81_FR_86564 81 FR 86334 - Notice of Issuance of Final Determination Concerning Country of Origin of Computer Notebook Hard Disk Drives

81 FR 86334 - Notice of Issuance of Final Determination Concerning Country of Origin of Computer Notebook Hard Disk Drives

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

Federal Register Volume 81, Issue 230 (November 30, 2016)

Page Range86334-86337
FR Document2016-28790

This document provides notice that U.S. Customs and Border Protection (``CBP'') has issued a final determination concerning the country of origin of computer notebook hard disk drives.

Federal Register, Volume 81 Issue 230 (Wednesday, November 30, 2016)
[Federal Register Volume 81, Number 230 (Wednesday, November 30, 2016)]
[Notices]
[Pages 86334-86337]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28790]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Country of 
Origin of Computer Notebook Hard Disk Drives

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 computer notebook hard disk drives.

DATES: The final determination was issued on November 22, 2016. 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 December 30, 2016.

FOR FURTHER INFORMATION CONTACT: Robert Dinerstein, Valuation and 
Special Programs Branch, Regulations and Rulings, Office of Trade (202-
325-0132).

SUPPLEMENTARY INFORMATION: Notice is hereby given that on November 22, 
2016, pursuant to subpart B of Part 177, Customs and Border Protection 
(CBP) Regulations (19 CFR part 177, subpart B), CBP issued a final 
determination concerning the country of origin of computer notebook 
hard disk drives which may be offered to the United States Government 
under an undesignated government procurement contract. This final 
determination, HQ H261623, was issued at the request of Seagate 
Technology 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 was 
presented with two scenarios on how the hard disk drives are produced. 
In the first scenario, the firmware for the hard disk drives is 
primarily written and installed onto the hard disk drives in the same 
country. CBP concluded for purposes of U.S. Government procurement, 
that the country of origin of the notebook hard disk drives will either 
be Singapore or South Korea. In the second scenario, the firmware is 
written in a different country from where it is downloaded. In the 
second scenario, for purposes of U.S. Government procurement, the 
country of origin of the notebook hard disk drives will be the country 
where

[[Page 86335]]

the components for the devices are finally assembled, either 
[redacted].
    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.

    Dated: November 22, 2016.
Myles B. Harmon,
Acting Executive Director, Regulations and Rulings, Office of Trade.

HQ H261623

November 22, 2016

OT:RR:CTF:VS H261623 RSD

CATEGORY: Origin

Stuart P. Seidel, Esq.
Baker & McKenzie
815 Connecticut Avenue, N.W.
Washington, D.C. 20006

RE: U.S. Government Procurement; Country of Origin of Computer 
Notebook Hard Disk Drives; Substantial Transformation

Dear Mr. Seidel:

    This is in response to your letter dated February 6, 2015, on 
behalf of Seagate Technology (Seagate), of Cupertino, California, 
requesting a final determination pursuant to subpart B of Part 177 
of the U.S. Customs and Border Protection (``CBP'') Regulations (19 
CFR Part 177, subpart B). Under these regulations, which implement 
Title III of the Trade Agreements Act of 1979 (``TAA''), as amended 
(19 U.S.C. 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 the ``Notebook'' family of hard disk storage devices under 
two scenarios. As a U.S. importer, Seagate is a party-at-interest 
within the meaning of 19 CFR 177.22(d)(1) and is entitled to request 
this final determination. In addition, we have reviewed and granted 
the importer's request for confidentiality pursuant to section 
177.2(b)(7) of the CBP Regulations (19 CFR 177.2(b)(7)), with 
respect to certain information submitted.

FACTS:

    The products at issue in this final determination are a family 
of hard disk drives (HDD) known as ``Notebook'' (``NS''). The NS 
line currently consists of the following brand names: Ultra Mobile 
HDD, Laptop Ultrathin HDD, Laptop HDD, and Samsung Spinpoint. You 
describe two scenarios in which the HDDs will be produced. The HDDs 
use mechanical and electromagnetic components that are designed or 
specified by Seagate in one or more of Seagate's five design centers 
located in the United States. Each family of HDDs consists of 
approximately ten products offered each year. The annual person 
hours required to fully design an average recording head and 
recording media (media), fit for integration into the HDD, was 
provided along with the various countries that contribute to the 
design. The design of the head incorporates semiconductor design, 
magnetic design, mechanical design, and a manufacturing process 
design into an integrated recording reader and writer. The design of 
the media integrates thin film magnetics mechanical surface design, 
and a manufacturing process design. On average, three heads and two 
media are assembled into a HDD.
    The design of each family of HDDs integrates electromagnetic 
recording position engineering firmware design, ASIC design, and 
overall system design. Manufacturing and test engineering is also 
sourced from the design centers. The design for the NS laptop 
product is mostly conducted by the Singapore Science Park with 
support from the United States. The design of the Spinpoint product 
is mostly conducted by the South Korea Design Center with support 
from the United States.
    The HDD components are manufactured internally by Seagate 
factories located throughout Asia, or externally at Seagate's supply 
partners throughout Asia. These components are shipped to a HDD 
assembly site in [ ]. The head disk assembly is assembled from the 
raw components of magnetic media, read write heads, a head actuator 
assembly, and an airtight metal enclosure. This assembly takes only 
a matter of minutes to perform. The head disk assembly is mated to a 
printed circuit board assembly containing the disc drive 
electronics. This assembly takes a few seconds. Next, the drive is 
loaded into the factory testing system and tested. Firmware is 
downloaded into the drive to facilitate media certification. At this 
point, the drive is only functional for testing and it can perform 
no useful disc drive functions at the computer interface. The drive 
stays in a sequence of a media certification operation for one day 
depending upon the capacity of the media.
    Following successful media qualifications, the drive testing 
firmware is replaced with a generic basic disc drive firmware solely 
to allow the drive computer interface functions to be tested. With 
this firmware, the operation of the disc drive interface is tested. 
The basic disc drive firmware in the previous step is removed, 
rendering the device useless for any functional disc drive purpose. 
After completion of the interface testing, the drive is ``forced 
blocked'' from label and shipment (so that it is no longer treated 
as the standard HDD). The drive as shipped from [ ] does not 
function as a HDD because it lacks firmware and does not have the 
ability to serve as a storage device without loading the final 
firmware.
    Final assembly and configuration are done in Singapore or South 
Korea for Scenario I, or in the United States for the second 
scenario. Once the disk drives have been imported into Singapore, 
Korea, or the United States, Seagate employees perform: security 
preparation, visual mechanical inspection, and installation of the 
firmware for each HDD. The firmware will have all features and 
functions of the firmware for a standard HDD. The firmware will also 
include additional code required to configure the firmware to the 
customer's specifications and requirements. In addition, certain 
models will have additional security programming such as encryption. 
The architecture for encryption features was designed in the United 
States. The encryption installation is performed in Singapore or the 
United States during the firmware installation. During this time 
period, the drive is processed for security preparation and the 
encryption is enabled, the security interface is enabled, debug 
ports are locked, credentials are loaded, and the certificates are 
loaded. The firmware, primarily developed and programmed in the 
United States and South Korea, is installed and tested. After 
completion of the firmware loading and testing, a final quality 
assurance inspection is performed; the drive receives a new part 
number and a label; and it is shipped to Seagate. You explain that a 
drive cannot function until the firmware is loaded onto it. 
According to your submission, the purchased value of a fully 
assembled HDD is approximately 16 to 66 times the value of an 
assembled recording head, depending on the family, capacity, and the 
security features.

