Notice of Issuance of Final Determination Concerning Meeting Tables, 22105-22107 [2025-09318]

Agencies

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

[Federal Register Volume 90, Number 99 (Friday, May 23, 2025)]
[Notices]
[Pages 22105-22107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-09318]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Meeting 
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 
Protection (CBP) has issued a final determination concerning the 
country of origin of meeting tables. Based upon the facts presented, 
CBP has concluded that the country of origin of the meeting tables is 
Canada for purposes of U.S. Government procurement.

DATES: The final determination was issued on May 13, 2025. 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 June 23, 2025.

FOR FURTHER INFORMATION CONTACT: Reema Bogin, Valuation and Special 
Programs Branch, Regulations and Rulings, Office of Trade, at 
[email protected], or (202) 325-0277.

SUPPLEMENTARY INFORMATION: Notice is hereby given that on May 13, 2025, 
CBP issued a final determination concerning the country of origin of 
meeting tables for purposes of title III of the Trade Agreements Act of 
1979. This final determination, Headquarters Ruling Letter (``HQ'') 
H338728, was issued at the request of Global Industries, Inc. (``Global 
Industries''), 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 last substantial 
transformation took place in Canada. Therefore, the country of origin 
of the meeting tables is Canada 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 H338728

May 13, 2025

OT:RR:CTF:VS H338728 RRB
Category: Origin
Katie Higgins, Global Industries, Inc., 17 West Stow Road, Marlton, 
New Jersey 08053
Re: U.S. Government Procurement; Title III, Trade Agreements Act of 
1979 (19 U.S.C. 2511); Subpart B, Part 177, CBP Regulations; Global 
Industries, Inc.; Country of Origin of Meeting Tables; Substantial 
Transformation
Dear Ms. Higgins:

    This is in response to your request, dated April 10, 2024, for a 
final determination concerning the country of origin of two models 
of meeting tables, the KadinTM table (``Kadin table'') 
and the TerinaTM table (``Terina table'') (collectively, 
``the meeting tables''), 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.). Global Industries, 
Inc. (``Global Industries''), the manufacturer of the meeting 
tables, is a party-at-interest within the meaning of 19 CFR 
177.22(d)(1) and Sec.  177.23(a) and is therefore entitled to 
request this final determination.

Facts

    The merchandise at issue are the Kadin and Terina models of 
meeting tables manufactured by Global Industries. Each of these 
meeting table models is available in different size options, base 
finishes, and laminate and veneer tabletop finishes.

Kadin Table

    The Kadin table consists of a floating top surface, die-cast 
aluminum legs and a modular substructure for stability. Surfaces are 
offered in laminate or wood veneer finishes with multiple edge 
options and in three top shapes--round, square, or rectangular.
    The Kadin table configurations with laminate table surfaces are 
manufactured at Global Industries' production facilities in Canada. 
The sheets used to manufacture the laminate table surfaces are 
sourced from Canada. They are either high-pressure laminate or low-
pressure laminate. For high-pressure laminate sheets, adhesive is 
applied to the back of the sheet, the sheets are pressed onto the 
particle board substrate, and the adhesive is cured. For both high-
pressure laminate and low-pressure laminate table surfaces, full-
size sheets are fed onto a saw that is generated by a computer 
program for a precision cut pattern. Inserts are also programmed and 
added at this stage. The laminate table surfaces are then fed 
through an edge bander, which applies a hot melt glue to the edging 
and is pressed onto the edge. The processing of the laminate table

[[Page 22106]]

