81 FR 79041 - Notice of Issuance of Final Determination Concerning Certain Treadmills
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection Federal Register Volume 81, Issue 218 (November 10, 2016)
U.S. Customs and Border Protection
Federal Register Volume 81, Issue 218 (November 10, 2016)
| Page Range | 79041-79043 | |
| FR Document | 2016-27159 |
[Federal Register Volume 81, Number 218 (Thursday, November 10, 2016)] [Notices] [Pages 79041-79043] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27159] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection Notice of Issuance of Final Determination Concerning Certain Treadmills 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 treadmills. Based upon the facts presented, CBP has concluded that, for purposes of U.S. Government procurement, the country of origin of the treadmills is the United States in Scenario One and Taiwan in Scenario Two. DATES: The final determination was issued on November 1, 2016. A copy of the final determination is attached. Any party-at-interest, as defined in 19 CFR Sec. 177.22(d), may seek judicial review of this final determination within December 12, 2016. FOR FURTHER INFORMATION CONTACT: Ross Cunningham, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade (202) 325- 0034. SUPPLEMENTARY INFORMATION: Notice is hereby given that on November 1, 2016, 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 treadmills, which may be offered to the U.S. Government under an undesignated government procurement contract. This final determination, HQ H262943, 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 in both scenarios, the processing in the United States or in Taiwan results in a substantial transformation. Therefore, for purposes of U.S. Government procurement, the country of origin of the treadmills is the United States in Scenario One and Taiwan in Scenario Two. 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: November 1, 2016. Alice A. Kipel, Executive Director, Regulations and Rulings, Office of Trade. HQ H262943 November 01, 2016 OT:RR:CTF:VS H262943 RMC CATEGORY: Country of Origin John A. Knab Garvey Shubert Barer PC 1000 Potomac Street NW Suite 200 Washington, DC 20007 Re: U.S. Government Procurement; Country of Origin of Treadmills; Substantial Transformation Dear Mr. Knab: This is in response to your letter dated March 16, 2015, requesting a final determination on behalf of Johnson Health Tech North America (``Johnson'') 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. 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 for products offered for sale to the U.S. Government. This final determination concerns the country of origin of treadmills. As a U.S. importer, Johnson is a party-at-interest within the meaning of 19 CFR Sec. 177.22(d)(1) and is entitled to request this final determination. Facts Johnson is an exercise equipment manufacturer based in Cottage Grove, Wisconsin. It is a wholly-owned subsidiary of the Taiwanese entity Johnson Health Tech. Co., Ltd. (``JHT''). JHT, through its subsidiaries, operates in Taiwan, China, and the United States. The equipment at issue is the Matrix[supreg] T3xe commercial treadmill. Johnson describes the Matrix[supreg] T3xe as a ``state of the art, electric, motorized treadmill controlled by software in a control box located in a user-friendly console supported by a console mast.'' In its submission, Johnson describes two scenarios for assembling the Matrix[supreg] T3xe. In short, the first involves welding the metal components comprising the treadmills' major subassemblies in the United States, assembling the components in the United States to form the finished product, and then partially disassembling the treadmills for shipment to U.S. customers. The second is similar to the first, except that the welding and assembly will occur in Taiwan before the finished treadmill is partially disassembled and sent to the U.S. customer. [[Page 79042]] 1. Scenario One--Final Assembly in the United States a. Design in the United States Johnson states it designs and engineers the Matrix[supreg] T3xe and similar models of treadmills in Wisconsin based on product development done in the United States and in consultation with designers and engineers in Taiwan. The engineering and design group uses SolidWorks software to create 3D computer-aided design (``CAD'') models and 2D models for use as diagrams to guide the manufacturing process. Each treadmill generally has between 200 and 400 2D CAD drawings representing between 400 and 700 separate components or subassemblies used in the treadmill. Johnson also states that the Matrix[supreg] T3xe's console software is designed in the United States, while the ``detailed coding'' is done in Taiwan. b. Component Parts and Materials Come From China & Other Countries According to the bill of materials that Johnson provided, the Matrix[supreg] T3xe consists of approximately 466 individual parts. The vast majority of these parts are produced in China from Chinese materials. Under both scenarios, however, the Matrix[supreg] T3xe will also include some parts from the United States, Italy, and Taiwan. Under Scenario 1, the coated wooden deck that comprises the base will be of U.S. origin, and the elastic belt that the user walks on will be of Italian origin. Additionally, the elastometer, the cover for the driver motor, the