ISSUE:

    What is the country of origin of the Notebook HDDs for purposes 
of U.S. government procurement in the two described scenarios?

LAW AND ANALYSIS:

    Pursuant to subpart B of Part 177, 19 CFR 177.21 et seq., which 
implements Title III of the Trade Agreements Act of 1979, as amended 
(19 U.S.C. 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).
    ``The term `character' is defined as `one of the essentials of 
structure, form, materials, or function that together make up and 
usually distinguish the individual.' '' Uniden America Corporation 
v. United States, 120 F. Supp. 2d. 1091, 1096 (citations omitted) 
(Ct. Int'l Trade 2000), citing National Hand Tool

[[Page 86336]]

Corp. v. United States, 16 Ct. Int'l Trade 308, 311 (1992). In 
Uniden, concerning whether the assembly of cordless telephones and 
the installation of their detachable A/C (alternating current) 
adapters constituted instances of substantial transformation, the 
Court of International Trade applied the ``essence test'' and found 
that ``[t]he essence of the telephone is housed in the base and the 
handset.''
    In Data General v. United States, 4 Ct. Int'l Trade 182 (1982), 
the court determined that for purposes of determining eligibility 
under item 807.00, Tariff Schedules of the United States 
(predecessor to subheading 9802.00.80, Harmonized Tariff Schedule of 
the United States), the programming of a foreign PROM (Programmable 
Read-Only Memory chip) in the United States substantially 
transformed the PROM into a U.S. article. In programming the 
imported PROMs, the U.S. engineers systematically caused various 
distinct electronic interconnections to be formed within each 
integrated circuit. The programming bestowed upon each circuit its 
electronic function, that is, its ``memory'' which could be 
retrieved. A distinct physical change was effected in the PROM by 
the opening or closing of the fuses, depending on the method of 
programming. This physical alteration, not visible to the naked eye, 
could be discerned by electronic testing of the PROM. The court 
noted that the programs were designed by a U.S. project engineer 
with many years of experience in ``designing and building 
hardware.'' In addition, the court noted that while replicating the 
program pattern from a ``master'' PROM may be a quick one-step 
process, the development of the pattern and the production of the 
``master'' PROM required much time and expertise. The court noted 
that it was undisputed that programming altered the character of a 
PROM. The essence of the article, its interconnections or stored 
memory, was established by programming. The court concluded that 
altering the non-functioning circuitry comprising a PROM through 
technological expertise in order to produce a functioning read only 
memory device, possessing a desired distinctive circuit pattern, was 
no less a ``substantial transformation'' than the manual 
interconnection of transistors, resistors and diodes upon a circuit 
board creating a similar pattern.
    In C.S.D. 84-85, 18 Cust. B. & Dec. 1044, CBP stated:

We are of the opinion that the rationale of the court in the Data 
General case may be applied in the present case to support the 
principle that the essence of an integrated circuit memory storage 
device is established by programming; . . . [W]e are of the opinion 
that the programming (or reprogramming) of an EPROM results in a new 
and different article of commerce which would be considered to be a 
product of the country where the programming or reprogramming takes 
place.

    In Texas Instruments v. United States, 681 F.2d 778, 782 (CCPA 
1982), the court observed that the substantial transformation issue 
is a ``mixed question of technology and customs law.'' Accordingly, 
the programming of a device that confers its identity as well as 
defines its use generally constitutes substantial transformation. 
See also Headquarters Ruling Letter (``HQ'') 558868, dated February 
23, 1995 (programming of SecureID Card substantially transforms the 
card because it gives the card its character and use as part of a 
security system, and the programming is a permanent change that 
cannot be undone); HQ 735027, dated September 7, 1993 (programming 
blank media (EEPROM) with instructions that allow it to perform 
certain functions that prevent piracy of software constitutes 
substantial transformation); and, HQ 733085, dated July 13, 1990; 
but see HQ 732870, dated March 19, 1990 (formatting a blank diskette 
does not constitute substantial transformation because it does not 
add value, does not involve complex or highly technical operations, 
and does not create a new or different product); and, HQ 734518, 
dated June 28, 1993 (motherboards are not substantially transformed 
by the implanting of the central processing unit on the board 
because, whereas in Data General use was being assigned to the PROM, 
the use of the motherboard has already been determined when the 
importer imported it).
    Essentially, programming an information processing device will 
not in every case result in a substantial transformation of the 
device. It will depend on the nature of the programming, as compared 
to the nature and complexity of the information processing device on 
which the programming is completed. In other words, installing a 
relatively simple program on a complex information technology device 
will generally, by itself, not result in a substantial 
transformation of the device.
    In this case, firmware is installed on the HDDs to enable to 
them operate. The website ``techterms.com'' explains firmware as 
follows:

Firmware is a software program or set of instructions programmed on 
a hardware device. It provides the necessary instructions for how 
the device communicates with the other computer hardware. But how 
can software be programmed onto hardware? Good question. Firmware is 
typically stored in the flash ROM of a hardware device. While ROM is 
read-only memory, flash ROM can be erased and rewritten because it 
is actually a type of flash memory.