surface is completed once the edging is trimmed.
    The Kadin table configurations with wood veneer table surfaces 
are also manufactured at Global Industries' production facilities in 
Canada. The sheets used to manufacture the wood veneer table 
surfaces are sourced from Canada. The wood veneer table surfaces are 
available in a variety of veneer types, including cherry, walnut, 
white oak, and maple. Once the veneer type is selected, the veneer 
sheets are pressed onto the particle board substrate, and the 
adhesive is cured. Full-size sheets are fed onto a saw that is 
generated by a computer program for a precision cut pattern. Inserts 
are also programmed and added at this stage. The wood veneer table 
surfaces are then fed through an edge bander, which applies a hot 
melt glue to the edging and is pressed onto the edge. Next, the 
edging of the wood veneer sheets is trimmed and sanded. The surface 
and edge are then sprayed with a catalyzed lacquer finish and are 
cured. Once this is complete, the wood veneer surface is removed 
from the curing area and packaged for shipping.
    In addition to manufacturing the laminate and wood veneer table 
surfaces in Canada, the manufacturing process of the Kadin table 
consists of shipping die-cast aluminum table legs manufactured in 
China to Canada in a mixture of raw (unpainted) and polished 
aluminum (finished). Extruded aluminum connectors and injection-
molded plastic components used to assemble the table frames are also 
manufactured in China and shipped to Canada. The extruded aluminum 
pieces, including table beams and screws, are all raw (unpainted). 
Injection-molded plastic components are finished in China. Once 
these components are shipped in bulk from China to Canada, the beams 
are cut down and pre-drilled to accept screws. The table legs, which 
can be customized in various finishes, are electrostatically painted 
depending on the selected finish, along with the matching 
connectors, die-cast pieces and beams. The painted legs are 
assembled with caps installed on the connectors. Finally, all 
remaining hardware is sorted, assembled and bagged.
    Once processing of the table surfaces, table legs, and hardware 
is complete, all of the table surface components are boxed in 
cardboard or skidded and strapped, depending on the quantity of 
surfaces in each package. The table legs and hardware are bagged, 
bubble wrapped and boxed together. Beams longer than 36 inches are 
paper wrapped. All of those components are shipped together from 
Canada to the ultimate customer--in this case, a U.S. government 
agency. Final assembly of all the packaged table components occurs 
in the United States by the ultimate customer, using an installation 
guide provided to the customer by Global Industries.

Terina Table

    The Terina table is a multi-purpose table that allows for quick 
adaptability to various spaces. It includes a flip-top mechanism 
designed for one-handed operation, and an angled ``T'' leg design. 
The flip-mechanism also allows the tables to be stored in an upright 
position to minimize storage space. Like the Kadin table 
configuration, the Terina table surfaces are offered in laminate or 
wood veneer finishes.
    According to Global Industries, the manufacturing steps for the 
laminate and wood veneer table surfaces of the Terina configuration 
are identical to those of the Kadin configuration.
    In addition to manufacturing the laminate and wood veneer Terina 
table surfaces in Canada, the manufacturing process of the Terina 
table consists of shipping extruded raw aluminum (unpainted) 
vertical channels from China to Canada. Extruded aluminum connectors 
and injection-molded plastic components used to assemble the table 
frames are also manufactured in China and shipped to Canada. The 
extruded aluminum pieces are all raw (unpainted), whereas the 
injection-molded plastic components are finished. The ``foot'' of 
the flip top mechanism, manufactured in China in polished aluminum 
(finished), is shipped to Canada. The Terina configuration includes 
casters (wheels) that allow the table to be moved in a meeting space 
and are manufactured in China in a grey plastic. The casters are 
shipped in finished form from China to Canada. Once these base 
components are shipped in bundles from China to Canada, the parts 
are unpacked and sorted. The table legs, which can be customized in 
various finishes, are electrostatically painted depending on the 
selected finish, along with the matching brackets and beams. The 
painted legs are assembled by installing the foot, brackets, 
hardware, and leveler to the leg pipe. Finally, all remaining 
hardware is sorted, assembled and bagged.
    Once processing of the table surfaces, table legs, and hardware 
is complete, all of the table surface components are boxed in 
cardboard or skidded and strapped, depending on the quantity of 
surfaces in each package. The table legs and hardware are bagged, 
bubble wrapped and boxed together. Together, all of those components 
are shipped together from Canada to the ultimate customer--in this 
case, a U.S. government agency. Final assembly of all the packaged 
table components occurs in the United States by the ultimate 
customer, using an installation guide provided to the customer by 
Global Industries.

Issue

    What is the country of origin of the Kadin and Terina meeting 
tables 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 purpose 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 et seq., which 
implements Title III, Trade Agreements Act of 1979, as amended (19 
U.S.C. 2511-2518).
    CBP's authority to issue advisory rulings and final 
determinations stems from 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 the Secretary 
of Homeland Security via Treasury Department Order (TO) 100-20 
``Delegation of Customs revenue functions to Homeland Security,'' 
dated October 30, 2024, and are subject to further delegations to 
CBP (see also 19 CFR part 177, subpart B).
    The rule of origin set forth in 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 provisions 
of subpart B of Part 177 consistent with the Federal Acquisition 
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).
    Section 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 ``Free Trade Agreement country end 
product'' as an article that:
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement (FTA) 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 an FTA 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.
    ``Free Trade Agreement country'' means Australia, Bahrain, 
Canada, Chile, Colombia, Costa Rica, Dominican Republic, El 
Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, 
Nicaragua, Oman, Panama, Peru, or Singapore. See 48 CFR 25.003. 
Thus, Canada is an FTA country for purposes of the FAR.
    In order to determine whether a substantial transformation 
occurs, CBP considers the totality of the circumstances and makes 
such determinations on a case-by-case basis. The

