Notice of Issuance of Final Determination Concerning Certain Jet Fuel, 62328-62329 [2018-26168]
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Federal Register / Vol. 83, No. 232 / Monday, December 3, 2018 / Notices
laminate polyurethane from [country D],
stuffing them with foam and sewing the sides
closed. DJO places the pneumatic coupling
on the fixture. DJO connects the tubing to the
pneumatic coupling. DJO places the aircell
on the fixture to assemble the side of
pneumatic coupling in the aircell tubing. DJO
then inserts the completed aircells into the
wrap, ensuring that the tubing is exposed and
open. DJO then places the elbow and valve
into the pneumatic fixtures to create an
assembly, which is also placed into the wrap
and connected to the tubing. The Airlift is
then packaged into a box along with the hand
bulb and instructional information, which is
labeled for shipping.
You state that the Airlift is classified under
subheading 9021.10.00, Harmonized Tariff
Schedule of the United States (‘‘HTSUS’’),
which provides for ‘‘Orthopedic appliances,
including crutches, surgical belts and trusses;
splints and other fracture appliances;
artificial parts of the body; hearing aids and
other appliances which are worn or carried,
or implanted in the body, to compensate for
a defect or disability; parts and accessories
thereof; Orthopedic or fracture appliances,
and parts and accessories thereof.’’
ISSUE:
khammond on DSK30JT082PROD with NOTICES
What is the country of origin of the Airlift
for purposes of U.S. Government
Procurement?
LAW AND ANALYSIS:
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, 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.).
Under the rule of origin set forth under 19
U.S.C. § 2518(4)(B):
An article is a product of a country or
instrumentality only if (i) it is wholly the
growth, product, or manufacture of that
country or instrumentality, or (ii) in the case
of an article which consists in whole or in
part of materials from another country or
instrumentality, it has been substantially
transformed into a new and different article
of commerce with a name, character, or use
distinct from that of the article or articles
from which it was so transformed.
See also 19 C.F.R. § 177.22(a).
In determining whether the combining of
parts constitutes a substantial transformation,
the determinative issue for CBP is the extent
of operations performed and whether the
parts lose their identity and become an
integral part of the new article. Belcrest
Linens v. United States, 6 C.I.T. 204 (1983),
aff’d, 741 F.2d 1368 (Fed. Cir. 1984).
Assembly operations that are minimal or
simple, as opposed to complex or
meaningful, will generally not result in a
substantial transformation. See Headquarters
Ruling Letter (‘‘HQ’’) H125975, dated January
19, 2011. CBP considers the totality of the
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16:52 Nov 30, 2018
Jkt 247001
circumstances and makes such
determinations on a case-by-case basis.
The Court of International Trade has also
applied the ‘‘essence test’’ to determine
whether the identity of an article is changed
through assembly or processing. For
example, in Uniroyal, Inc. v. United States,
3 C.I.T. 220, 225 (1982), aff’d, 702 F.2d 1022
(Fed. Cir. 1983), the court held that imported
shoe uppers added to an outer sole in the
United States were the ‘‘very essence of the
finished shoe’’ and thus were not
substantially transformed into a product of
the United States. Further, the court noted
that the attachment of the outsole to the
upper was a minor manufacturing or
combining process which left the identity of
the upper intact.
Here, the manufacturing operations that
combine the Airlift into a finished product
are completed at DJO’s facility in Mexico and
cause the various parts to lose their
individual identities. In Mexico, DJO creates
the tubing used to inflate the aircell, cuts the
laminate polyurethane to size and shape for
the aircell, fills the aircell with foam, and
sews it closed. DJO then connects the tubing
into the aircell using a coupler and plastic
elbow, after which the aircell is sewn into the
Airlift. This processing permanently attaches
the various parts to each other so that they
lose their individual identities and become
part of the completed Airlift.
Further, similar to the shoe upper in
Uniroyal, the aircell imparts the essence of
the brace as it is the part that provides arch
support to prevent or reduce adult onset flat
foot, and supports the ankle to treat PTTD.
While the form assembly is imported with
lateral stays that work to immobilize the
ankle, it is not until the insertion of the
aircell that the Airlift is suitable for treatment
of these conditions. Therefore, a customer is
likely to make the decision to purchase the
Airlift based on the function of the aircell.
As such, we find the manufacture of the
aircell in Mexico and additional processing
to create a fully functioning brace results in
a substantial transformation of the
components such that the country of origin
for government procurement purposes is
Mexico.