Additionally, the website http://pcsupport.about.com/od/termsf/g/Firmware.htm, notes that firmware is software that is embedded in a 
piece of hardware. Firmware is simply ``software for hardware.''
    In HQ H241362, dated August 14, 2013 published in the Federal 
Register on August 21, 2013, (78 Fed. Reg. 51737), CBP considered 
whether the programming of HDDs resulted in a substantial 
transformation of the HDDs. In that particular instance, CBP issued 
a final determination concerning the country of origin of HDDs and 
self-encrypting drives produced by Seagate. In that case, Seagate 
imported fully assembled HDDs from two different countries. The HDDs 
were designed in the United States, but assembled in one of two 
other countries from components manufactured by Seagate outside of 
the United States or obtained by Seagate from a supplier in Asia. 
The fully assembled HDDs were shipped to the United States, and in 
their imported condition they could not function as storage media 
devices. The disk heads could not move, they could not store or 
retrieve data, and they could not be recognized or listed on a 
computer system or a network in the United States. In the United 
States, the imported HDD was unblocked and programmed with two types 
of firmware. The first type of firmware was Servo firmware, which 
controlled all motor, preamp and servo function without which the 
motors media and heads would not operate and the HDD would not work. 
The second type of firmware was non-security controller firmware 
which managed all communication between the host and target drives, 
as well as all data within the drive. This type of firmware 
permitted data files to be stored on the HDDs media so that the data 
files could be found and listed within a particular application and 
allowed the stored data to be saved, retrieved, and overwritten. 
Consequently, we determined that the firmware caused the imported 
HDDs to function as digital storage devices. Approximately 80 
percent of the work hours spent on combined firmware design was 
allocated to work in the United States at Seagate's design center, 
and approximately 20 percent in another country. Combined, the 
compiled firmware code was approximately 2 MB in size and contained 
approximately one million lines of code. The firmware loaded onto 
the HDDs in the United States made them fully functioning generic 
storage devices. In addition, some of the HDDs were programmed with 
security controller firmware to allow them to be secured through 
encryption. The security controller firmware was mostly written in 
the United States. Because of the nature and the complexity of the 
firmware, CBP found in HQ H241362 that the installation of the 
firmware significantly altered the character of the Seagate HDDs. 
Therefore, the HDDs were considered products of the United States 
for purposes of U.S. Government procurement.
    CBP has also considered a scenario (in HQ H241177 dated December 
3, 2013) in which a device was manufactured in one country, the 
software used to permit that device to operate was written in 
another country, and the installation of that software occurred in a 
third country. In that case, switches were assembled to completion 
in Malaysia and then shipped to Singapore, where EOS software 
developed in the United States was downloaded. It was claimed that 
the EOS software enabled the imported switches to interact with 
other network switches through network switching and routing, and 
allowed for the management of functions such as network performance 
monitoring and security, and access control; without this software, 
the imported devices could not function as Ethernet switches. But, 
CBP found that the software downloading performed in Singapore did 
not amount to programming. We explained that programming involves 
writing, testing and implementing code necessary to make a computer 
function in a certain way. See Data General, supra; see also 
``computer

[[Page 86337]]

program'', Encyclopedia Britannica (2013), (9/19/2013) http://www.britannica.com/EBchecked/topic/130654/computer-program, which 
explains, in part, that ``a program is prepared by first formulating 
a task and then expressing it in an appropriate computer language, 
presumably one suited to the application.'' While the programming 
occurred in the United States, the downloading occurred in 
Singapore. Given these facts, we found that the country where the 
last substantial transformation occurred was Malaysia, namely, where 
the major assembly processes were performed. Therefore, we found 
that the country of origin for purposes of U.S. Government 
procurement was Malaysia.
    In HQ H240199 dated March 10, 2015, four different scenarios for 
the production of a computer were presented. In the third scenario, 
all of the hardware components were assembled in Country A and 
imported into Country F. The operations that occurred in Country F 
were that the BIOS and the OS were downloaded. The issue was whether 
the downloading of the BIOS and OS substantially transformed the 
notebook computer. We reiterated that programming a device that 
defines its use generally constitutes a substantial transformation. 
Software downloading, however, does not amount to programming. 
Consistent with previous CBP rulings cited above, we found that the 
BIOS and OS downloading did not result in a substantial 
transformation in Country F. Given these facts, we found that the 
country where the last substantial transformation occurred was 
Country A, where the major assembly processes were performed.
    The facts involved in this case are very similar to the facts 
described in HQ H241362, except that in the second scenario 
presented, the firmware that is installed on the HDDs is largely 
written in a country other than the country where it will be 
installed. Although some of the work in writing the firmware is done 
in the United States, the overwhelming majority of the time and 
money expended in developing the firmware was expended in Singapore 
and not in the United States. In fact, according to the submission, 
in developing the firmware, more than five times the amount of time 
and money is expended in Singapore than in the United States. In the 
second scenario the only major operation that occurs in the United 
States to produce the finished HDDs, is the installation of the 
largely foreign written firmware.
    For the first scenario, we find that the country of origin of 
the HDDs will be the country where the firmware is largely written 
and installed onto the HDDs, Singapore for the NS drives, and South 
Korea for the Samsung Spinpoint. As in H241362, the firmware, mostly 
created in either Singapore or South Korea and downloaded in those 
countries, imparts the essential character of the HDDs. The use of 
the HDDs is solely dictated by the firmware and it otherwise has no 
use. However, in the second scenario, the HDDs are assembled in one 
country, the firmware is largely written in another country, and 
downloaded in a third country, the United States. While counsel 
contends that the country of origin of the HDDs should similarly be 
the country where the firmware is downloaded because the HDD cannot 
function without the firmware being installed, that is not the 
correct test used to determine the country of origin of a product. 
The country of origin of a product is determined based on where the 
last substantial transformation occurs. As the holdings of HQ 
H241177 and HQ H240199 make clear, it is CBP's position that mere 
downloading of software that is written in another country onto an 
information processing device is not sufficient to be considered a 
substantial transformation of that device. While the downloading 
does make the HDD functional, the country where that occurs is not 
where a substantial transformation occurs. As the entire assembly 
process occurs in either [ ], we find that the country of origin of 
the HDDs will either be [ ]. This finding regarding the country of 
origin of the HDDs will apply both for purposes of government 
procurement, as well as for country of origin marking.

HOLDING:

    Based on the facts of this case, in first scenario, we find for 
purposes of U.S. Government procurement, the country of origin of 
the Notebook HDDs will either be Singapore or South Korea, where the 
firmware is both written and installed onto the HDDs. In the second 
scenario, where the firmware is written in a different country from 
where it is downloaded onto the HDDs, for purposes of U.S. 
Government procurement and country of origin marking, the country of 
origin of the Notebook HDDs will be the country where the last 
substantial transformation takes place, namely the country where the 
device components are finally assembled, which in this case will 
either be [ ].
    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 Court of International Trade.

    Sincerely,

Myles B. Harmon,

Acting Executive Director Regulations and Rulings Office of Trade.