television tuner, and the heart-rate monitor will be of Taiwanese origin. All other parts will be of Chinese origin. c. Assembly, Time & Employees i. Description of Major Subassemblies Johnson states that the finished treadmills will consist of three major subassemblies: (1) the treadmill base; (2) the console; and (3) the console mast. The treadmill base is the part of a treadmill that lies flat on the floor. It comprises a deck and belt that form the running surface; a set of motors and rollers that control the speed of the belt and the pitch of the running surface; and side rails and covers to protect the equipment and the user. These parts are joined together by numerous bolts, washers, and screws. The console is essentially the computer that allows the user to control the treadmill's operation. It is situated roughly at chest height to allow the user to adjust the treadmill while in operation. Here, it consists of a touch-screen display and also incorporates a heart-rate monitor and a television tuner. The console mast houses the console and connects it to the treadmill base. It also incorporates left and right arms to support the user and a rack for reading materials. ii. Chinese Operations In China, the console control board will be assembled and the rest of the parts that make up the finished treadmill will then be shipped to the United States for assembly. iii. Assembly & Testing in the United States Johnson describes the U.S. assembly process as involving welding various components and ``connecting, lining up, adjusting and bolting frames, tightening and torqueing frame bolts, attaching motors, installing power switches, wiring, pulleys and filters.'' First, workers will weld together the metal frames that comprise the three major subassemblies. The treadmill base will require 18 welding seams, the console frame, which houses the console, will require seven welding seams, and the console mast will require two welding seams. Once the major subassemblies have been welded together, several major components will be assembled including the console parts, console mast parts, rollers, side rails, and deck and belt. The rollers, side rails, and deck and belt will then be combined with the metal treadmill base to form the ``rudimentary base.'' Next, the electronic components will be bolted and wired into the rudimentary base to make the motorized and operational treadmill base. The U.S. assembly team will then temporarily assemble and wire the motorized base with the console and the console mast to make the substantially final product. The product will then be spot-checked and subjected to quality control and operational testing. This quality control and operational testing will involve bringing the finished treadmills to a ``quiet room'' to ensure that the treadmill is operating properly. During testing, the assembler will run tests at different speeds and elevations and use natural hearing, noise detection equipment, and a vibrograph to check for unusual noises and vibrations. Johnson estimates that the total time necessary for U.S. assembly and testing will be 116 minutes. iv. Labor in the United States Johnson estimates that assembly in the United States under Scenario 1 will require 68 employees. This figure includes employees involved in the assembly process from sub-assembly welding, assembly, quality control, and packaging, but does not include those involved in design, engineering, or post-assembly installation. v. Disassembly for Shipment Finally, the finished product will be partially disassembled by separating the treadmill base from the console and the console mast so that it can be packaged for shipment to U.S. customers. 2. Scenario Two--Final Assembly in Taiwan As noted above, Scenario Two is similar to Scenario One, with the key difference being that the subassembly-welding and final- assembly operations will occur in Taiwan before the finished treadmill is partially disassembled and sent to the U.S. client. In addition, certain parts that are Chinese in Scenario One will be swapped out for Taiwanese parts in Scenario Two (specifically, the motor chassis, the side rails, the roller set, the packaging box, the polystyrene set, and the screw set). Issue What is the country of origin for purposes of U.S. Government procurement of the Matrix[supreg] T3xe treadmill under Scenario 1 and Scenario 2? 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. 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 CFR Sec. 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 Sec. 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 Sec. 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, 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. See Belcrest Linens v. United States, 6 CIT 204 (1983), aff'd, 741 F.2d 1368 (Fed. Cir. 1984). 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 [[Page 79043]] substantial transformation has occurred. No one factor is determinative. 