[[Page 22107]]

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, CBP considers 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 when determining whether a substantial 
transformation has occurred. No one factor is determinative.
    In Carlson Furniture Indus. v. United States, 65 Cust. Ct. 474, 
Cust. Dec. 4126 (1970), which involved wooden chair parts, the court 
held that the assembly operations after importation were substantial 
in nature and more than a simple assembly of parts. 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 assembly operations resulted in 
the creation of a new article of commerce.
    The U.S. Court of International Trade has also looked at the 
essence of an article to determine whether its identity has been 
substantially transformed 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 the 
character of the product remained unchanged and did not undergo 
substantial transformation in the United States. Similarly, in 
National Juice Products Association v. United States, 10 C.I.T. 48, 
61, 628 F. Supp. 978, 991 (1986), the court held that imported 
orange juice concentrate ``imparts the essential character'' to the 
completed orange juice and thus was not substantially transformed 
into a product of the United States.
    Headquarters Ruling Letter (``HQ'') H280512, dated March 7, 
2017, considered the origin of a sit-to-stand, height adjustable 
desktop workstation for purposes of U.S. Government procurement. The 
main components of the sit-to-stand workstation were a Chinese-
origin lift assembly of base metal, and a U.S.-originating laminated 
particle board work surface and keyboard tray. The lift assembly 
provided user-assisted lift functionality by means of spring force 
to allow adjustment of the workstation between sitting and standing 
positions. In the United States, the Chinese lift assembly was 
attached to components fabricated in the United States, including 
the work surface, keyboard tray, right and left keyboard support 
brackets, and metal support bar, to form the workstation. The 
processes in the United States included sawing, profiling, sanding, 
hot-pressing and trimming to manufacture the work surface and 
keyboard tray as well as laser-cutting, bending and painting of the 
sheet metal components followed by final assembly of the U.S.-origin 
and the imported components. CBP determined that the imported lift 
assembly was substantially transformed as a result of the assembly 
performed in the United States to produce the finished desktop 
workstation. The decision noted that the lift assembly was not 
functional to an end user by itself as it did not include the 
primary features of the U.S.-origin work surface and keyboard tray 
which allowed the work to be conducted, and without which, the 
lifting mechanism was incapable of being used as a workstation. CBP 
found the lift assembly was substantially transformed in the United 
States into a desktop workstation.
    In New York Ruling Letter (``NY'') N334531, dated September 6, 
2023, CBP considered the country of origin of four unassembled 
tables, where the tabletops were manufactured in Thailand, the bases 
were manufactured in China, and all of the components were packaged 
as unassembled tables in Thailand. Although partially unassembled, 
CBP noted that it has historically found that the material 
comprising the tabletop imparts the essential character to a table. 
See, e.g., NY N324295, dated February 17, 2022; NY N331972, dated 
April 13, 2023; NY N332328, dated May 9, 2023; NY N334127, dated 
August 2, 2023; NY N334774, dated August 24, 2023; NY N334531, dated 
September 6, 2023; and NY N336633, dated December 6, 2023. Based on 
the totality of the manufacturing operations performed in China and 
Thailand and their sequence, first in China and then in Thailand, 
and the fact that the tabletops imparted the essential character of 
the complete tables, CBP found that the country of origin of the 
imported, unassembled tables was Thailand. See also, NY N339685, 
dated May 9, 2024 (the country of origin of three unassembled tables 
was Thailand under similar reasoning as in NY N334531).
    Unlike Carlson Furniture Indus. and HQ H280512, the assembly 
operations here are not as substantial in nature. Rather, they are 
akin to the manufacturing operations in NY N334531 and NY N339685. 
The functional article of commerce that is purchased by a U.S. 
government agency is not simply a tabletop or table bases that are 
packaged together but rather, a finished meeting table that merely 
necessitates a simple combining of components without any special 
skill or sophistication. And as CBP has historically found, it is 
the tabletop component, which provides the tables with their 
functionality and accounts for the majority of their weight, visual 
appeal, and utility, that imparts the essential character of a 
table. Accordingly, the tabletop component of the Kadin and Terin 
table configurations that are manufactured in Canada imparts the 
essential character of the imported meeting table configuration. 
Thus, we find that the country of origin of the entire unassembled 
Kadin and Terina table configurations as imported will be Canada for 
purposes of U.S. Government procurement.

Holding

    Based on the facts and analysis set forth above, the country of 
origin of the Kadin and Terina models of meeting tables will be 
Canada 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 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. 2025-09318 Filed 5-22-25; 8:45 am]
BILLING CODE 9111-14-P