[Federal Register Volume 75, Number 124 (Tuesday, June 29, 2010)]
[Notices]
[Pages 37453-37455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-15710]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final Determination Concerning Dimmer and
Fan Speed Switch Controls
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 dimmer and fan speed switch controls which
may be offered to the United States Government under a government
procurement contract. Based upon the facts presented, in the final
determination CBP concluded that Mexico is the country of origin of the
dimmer and fan speed switch controls for purposes of U.S. Government
procurement.
DATES: The final determination was issued on June 15, 2010. 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 July 29, 2010.
FOR FURTHER INFORMATION CONTACT: Karen S. Greene, Valuation and Special
Programs Branch, Regulations and Rulings, Office of International Trade
(202-325-0041).
SUPPLEMENTARY INFORMATION: Notice is hereby given that on June 15,
2010, pursuant to subpart B of part 177, Customs Regulations (19 CFR
part 177, subpart B), CBP issued a final determination concerning the
country of origin of certain dimmer and fan speed switch controls which
may be offered to the United States Government under a government
procurement contract. This final determination, in HQ H098417, was
issued at the request of Pass & Seymour, Inc. 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, certain articles will be substantially
[[Page 37454]]
transformed in Mexico. Therefore, CBP found that Mexico is the country
of origin of the finished articles for purposes of U.S. Government
procurement.
Section 177.29, Customs 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.
Dated: June 15, 2010.
George F. McCray,
Acting Executive Director, Office of Regulations and Rulings, Office of
International Trade.
HQ H098417
June 15, 2010
OT:RR:CTF:VS H098417 KSG
Daniel B. Berman, Esq.
Hancock & Estabrook LLP
1500 AXA Tower I
100 Madison Street
Syracuse, NY 13202
Re: U.S. Government Procurement; Title III, Trade Agreements Act of
1979; Country of Origin of Titan dimmer and fan speed switch control;
substantial transformation
Dear Mr. Berman:
This is in response to your letter, dated March 5, 2010, requesting
a final determination on behalf of Pass & Seymour Inc., pursuant to
subpart B of 19 CFR Part 177.
Under these regulations, which implement Title III of the Trade
Agreements Act of 1979, as amended (19 U.S.C. 2511 et seq.) (``TAA''),
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 certain
dimmer and fan speed control switches that Pass & Seymour may sell to
the U.S. Government. We note that Pass & Seymour is a party-at-interest
within the meaning of 19 CFR 177.22(d)(1) and is entitled to request
this final determination.
You also asked about the tariff classification for the components
and the tariff classification and the country of origin marking
requirements for the imported good. We have referred these questions to
the Tariff Classification and Marking Branch of this office for their
response directly to you.
Facts:
Pass & Seymour (``P & S'') designs, manufactures and distributes
dimmer and fan speed control switches in the U.S. for residential and
commercial use in electrical circuits of less than 1,000 volts. This
case involves two models: the Titan model dimmer and fan speed switch
control and the Harmony dimmer.
Legrand, the French parent company of P & S, produces the
subcomponents of the dimmers in Hong Kong. The subcomponents are then
shipped to Mexico for assembly. The finished product is then imported
into the U.S.
The processing in Mexico includes the following: (1) The assembly
of the bare printed circuit board into a final printed circuit board
(``PCB''), and the assembly of the PCB with other components into the
finished product. The titan dimmer has a total of 34 components in
addition to the PCB. The harmony dimmer contains a PCB in addition to
28 other components.
Issue:
What is the country of origin of the imported dimmer and fan
switches described above for the purpose of U.S. government
procurement?
Law and Analysis:
Pursuant to Subpart B of Part 177, 19 CFR 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 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 determining whether the combining of parts or materials
constitutes a substantial transformation, the determinative issue 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, 573 F. Supp. 1149 (Ct. Int'l Trade 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 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. In
C.S.D. 85-25, 19 Cust. Bull. 844 (1985), CBP held that for purposes of
the Generalized System of Preferences (``GSP''), the assembly of a
large number of fabricated components onto a printed circuit board in a
process involving a considerable amount of time and skill resulted in a
substantial transformation. In that case, in excess of 50 discrete
fabricated components (such as resistors, capacitors, diodes,
integrated circuits, sockets, and connectors) were assembled. Whether
an operation is complex and meaningful depends on the nature of the
operation, including the number of components assembled, number of
different operations, time, skill level required, attention to detail,
quality control, the value added to the article, and the overall
employment generated by the manufacturing process.
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. No one
factor is determinative.
CBP recently ruled in H047362, dated March 26, 2009, that a similar
product of P & S, electrical components, were substantially transformed
when Chinese parts were assembled in Mexico into the finished article.
That case also involved the production of the PCB and the assembly of
the PCB and 29 other parts in a process that took about 10 minutes into
the finished product. We find that this case is very similar to
H047362. The assembly in Mexico is sufficiently complex and the
components are substantially transformed into a final product that has
a new name, character and use. Therefore, the country of origin of the
Titan dimmer and fan switch and the harmony dimmer for government
procurement purposes is Mexico.
[[Page 37455]]
Holding:
Based on the facts of this case, the country of origin of the Titan
dimmer and fan switch and the Harmony Dimmer is Mexico for purposes of
U.S. Government procurement.
Notice of this final determination will be given in the Federal
Register, as required by 19 CFR Sec. 177.29. Any party-at-interest
other than the party which requested this final determination may
request, pursuant to 19 CFR Sec. 177.31 that CBP reexamine the matter
anew and issue a new final determination. Pursuant to 19 CFR Sec.
177.30, any party-at-interest may, within 30 days after publication of
the Federal Register Notice referenced above, seek judicial review of
this final determination before the Court of International Trade.
Sincerely,
George F. McCray,
Acting Executive Director, Office of Regulations and Rulings, Office
of International Trade.
[FR Doc. 2010-15710 Filed 6-28-10; 8:45 am]
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