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 CIT 220, 225, 542 F. Supp. 1026, 1030 (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. Similarly, in National Juice Products Association v. United States, 10 CIT 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. In Headquarters Ruling (``HQ'') H270580, dated May 10, 2016, we considered whether a substantial transformation occurred when Johnson, the importer here, assembled ``G3 Dip'' and ``G3 Back Extension'' exercise machines in the United States. As in this case, Johnson proposed two different assembly scenarios. Under Scenario One, which applied to both machines, we held that although nearly all the parts were of Chinese origin, the extent of U.S. assembly operations was sufficiently complex and meaningful to result in a substantial transformation. Specifically, the assembly involved U.S. workers welding nine separate subassemblies with 49 seams for the ``G3 Dip'' and three separate subassemblies with 22 seams for the ``G3 Back Extension.'' In addition to the welding, U.S. workers also cleaned and degreased parts, ground down and painted the frame, and sprayed the frame with clear coat. The 200 to 500 parts that comprise the final products were then assembled in a process involving fastening hardware; adding rubber grips; capping off tube ends; positioning pulleys; adding weights, cables, or belts; and placing warning placards. We found that a substantial transformation had occurred because the assembly operations caused the individual parts to lose their separate identities and to become integral components of a product with a new name, character, and use. However, under Scenario Two in HQ H270580, which applied only to the ``G3 Dip,'' three of the nine subassemblies were imported from China as pre-assembled components. Under Uniroyal, 3 CIT 220, these critical components together imparted the ``very essence'' of the finished product. The processing in the United States thus did not result in a substantial transformation in Scenario Two. See also National Juice Prods. Ass'n, 10 CIT 48. Similarly, in HQ 733188, dated July 5, 1990, we held that no substantial transformation occurred when Venezuelan exercise benches and boards were assembled in the United States. The Venezuelan metal frames as imported were essentially complete, and the U.S. assembly consisted primarily of attaching the cushions and minor parts. Further, no machining was done in the United States and no specialized training, skill, or equipment was required to assemble the exercise equipment. CBP thus held that no substantial transformation occurred in the United States. Here, although nearly all the parts will be of Chinese origin, the extent of U.S. or Taiwanese assembly operations is sufficiently complex and meaningful to result in a substantial transformation in both scenarios. Unlike the exercise equipment at issue in HQ 733188, the treadmill parts will not be essentially complete when they are imported into either the United States or Taiwan for assembly. To the contrary, they will require substantial additional work to create a functional treadmill. Most importantly, U.S. or Taiwanese workers will need to weld a total of 27 seams to create the three major subassemblies (the treadmill base, the console frame, and the console mast) that comprise the finished treadmill. The additional assembly steps, which involve approximately 466 individual parts and ``connecting, lining up, adjusting and bolting frames, tightening and torqueing frame bolts, attaching motors, installing power switches, wiring, pulleys and filters,'' are similar in scope and complexity to those that we found sufficient to effect a substantial transformation under Scenario One in HQ H270580. Under these circumstances, the Matrix[supreg] T3xe's country of origin for purposes of government procurement is the United States under Scenario One and Taiwan under Scenario Two. Holding The finished treadmill's country of origin for purposes of government procurement is the United States under Scenario One and Taiwan under Scenario Two. 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 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. 2016-27159 Filed 11-9-16; 8:45 am] BILLING CODE 9111-14-P
![Federal Register / Vol. 81, No. 218 / Thursday, November 10, 2016 / Notices 79041
Dated: November 4, 2016. DEPARTMENT OF HOMELAND 177.22(d), may seek judicial review of a
Anna Snouffer, SECURITY final determination within 30 days of
Deputy Director, Office of Federal Advisory publication of such determination in the
Committee Policy. U.S. Customs and Border Protection Federal Register.
[FR Doc. 2016–27135 Filed 11–9–16; 8:45 am]
Notice of Issuance of Final Dated: November 1, 2016.
BILLING CODE 4140–01–P Determination Concerning Certain Alice A. Kipel,
Treadmills Executive Director, Regulations and Rulings,
Office of Trade.
DEPARTMENT OF HEALTH AND AGENCY: U.S. Customs and Border
Protection, Department of Homeland HQ H262943
HUMAN SERVICES
Security. November 01, 2016
National Institutes of Health ACTION: Notice of final determination. OT:RR:CTF:VS H262943 RMC
CATEGORY: Country of Origin
National Heart, Lung, and Blood SUMMARY: This document provides
notice that U.S. Customs and Border John A. Knab
Institute; Notice of Closed Meeting Garvey Shubert Barer PC
Protection (‘‘CBP’’) has issued a final 1000 Potomac Street NW
Pursuant to section 10(d) of the determination concerning the country of Suite 200
Federal Advisory Committee Act, as origin of certain treadmills. Based upon Washington, DC 20007
amended (5 U.S.C. App.), notice is the facts presented, CBP has concluded Re: U.S. Government Procurement; Country
that, for purposes of U.S. Government of Origin of Treadmills; Substantial
hereby given of the following meeting.
