy and Management
Act and the Federal Advisory
Committee Act of 1972, and the U.S.
Department of the Interior, Bureau of
Land Management (BLM), the John
Day—Snake Resource Advisory Council
(RAC) will meet as indicated below.
DATES: The John Day—Snake RAC will
hold a public meeting Thursday, July
17, and Friday, July 18, 2014. The
meeting will run from 12 p.m. to 5:00
p.m. on July 17th, and from 8 a.m. to
12:45 p.m. on July 18th. An agenda will
be posted at https://www.blm.gov/or/rac/
SUMMARY:
PO 00000
Frm 00054
Fmt 4703
Sfmt 4703
38329
jdrac_meetingnotes.php prior to July 11,
2014.
ADDRESSES: The meeting will be held at
the USFS Wallowa Whitman National
Forest, La Grande Ranger District Office
at 3502 Hwy. 30 in La Grande, Oregon.
FOR FURTHER INFORMATION CONTACT: Lisa
Clark, Public Affairs Specialist, BLM
Prineville District Office, 3050 NE. 3rd
Street, Prineville, Oregon 97754, (541)
416–6864, or email lmclark@blm.gov.
Persons who use a telecommunications
device for the deaf (TDD) may call the
Federal Information Relay Service
(FIRS) at 1(800) 877–8339 to contact the
above individual during normal
business hours. The FIRS is available 24
hours a day, 7 days a week, to leave a
message or question with the above
individual. You will receive a reply
during normal business hours.
SUPPLEMENTARY INFORMATION: The John
Day-Snake RAC consists of 15 members
chartered and appointed by the
Secretary of the Interior. Their diverse
perspectives are represented in
commodity, conservation, and general
interests. They provide advice to BLM
and Forest Service resource managers
regarding management plans and
proposed resource actions on public
land in central and eastern Oregon.
Agenda items for the July 2014 meeting
include: presentations on the release of
the approved John Day Basin Resource
Management Plan and the NEPA 2.0
Planning Strategy, a field tour of the
Blue Mountains Cohesive Strategy Pilot
Project, committee and member updates
and any other matters that may
reasonably come before the John DaySnake RAC. This meeting is open to the
public in its entirety; however,
transportation during the field tour
portion of the meeting will not be
provided to members of the public.
Information to be distributed to the John
Day-Snake RAC is requested prior to the
start of each meeting. A public comment
period will be available on July 18,
2014, at 10 a.m. Unless otherwise
approved by the John Day-Snake RAC
Chair, the public comment period will
last no longer than 30 minutes. Each
speaker may address the John DaySnake RAC for a maximum of 5
minutes. Meeting times and the
duration scheduled for public comment
periods may be extended or altered
when the authorized representative
considers it necessary to accommodate
business and all who seek to be heard
regarding matters before the John DaySnake RAC.
Before including your address, phone
number, email address, or other
personal identifying information in your
comments, please be aware that your
E:\FR\FM\07JYN1.SGM
07JYN1
]]>Agencies
[Federal Register Volume 79, Number 129 (Monday, July 7, 2014)]
[Notices]
[Pages 38327-38329]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15765]
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Customs and Border Protection
Notice of Issuance of Final Determination Concerning Certain
Toner Cartridge Products
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 toner cartridge products known as All-In-
One Toner Cartridges. Based upon the facts presented, CBP has concluded
in the final determination that Japan is the country of origin of the
All-In-One Toner Cartridges for purposes of U.S. Government
procurement.
DATES: The final determination was issued on June 24th, 2014. A copy of
the final determination is attached. Any party-at-interest, as defined
in 19 CFR 177.22(d), may seek judicial review of this final
determination within August 6, 2014.
FOR FURTHER INFORMATION CONTACT: Grace A. Kim, Valuation and Special
Programs Branch, Regulations and Rulings, Office of International Trade
(202) 325-7941.