HOLDING:
The country of origin of the Airlift for
purposes of U.S. Government procurement is
Mexico.
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 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,
Alice A. Kipel,
Executive Director Regulations & Rulings
Office of Trade
[FR Doc. 2018–26167 Filed 11–30–18; 8:45 am]
BILLING CODE 9111–14–P
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DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final
Determination Concerning Certain Jet
Fuel
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 jet fuel. Based upon the
facts presented, CBP has concluded that
the country of origin of this jet fuel is
India for purposes of U.S. Government
procurement.
DATES: The final determination was
issued on November 23, 2018. 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
January 2, 2019.
FOR FURTHER INFORMATION CONTACT:
Teresa M. Frazier, Valuation and
Special Programs Branch, Regulations
and Rulings, Office of Trade (202) 325–
0139.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that on 11/23/18, 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 jet fuel,
which may be offered to the U.S.
Government under an undesignated
government procurement contract. This
final determination, HQ H272678, 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 the
processing in India results in a
substantial transformation. Therefore,
the country of origin of the jet fuel is
India 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.
SUMMARY:
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Federal Register / Vol. 83, No. 232 / Monday, December 3, 2018 / Notices
Dated: November 23, 2018.
Alice A. Kipel,
Executive Director,Regulations and Rulings,
Office of Trade.
H292678
November 23, 2018
OT:RR:CTF:VS H292678 TMF
CATEGORY: Origin
Patrick Devaney, Director
ANOI, Inc.
111 W. Ocean Blvd, Suite 1590
Long Beach, CA 90802
Re: U.S. Government Procurement; Country
of Origin of Jet Fuel; Title III, Trade
Agreements Act of 1979 (19 U.S.C. § 2511,
et seq.); Subpart B, Part 177, CBP
Regulations
Dear Mr. Devaney:
This is in response to your letter dated
December 2, 2017, requesting a final
determination, on behalf of your company,
ANOI, Inc., concerning the country of origin
of certain jet fuel pursuant to subpart B of
Part 177 of the U.S. Customs and Border
Protection (‘‘CBP’’) Regulations (19 C.F.R.
§ 177.21 et seq.). ANOI, Inc., submitted an
electronic ruling request to the National
Commodity Specialist Division (‘‘NCSD’’)
which was sent to our office.
We note that Anoi 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:
Anoi, Inc. produces jet fuel (identified as
JP5) in India from U.S. or Mexican petroleum
crude oil. The JP5 is intended to be sold to
the U.S. Defense Logistics Agency (‘‘DLA’’) in
a solicitation that requires compliance with
the Trade Agreements Act of 1979 (‘‘TAA’’).
In your submission, you state that an
intermediate grade, western Texas and/or
Mexican oil will be imported to the Reliance
Refinery in Jamnagar, India. At the refinery,
you state that ‘‘there will be a ‘one-step’
transformation of crude to straight-run
distillate.’’ The process consists of desalting
and heating the crude, and then distilling out
the sulfur from the middle distillate kerosene
with the use of a Merox Oxidation unit that
removes the sulfur from the kerosene jet fuel.
DLA also requires certain additives to
achieve JP5 jet fuel MILSPEC.
khammond on DSK30JT082PROD with NOTICES
ISSUE:
What is the country of origin of the JP5 jet
fuel for purposes of U.S. Government
procurement?
LAW AND ANALYSIS:
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, 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.).
Under the rule of origin set forth under 19
U.S.C. § 2518(4)(B):
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16:52 Nov 30, 2018
Jkt 247001
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).
A substantial transformation occurs when
an article emerges from a process with a new
name, character, and use different from that
possessed by the article prior to processing.
A substantial transformation will not result
from a minor manufacturing or combining
process that leaves the identity of the article
intact. See United States v. Gibson-Thomsen
Co., 27 C.C.P.A. 267 (1940); and National
Juice Products Ass’n v. United States, 628 F.
Supp. 978 (Ct. Int’l Trade 1986).