procurement, the country of origin of Transformation
The meeting will be closed to the the treadmills is the United States in Dear Mr. Knab:
public in accordance with the Scenario One and Taiwan in Scenario
This is in response to your letter dated
provisions set forth in sections Two. March 16, 2015, requesting a final
552b(c)(4) and 552b(c)(6), Title 5 U.S.C., DATES: The final determination was determination on behalf of Johnson Health
as amended. The grant applications and issued on November 1, 2016. A copy of Tech North America (‘‘Johnson’’) pursuant to
the discussions could disclose the final determination is attached. Any subpart B of Part 177 of the U.S. Customs and
confidential trade secrets or commercial party-at-interest, as defined in 19 CFR Border Protection (‘‘CBP’’) Regulations (19
property such as patentable material, § 177.22(d), may seek judicial review of CFR part 177). Under these regulations,
and personal information concerning which implement Title III of the Trade
this final determination within Agreements Act of 1979 (‘‘TAA’’), as
individuals associated with the grant December 12, 2016. amended (19 U.S.C. § 2511 et seq.), CBP
applications, the disclosure of which FOR FURTHER INFORMATION CONTACT: Ross issues country of origin advisory rulings and
would constitute a clearly unwarranted Cunningham, Valuation and Special final determinations as to whether an article
invasion of personal privacy. Programs Branch, Regulations and is or would be a product of a designated
Rulings, Office of Trade (202) 325–0034. country or instrumentality for the purposes
Name of Committee: Heart, Lung, and
SUPPLEMENTARY INFORMATION: Notice is
of granting waivers of certain ‘‘Buy
Blood Initial Review Group, Heart, Lung, and American’’ restrictions in U.S. law or for
Blood Program Project Review Committee. hereby given that on November 1, 2016, products offered for sale to the U.S.
Date: December 2, 2016. pursuant to subpart B of Part 177, U.S. Government. This final determination
Time: 8:00 a.m. to 2:00 p.m. Customs and Border Protection concerns the country of origin of treadmills.
Agenda: To review and evaluate grant Regulations (19 CFR part 177, subpart As a U.S. importer, Johnson is a party-at-
applications. B), CBP issued a final determination interest within the meaning of 19 CFR
Place: Sheraton BWI (Baltimore), 1100 Old concerning the country of origin of § 177.22(d)(1) and is entitled to request this
Elkridge Landing Road, Baltimore, MD certain treadmills, which may be offered final determination.
21090. to the U.S. Government under an Facts
Contact Person: Jeffrey H Hurst, Ph.D., undesignated government procurement Johnson is an exercise equipment
Scientific Review Officer, Office of Scientific contract. This final determination, HQ manufacturer based in Cottage Grove,
Review/DERA, National Heart, Lung, and H262943, was issued under procedures Wisconsin. It is a wholly-owned subsidiary
Blood Institute, National Institutes of Health, set forth at 19 CFR part 177, subpart B, of the Taiwanese entity Johnson Health Tech.
6701 Rockledge Drive, Room 7208, Bethesda, which implements Title III of the Trade Co., Ltd. (‘‘JHT’’). JHT, through its
MD 20892, 301–435–0303, hurstj@ Agreements Act of 1979, as amended subsidiaries, operates in Taiwan, China, and
nhlbi.nih.gov. (19 U.S.C. 2511–18). In the final the United States.
(Catalogue of Federal Domestic Assistance determination, CBP concluded that in The equipment at issue is the Matrix® T3xe
Program Nos. 93.233, National Center for both scenarios, the processing in the commercial treadmill. Johnson describes the
Matrix® T3xe as a ‘‘state of the art, electric,
Sleep Disorders Research; 93.837, Heart and United States or in Taiwan results in a motorized treadmill controlled by software in
Vascular Diseases Research; 93.838, Lung substantial transformation. Therefore, a control box located in a user-friendly
Diseases Research; 93.839, Blood Diseases for purposes of U.S. Government console supported by a console mast.’’
and Resources Research, National Institutes procurement, the country of origin of In its submission, Johnson describes two
of Health, HHS) the treadmills is the United States in scenarios for assembling the Matrix® T3xe. In
Dated: November 4, 2016. Scenario One and Taiwan in Scenario short, the first involves welding the metal
Two. components comprising the treadmills’ major
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Michelle Trout, subassemblies in the United States,
Section 177.29, CBP Regulations (19
Program Analyst, Office of Federal Advisory CFR 177.29), provides that a notice of assembling the components in the United
Committee Policy. final determination shall be published States to form the finished product, and then
[FR Doc. 2016–27137 Filed 11–9–16; 8:45 am] partially disassembling the treadmills for
in the Federal Register within 60 days shipment to U.S. customers. The second is
BILLING CODE 4140–01–P of the date the final determination is similar to the first, except that the welding
issued. Section 177.30, CBP Regulations and assembly will occur in Taiwan before the
(19 CFR 177.30), provides that any finished treadmill is partially disassembled
party-at-interest, as defined in 19 CFR and sent to the U.S. customer.