[[Page 38328]]
SUPPLEMENTARY INFORMATION: Notice is hereby given that on June 24, 2014
pursuant to subpart B of Part 177, U.S. Customs and Border Protection
Regulations (19 CFR part 177, subpart B), CBP issued a final
determination concerning the country of origin of certain toner
cartridge products known as All-In-One Toner Cartridges, which may be
offered to the U.S. Government under an undesignated government
procurement contract. This final determination, HQ H251592, was issued
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 assembly processes performed in
Japan, substantially transform non-TAA country All-In-One Toner
Cartridges. Therefore, the country of origin of the All-In-One Toner
Cartridges is Japan 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: June 24, 2014.
Sandra L. Bell,
Executive Director, Regulations and Rulings, Office of International
Trade.
Attachment
HQ H251592
June 24, 2014
OT:RR:CTF:VS H251592 GaK
CATEGORY: Origin
Fusae Nara
Pillsbury Winthrop Shaw Pittman LLP
1540 Broadway
New York, NY 10036-4039
RE: U.S. Government Procurement; Country of Origin of All-In-One
Toner Cartridges; Substantial Transformation
Dear Ms. Nara:
This is in response to your letter, dated February 21, 2014,
requesting a final determination on behalf of Ricoh Company Ltd.
(``Ricoh''), pursuant to subpart B of part 177 of the U.S. Customs
and Border Protection (``CBP'') 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 Ricoh's all-
in-one (``AIO'') toner cartridge (``AIO cartridge''). We note that
as a foreign manufacturer, Ricoh 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:
Ricoh designed and developed the AIO cartridge in Japan, which
is used with Ricoh's Aficio multifunctional products (``MFP'') as
well as printers. The AIO cartridge can be distinguished from
conventional toner cartridge in that it does not only contain the
toner powder, but also a cleaning unit and a development unit. It
serves multiple functions by storing and transporting the toner,
then transferring and affixing letters and images onto paper. The
AIO cartridge also cleans the surface of the Organic Photo Conductor
(``OPC drum''), which converts the light signal to the electric
charge, enabling the toner particles to be affixed onto the paper.
In contrast, in a conventional cartridge, the cleaning of the OPC
drum is done by the MFP or printers.
As stated above, the AIO cartridge has three main components:
toner powder, development unit, and cleaning unit. The toner powder
is the ink that forms the letters and images on paper and is claimed
to be the most critical element of the AIO cartridge. Ricoh
developed and produces the toner powder in Japan and the formula for
the toner is proprietary and patented. The production process
involves pre-mixing the chemical ingredients using a highly
sophisticated chemical mixer; mixing and kneading the toner powder
by adding air pressure, followed by a cooling process; pulverizing
the toner; equalizing the toner particles into the same size; and
final mixing and packaging.
The development unit has a container called a ``hopper,'' that
holds the toner powder. The development unit is assembled in China
and imported to Japan, where the hopper will be filled with toner
powder. After the hopper is filled with toner powder, the hopper is
sealed and cleaned to avoid any contamination of the MFPs and
printers.
The cleaning unit is assembled in Japan and contains the OPC
drum, cleaning blade, charge rollers and other miscellaneous parts.
With the exception of the OPC drum, all components are made in
Japan. The OPC drum is produced in Thailand with parts from various
countries. It is stated that the assembly of the cleaning unit
requires experienced technicians, as the assembly is of a delicate
nature. The assembly process includes assembling the cleaning blade,
applying black toner powder on the cleaning blade for a smooth
contact with the OPC drum, setting the waste toner case, assembling
the cleaning blade to the spent toner case, and assembling the OPC
drum and charger roller into the cleaning unit.
The next step in producing the AIO cartridge involves making a
frame assembly in Japan, which is the outer structure of the AIO
cartridge. The arm shutter is assembled to both the right and left
sides of the frame; a spring is attached to each arm shutter; the
right frame is assembled by attaching the arm shutter and electrode
sheets, which connect the cleaning unit and development units to the
toner hopper; a memory chip and radio-frequency identification tag
(``RFID chip'') is installed to the side of the right frames. The
same processes are repeated for the left frame, except that the left
frame does not include a memory chip or RFID chip. After the outer
structure is assembled, the toner hopper, developer unit and
cleaning unit are assembled together in Japan. The assembly process
involves mounting the right and left frames onto the assembled
development unit and cleaning unit combination, assembling gears
connecting the frame to the development and cleaning units, and
installing the OPC drum shutter. The AIO cartridge is inspected and
data is input onto the RFID chip, which allows the MFP or printer to
recognize the AIO cartridge and informs the user when the AIO
cartridge should be replaced.