[FR Doc. 2016-28790 Filed 11-29-16; 8:45 am]
 BILLING CODE 9111-14-P



                                                86334                          Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices

                                                Leroy A. Richardson,                                                                                       Allotment         DEPARTMENT OF HOMELAND
                                                                                                                             State
                                                Chief, Information Collection Review Office,                                                             percentage **       SECURITY
                                                Office of Scientific Integrity, Office of the
                                                                                                             Connecticut .......................                   1 30.00
                                                Associate Director for Science, Office of the                                                                                U.S. Customs and Border Protection
                                                Director, Centers for Disease Control and                    Delaware ...........................                    49.75
                                                Prevention.                                                  District of Columbia ..........                       1 30.00   Notice of Issuance of Final
                                                [FR Doc. 2016–28798 Filed 11–29–16; 8:45 am]                 Florida ...............................                 53.62   Determination Concerning Country of
                                                BILLING CODE 4163–18–P                                       Georgia .............................                   57.61   Origin of Computer Notebook Hard
                                                                                                             Hawaii * .............................                  50.02   Disk Drives
                                                                                                             Idaho .................................                 60.23
                                                DEPARTMENT OF HEALTH AND                                     Illinois ................................               48.03   AGENCY:  U.S. Customs and Border
                                                HUMAN SERVICES                                               Indiana ..............................                  56.98   Protection, Department of Homeland
                                                                                                             Iowa ..................................                 51.63   Security.
                                                Administration for Children and                              Kansas ..............................                   51.11   ACTION: Notice of final determination.
                                                Families                                                     Kentucky ...........................                    59.34
                                                [CFDA Number: 93.645]                                        Louisiana ..........................                    54.36   SUMMARY:    This document provides
                                                                                                             Maine ................................                  55.71   notice that U.S. Customs and Border
                                                Notice of Allotment Percentages to                           Maryland ...........................                    41.06   Protection (‘‘CBP’’) has issued a final
                                                States for Child Welfare Services State                      Massachusetts ..................                        36.19   determination concerning the country of
                                                Grants                                                       Michigan ...........................                    55.72   origin of computer notebook hard disk
                                                                                                             Minnesota .........................                     46.82   drives.
                                                AGENCY:    Children’s Bureau,                                Mississippi ........................                    62.54   DATES: The final determination was
                                                Administration on Children, Youth and                        Missouri ............................                   54.87   issued on November 22, 2016. A copy
                                                Families, Administration for Children                        Montana ............................                    56.55   of the final determination is attached.
                                                and Families, Department of Health and                       Nebraska ..........................                     48.68   Any party-at-interest, as defined in 19
                                                Human Services.                                              Nevada .............................                    55.79   CFR 177.22(d), may seek judicial review
                                                ACTION: Biennial publication of                              New Hampshire ................                          42.77
                                                                                                                                                                             of this final determination within
                                                allotment percentages for states under                       New Jersey .......................                      37.54
                                                                                                                                                                             December 30, 2016.
                                                the title IV–B subpart 1, Child Welfare                      New Mexico ......................                       59.90
                                                Services State Grants Program.                               New York ..........................                     39.59   FOR FURTHER INFORMATION CONTACT:
                                                                                                             North Carolina ..................                       57.44   Robert Dinerstein, Valuation and
                                                SUMMARY:   As required by section 423(c)                     North Dakota ....................                       40.45   Special Programs Branch, Regulations
                                                of the Social Security Act (42 U.S.C.                        Ohio ..................................                 54.23   and Rulings, Office of Trade (202–325–
                                                623(c)), the Department of Health and                        Oklahoma .........................                      53.00   0132).
                                                Human Services is publishing the                             Oregon ..............................                   55.26   SUPPLEMENTARY INFORMATION: Notice is
                                                allotment percentage for each state                          Pennsylvania ....................                       48.29   hereby given that on November 22,
                                                under the title IV–B subpart 1, Child                        Rhode Island ....................                       47.67   2016, pursuant to subpart B of Part 177,
                                                Welfare Services State Grants Program.                       South Carolina ..................                       60.12   Customs and Border Protection (CBP)
                                                Under section 423(a), the allotment                          South Dakota ....................                       51.12   Regulations (19 CFR part 177, subpart
                                                percentages are one of the factors used                      Tennessee ........................                      55.91   B), CBP issued a final determination
                                                in the computation of the federal grants                     Texas ................................                  50.70   concerning the country of origin of
                                                awarded under the program.                                   Utah ..................................                 59.01   computer notebook hard disk drives
                                                DATES: The allotment percentages will                        Vermont ............................                    49.65   which may be offered to the United
                                                be effective for federal fiscal years 2018                   Virginia ..............................                 45.19   States Government under an
                                                and 2019.                                                    Washington .......................                      46.36   undesignated government procurement
                                                FOR FURTHER INFORMATION CONTACT:                             West Virginia ....................                      60.79   contract. This final determination, HQ
                                                Deborah Bell, Grants Fiscal Management                       Wisconsin .........................                     52.03   H261623, was issued at the request of
                                                Specialist, Office of Grants                                 Wyoming ...........................                     41.49   Seagate Technology under procedures
                                                Management, Office of Administration,                        American Samoa ..............                           70.00   set forth at 19 CFR part 177, subpart B,
                                                Administration for Children and                              Guam ................................                   70.00   which implements Title III of the Trade
                                                Families, telephone (202) 401–4611.                          Puerto Rico .......................                     70.00
                                                                                                                                                                             Agreements Act of 1979, as amended
                                                                                                             N. Mariana Islands ...........                          70.00
                                                SUPPLEMENTARY INFORMATION: The                                                                                               (19 U.S.C. 2511–18). In the final
                                                                                                             Virgin Islands ....................                     70.00
                                                allotment percentage for each state is                                                                                       determination, CBP was presented with
                                                determined on the basis of paragraphs                           * State Percentage = 50 percent of year av-                  two scenarios on how the hard disk
                                                (b) and (c) of section 423 of the Act.                       erage divided by the National United States 3-                  drives are produced. In the first
                                                These figures are available on the ACF                       year average.                                                   scenario, the firmware for the hard disk
                                                                                                                ** State Percentage minus 100 percent
                                                Internet homepage at: http://                                yields the IV–B1 allotment percentage.                          drives is primarily written and installed
                                                www.acf.dhhs.gov/programs/cb/. The                              1 Allotment Percentage has been adjusted in                  onto the hard disk drives in the same
                                                allotment percentage for each State is as                    accordance with Section 423(b)(1).                              country. CBP concluded for purposes of
                                                follows:                                                                                                                     U.S. Government procurement, that the
                                                                                                               Statutory Authority: Section 423(c) of the                    country of origin of the notebook hard
                                                                                            Allotment        Social Security Act (42 U.S.C. 623(c)).                         disk drives will either be Singapore or
sradovich on DSK3GMQ082PROD with NOTICES