VerDate Sep<11>2014 17:46 Nov 09, 2016 Jkt 241001 PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 E:\FR\FM\10NON1.SGM 10NON1](https://thefederalregister.org/doc/81_FR_79259/page/1.svg)
![Federal Register / Vol. 81, No. 218 / Thursday, November 10, 2016 / Notices 79043
substantial transformation has occurred. No training, skill, or equipment was required to ACTION: Notice.
one factor is determinative. assemble the exercise equipment. CBP thus
The Court of International Trade has also held that no substantial transformation
applied the ‘‘essence test’’ to determine occurred in the United States.
SUMMARY: This notice amends the notice
whether the identity of an article is changed Here, although nearly all the parts will be of a major disaster declaration for the
through assembly or processing. For of Chinese origin, the extent of U.S. or State of North Carolina (FEMA–4285–
example, in Uniroyal, Inc. v. United States, Taiwanese assembly operations is DR), dated October 10, 2016, and related
3 CIT 220, 225, 542 F. Supp. 1026, 1030 sufficiently complex and meaningful to result determinations.
(1982), aff’d 702 F.2d 1022 (Fed. Cir. 1983), in a substantial transformation in both
the court held that imported shoe uppers scenarios. Unlike the exercise equipment at DATES: Effective Date: October 31, 2016.
added to an outer sole in the United States issue in HQ 733188, the treadmill parts will
were the ‘‘very essence of the finished shoe’’ not be essentially complete when they are FOR FURTHER INFORMATION CONTACT:
and thus were not substantially transformed imported into either the United States or Dean Webster, Office of Response and
into a product of the United States. Similarly, Taiwan for assembly. To the contrary, they Recovery, Federal Emergency
in National Juice Products Association v. will require substantial additional work to Management Agency, 500 C Street SW.,
United States, 10 CIT 48, 61, 628 F. Supp. create a functional treadmill. Most Washington, DC 20472, (202) 646–2833.
978, 991 (1986), the court held that imported importantly, U.S. or Taiwanese workers will
orange juice concentrate ‘‘imparts the need to weld a total of 27 seams to create the SUPPLEMENTARY INFORMATION: The notice
essential character’’ to the completed orange three major subassemblies (the treadmill of a major disaster declaration for the
juice and thus was not substantially base, the console frame, and the console
mast) that comprise the finished treadmill.
State of North Carolina is hereby
transformed into a product of the United
The additional assembly steps, which amended to include the following areas
States.
In Headquarters Ruling (‘‘HQ’’) H270580, involve approximately 466 individual parts among those areas determined to have
dated May 10, 2016, we considered whether and ‘‘connecting, lining up, adjusting and been adversely affected by the event
a substantial transformation occurred when bolting frames, tightening and torqueing declared a major disaster by the
Johnson, the importer here, assembled ‘‘G3 frame bolts, attaching motors, installing
President in his declaration of October
Dip’’ and ‘‘G3 Back Extension’’ exercise power switches, wiring, pulleys and filters,’’
are similar in scope and complexity to those 10, 2016.
machines in the United States. As in this
case, Johnson proposed two different that we found sufficient to effect a substantial Brunswick County for Individual
assembly scenarios. Under Scenario One, transformation under Scenario One in HQ Assistance (already designated for assistance
which applied to both machines, we held H270580. Under these circumstances, the for debris removal and emergency protective
Matrix® T3xe’s country of origin for purposes
that although nearly all the parts were of measures [Categories A and B], including
of government procurement is the United
Chinese origin, the extent of U.S. assembly direct federal assistance, under the Public
States under Scenario One and Taiwan under
operations was sufficiently complex and Assistance program)
Scenario Two.
meaningful to result in a substantial Halifax County for Individual Assistance
transformation. Specifically, the assembly Holding and assistance for assistance for debris
involved U.S. workers welding nine separate The finished treadmill’s country of origin removal and emergency protective measures
subassemblies with 49 seams for the ‘‘G3 for purposes of government procurement is
Dip’’ and three separate subassemblies with (Categories A and B), including direct federal
the United States under Scenario One and assistance, under the Public Assistance
22 seams for the ‘‘G3 Back Extension.’’ In Taiwan under Scenario Two.
addition to the welding, U.S. workers also program.