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 or 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 in 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 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.
In determining whether the combining of parts or materials
constitutes a substantial transformation, the determinative issue is
the extent of the operations performed and whether the parts lose
their identity and
[[Page 38329]]
become an integral part of the new article. Belcrest Linens v.
United States, 6 Ct. Int'l Trade 204, 573 F. Supp. 1149 (1983), aff
'd, 741 F.2d 1368 (Fed. Cir. 1984). If the manufacturing or
combining process is a minor one that leaves the identity of the
imported article intact, a substantial transformation has not
occurred. Uniroyal, Inc. v. United States, 3 Ct. Int'l Trade 220,
542 F. Supp. 1026 (1982). Assembly operations that are minimal or
simple, as opposed to complex or meaningful, generally will not
result in a substantial transformation. See C.S.D. 80-111, C.S.D.
85-25, C.S.D. 89-110, C.S.D. 89-118, C.S.D. 90-51, and C.S.D. 90-97.
CBP has held in a number of cases involving similar merchandise
that complex and meaningful operations involving a large number of
components result in a substantial transformation. Ricoh states that
the toner for the cartridge is the most valuable component citing
Headquarters Ruling Letter (HQ) W563548 (Nov. 9, 2009). In that
case, CBP considered the country of origin of toner cartridges and
image drums which were remanufactured in the U.S. The toner
cartridges comprised 52 parts plus toner and 20 new parts were used
to remanufacture the toner cartridges: 14 from the U.S., 1 from the
U.K., and 5 from China. The remaining 32 parts were salvaged from
used cartridges, which were cleaned for reassembly. The components
with mechanical function such as the shutters, mixing gear, mixing
bar, and spiral attachments were simply cleaned and not replaced.
The cartridges were filled with new toner of Japanese origin and
tested. CBP found that the cartridges were not substantially
transformed in the U.S. because the remanufacturing processes were
rather simple. Rather, the toner was the only significant component
replaced during the remanufacturing operation. CBP concluded that
since the toner imparted the essential character of the
remanufactured toner cartridge, the country of origin was Japan. HQ
W563548 also considered the remanufacture of image drums in the U.S.
The image drums were comprised of 110 parts and 56 new parts were
used from various countries: 12 in the U.S., 1 in Canada, 5 in
Japan, and 38 in Thailand. Several of the newly manufactured parts
were significant to the functionality of the image drum, such as the
organic photoreceptor drum (claimed to be the most valuable
component of the image drum), the developing roller, the charge
roller, and the cleaning blade, which were all manufactured in Japan
including new lubricating toner powder. Unlike the toner cartridge
in W563548, the remanufacturing of the image drums required
replacement of most of the components that contributed to the
functionality of the image drum. Based on these facts, CBP concluded
that the image drum was substantially transformed in the U.S.
We find that substantial manufacturing operations are performed
in Japan in producing the AIO cartridge. While the OPC drum is
manufactured in Thailand, the other parts of the cleaning unit
originate in Japan. As a result of the assembly of the cleaning unit
in Japan, the OPC drum becomes an integral part of the cleaning unit
such that it may be considered a product of Japan. This is analogous
to the remanufactured image drum assembly process described in HQ
W563548. The development unit is manufactured in China. The toner
powder is manufactured in Japan and as found in W563548, it is the
most critical element of the AIO cartridge. These three components
(two of Japanese origin and one from China) are brought together by
the frame assembly also performed in Japan. Therefore, we find that
the country of origin of the Ricoh AIO cartridge is Japan.
HOLDING:
Based on the facts of this case, we find that the processing in
Japan substantially transforms the non-Japanese components.
Therefore, the country of origin of the AIO cartridge is Japan for
purposes of U.S. Government procurement.
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. 2014-15765 Filed 7-3-14; 8:45 am]
BILLING CODE P
