Notice of Issuance of Final Determination Concerning Certain Billiards Tables, 63812-63815 [2015-26752]

Agencies

• DEPARTMENT OF HOMELAND SECURITY
• U.S. Customs and Border Protection

[Federal Register Volume 80, Number 203 (Wednesday, October 21, 2015)]
[Notices]
[Pages 63812-63815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26752]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Certain 
Billiards Tables

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: Notice of final determination.

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SUMMARY: This document provides notice that U.S. Customs and Border

[[Page 63813]]

Protection (``CBP'') has issued a final determination concerning the 
country of origin of certain billiards tables. Based upon the facts 
presented, CBP has concluded in the final determination that the United 
States is the country of origin of the billiards tables for purposes of 
U.S. Government procurement.

DATES: The final determination was issued on October 15, 2015. 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 no later than November 20, 2015.

FOR FURTHER INFORMATION CONTACT: Grace A. Kim, Valuation and Special 
Programs Branch, Regulations and Rulings, Office of International Trade 
(202) 325-7941.

SUPPLEMENTARY INFORMATION: Notice is hereby given that on October 15, 
2015 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 billiards 
tables, which may be offered to the U.S. Government under an 
undesignated government procurement contract. This final determination, 
HQ H268491, 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 and 
installation processes performed in the United States, using imported 
components, substantially transform the imported components into 
billiards tables. Therefore, the country of origin of the billiards 
tables is the United States 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: October 15, 2015.
Harold M. Singer,
Acting Executive Director, Regulations and Rulings, Office of 
International Trade.

HQ H268491

October 15, 2015

OT:RR:CTF:VS H268491 GaK

CATEGORY: Origin

Jeremy Ross Page
Page Fura, P.C.
311 West Superior, Suite 306
Chicago, IL 60654

RE: U.S. Government Procurement; Country of Origin of Billiards 
Tables; Substantial Transformation
Dear Mr. Page:

    This is in response to your letter, dated August 12, 2015, 
requesting a final determination on behalf of The Brunswick 
Corporation (``Company''), 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 
Company's four billiards tables. We note that as a U.S. 
manufacturer, the Company is a party-at-interest within the meaning 
of 19 CFR 177.22(d)(1) and is entitled to request this final 
determination. Diagrams of the tables were submitted with your 
request.

FACTS:

    There are four families of billiards tables at issue: Centurion 
(``Table A''), Metro (``Table B''), Gold Crown V (``Table C''), and 
Black Wolf II (``Table D'') (collectively ``tables''). The tables 
are designed and developed in the U.S. and each table is produced in 
the U.S. from components and subassemblies sourced from various 
countries, including the U.S. Due to the size and weight of each 
table, the Company ships the individual components to the U.S. 
customers' location and assembles the tables on-site. The assembly 
and installation of the tables must be performed by certified 
Company installers who are employed and extensively trained by 
licensed U.S.-based Company dealers.
    The assembly of Table A consists of the following: 1) assembly 
of base frame and legs, 2) slate assembly, 3) attachment of billiard 
cloth to slate, 4) assembly of rail and apron, and 5) assembly of 
the gully return system \1\ (if ordered by the customer). Each 
process must be performed in sequential order, except for the gully 
return system which is interspersed throughout the process. There 
are approximately 65 steps and 72 parts, including fasteners (e.g., 
nuts, bolts, screws, and staples), wax or hard putty and glue. 
First, the table legs and stretcher are assembled and the base frame 
is constructed on top of the legs so that a balanced and leveled 
foundation is created. The next step is the installation of the 
slate, where the installers must level the base frame and shim three 
slate pieces to ensure a completely flat surface before attaching 
the slate to the base frame. After the slate pieces are attached to 
the table base, the slate joints are filled with wax or hard putty 
and lightly sanded to ensure a completely smooth surface. Once the 
slate surface is cleaned and leveled, the installers cut and glue 
strips of cloth to the slate pockets and stretch the billiard cloth 
over the slate and attach it to the slate with a contact adhesive. 
Table A uses a framed slate, which is backed with particle board 
allowing the billiard cloth to be stapled to it. The billiard cloth 
installation is said to be complex and essential to ensure that the 
table performs as designed. The cloth installation consists of 22 
steps of stretching it from different directions and attaching it to 
the slate frame. The failure to properly level the table and base 
frame, seal the slate joints, screw holes and/or attach the billiard 
cloth properly will prevent the balls from running true during play. 
After the billiard cloth is properly attached, the rails and aprons 
are installed and the bed spot \2\ is affixed to the cloth. If the 
customer ordered the gullies, they are installed at this stage. The 
assembly of Table A requires an average of 8 man hours and two 
certified installers (4 hours per installer). An additional 45 
minutes is required for leveling the table after assembly. The 
installation cost combined with the value of U.S. components, 
amounts to 43.3% of the total cost. Other components are sourced 
from Brazil, Vietnam, Indonesia, and Taiwan.\3\
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    \1\ Ball return system.
    \2\ Bed spot is the self-adhesive sticker that indicates where 
the balls are to be racked.
    \3\ Pocket set Centurion/Century (U.S.), 8'1'' home framed 3 
piece slate set (Brazil), rails 8'H Centurion black (Vietnam), 
Centurion legs 8' black (Vietnam), Centurion leg stretcher 8' black 
(Vietnam), Centurion aprons 8' black (Vietnam), B/F 8'H Centurion PW 
(Indonesia), main hardware Centurion 2013 (Taiwan), and Centurion 
rail and apron corners (Taiwan).
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    Table B has a different design than Table A and is higher in 
quality. The assembly of Table B is the same as Table A, except that 
step 4 involves the attachment of rail cloth, and the billiard cloth 
is also not pre-installed on the rail cushions prior to delivery. 
There are approximately 71 steps and 82 parts. After the billiard 
cloth is attached to the slate, the installers must wrap the rail 
cushions in billiard cloth. The loose billiard cloth is draped over 
each of the six rails and a wooden feather strip (same length of the 
rail) is pounded into place to affix the billiard cloth to the rail 
and excess cloth is trimmed. After the six rails are wrapped, the 
rails and apron are installed on the table and the bed spot is 
affixed. The assembly of Table B requires the same time as assembly 
of Table A, but an additional 2 hours to wrap all six rails. The 
installation cost combined with the value of U.S. components, 
amounts to 35.3% of the total cost. Other components are sourced 
from Brazil, Indonesia and Taiwan.\4\
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    \4\ 8'1'' home framed 3 piece slate set (Brazil), rails 8'H 
Metro black (Indonesia), castings & ext Metro (Taiwan), main 
hardware Metro (Taiwan), levelers/brackets Metro (Indonesia), pkg 
bridge tri racks Metro (U.S.), aprons 8H Metro black carb PHII 
(Indonesia), leg set Metro black carb (Indonesia), Metro B/F 8'H 
carb (Indonesia), and drop pockets GCIV, GCV, Metro (U.S.).

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[[Page 63814]]

    Table C is very similar to Table B, but due to the different 
design and materials, the assembly process is claimed to be more 
complex and costly. Specifically, the assembly of the rails and 
pocket castings requires shimming and alignment to ensure a quality 
fit. The assembly of the apron is also more complex due to Table C's 
higher fit and finish, and inclusion of corner castings and a ball 
storage box. There are approximately 77 steps and 91 parts. The 
assembly of Table C requires the same amount of time to assemble as 
Table B. The installation cost combined with the value of U.S. 
components, amounts to 28.7% of the total cost. Other components are 
sourced from Brazil, Indonesia, and Taiwan.\5\
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    \5\ 9'1'' pro framed 3 piece slate set (Brazil); drop pockets 
GCIV, GCV, Metro (U.S.); quick set foot plates (U.S.); GC IV 9' base 
frame new (Brazil); rail Gold Crown V 9' mahogany/nickel 
(Indonesia); main hard ware GC V (Taiwan); storage box GC V trim 
nickel (Taiwan); main castings GC V nickel (Taiwan); leg set 9' 
GCVMAH carb (Brazil); stretcher 9' GCVMAH carb (Brazil); aprons GCV 
9' mahogany/nickel carb (Brazil).
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    The assembly of Table D is similar to Table A, with the 
exception of delineation of the rail and apron assembly process. 
There are approximately 60 steps and 71 parts. While Table D is 
similar to the other tables in this request, Table D is unique 
because it requires the complete assembly of both legs. The assembly 
of Table D requires an average of 8 man hours and two certified 
installers. Since the rails are pre-wrapped, only an additional 45 
minutes are required to level the table. The installation cost 
combined with the value of U.S. components, amounts to 49.4% of the 
total cost. Other components are sourced from Brazil, Indonesia, 
Vietnam, and Taiwan.\6\
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    \6\ 8'1'' home framed 3 piece slate set (Brazil), drop pocket 
set (U.S.), Black Wolf II hardware and feet (Indonesia), B/F 8H BRL/
GEN carb (Vietnam), PKT APR 8H Black Wolf carb (Vietnam), leg posts 
Black Wolf carb (Vietnam), leg panels 8'H Black Wolf carb (Vietnam), 
Black Wolf corners silver 2012 (Taiwan), rails Black Wolf II 8' 
(Brazil).
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ISSUE:

    What is the country of origin of the four billiards tables for 
purposes of U.S. government procurement?

LAW AND ANALYSIS:

    Pursuant to subpart B of part 177, 19 CFR 177.21 et seq., which 
implements Title III of the Trade Agreements Act of 1979, as amended 
(19 U.S.C. 2511 et seq.), CBP issues country of origin advisory 
rulings and final determinations as to whether an article is or 
would be a product of a designated country or instrumentality for 
the purposes of granting waivers of certain ``Buy American'' 
restrictions in U.S. law or practice for products offered for sale 
to the U.S. Government.
    Under the rule of origin set forth under 19 U.S.C. 2518(4)(B):
    An article is a product of a country or instrumentality only if 
(i) it is wholly the growth, product, or manufacture of that country 
or instrumentality, or (ii) in the case of an article which consists 
in whole or in part of materials from another country or 
instrumentality, it has been substantially transformed into a new 
and different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was so 
transformed.
    See also, 19 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 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 CFR 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 
products 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 processes that 
occurred in the U.S. were 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 HQ 
561258, dated April 15, 1999, CBP determined that the assembly of 
numerous imported workstation components with the U.S.-origin work 
surface into finished workstations constituted a substantial 
transformation. CBP held that the imported components lost their 
identity as leg brackets, drawer units, panels etc. when they were 
assembled together to form a workstation. In HQ H083693, dated March 
23, 2010, CBP held that a certain wood chest assembled in the U.S. 
was a product of the U.S. for purposes of U.S. government 
procurement. The wood chest was assembled from over twenty U.S. and 
foreign components in a twenty-step process which took approximately 
forty-one minutes. CBP held that the components used to manufacture 
the wood chest, when combined with a U.S. origin laminate top, were 
substantially transformed as a result of the assembly operations 
performed in the U.S.
    In the instant case, the tables' components range from 71 to 91 
which can only be assembled by two skilled installers, operating 
under the control and training of the Company and its authorized 
network of dealers. The assembly of the components requires the 
installers to maintain proper leveling throughout, while building 
different parts of the billiards table, which is essential to the 
ball running true during play. We find that the assembly processes 
that occur in the U.S. are complex and meaningful, require the 
assembly of a large number of components, and render a new and 
distinct article of commerce that possesses a new name, character, 
and use. Therefore, we find that the imported components lose their 
individual identities and become an integral part of the billiards 
tables as a result of the U.S. assembly operations and combination 
with U.S. components; and that the components acquire a different 
name, character, and use as a result of the assembly operations 
performed in the U.S. While not dispositive, we note, in addition, 
that the engineering, design, and development of the tables occur in 
the U.S. Accordingly, the assembled billiards tables will be 
considered products of the U.S. for purposes of U.S. Government 
procurement.

HOLDING:

    Based on the facts of this case, we find that the country of 
origin of all four billiards tables is the U.S. for purposes of U.S. 
Government procurement. Notice of this final determination will be 
given in the Federal Register, as required by 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

[[Page 63815]]

Notice referenced above, seek judicial review of this final 
determination before the Court of International Trade.

Sincerely,

Harold M. Singer,
Acting Executive Director Regulations and Rulings, Office of 
International Trade

[FR Doc. 2015-26752 Filed 10-20-15; 8:45 am]
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