You claim that the country of origin is
either the United States or Mexico for two
reasons. First, you state that the source of
crude is ‘‘an embargo issue for feedstock in
the Solicitation.’’ Second, you claim there is
no ‘‘double transformation’’ as in CBP
Headquarters Ruling Letters (‘‘HQ’’) 555032,
dated September 23, 1988 and HQ 562387,
dated July 30, 2002, because the processes in
those situations involved ‘‘old technology’’/
mixture-based processes that consisted of
hydro-desulfurization, platformers and
naptha-blends. However, in this case, ANOI,
Inc. proposes to refine, by the process of
distillation, and additional processes, U.S. or
Mexican origin, petroleum crude oil at the
Reliance Petroleum Refinery in Jamnagar,
India into U.S. JP5 specification jet fuel. You
state that a ‘‘straight-run’’ process occurs
because it uses a Merox filter unit that
involves no chemical mixing except for
inclusion of the JP5 additive, which is
required by DLA. Accordingly, you claim no
substantial transformation occurs in India.
In this case, we find the JP5 specification
jet fuel is clearly a new and different article
with a new name, character, and use from
that of the petroleum crude oil from which
it was refined. Although there may be no
double substantial transformation, the
process to create jet fuel from straight crude
oil to straight-run distillate still involves
desalting and the application of heat
distillation coupled with the utilization of
the Merox Oxidation unit to remove sulfur,
which results in the creation of jet fuel.
According to our Laboratories and Scientific
Services Directorate, the petroleum crude oil
is substantially transformed into JP5 by the
petroleum refining process of distillation.
This finding is consistent with our decision
in HQ 555032, where a first substantial
transformation was found to occur after
distillation. Therefore, we find the country of
origin of the produced JP5 will be the
country in which the substantial
transformation (distillation) occurs, namely
India.
HOLDING:
Based upon the specific facts of this case,
the country of origin of the JP5 jet fuel for
purposes of U.S. Government procurement
will be India.
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62329
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,
Alice A. Kipel,
Executive Director, Regulations & Rulings,
Office of Trade.
[FR Doc. 2018–26168 Filed 11–30–18; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOMELAND
SECURITY
Federal Emergency Management
Agency
[Internal Agency Docket No. FEMA–3407–
EM; Docket ID FEMA–2018–0001]
Alabama; Amendment No. 1 to Notice
of an Emergency Declaration
Federal Emergency
Management Agency, DHS.
ACTION: Notice.
AGENCY:
This notice amends the notice
of an emergency declaration for the
State of Alabama (FEMA–3407–EM),
dated October 12, 2018, and related
determinations.
SUMMARY:
This amendment was issued
November 7, 2018.
FOR FURTHER INFORMATION CONTACT:
Dean Webster, Office of Response and
Recovery, Federal Emergency
Management Agency, 500 C Street SW,
Washington, DC 20472, (202) 646–2833.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that the incident period for
this emergency is closed effective
October 13, 2018.
DATES:
The following Catalog of Federal Domestic
Assistance Numbers (CFDA) are to be used
for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora
Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034,
Disaster Unemployment Assistance (DUA);
97.046, Fire Management Assistance Grant;
97.048, Disaster Housing Assistance to
Individuals and Households In Presidentially
Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance—
Disaster Housing Operations for Individuals
and Households; 97.050, Presidentially
Declared Disaster Assistance to Individuals
and Households—Other Needs; 97.036,
Disaster Grants—Public Assistance
E:\FR\FM\03DEN1.SGM
03DEN1
]]>Agencies
[Federal Register Volume 83, Number 232 (Monday, December 3, 2018)]
[Notices]
[Pages 62328-62329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26168]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final Determination Concerning Certain Jet
Fuel
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 jet fuel. Based upon the facts presented,
CBP has concluded that the country of origin of this jet fuel is India
for purposes of U.S. Government procurement.
DATES: The final determination was issued on November 23, 2018. 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 January 2, 2019.
FOR FURTHER INFORMATION CONTACT: Teresa M. Frazier, Valuation and
Special Programs Branch, Regulations and Rulings, Office of Trade (202)
325-0139.
SUPPLEMENTARY INFORMATION: Notice is hereby given that on 11/23/18,
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 jet fuel,
which may be offered to the U.S. Government under an undesignated
government procurement contract. This final determination, HQ H272678,
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 the processing in India results in a substantial transformation.
Therefore, the country of origin of the jet fuel is India 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.
[[Page 62329]]
Dated: November 23, 2018.
Alice A. Kipel,
Executive Director,Regulations and Rulings, Office of Trade.
H292678
November 23, 2018
OT:RR:CTF:VS H292678 TMF
CATEGORY: Origin
Patrick Devaney, Director
ANOI, Inc.
111 W. Ocean Blvd, Suite 1590
Long Beach, CA 90802
Re: U.S. Government Procurement; Country of Origin of Jet Fuel;
Title III, Trade Agreements Act of 1979 (19 U.S.C. Sec. 2511, et
seq.); Subpart B, Part 177, CBP Regulations
Dear Mr. Devaney:
This is in response to your letter dated December 2, 2017,
requesting a final determination, on behalf of your company, ANOI,
Inc., concerning the country of origin of certain jet fuel pursuant
to subpart B of Part 177 of the U.S. Customs and Border Protection
(``CBP'') Regulations (19 C.F.R. Sec. 177.21 et seq.). ANOI, Inc.,
submitted an electronic ruling request to the National Commodity
Specialist Division (``NCSD'') which was sent to our office.
We note that Anoi 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:
Anoi, Inc. produces jet fuel (identified as JP5) in India from
U.S. or Mexican petroleum crude oil. The JP5 is intended to be sold
to the U.S. Defense Logistics Agency (``DLA'') in a solicitation
that requires compliance with the Trade Agreements Act of 1979
(``TAA''). In your submission, you state that an intermediate grade,
western Texas and/or Mexican oil will be imported to the Reliance
Refinery in Jamnagar, India. At the refinery, you state that ``there
will be a `one-step' transformation of crude to straight-run
distillate.'' The process consists of desalting and heating the
crude, and then distilling out the sulfur from the middle distillate
kerosene with the use of a Merox Oxidation unit that removes the
sulfur from the kerosene jet fuel. DLA also requires certain
additives to achieve JP5 jet fuel MILSPEC.
ISSUE:
What is the country of origin of the JP5 jet fuel for purposes
of U.S. Government procurement?
LAW AND ANALYSIS:
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,
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.).
Under the rule of origin set forth under 19 U.S.C. Sec.
2518(4)(B):
An article is a product of a country or instrumentality only if (i)
it is wholly the growth, product, or manufacture of that country or
instrumentality, or (ii) in the case of an article which consists in
whole or in part of materials from another country or
instrumentality, it has been substantially transformed into a new
and different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was so
transformed.
See also 19 C.F.R. Sec. 177.22(a).
A substantial transformation occurs when an article emerges from
a process with a new name, character, and use different from that
possessed by the article prior to processing. A substantial
transformation will not result from a minor manufacturing or
combining process that leaves the identity of the article intact.
See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and
National Juice Products Ass'n v. United States, 628 F. Supp. 978
(Ct. Int'l Trade 1986).
You claim that the country of origin is either the United States
or Mexico for two reasons. First, you state that the source of crude
is ``an embargo issue for feedstock in the Solicitation.'' Second,
you claim there is no ``double transformation'' as in CBP
Headquarters Ruling Letters (``HQ'') 555032, dated September 23,
1988 and HQ 562387, dated July 30, 2002, because the processes in
those situations involved ``old technology''/mixture-based processes
that consisted of hydro-desulfurization, platformers and naptha-
blends. However, in this case, ANOI, Inc. proposes to refine, by the
process of distillation, and additional processes, U.S. or Mexican
origin, petroleum crude oil at the Reliance Petroleum Refinery in
Jamnagar, India into U.S. JP5 specification jet fuel. You state that
a ``straight-run'' process occurs because it uses a Merox filter
unit that involves no chemical mixing except for inclusion of the
JP5 additive, which is required by DLA. Accordingly, you claim no
substantial transformation occurs in India.
In this case, we find the JP5 specification jet fuel is clearly
a new and different article with a new name, character, and use from
that of the petroleum crude oil from which it was refined. Although
there may be no double substantial transformation, the process to
create jet fuel from straight crude oil to straight-run distillate
still involves desalting and the application of heat distillation
coupled with the utilization of the Merox Oxidation unit to remove
sulfur, which results in the creation of jet fuel. According to our
Laboratories and Scientific Services Directorate, the petroleum
crude oil is substantially transformed into JP5 by the petroleum
refining process of distillation. This finding is consistent with
our decision in HQ 555032, where a first substantial transformation
was found to occur after distillation. Therefore, we find the
country of origin of the produced JP5 will be the country in which
the substantial transformation (distillation) occurs, namely India.
HOLDING:
Based upon the specific facts of this case, the country of
origin of the JP5 jet fuel for purposes of U.S. Government
procurement will be India.
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,
Alice A. Kipel,
Executive Director, Regulations & Rulings, Office of Trade.
[FR Doc. 2018-26168 Filed 11-30-18; 8:45 am]
BILLING CODE 9111-14-P