                                                               State                      percentage **                                                                      South Korea. In the second scenario, the
                                                                                                             Mary M. Wayland,
                                                                                                                                                                             firmware is written in a different
                                                Alabama ............................                59.23    Senior Grants Policy Specialist, Division of
                                                Alaska * .............................              41.66                                                                    country from where it is downloaded. In
                                                                                                             Grants Policy, Office of Administration.
                                                Arizona ..............................              58.86                                                                    the second scenario, for purposes of
                                                                                                             [FR Doc. 2016–28770 Filed 11–29–16; 8:45 am]
                                                Arkansas ...........................                58.95                                                                    U.S. Government procurement, the
                                                California ...........................              45.44    BILLING CODE 4184–01–P                                          country of origin of the notebook hard
                                                Colorado ...........................                47.15                                                                    disk drives will be the country where


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                                                                        Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices                                                   86335

                                                the components for the devices are                      designed or specified by Seagate in one or            imported into Singapore, Korea, or the
                                                finally assembled, either [redacted].                   more of Seagate’s five design centers located         United States, Seagate employees perform:
                                                   Section 177.29, CBP Regulations (19                  in the United States. Each family of HDDs             security preparation, visual mechanical
                                                CFR 177.29), provides that notice of                    consists of approximately ten products                inspection, and installation of the firmware
                                                                                                        offered each year. The annual person hours            for each HDD. The firmware will have all
                                                final determinations shall be published                 required to fully design an average recording         features and functions of the firmware for a
                                                in the Federal Register within 60 days                  head and recording media (media), fit for             standard HDD. The firmware will also
                                                of the date the final determination is                  integration into the HDD, was provided along          include additional code required to configure
                                                issued. Section 177.30, CBP Regulations                 with the various countries that contribute to         the firmware to the customer’s specifications
                                                (19 CFR 177.30), provides that any                      the design. The design of the head                    and requirements. In addition, certain
                                                party-at-interest, as defined in 19 CFR                 incorporates semiconductor design, magnetic           models will have additional security
                                                177.22(d), may seek judicial review of a                design, mechanical design, and a                      programming such as encryption. The
                                                final determination within 30 days of                   manufacturing process design into an                  architecture for encryption features was
                                                                                                        integrated recording reader and writer. The           designed in the United States. The
                                                publication of such determination in the                design of the media integrates thin film              encryption installation is performed in
                                                Federal Register.                                       magnetics mechanical surface design, and a            Singapore or the United States during the
                                                  Dated: November 22, 2016.                             manufacturing process design. On average,             firmware installation. During this time
                                                Myles B. Harmon,                                        three heads and two media are assembled               period, the drive is processed for security
                                                                                                        into a HDD.                                           preparation and the encryption is enabled,
                                                Acting Executive Director, Regulations and                 The design of each family of HDDs                  the security interface is enabled, debug ports
                                                Rulings, Office of Trade.                               integrates electromagnetic recording position         are locked, credentials are loaded, and the
                                                HQ H261623                                              engineering firmware design, ASIC design,             certificates are loaded. The firmware,
                                                                                                        and overall system design. Manufacturing              primarily developed and programmed in the
                                                November 22, 2016
                                                                                                        and test engineering is also sourced from the         United States and South Korea, is installed
                                                OT:RR:CTF:VS H261623 RSD                                design centers. The design for the NS laptop          and tested. After completion of the firmware
                                                                                                        product is mostly conducted by the                    loading and testing, a final quality assurance
                                                CATEGORY: Origin                                                                                              inspection is performed; the drive receives a
                                                                                                        Singapore Science Park with support from
                                                Stuart P. Seidel, Esq.                                  the United States. The design of the                  new part number and a label; and it is
                                                Baker & McKenzie                                        Spinpoint product is mostly conducted by              shipped to Seagate. You explain that a drive
                                                815 Connecticut Avenue, N.W.                            the South Korea Design Center with support            cannot function until the firmware is loaded
                                                Washington, D.C. 20006                                  from the United States.                               onto it. According to your submission, the
                                                RE: U.S. Government Procurement; Country                   The HDD components are manufactured                purchased value of a fully assembled HDD is
                                                     of Origin of Computer Notebook Hard                internally by Seagate factories located               approximately 16 to 66 times the value of an
                                                     Disk Drives; Substantial Transformation            throughout Asia, or externally at Seagate’s           assembled recording head, depending on the
                                                Dear Mr. Seidel:                                        supply partners throughout Asia. These                family, capacity, and the security features.
                                                   This is in response to your letter dated             components are shipped to a HDD assembly              ISSUE:
                                                February 6, 2015, on behalf of Seagate                  site in [          ]. The head disk assembly is
                                                                                                        assembled from the raw components of                    What is the country of origin of the
                                                Technology (Seagate), of Cupertino,                                                                           Notebook HDDs for purposes of U.S.
                                                California, requesting a final determination            magnetic media, read write heads, a head
                                                                                                        actuator assembly, and an airtight metal              government procurement in the two
                                                pursuant to subpart B of Part 177 of the U.S.                                                                 described scenarios?
                                                Customs and Border Protection (‘‘CBP’’)                 enclosure. This assembly takes only a matter
                                                Regulations (19 CFR Part 177, subpart B).               of minutes to perform. The head disk                  LAW AND ANALYSIS:
                                                Under these regulations, which implement                assembly is mated to a printed circuit board
                                                                                                                                                                 Pursuant to subpart B of Part 177, 19 CFR
                                                Title III of the Trade Agreements Act of 1979           assembly containing the disc drive
                                                                                                                                                              177.21 et seq., which implements Title III of
                                                (‘‘TAA’’), as amended (19 U.S.C. 2511 et                electronics. This assembly takes a few
                                                                                                                                                              the Trade Agreements Act of 1979, as
                                                seq.), CBP issues country of origin advisory            seconds. Next, the drive is loaded into the
                                                                                                                                                              amended (19 U.S.C. 2511 et seq.), CBP issues
                                                rulings and final determinations as to                  factory testing system and tested. Firmware
                                                                                                                                                              country of origin advisory rulings and final
                                                whether an article is or would be a product             is downloaded into the drive to facilitate
                                                                                                                                                              determinations as to whether an article is or
                                                of a designated country or instrumentality for          media certification. At this point, the drive
                                                                                                                                                              would be a product of a designated country
                                                the purposes of granting waivers of certain             is only functional for testing and it can
                                                                                                                                                              or instrumentality for the purposes of
                                                ‘‘Buy American’’ restrictions in U.S. law or            perform no useful disc drive functions at the
                                                                                                                                                              granting waivers of certain ‘‘Buy American’’
                                                for products offered for sale to the U.S.               computer interface. The drive stays in a
                                                                                                                                                              restrictions in U.S. law or practice for
                                                Government. This final determination                    sequence of a media certification operation
                                                                                                                                                              products offered for sale to the U.S.
                                                concerns the country of origin of the                   for one day depending upon the capacity of
                                                                                                                                                              Government.
                                                ‘‘Notebook’’ family of hard disk storage                the media.
                                                                                                                                                                 Under the rule of origin set forth under 19
                                                devices under two scenarios. As a U.S.                     Following successful media qualifications,
                                                                                                                                                              U.S.C. 2518(4)(B):
                                                importer, Seagate is a party-at-interest within         the drive testing firmware is replaced with a
                                                the meaning of 19 CFR 177.22(d)(1) and is               generic basic disc drive firmware solely to           An article is a product of a country or
                                                entitled to request this final determination. In        allow the drive computer interface functions          instrumentality only if (i) it is wholly the
                                                addition, we have reviewed and granted the              to be tested. With this firmware, the                 growth, product, or manufacture of that
                                                importer’s request for confidentiality                  operation of the disc drive interface is tested.      country or instrumentality, or (ii) in the case
                                                pursuant to section 177.2(b)(7) of the CBP              The basic disc drive firmware in the previous         of an article which consists in whole or in
                                                Regulations (19 CFR 177.2(b)(7)), with                  step is removed, rendering the device useless         part of materials from another country or
                                                respect to certain information submitted.               for any functional disc drive purpose. After          instrumentality, it has been substantially
                                                                                                        completion of the interface testing, the drive        transformed into a new and different article
                                                FACTS:                                                  is ‘‘forced blocked’’ from label and shipment         of commerce with a name, character, or use
                                                  The products at issue in this final                   (so that it is no longer treated as the standard      distinct from that of the article or articles
                                                determination are a family of hard disk                 HDD). The drive as shipped from [             ]       from which it was so transformed.
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                                                drives (HDD) known as ‘‘Notebook’’ (‘‘NS’’).            does not function as a HDD because it lacks              See also 19 CFR 177.22(a).
                                                The NS line currently consists of the                   firmware and does not have the ability to                ‘‘The term ‘character’ is defined as ‘one of
                                                following brand names: Ultra Mobile HDD,                serve as a storage device without loading the         the essentials of structure, form, materials, or
                                                Laptop Ultrathin HDD, Laptop HDD, and                   final firmware.                                       function that together make up and usually
                                                Samsung Spinpoint. You describe two                        Final assembly and configuration are done          distinguish the individual.’ ’’ Uniden
                                                scenarios in which the HDDs will be                     in Singapore or South Korea for Scenario I,           America Corporation v. United States, 120 F.
                                                produced. The HDDs use mechanical and                   or in the United States for the second                Supp. 2d. 1091, 1096 (citations omitted) (Ct.
                                                electromagnetic components that are                     scenario. Once the disk drives have been              Int’l Trade 2000), citing National Hand Tool



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                                                86336                   Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices

                                                Corp. v. United States, 16 Ct. Int’l Trade 308,         of a device that confers its identity as well         outside of the United States or obtained by
                                                311 (1992). In Uniden, concerning whether               as defines its use generally constitutes              Seagate from a supplier in Asia. The fully
                                                the assembly of cordless telephones and the             substantial transformation. See also                  assembled HDDs were shipped to the United
                                                installation of their detachable A/C                    Headquarters Ruling Letter (‘‘HQ’’) 558868,           States, and in their imported condition they
                                                (alternating current) adapters constituted              dated February 23, 1995 (programming of               could not function as storage media devices.
                                                instances of substantial transformation, the            SecureID Card substantially transforms the            The disk heads could not move, they could
                                                Court of International Trade applied the                card because it gives the card its character          not store or retrieve data, and they could not
                                                ‘‘essence test’’ and found that ‘‘[t]he essence         and use as part of a security system, and the         be recognized or listed on a computer system
                                                of the telephone is housed in the base and              programming is a permanent change that                or a network in the United States. In the
                                                the handset.’’                                          cannot be undone); HQ 735027, dated                   United States, the imported HDD was
                                                   In Data General v. United States, 4 Ct. Int’l        September 7, 1993 (programming blank                  unblocked and programmed with two types
                                                Trade 182 (1982), the court determined that             media (EEPROM) with instructions that                 of firmware. The first type of firmware was
                                                for purposes of determining eligibility under           allow it to perform certain functions that            Servo firmware, which controlled all motor,
                                                item 807.00, Tariff Schedules of the United             prevent piracy of software constitutes                preamp and servo function without which
                                                States (predecessor to subheading                       substantial transformation); and, HQ 733085,          the motors media and heads would not
                                                9802.00.80, Harmonized Tariff Schedule of               dated July 13, 1990; but see HQ 732870,               operate and the HDD would not work. The
                                                the United States), the programming of a                dated March 19, 1990 (formatting a blank              second type of firmware was non-security
                                                foreign PROM (Programmable Read-Only                    diskette does not constitute substantial              controller firmware which managed all
                                                Memory chip) in the United States                       transformation because it does not add value,         communication between the host and target
                                                substantially transformed the PROM into a               does not involve complex or highly technical          drives, as well as all data within the drive.
                                                U.S. article. In programming the imported               operations, and does not create a new or              This type of firmware permitted data files to
                                                PROMs, the U.S. engineers systematically                different product); and, HQ 734518, dated             be stored on the HDDs media so that the data
                                                caused various distinct electronic                      June 28, 1993 (motherboards are not                   files could be found and listed within a
                                                interconnections to be formed within each               substantially transformed by the implanting           particular application and allowed the stored
                                                integrated circuit. The programming                     of the central processing unit on the board           data to be saved, retrieved, and overwritten.
                                                bestowed upon each circuit its electronic               because, whereas in Data General use was              Consequently, we determined that the
                                                function, that is, its ‘‘memory’’ which could           being assigned to the PROM, the use of the            firmware caused the imported HDDs to
                                                be retrieved. A distinct physical change was            motherboard has already been determined               function as digital storage devices.
                                                effected in the PROM by the opening or                  when the importer imported it).                       Approximately 80 percent of the work hours
                                                closing of the fuses, depending on the                     Essentially, programming an information            spent on combined firmware design was
                                                method of programming. This physical                    processing device will not in every case              allocated to work in the United States at
                                                alteration, not visible to the naked eye, could         result in a substantial transformation of the         Seagate’s design center, and approximately
                                                be discerned by electronic testing of the               device. It will depend on the nature of the           20 percent in another country. Combined, the
                                                PROM. The court noted that the programs                 programming, as compared to the nature and            compiled firmware code was approximately
                                                were designed by a U.S. project engineer                complexity of the information processing              2 MB in size and contained approximately
                                                with many years of experience in ‘‘designing            device on which the programming is                    one million lines of code. The firmware
                                                and building hardware.’’ In addition, the               completed. In other words, installing a               loaded onto the HDDs in the United States
                                                court noted that while replicating the                  relatively simple program on a complex                made them fully functioning generic storage
                                                program pattern from a ‘‘master’’ PROM may              information technology device will generally,         devices. In addition, some of the HDDs were
                                                be a quick one-step process, the development            by itself, not result in a substantial                programmed with security controller
                                                of the pattern and the production of the                transformation of the device.                         firmware to allow them to be secured through
                                                ‘‘master’’ PROM required much time and                     In this case, firmware is installed on the         encryption. The security controller firmware
                                                expertise. The court noted that it was                  HDDs to enable to them operate. The website           was mostly written in the United States.
                                                undisputed that programming altered the                 ‘‘techterms.com’’ explains firmware as                Because of the nature and the complexity of
                                                character of a PROM. The essence of the                 follows:                                              the firmware, CBP found in HQ H241362 that
                                                article, its interconnections or stored                 Firmware is a software program or set of              the installation of the firmware significantly
                                                memory, was established by programming.                 instructions programmed on a hardware                 altered the character of the Seagate HDDs.
                                                The court concluded that altering the non-              device. It provides the necessary instructions        Therefore, the HDDs were considered
                                                functioning circuitry comprising a PROM                 for how the device communicates with the              products of the United States for purposes of
                                                through technological expertise in order to             other computer hardware. But how can                  U.S. Government procurement.
                                                produce a functioning read only memory                  software be programmed onto hardware?                    CBP has also considered a scenario (in HQ
                                                device, possessing a desired distinctive                Good question. Firmware is typically stored           H241177 dated December 3, 2013) in which
                                                circuit pattern, was no less a ‘‘substantial            in the flash ROM of a hardware device. While          a device was manufactured in one country,
                                                transformation’’ than the manual                        ROM is read-only memory, flash ROM can be             the software used to permit that device to
                                                interconnection of transistors, resistors and           erased and rewritten because it is actually a         operate was written in another country, and
                                                diodes upon a circuit board creating a similar          type of flash memory.                                 the installation of that software occurred in
                                                pattern.                                                Additionally, the website http://                     a third country. In that case, switches were
                                                   In C.S.D. 84–85, 18 Cust. B. & Dec. 1044,            pcsupport.about.com/od/termsf/g/                      assembled to completion in Malaysia and
                                                CBP stated:                                             Firmware.htm, notes that firmware is                  then shipped to Singapore, where EOS
                                                We are of the opinion that the rationale of the         software that is embedded in a piece of               software developed in the United States was
                                                court in the Data General case may be                   hardware. Firmware is simply ‘‘software for           downloaded. It was claimed that the EOS
                                                applied in the present case to support the              hardware.’’                                           software enabled the imported switches to
                                                principle that the essence of an integrated                In HQ H241362, dated August 14, 2013               interact with other network switches through
                                                circuit memory storage device is established            published in the Federal Register on August           network switching and routing, and allowed
                                                by programming; . . . [W]e are of the opinion           21, 2013, (78 Fed. Reg. 51737), CBP                   for the management of functions such as
                                                that the programming (or reprogramming) of              considered whether the programming of                 network performance monitoring and
                                                an EPROM results in a new and different                 HDDs resulted in a substantial transformation         security, and access control; without this
                                                article of commerce which would be                      of the HDDs. In that particular instance, CBP         software, the imported devices could not
sradovich on DSK3GMQ082PROD with NOTICES




                                                considered to be a product of the country               issued a final determination concerning the           function as Ethernet switches. But, CBP
                                                where the programming or reprogramming                  country of origin of HDDs and self-encrypting         found that the software downloading
                                                takes place.                                            drives produced by Seagate. In that case,             performed in Singapore did not amount to
                                                   In Texas Instruments v. United States, 681           Seagate imported fully assembled HDDs from            programming. We explained that
                                                F.2d 778, 782 (CCPA 1982), the court                    two different countries. The HDDs were                programming involves writing, testing and
                                                observed that the substantial transformation            designed in the United States, but assembled          implementing code necessary to make a
                                                issue is a ‘‘mixed question of technology and           in one of two other countries from                    computer function in a certain way. See Data
                                                customs law.’’ Accordingly, the programming             components manufactured by Seagate                    General, supra; see also ‘‘computer



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                                                                        Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Notices                                             86337

                                                program’’, Encyclopedia Britannica (2013),              that the country of origin of the HDDs should         DEPARTMENT OF THE INTERIOR
                                                (9/19/2013) http://www.britannica.com/                  similarly be the country where the firmware
                                                EBchecked/topic/130654/computer-program,                is downloaded because the HDD cannot
                                                which explains, in part, that ‘‘a program is                                                                  [FWS–R4–FHC–2016–N208;
                                                                                                        function without the firmware being
                                                prepared by first formulating a task and then                                                                 FVHC98210408710–XXX–FF04G01000]
                                                                                                        installed, that is not the correct test used to
                                                expressing it in an appropriate computer
                                                                                                        determine the country of origin of a product.         Deepwater Horizon Oil Spill; Draft
                                                language, presumably one suited to the
                                                application.’’ While the programming                    The country of origin of a product is                 Louisiana Trustee Implementation
                                                occurred in the United States, the                      determined based on where the last                    Group Restoration Plan #1:
                                                downloading occurred in Singapore. Given                substantial transformation occurs. As the             Restoration of Wetlands, Coastal, and
                                                these facts, we found that the country where            holdings of HQ H241177 and HQ H240199                 Nearshore Habitats; Habitat Projects
                                                the last substantial transformation occurred            make clear, it is CBP’s position that mere            on Federally Managed Lands; and
                                                was Malaysia, namely, where the major                   downloading of software that is written in
                                                assembly processes were performed.
                                                                                                                                                              Birds
                                                                                                        another country onto an information
                                                Therefore, we found that the country of                 processing device is not sufficient to be             AGENCY:  Department of the Interior.
                                                origin for purposes of U.S. Government                  considered a substantial transformation of
                                                procurement was Malaysia.                                                                                     ACTION: Notice of availability; reopening
                                                                                                        that device. While the downloading does               of public comment period.
                                                   In HQ H240199 dated March 10, 2015, four
                                                different scenarios for the production of a             make the HDD functional, the country where
                                                computer were presented. In the third                   that occurs is not where a substantial                SUMMARY:   We are reopening the public
                                                scenario, all of the hardware components                transformation occurs. As the entire assembly         comment period on the Louisiana
                                                were assembled in Country A and imported                process occurs in either [           ], we find       Trustee Implementation Group Draft
                                                into Country F. The operations that occurred            that the country of origin of the HDDs will           Restoration Plan #1: Restoration of
                                                in Country F were that the BIOS and the OS              either be [          ]. This finding regarding        Wetlands, Coastal, and Nearshore
                                                were downloaded. The issue was whether the              the country of origin of the HDDs will apply          Habitats; Habitat Projects on Federally
                                                downloading of the BIOS and OS                          both for purposes of government
                                                substantially transformed the notebook
                                                                                                                                                              Managed Lands; and Birds (Draft
                                                                                                        procurement, as well as for country of origin         Restoration Plan #1). We opened the
                                                computer. We reiterated that programming a
                                                                                                        marking.                                              public comment period via a November
                                                device that defines its use generally
                                                constitutes a substantial transformation.               HOLDING:                                              1, 2016, notice of availability. The
                                                Software downloading, however, does not                                                                       public comment period closed on
                                                                                                           Based on the facts of this case, in first
                                                amount to programming. Consistent with                                                                        November 28, 2016.
                                                previous CBP rulings cited above, we found              scenario, we find for purposes of U.S.
                                                                                                        Government procurement, the country of                DATES: Comments Due Date: We will
                                                that the BIOS and OS downloading did not
                                                result in a substantial transformation in               origin of the Notebook HDDs will either be            consider public comments received
                                                Country F. Given these facts, we found that             Singapore or South Korea, where the                   November 1, 2016 through December 9,
                                                the country where the last substantial                  firmware is both written and installed onto           2016.
                                                transformation occurred was Country A,                  the HDDs. In the second scenario, where the           ADDRESSES:
                                                where the major assembly processes were                 firmware is written in a different country               Obtaining Documents: You may
                                                performed.                                              from where it is downloaded onto the HDDs,            download the Louisiana Trustee
                                                   The facts involved in this case are very             for purposes of U.S. Government
                                                similar to the facts described in HQ H241362,
                                                                                                                                                              Implementation Group Draft Restoration
                                                                                                        procurement and country of origin marking,            Plan 1: Restoration of Wetlands, Coastal,
                                                except that in the second scenario presented,
                                                                                                        the country of origin of the Notebook HDDs            and Nearshore Habitats; Habitat Projects
                                                the firmware that is installed on the HDDs is
                                                largely written in a country other than the             will be the country where the last substantial        on Federally Managed Lands; and Birds
                                                country where it will be installed. Although            transformation takes place, namely the                at any of the following sites:
                                                                                                        country where the device components are
                                                some of the work in writing the firmware is                                                                   • http://www.gulfspillrestoration.
                                                done in the United States, the overwhelming             finally assembled, which in this case will
                                                                                                                                                                 noaa.gov
                                                majority of the time and money expended in              either be [          ].
                                                developing the firmware was expended in                    Notice of this final determination will be
                                                                                                                                                              • http://www.doi.gov/deepwaterhorizon
                                                Singapore and not in the United States. In              given in the Federal Register, as required by         • http://la-dwh.com
                                                fact, according to the submission, in                   19 CFR 177.29. Any party-at-interest other               Alternatively, you may request a CD
                                                developing the firmware, more than five                 than the party which requested this final             of the Draft Restoration Plan 1 (see FOR
                                                times the amount of time and money is                   determination may request, pursuant to 19             FURTHER INFORMATION CONTACT). You
                                                expended in Singapore than in the United                                                                      may also view the document at any of
                                                                                                        CFR 177.31, that CBP reexamine the matter
                                                States. In the second scenario the only major
                                                operation that occurs in the United States to           anew and issue a new final determination.             the public facilities listed at http://www.
                                                produce the finished HDDs, is the                       Pursuant to 19 CFR 177.30, any party-at-              gulfspillrestoration.noaa.gov.
                                                installation of the largely foreign written             interest may, within 30 days of publication              Submitting Comments: You may
                                                firmware.                                               of the Federal Register Notice referenced             submit comments on the draft document
                                                   For the first scenario, we find that the             above, seek judicial review of this final             by one of following methods:
                                                country of origin of the HDDs will be the               determination before the Court of                        • Via the Web: http://www.gulfspill
                                                country where the firmware is largely written           International Trade.                                  restoration.noaa.gov/restoration-areas/
                                                and installed onto the HDDs, Singapore for                 Sincerely,                                         louisiana.
                                                the NS drives, and South Korea for the
                                                                                                        Myles B. Harmon,                                         • Via U.S. Mail: U.S. Fish and
                                                Samsung Spinpoint. As in H241362, the
                                                firmware, mostly created in either Singapore            Acting Executive Director Regulations and             Wildlife Service, P.O. Box 49567,
                                                or South Korea and downloaded in those                  Rulings Office of Trade.                              Atlanta, GA 30345.
sradovich on DSK3GMQ082PROD with NOTICES




                                                countries, imparts the essential character of                                                                    • Louisiana Coastal Protection &
                                                                                                        [FR Doc. 2016–28790 Filed 11–29–16; 8:45 am]
                                                the HDDs. The use of the HDDs is solely                                                                       Restoration Authority, ATTN: Liz
                                                dictated by the firmware and it otherwise has           BILLING CODE 9111–14–P                                Williams, P.O. Box 44027, Baton Rouge,
                                                no use. However, in the second scenario, the                                                                  LA 70804.
                                                HDDs are assembled in one country, the
                                                                                                                                                              FOR FURTHER INFORMATION CONTACT: Liz
                                                firmware is largely written in another
                                                country, and downloaded in a third country,                                                                   Williams at LATIG.la.gov.
                                                the United States. While counsel contends                                                                     SUPPLEMENTARY INFORMATION:



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Document Created: 2016-11-30 02:18:05
Document Modified: 2016-11-30 02:18:05
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of final determination.
DatesThe final determination was issued on November 22, 2016. 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 December 30, 2016.
ContactRobert Dinerstein, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade (202- 325-0132).
FR Citation81 FR 86334 

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