Notice of this final determination will be
cleaned and degreased parts, ground down given in the Federal Register, as required by The following Catalog of Federal Domestic
and painted the frame, and sprayed the frame 19 CFR § 177.29. Any party-at-interest other Assistance Numbers (CFDA) are to be used
with clear coat. The 200 to 500 parts that than the party which requested this final for reporting and drawing funds: 97.030,
comprise the final products were then determination may request, pursuant to 19 Community Disaster Loans; 97.031, Cora
assembled in a process involving fastening CFR § 177.31, that CBP reexamine the matter Brown Fund; 97.032, Crisis Counseling;
hardware; adding rubber grips; capping off anew and issue a new final determination. 97.033, Disaster Legal Services; 97.034,
tube ends; positioning pulleys; adding Pursuant to 19 CFR § 177.30, any party-at- Disaster Unemployment Assistance (DUA);
weights, cables, or belts; and placing warning interest may, within 30 days of publication 97.046, Fire Management Assistance Grant;
placards. We found that a substantial of the Federal Register Notice referenced
transformation had occurred because the 97.048, Disaster Housing Assistance to
above, seek judicial review of this final
assembly operations caused the individual determination before the Court of Individuals and Households In Presidentially
parts to lose their separate identities and to International Trade. Declared Disaster Areas; 97.049,
become integral components of a product Sincerely, Presidentially Declared Disaster Assistance—
with a new name, character, and use. Disaster Housing Operations for Individuals
Alice A. Kipel,
However, under Scenario Two in HQ and Households; 97.050 Presidentially
H270580, which applied only to the ‘‘G3 Executive Director, Regulations & Rulings,
Declared Disaster Assistance to Individuals
Dip,’’ three of the nine subassemblies were Office of Trade.
and Households—Other Needs; 97.036,
imported from China as pre-assembled [FR Doc. 2016–27159 Filed 11–9–16; 8:45 am] Disaster Grants—Public Assistance
components. Under Uniroyal, 3 CIT 220, BILLING CODE 9111–14–P (Presidentially Declared Disasters); 97.039,
these critical components together imparted
Hazard Mitigation Grant.
the ‘‘very essence’’ of the finished product.
The processing in the United States thus did DEPARTMENT OF HOMELAND W. Craig Fugate,
not result in a substantial transformation in SECURITY Administrator, Federal Emergency
Scenario Two. See also National Juice Prods.
Ass’n, 10 CIT 48. Management Agency.
Federal Emergency Management [FR Doc. 2016–27128 Filed 11–9–16; 8:45 am]
Similarly, in HQ 733188, dated July 5,
asabaliauskas on DSK3SPTVN1PROD with NOTICES
1990, we held that no substantial
Agency
BILLING CODE 9111–23–P
transformation occurred when Venezuelan [Internal Agency Docket No. FEMA–4285–
exercise benches and boards were assembled DR; Docket ID FEMA–2016–0001]
in the United States. The Venezuelan metal
frames as imported were essentially North Carolina; Amendment No. 10 to
complete, and the U.S. assembly consisted Notice of a Major Disaster Declaration
primarily of attaching the cushions and
minor parts. Further, no machining was done AGENCY:Federal Emergency
in the United States and no specialized Management Agency, DHS.
VerDate Sep<11>2014 17:46 Nov 09, 2016 Jkt 241001 PO 00000 Frm 00077 Fmt 4703 Sfmt 9990 E:\FR\FM\10NON1.SGM 10NON1](https://thefederalregister.org/doc/81_FR_79259/page/3.svg)
Document Created: 2016-11-10 01:43:54
Document Modified: 2016-11-10 01:43:54
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice of final determination. | |
| Dates | The final determination was issued on November 1, 2016. A copy of the final determination is attached. Any party-at-interest, as defined in 19 CFR Sec. 177.22(d), may seek judicial review of this final determination within December 12, 2016. | |
| Contact | Ross Cunningham, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade (202) 325- 0034. | |
| FR Citation | 81 FR 79041 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR