Notice of Issuance of Final Determination Concerning Surgical Towels, 83029-83030 [2024-23652]

Agencies

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

[Federal Register Volume 89, Number 199 (Tuesday, October 15, 2024)]
[Notices]
[Pages 83029-83030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23652]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Surgical 
Towels

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 
Protection (CBP) has issued a final determination concerning the 
country of origin of certain surgical towels. Based upon the facts 
presented, CBP has concluded in the final determination that the 
country of origin of the surgical towels in question is Bangladesh for 
purposes of U.S. Government procurement.

DATES: The final determination was issued on October 7, 2024. 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 14, 2024.

FOR FURTHER INFORMATION CONTACT: Marie Duran[eacute], Food, Textiles 
and Marking Branch, Regulations and Rulings, Office of Trade, at 
[email protected].

SUPPLEMENTARY INFORMATION: Notice is hereby given that on October 7, 
2024, CBP issued a final determination concerning the country of origin 
of certain surgical towels for purposes of Title III of the Trade 
Agreements Act of 1979. This final determination, HQ H339826, was 
issued at the request of Global Resources International, under 
procedures set forth at 19 CFR part 177, subpart B, which implements 
title III of the Trade Agreements Act of 1979, as amended (19 U.S.C. 
2511-18). In the final determination, CBP has concluded that, based 
upon the facts presented, the country of origin of the surgical towels 
is Bangladesh for purposes of U.S. Government procurement.
    Section 177.29, CBP Regulations (19 CFR 177.29), provides that 
notice of final determinations shall be published in the Federal 
Register within 60 days of the date the final determination is issued. 
Section 177.30, CBP Regulations (19 CFR 177.30), provides that any 
party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial 
review of a final determination within 30 days of publication of such 
determination in the Federal Register.

Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.

HQ H339826

October 7, 2024

OT:RR:CTF:FTM H339826 MJD

CATEGORY: Origin

Ms. Lisa Murrin, LCB
Senior Consultant, U.S. Trade Advisory Services
Expeditors Tradewin, LLC
795 Jubilee Drive
Peabody, MA 01960

RE: U.S. Government Procurement; Title III, Trade Agreements Act of 
1979 (19 U.S.C. 2511); Subpart B, Part 177, CBP Regulations; Country 
of Origin of Surgical Towels

Dear Ms. Murrin:
    This is in response to your request, dated April 12, 2024, on 
behalf of your client, Global Resources International (``GRI''), for 
a final determination concerning the country of origin of surgical 
towels, pursuant to Title III of the Trade Agreements Act of 1979 
(``TAA''), as amended (19 U.S.C. 2511 et seq.), and subpart B of 
Part 177, U.S. Customs and Border Protection (``CBP'') Regulations 
(19 CFR 177.21, et seq.). Your request, submitted as an electronic 
ruling request, was forwarded to this office from the National 
Commodity Specialist Division. GRI is a party-at-interest within the 
meaning of 19 CFR 177.22(d)(1) and 177.23(a) and is therefore 
entitled to request this final determination.

Facts

    The subject merchandise consists of blue surgical towels made 
from 100 percent cotton huckaback weave fabric. The imported towels, 
measuring either 17 x 24 or 17 x 27 inches, may or may not be 
sterilized, but are autoclaved. The towels are used during surgery 
for the absorption of fluids. The cotton fabric used to make the 
towels is from Bangladesh. In Bangladesh, the fabric is woven and 
dyed blue. Then the fabric is shipped to Vietnam in rolls, where it 
is cut to size, sewn, autoclaved, packaged, and shipped to the 
United States. The surgical towels are classified under subheading 
6307.90.89, Harmonized Tariff Schedule of the United States 
(``HTSUS'').

Issue

    What is the country of origin of the surgical towels 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 CFR 177.21-177.31, which 
implements Title III of the TAA, as amended (19 U.S.C. 2511-2518).
    CBP's authority to issue advisory rulings and final 
determinations is set forth in 19 U.S.C. 2515(b)(1), which states:
    For the purposes of this subchapter, the Secretary of the 
Treasury shall provide for the prompt issuance of advisory rulings 
and final determinations on whether, under section 2518(4)(B) of 
this title, an article is or would be a product of a foreign country 
or instrumentality designated pursuant to section 2511(b) of this 
title.

Emphasis added.
    The Secretary of the Treasury's authority mentioned above, along 
with other customs revenue functions, are delegated to CBP in the 
Appendix to 19 CFR part 0--Treasury Department Order No. 100-16, 68 
FR 28322 (May 23, 2003).
    The rule of origin set forth under 19 U.S.C. 2518(4)(B) states:
    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

[[Page 83030]]

provisions of subpart B of Part 177 consistent with the Federal 
Procurement Regulation (``FAR''). See 19 CFR 177.21. In this regard, 
CBP recognizes that the FAR restricts 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 FAR, 48 CFR 25.003, defines ``designated country end 
product'' as:
    a WTO GPA [World Trade Organization Government Procurement 
Agreement] country end product, an FTA [Free Trade Agreement] 
country end product, a least developed country end product, or a 
Caribbean Basin country end product.
    Section 25.003 defines ``Least developed country end product'' 
as an article that:
    (1) Is wholly the growth, product, or manufacture of a least 
developed country; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a least developed country 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. The 
term refers to a product offered for purchase under a supply 
contract, but for purposes of calculating the value of the end 
product includes services (except transportation services) 
incidental to the article, provided that the value of those 
incidental services does not exceed that of the article itself.
    As previously noted, the fabric from Bangladesh is cut to size, 
sewn, autoclaved, and packaged in Vietnam. Bangladesh is a TAA-
designated country, and Vietnam is not.
    The information submitted indicates that the surgical towels are 
made of 100% cotton. GRI also indicates that the goods are 
classified in subheading 6307.90.89, HTSUS, as a textile product. 
The rules of origin for textile and apparel products for purposes of 
the customs laws and the administration of quantitative restrictions 
are governed by 19 U.S.C. 3592, unless otherwise provided for by 
statute. These provisions are implemented in the CBP Regulations at 
19 CFR 102.21. Section 3592 of title 19 has been described as 
Congress's expression of substantial transformation as it relates to 
textile and apparel products. Therefore, the country of origin of 
the surgical towels for Government procurement purposes is 
determined by sequential application of the general rules set forth 
in paragraphs (c)(1) through (c)(5) of 19 CFR 102.21.
    Paragraph (c)(1) states: ``The country of origin of a textile or 
apparel product is the single country, territory, or insular 
possession in which the good was wholly obtained or produced.'' 
Since the surgical towels are produced by processing in both 
Bangladesh and Vietnam, they are not wholly obtained or produced in 
a single country, territory or insular possession. Therefore 
paragraph (c)(1) of Section 102.21 is inapplicable.
    Paragraph (c)(2) states: ``Where the country of origin of a 
textile or apparel product cannot be determined under paragraph 
(c)(1) of this section, the country of origin of the good is the 
single country, territory, or insular possession in which each of 
the foreign materials incorporated in that good underwent an 
applicable change in tariff classification, and/or met any other 
requirement specified for the good in paragraph (e) of this 
section.''
    Paragraph (e)(1) provides that ``The following rules will apply 
for purposes of determining the country of origin of a textile or 
apparel product under paragraph (c)(2) of this section.'' The 
applicable rule, that corresponds to subheading 6307.90.89, HTSUS, 
states:
6307.90 The country of origin of a good classifiable under 
subheading 6307.90 is the country, territory, or insular possession 
in which the fabric comprising the good was formed by a fabric-
making process.
    In the instant case, the 100% cotton fabric that is woven and 
dyed blue in Bangladesh is imported into Vietnam where it is cut to 
size, sewn, and autoclaved to make surgical towels. Therefore, the 
country of origin of the surgical towels is Bangladesh, where the 
100% cotton fabric that comprises the surgical towel was formed by a 
fabric-making process. As the surgical towels meet the requirements 
for goods classified in subheading 6307.90, HTSUS, pursuant to 19 
CFR 102.21(c)(2), the country of origin of the surgical towels is 
Bangladesh.
    Based on the analysis above, we find that the country of origin 
of the subject surgical towels is Bangladesh and, therefore, the 
surgical towels would be the product of a foreign country or 
instrumentality designated pursuant to 19 U.S.C. 2511(b)(1).

Holding

    Based on the facts and analysis set forth above, the country of 
origin of the instant surgical towels will be Bangladesh.
    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 Notice referenced above, seek judicial review of this final 
determination before the U.S. Court of International Trade.

Sincerely,
Alice A. Kipel, Executive Director,
Regulations and Rulings,
Office of Trade.

[FR Doc. 2024-23652 Filed 10-11-24; 8:45 am]
BILLING CODE 9111-14-P