81_FR_8767 81 FR 8733 - Notice of Issuance of Final Determination Concerning Certain Data Protection Software Products

81 FR 8733 - Notice of Issuance of Final Determination Concerning Certain Data Protection Software Products

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

Federal Register Volume 81, Issue 34 (February 22, 2016)

Page Range8733-8735
FR Document2016-03552

This document provides notice that U.S. Customs and Border Protection (``CBP'') has issued a final determination concerning the country of origin of certain data protection software products. Based upon the facts presented, CBP has concluded that the country of origin of the software products is the United States for purposes of U.S. Government procurement.

Federal Register, Volume 81 Issue 34 (Monday, February 22, 2016)
[Federal Register Volume 81, Number 34 (Monday, February 22, 2016)]
[Notices]
[Pages 8733-8735]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-03552]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Certain Data 
Protection Software Products

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: Notice of final determination.

-----------------------------------------------------------------------

SUMMARY: This document provides notice that U.S. Customs and Border 
Protection (``CBP'') has issued a final determination concerning the 
country of origin of certain data protection software products. Based 
upon the facts presented, CBP has concluded that the country of origin 
of the software products is the United States for purposes of U.S. 
Government procurement.

DATES: The final determination was issued on February 12, 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 no later than March 23, 2016.

FOR FURTHER INFORMATION CONTACT: Ross Cunningham, Valuation and Special 
Programs Branch, Regulations and Rulings, Office of International Trade 
(202) 325-0034.

SUPPLEMENTARY INFORMATION: Notice is hereby given that on February 12, 
2016, pursuant to subpart B of Part 177, U.S. Customs and Border 
Protection Regulations (19 CFR part 177, subpart B), CBP issued a final 
determination concerning the country of origin of certain data 
protection software products known as WebALARM, WebALARM [Embedded], 
TheGRID Basic, and TheGrid Beacon, which may be offered to the U.S. 
Government under an undesignated government procurement contract. This 
final determination, HQ H268858, was issued under procedures set forth 
at 19 CFR part 177, subpart B, which implements Title III of the Trade 
Agreements Act of 1979, as amended (19 U.S.C. 2511-18). In the final 
determination, CBP concluded that the processing in the United States 
results in a substantial transformation. Therefore, the country of 
origin of the software products is the United States for purposes of 
U.S. Government procurement.
    Section 177.29, CBP Regulations (19 CFR 177.29), provides that a 
notice of final determination shall be published in the Federal 
Register within 60 days of the date the final determination is issued. 
Section 177.30, CBP Regulations (19 CFR 177.30), provides that any 
party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial 
review of a final determination within 30 days of publication of such 
determination in the Federal Register.

    Dated: February 12, 2016.
Joanne Roman Stump,
Acting Executive Director, Regulations and Rulings, Office of 
International Trade.
Attachment
HQ H268858
February 12, 2016
OT:RR:CTF:VS H268858 RMC
CATEGORY: Country of Origin
Dan Minutillo
Minutillo: A Law Corporation
841 Blossom Hill Road
Second Floor
P.O. Box 20698
San Jose, CA 95160

Re: U.S. Government Procurement; Country of Origin of Data Protection 
Software; Substantial Transformation

Dear Mr. Minutillo:

    This is in response to your letter dated August 18, 2015, 
requesting a final determination on behalf of e-Lock Corporation (``e-
Lock'') pursuant to Subpart B of Part 177 of the U.S. Customs and 
Border Protection (``CBP'') Regulations (19 C.F.R. part 177). Under 
these regulations, which implement Title III of the Trade Agreements 
Act of 1979 (``TAA''), as amended (19 U.S.C. Sec.  2511 et seq.), CBP 
issues country of origin advisory rulings and final determinations as 
to whether an article is or would be a product of a designated country 
or instrumentality for the purposes of granting waivers of certain 
``Buy American'' restrictions in U.S. law or for products offered for 
sale to the U.S. Government. This final determination concerns the 
country of origin of four data-protection software products. As a U.S. 
importer, e-Lock is a party-at-interest within the meaning of 19 C.F.R. 
Sec.  177.22(d)(1) and is entitled to request this final determination.

FACTS:

    E-Lock is a Malaysia based developer of cyber-security software 
that helps to prevent identity theft and threats to data integrity. 
This request concerns four software products that e-Lock wishes to 
offer for sale to the federal government: (1) WebALARM; (2) WebALARM 
[Embedded]; (3) TheGRID Basic; and (4) TheGRID Beacon. The WebALARM 
products are designed to protect files and data from unauthorized 
changes. The two products are similar except that WebALARM [Embedded] 
is embedded to become part of an integrated security package. TheGRID 
products provide user-identification and authentication functionality 
and are designed to protect against online theft by providing two-
factor authentication and optional mutual authentication. The two 
products are similar except that TheGRID Beacon is designed for mobile 
applications.
    All four software products are produced using the same three-step

[[Page 8734]]

process that essentially involves: (1) Writing the source code in 
Malaysia; (2) compiling the source code into usable object code in the 
United States; and (3) installing the finished software on U.S.-origin 
discs in the United States.
    In a submission dated October 15, 2015, e-Lock provided additional 
information on the processes involved in creating source code and 
compiling it into object code in steps (1) and (2).
    1. Writing e-Lock Source Code
    a. Creating new source code project in e-Lock's source code 
repository server;
    b. Using tools like Microsoft Visual Studio, Android Studio, 
Eclipse, Xcode, and Text Editors, e-Lock's software programmer starts 
writing computer code in C++, Java, and Objective-C languages;
    c. Designing graphical layout using Visual Studio, Android Studio, 
or Xcode; and
    d. (b) and (c) above are prepared and checked into source code 
repository server.
    2. Compiling e-Lock Source Code into Object Code
    a. The software builder signs into the continuous integration 
(``CI'') server and performs a ``build'' action;
    b. The CI server immediately checks out the latest version of 
source code from the repository server and performs compilation 
process;
    c. Source code is then compiled into machine code for each relevant 
platform on Windows, Linux, Android, and iOs;
    d. Incompatibilities or errors during compilation are handed; and
    e. Source code is verified or rectified as needed.
    After e-Lock's engineers compile the source code into object code 
in the United States, the continuous integration server automatically 
constructs installation packages for testing and executable files for 
various platforms. Finally, a plan for testing is developed and 
engineers perform software testing, unit and/or integration testing, 
regressions and/or performance testing, and acceptance testing. If the 
code passes the tests described above, the software-development phase 
is complete.
    E-Lock also provided information on the costs and time associated 
with writing the source code in Malaysia and compiling the object code 
in the United States. E-Lock also noted that U.S.-based subcontracts 
and personnel install, distribute, and provide technical support for 
the finished products after sale.
    E-Lock argues that the Malaysian source code is substantially 
transformed when it is compiled into usable object code in the United 
States and that the country of origin for government-procurement 
purposes is thus the United States.

ISSUE:

    Whether the four software products are products of the United 
States for government-procurement purposes.

LAW & ANALYSIS:

    Pursuant to Subpart B of Part 177, 19 C.F.R. Sec.  177.21 et seq., 
which implements Title III of the Trade Agreements Act of 1979, as 
amended (19 U.S.C. Sec.  2511 et seq.), CBP issues country of origin 
advisory rulings and final determinations as to whether an article is 
or would be a product of a designated country or instrumentality for 
the purposes of granting waivers of certain ``Buy American'' 
restrictions in U.S. law or practice for products offered for sale to 
the U.S. Government.
    Under the rule of origin set forth under 19 U.S.C. Sec.  
2518(4)(B):
    An article is a product of a country or instrumentality only if (i) 
it is wholly the growth, product, or manufacture of that country or 
instrumentality, or (ii) in the case of an article which consists in 
whole or in part of materials from another country or instrumentality, 
it has been substantially transformed into a new and different article 
of commerce with a name, character, or use distinct from that of the 
article or articles from which it was so transformed.
    See also 19 C.F.R. Sec.  177.22(a).
    In rendering advisory rulings and final determinations for purposes 
of U.S. Government procurement, CBP applies the provisions of subpart B 
of Part 177 consistent with the Federal Procurement Regulations. See 19 
C.F.R. Sec.  177.21. In this regard, CBP recognizes that the Federal 
Procurement Regulations restrict the U.S. Government's purchase of 
products to U.S.-made or designated country end products for 
acquisitions subject to the TAA. The Federal Procurement Regulations 
define ``U.S.-made end product'' as:
    [A]n article that is mined, produced, or manufactured in the United 
States or that is substantially transformed in the United States into a 
new and different article of commerce with a name, character, or use 
distin0ct from that of the article or articles from which it was 
transformed.
    See 48 C.F.R. Sec.  25.403(c)(1).
    The issue in this case is whether e-Lock's Malaysian-developed 
source code is substantially transformed in the United States when 
engineers compile it into object code and load it onto U.S.-origin 
disks. E-Lock argues that the source code is ``substantially different 
in nature, function, name and character than the final product after 
code compilation.'' Thus, according to e-Lock, the finished software is 
substantially transformed in the United States and the country of 
origin for government-procurement purposes is the United States.
    The ``source code'' written in Malaysia and the ``object code'' 
compiled in the United States differ in several important ways. Source 
code is a ``computer program written in a high level human readable 
language.'' See, e.g., Daniel S. Lin, Matthew Sag, and Ronald S. 
Laurie, Source Code versus Object Code: Patent Implications for the 
Open Source Community, 18 Santa Clara High Tech. L.J. 235, 238 (2001). 
While it is easier for humans to read and write programs in ``high 
level human readable languages,'' computers cannot execute these 
programs. See Note, Copyright Protection of Computer Program Object 
Code, 96 Harv. L. Rev. 1723, 1724 (1983). Computers can execute only 
``object code,'' which is a program consisting of clusters of ``0'' and 
``1'' symbols. Id. Programmers create object code from source code by 
feeding it into a program known as a ``compiler.'' Id. Thus, step (1), 
the writing of source code in Malaysia, involves the creation of 
computer instructions in a high level human readable language, whereas 
step (2), which is performed in the United States, involves the 
compilation of those instructions into a format that computers can 
execute.
    CBP has consistently held that conducting a ``software build''--
i.e., compiling source code into object code--results in a substantial 
transformation. See, e.g., Headquarters Ruling (``HQ'') H192146, dated 
June 8, 2012 (holding that ``software is substantially transformed into 
a new article with a new name, character and use in the country where 
the software build is performed''). For example, e-Lock cites HQ 
H243606, dated Dec. 4, 2013, in which an importer developed DocAve 
Software, a comprehensive suite of applications for Microsoft 
SharePoint, in both the United States and China. While most of the 
source code was programmed in China, the source code was compiled into 
object code (i.e., ``built'') in the United States. CBP held that ``the 
software build performed in the U.S. substantially transforms the 
software modules developed in China and the U.S. into a new article 
with a new name, character and use . . .''. The country of origin of 
DocAve Software was thus the United States for purposes of U.S. 
Government procurement.

[[Page 8735]]

    As in H192146 and H243606, e-Lock also conducts a software build in 
the United States. This process is sufficient to create a new article 
with a new name, character and use: the name of the product changes 
from source code to object code, the character changes from computer 
code to finished software, and the use changes from instructions to an 
executable program.

HOLDING:

    The country of origin of the finished software products is the 
United States for purposes of government procurement.
    Notice of this final determination will be given in the Federal 
Register, as required by 19 C.F.R. Sec.  177.29. Any party-at-interest 
other than the party which requested this final determination may 
request, pursuant to 19 C.F.R. Sec.  177.31, that CBP reexamine the 
matter anew and issue a new final determination. Pursuant to 19 C.F.R. 
Sec.  177.30, any party-at-interest may, within 30 days of publication 
of the Federal Register Notice referenced above, seek judicial review 
of this final determination before the Court of International Trade.

Sincerely,

Joanne Roman Stump
Acting Executive Director Regulations & Rulings
Office of International Trade

[FR Doc. 2016-03552 Filed 2-19-16; 8:45 am]
BILLING CODE P



                                                                               Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Notices                                            8733

                                                   CBPL                                                   SUMMARY:   This document provides                     HQ H268858
                                                            ASTM                    Title
                                                    No.                                                   notice that U.S. Customs and Border                   February 12, 2016
                                                                                                          Protection (‘‘CBP’’) has issued a final
                                                  27–14    D2622      Standard Test Method for            determination concerning the country of               OT:RR:CTF:VS H268858 RMC
                                                                        Sulfur in Petroleum Prod-         origin of certain data protection
                                                                        ucts.                                                                                   CATEGORY: Country of Origin
                                                                                                          software products. Based upon the facts
                                                  27–46    D5002      Density of Crude Oils by                                                                  Dan Minutillo
                                                                        Digital Density Meter.            presented, CBP has concluded that the                 Minutillo: A Law Corporation
                                                  27–48    D4052      Standard Test Method for            country of origin of the software                     841 Blossom Hill Road
                                                                        Density and Relative Den-         products is the United States for                     Second Floor
                                                                        sity of Liquids by Digital        purposes of U.S. Government                           P.O. Box 20698
                                                                        Density Meter.                    procurement.                                          San Jose, CA 95160
                                                  27–50    D93        Standard Test Methods for                                                                 Re: U.S. Government Procurement;
                                                                        Flash-Point by Pensky-            DATES:  The final determination was
                                                                        Martens Closed Cup                issued on February 12, 2016. A copy of                     Country of Origin of Data Protection
                                                                        Tester.                           the final determination is attached. Any                   Software; Substantial
                                                  27–53    D2709      Standard Test Method for            party-at-interest, as defined in 19 CFR                    Transformation
                                                                        Water and Sediment in             177.22(d), may seek judicial review of                Dear Mr. Minutillo:
                                                                        Middle Distillate Fuels by        this final determination no later than                   This is in response to your letter
                                                                        Centrifuge.                                                                             dated August 18, 2015, requesting a
                                                  27–54    D1796      Standard Test Method for
                                                                                                          March 23, 2016.
                                                                                                                                                                final determination on behalf of e-Lock
                                                                        Water and Sediment in             FOR FURTHER INFORMATION CONTACT:     Ross
                                                                        Fuel Oils by the Cen-                                                                   Corporation (‘‘e-Lock’’) pursuant to
                                                                                                          Cunningham, Valuation and Special
                                                                        trifuge Method.                                                                         Subpart B of Part 177 of the U.S.
                                                                                                          Programs Branch, Regulations and
                                                  27–58    D5191      Standard Test Method For                                                                  Customs and Border Protection (‘‘CBP’’)
                                                                                                          Rulings, Office of International Trade
                                                                        Vapor Pressure of Petro-                                                                Regulations (19 C.F.R. part 177). Under
                                                                                                          (202) 325–0034.
                                                                        leum Products.                                                                          these regulations, which implement
                                                                                                          SUPPLEMENTARY INFORMATION:      Notice is             Title III of the Trade Agreements Act of
                                                    Anyone wishing to employ this entity                  hereby given that on February 12, 2016,               1979 (‘‘TAA’’), as amended (19 U.S.C.
                                                  to conduct laboratory analyses and                      pursuant to subpart B of Part 177, U.S.               § 2511 et seq.), CBP issues country of
                                                  gauger services should request and                      Customs and Border Protection                         origin advisory rulings and final
                                                  receive written assurances from the                     Regulations (19 CFR part 177, subpart                 determinations as to whether an article
                                                  entity that it is accredited or approved                B), CBP issued a final determination                  is or would be a product of a designated
                                                  by the U.S. Customs and Border                          concerning the country of origin of                   country or instrumentality for the
                                                  Protection to conduct the specific test or              certain data protection software                      purposes of granting waivers of certain
                                                  gauger service requested. Alternatively,                products known as WebALARM,                           ‘‘Buy American’’ restrictions in U.S. law
                                                  inquiries regarding the specific test or                WebALARM [Embedded], TheGRID                          or for products offered for sale to the
                                                  gauger service this entity is accredited                Basic, and TheGrid Beacon, which may                  U.S. Government. This final
                                                  or approved to perform may be directed                  be offered to the U.S. Government under               determination concerns the country of
                                                  to the U.S. Customs and Border                          an undesignated government                            origin of four data-protection software
                                                  Protection by calling (202) 344–1060.                   procurement contract. This final                      products. As a U.S. importer, e-Lock is
                                                  The inquiry may also be sent to                         determination, HQ H268858, was issued                 a party-at-interest within the meaning of
                                                  CBPGaugersLabs@cbp.dhs.gov. Please                      under procedures set forth at 19 CFR                  19 C.F.R. § 177.22(d)(1) and is entitled
                                                  reference the Web site listed below for                 part 177, subpart B, which implements                 to request this final determination.
                                                  a complete listing of CBP approved                      Title III of the Trade Agreements Act of
                                                                                                          1979, as amended (19 U.S.C. 2511–18).                 FACTS:
                                                  gaugers and accredited laboratories.
                                                  http://www.cbp.gov/about/labs-                          In the final determination, CBP                         E-Lock is a Malaysia based developer
                                                  scientific/commercial-gaugers-and-                      concluded that the processing in the                  of cyber-security software that helps to
                                                  laboratories.                                           United States results in a substantial                prevent identity theft and threats to data
                                                                                                          transformation. Therefore, the country                integrity. This request concerns four
                                                    Dated: February 16, 2016.
                                                                                                          of origin of the software products is the             software products that e-Lock wishes to
                                                  Ira S. Reese,                                                                                                 offer for sale to the federal government:
                                                                                                          United States for purposes of U.S.
                                                  Executive Director, Laboratories and                    Government procurement.                               (1) WebALARM; (2) WebALARM
                                                  Scientific Services Directorate.                                                                              [Embedded]; (3) TheGRID Basic; and (4)
                                                                                                             Section 177.29, CBP Regulations (19
                                                  [FR Doc. 2016–03553 Filed 2–19–16; 8:45 am]                                                                   TheGRID Beacon. The WebALARM
                                                                                                          CFR 177.29), provides that a notice of
                                                  BILLING CODE 9111–14–P
                                                                                                          final determination shall be published                products are designed to protect files
                                                                                                          in the Federal Register within 60 days                and data from unauthorized changes.
                                                                                                          of the date the final determination is                The two products are similar except that
                                                  DEPARTMENT OF HOMELAND                                                                                        WebALARM [Embedded] is embedded
                                                  SECURITY                                                issued. Section 177.30, CBP Regulations
                                                                                                          (19 CFR 177.30), provides that any                    to become part of an integrated security
                                                                                                          party-at-interest, as defined in 19 CFR               package. TheGRID products provide
                                                  U.S. Customs and Border Protection
                                                                                                          177.22(d), may seek judicial review of a              user-identification and authentication
                                                  Notice of Issuance of Final                             final determination within 30 days of                 functionality and are designed to protect
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  Determination Concerning Certain                        publication of such determination in the              against online theft by providing two-
                                                  Data Protection Software Products                       Federal Register.                                     factor authentication and optional
                                                                                                                                                                mutual authentication. The two
                                                                                                            Dated: February 12, 2016.
                                                  AGENCY:  U.S. Customs and Border                                                                              products are similar except that
                                                  Protection, Department of Homeland                      Joanne Roman Stump,                                   TheGRID Beacon is designed for mobile
                                                  Security.                                               Acting Executive Director, Regulations and            applications.
                                                                                                          Rulings, Office of International Trade.                 All four software products are
                                                  ACTION: Notice of final determination.
                                                                                                          Attachment                                            produced using the same three-step


                                             VerDate Sep<11>2014   19:03 Feb 19, 2016   Jkt 238001   PO 00000   Frm 00053   Fmt 4703   Sfmt 4703   E:\FR\FM\22FEN1.SGM   22FEN1


                                                  8734                         Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Notices

                                                  process that essentially involves: (1)                  country of origin for government-                     nature, function, name and character
                                                  Writing the source code in Malaysia; (2)                procurement purposes is thus the                      than the final product after code
                                                  compiling the source code into usable                   United States.                                        compilation.’’ Thus, according to e-
                                                  object code in the United States; and (3)                                                                     Lock, the finished software is
                                                                                                          ISSUE:
                                                  installing the finished software on U.S.-                                                                     substantially transformed in the United
                                                  origin discs in the United States.                        Whether the four software products                  States and the country of origin for
                                                     In a submission dated October 15,                    are products of the United States for                 government-procurement purposes is
                                                  2015, e-Lock provided additional                        government-procurement purposes.                      the United States.
                                                  information on the processes involved                                                                            The ‘‘source code’’ written in
                                                                                                          LAW & ANALYSIS:
                                                  in creating source code and compiling it                                                                      Malaysia and the ‘‘object code’’
                                                  into object code in steps (1) and (2).                     Pursuant to Subpart B of Part 177, 19              compiled in the United States differ in
                                                     1. Writing e-Lock Source Code                        C.F.R. § 177.21 et seq., which                        several important ways. Source code is
                                                     a. Creating new source code project in               implements Title III of the Trade                     a ‘‘computer program written in a high
                                                  e-Lock’s source code repository server;                 Agreements Act of 1979, as amended                    level human readable language.’’ See,
                                                     b. Using tools like Microsoft Visual                 (19 U.S.C. § 2511 et seq.), CBP issues                e.g., Daniel S. Lin, Matthew Sag, and
                                                  Studio, Android Studio, Eclipse, Xcode,                 country of origin advisory rulings and                Ronald S. Laurie, Source Code versus
                                                  and Text Editors, e-Lock’s software                     final determinations as to whether an                 Object Code: Patent Implications for the
                                                  programmer starts writing computer                      article is or would be a product of a                 Open Source Community, 18 Santa
                                                  code in C++, Java, and Objective-C                      designated country or instrumentality                 Clara High Tech. L.J. 235, 238 (2001).
                                                  languages;                                              for the purposes of granting waivers of               While it is easier for humans to read and
                                                     c. Designing graphical layout using                  certain ‘‘Buy American’’ restrictions in              write programs in ‘‘high level human
                                                  Visual Studio, Android Studio, or                       U.S. law or practice for products offered             readable languages,’’ computers cannot
                                                  Xcode; and                                              for sale to the U.S. Government.                      execute these programs. See Note,
                                                     d. (b) and (c) above are prepared and                   Under the rule of origin set forth                 Copyright Protection of Computer
                                                  checked into source code repository                     under 19 U.S.C. § 2518(4)(B):                         Program Object Code, 96 Harv. L. Rev.
                                                  server.                                                    An article is a product of a country or            1723, 1724 (1983). Computers can
                                                     2. Compiling e-Lock Source Code into                 instrumentality only if (i) it is wholly              execute only ‘‘object code,’’ which is a
                                                  Object Code                                             the growth, product, or manufacture of                program consisting of clusters of ‘‘0’’
                                                     a. The software builder signs into the               that country or instrumentality, or (ii) in           and ‘‘1’’ symbols. Id. Programmers
                                                  continuous integration (‘‘CI’’) server and              the case of an article which consists in              create object code from source code by
                                                  performs a ‘‘build’’ action;                            whole or in part of materials from                    feeding it into a program known as a
                                                     b. The CI server immediately checks                  another country or instrumentality, it                ‘‘compiler.’’ Id. Thus, step (1), the
                                                  out the latest version of source code                   has been substantially transformed into               writing of source code in Malaysia,
                                                  from the repository server and performs                 a new and different article of commerce               involves the creation of computer
                                                  compilation process;                                    with a name, character, or use distinct               instructions in a high level human
                                                     c. Source code is then compiled into                 from that of the article or articles from             readable language, whereas step (2),
                                                  machine code for each relevant platform                 which it was so transformed.                          which is performed in the United States,
                                                  on Windows, Linux, Android, and iOs;                       See also 19 C.F.R. § 177.22(a).                    involves the compilation of those
                                                     d. Incompatibilities or errors during                   In rendering advisory rulings and                  instructions into a format that
                                                  compilation are handed; and                             final determinations for purposes of                  computers can execute.
                                                     e. Source code is verified or rectified              U.S. Government procurement, CBP                         CBP has consistently held that
                                                  as needed.                                              applies the provisions of subpart B of                conducting a ‘‘software build’’—i.e.,
                                                     After e-Lock’s engineers compile the                 Part 177 consistent with the Federal                  compiling source code into object
                                                  source code into object code in the                     Procurement Regulations. See 19 C.F.R.                code—results in a substantial
                                                  United States, the continuous                           § 177.21. In this regard, CBP recognizes              transformation. See, e.g., Headquarters
                                                  integration server automatically                        that the Federal Procurement                          Ruling (‘‘HQ’’) H192146, dated June 8,
                                                  constructs installation packages for                    Regulations restrict the U.S.                         2012 (holding that ‘‘software is
                                                  testing and executable files for various                Government’s purchase of products to                  substantially transformed into a new
                                                  platforms. Finally, a plan for testing is               U.S.-made or designated country end                   article with a new name, character and
                                                  developed and engineers perform                         products for acquisitions subject to the              use in the country where the software
                                                  software testing, unit and/or integration               TAA. The Federal Procurement                          build is performed’’). For example, e-
                                                  testing, regressions and/or performance                 Regulations define ‘‘U.S.-made end                    Lock cites HQ H243606, dated Dec. 4,
                                                  testing, and acceptance testing. If the                 product’’ as:                                         2013, in which an importer developed
                                                  code passes the tests described above,                     [A]n article that is mined, produced,              DocAve Software, a comprehensive
                                                  the software-development phase is                       or manufactured in the United States or               suite of applications for Microsoft
                                                  complete.                                               that is substantially transformed in the              SharePoint, in both the United States
                                                     E-Lock also provided information on                  United States into a new and different                and China. While most of the source
                                                  the costs and time associated with                      article of commerce with a name,                      code was programmed in China, the
                                                  writing the source code in Malaysia and                 character, or use distin0ct from that of              source code was compiled into object
                                                  compiling the object code in the United                 the article or articles from which it was             code (i.e., ‘‘built’’) in the United States.
                                                  States. E-Lock also noted that U.S.-based               transformed.                                          CBP held that ‘‘the software build
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                                                  subcontracts and personnel install,                        See 48 C.F.R. § 25.403(c)(1).                      performed in the U.S. substantially
                                                  distribute, and provide technical                          The issue in this case is whether e-               transforms the software modules
                                                  support for the finished products after                 Lock’s Malaysian-developed source                     developed in China and the U.S. into a
                                                  sale.                                                   code is substantially transformed in the              new article with a new name, character
                                                     E-Lock argues that the Malaysian                     United States when engineers compile it               and use . . .’’. The country of origin of
                                                  source code is substantially transformed                into object code and load it onto U.S.-               DocAve Software was thus the United
                                                  when it is compiled into usable object                  origin disks. E-Lock argues that the                  States for purposes of U.S. Government
                                                  code in the United States and that the                  source code is ‘‘substantially different in           procurement.


                                             VerDate Sep<11>2014   19:03 Feb 19, 2016   Jkt 238001   PO 00000   Frm 00054   Fmt 4703   Sfmt 4703   E:\FR\FM\22FEN1.SGM   22FEN1


                                                                               Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Notices                                                   8735

                                                    As in H192146 and H243606, e-Lock                     13, 2015. The next triennial inspection                   CBPL     ASTM               Title
                                                  also conducts a software build in the                   date will be scheduled for July 2018.                      No.
                                                  United States. This process is sufficient
                                                                                                          FOR FURTHER INFORMATION CONTACT:                         27–05     D4928   Standard Test Method for
                                                  to create a new article with a new name,
                                                                                                          Approved Gauger and Accredited                                               Water in Crude Oils by
                                                  character and use: the name of the
                                                  product changes from source code to                     Laboratories Manager, Laboratories and                                       Coulometric Karl Fischer
                                                                                                          Scientific Services Directorate, U.S.                                        Titration.
                                                  object code, the character changes from                                                                          27–06     D473    Standard Test Method for
                                                  computer code to finished software, and                 Customs and Border Protection, 1300
                                                                                                          Pennsylvania Avenue NW., Suite                                               Sediment in Crude Oils
                                                  the use changes from instructions to an                                                                                              and Fuel Oils by the Ex-
                                                  executable program.                                     1500N, Washington, DC 20229, tel. 202–
                                                                                                                                                                                       traction Method.
                                                                                                          344–1060.
                                                                                                                                                                   27–08     D86     Standard Test Method for
                                                  HOLDING:
                                                                                                          SUPPLEMENTARY INFORMATION:    Notice is                                      Distillation of Petroleum
                                                    The country of origin of the finished                 hereby given pursuant to 19 CFR 151.12                                       Products.
                                                  software products is the United States                  and 19 CFR 151.13, that AmSpec                           27–11     D445    Standard Test Method for
                                                  for purposes of government                              Services, LLC, 4117 Montgomery St.,                                          Kinematic Viscosity of
                                                  procurement.                                                                                                                         Transparent and Opaque
                                                                                                          Savannah, GA 31405, has been                                                 Liquids.
                                                    Notice of this final determination will               approved to gauge petroleum and
                                                  be given in the Federal Register, as                                                                             27–13     D4294   Standard Test Method for
                                                                                                          certain petroleum products and                                               Sulfur in Petroleum and
                                                  required by 19 C.F.R. § 177.29. Any                     accredited to test petroleum and certain                                     Petroleum Products by
                                                  party-at-interest other than the party                  petroleum products for customs                                               Energy-Dispersive X-ray
                                                  which requested this final                              purposes, in accordance with the                                             Fluorescence Spectrom-
                                                  determination may request, pursuant to                  provisions of 19 CFR 151.12 and 19 CFR                                       etry.
                                                  19 C.F.R. § 177.31, that CBP reexamine                  151.13. AmSpec Services, LLC is                          27–20     D4057   Standard Practice for Man-
                                                  the matter anew and issue a new final                                                                                                ual Sampling of Petro-
                                                                                                          approved for the following gauging
                                                  determination. Pursuant to 19 C.F.R.                                                                                                 leum and Petroleum
                                                                                                          procedures for petroleum and certain
                                                  § 177.30, any party-at-interest may,                                                                                                 Products.
                                                                                                          petroleum products from the American
                                                  within 30 days of publication of the                                                                             27–48     D4052   Standard Test Method for
                                                                                                          Petroleum Institute (API):                                                   Density and Relative Den-
                                                  Federal Register Notice referenced
                                                  above, seek judicial review of this final                                                                                            sity of Liquids by Digital
                                                                                                            API                                                                        Density Meter.
                                                  determination before the Court of                                                        Title
                                                                                                          Chapters                                                 27–50     D93     Standard Test Methods for
                                                  International Trade.
                                                                                                                                                                                       Flash-Point by Pensky-
                                                  Sincerely,                                              1 ...........    Vocabulary.                                                 Martens Closed Cup
                                                  Joanne Roman Stump                                      3 ...........    Tank Gauging.                                               Tester.
                                                  Acting Executive Director Regulations &                 7 ...........    Temperature Determination.              27–53     D2709   Standard Test Method for
                                                  Rulings                                                 8 ...........    Sampling.                                                   Water and Sediment in
                                                  Office of International Trade                           9 ...........    Density Determinations.                                     Middle Distillate Fuels by
                                                  [FR Doc. 2016–03552 Filed 2–19–16; 8:45 am]
                                                                                                          11 .........     Physical Properties.                                        Centrifuge.
                                                                                                          12 .........     Calculations.                           27–54     D1796   Standard Test Method for
                                                  BILLING CODE P
                                                                                                          17 .........     Maritime Measurement.                                       Water and Sediment in
                                                                                                                                                                                       Fuel Oils by the Cen-
                                                                                                                                                                                       trifuge Method.
                                                  DEPARTMENT OF HOMELAND                                    AmSpec Services, LLC is accredited                     27–58     D5191   Standard Test Method For
                                                  SECURITY                                                for the following laboratory analysis                                        Vapor Pressure of Petro-
                                                                                                          procedures and methods for petroleum                                         leum Products.
                                                  U.S. Customs and Border Protection                      and certain petroleum products set forth
                                                                                                          by the U.S. Customs and Border
                                                  Accreditation and Approval of Amspec                                                                               Anyone wishing to employ this entity
                                                                                                          Protection Laboratory Methods (CBPL)
                                                  Services, LLC, as a Commercial                                                                                   to conduct laboratory analyses and
                                                                                                          and American Society for Testing and
                                                  Gauger and Laboratory                                   Materials (ASTM):                                        gauger services should request and
                                                                                                                                                                   receive written assurances from the
                                                  AGENCY:  U.S. Customs and Border                                                                                 entity that it is accredited or approved
                                                  Protection, Department of Homeland                      CBPL            ASTM                Title                by the U.S. Customs and Border
                                                                                                           No.
                                                  Security.
                                                                                                                                                                   Protection to conduct the specific test or
                                                  ACTION: Notice of accreditation and                     27–01       D287       Standard Test Method for          gauger service requested. Alternatively,
                                                  approval of AmSpec Services, LLC, as a                                           API Gravity of crude Pe-        inquiries regarding the specific test or
                                                  commercial gauger and laboratory.                                                troleum and Petroleum
                                                                                                                                   Products.
                                                                                                                                                                   gauger service this entity is accredited
                                                  SUMMARY:   Notice is hereby given,                      27–02       D1298      Standard Practice for Den-        or approved to perform may be directed
                                                  pursuant to CBP regulations, that                                                sity, Relative Density          to the U.S. Customs and Border
                                                  AmSpec Services, LLC, has been                                                   (Specific Gravity), or API      Protection by calling (202) 344–1060.
                                                  approved to gauge petroleum and                                                  Gravity of Crude Petro-         The inquiry may also be sent to
                                                  certain petroleum products and                                                   leum and Liquid Petro-          CBPGaugersLabs@cbp.dhs.gov. Please
                                                  accredited to test petroleum and certain                                         leum Products by Hy-            reference the Web site listed below for
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  petroleum products for customs                                                   drometer Meter.
                                                                                                                                                                   a complete listing of CBP approved
                                                                                                          27–03       D4006      Standard Test Method for
                                                  purposes for the next three years as of                                                                          gaugers and accredited laboratories.
                                                                                                                                   Water in Crude Oil by
                                                  July 13, 2015.                                                                   Distillation.                   http://www.cbp.gov/about/labs-
                                                  DATES: Effective Dates: The                             27–04       D95        Standard Test Method for          scientific/commercial-gaugers-and-
                                                  accreditation and approval of AmSpec                                             Water in Petroleum Prod-        laboratories.
                                                  Services, LLC, as commercial gauger                                              ucts and Bituminous Ma-
                                                  and laboratory became effective on July                                          terials by Distillation.



                                             VerDate Sep<11>2014   19:03 Feb 19, 2016   Jkt 238001   PO 00000   Frm 00055     Fmt 4703   Sfmt 4703    E:\FR\FM\22FEN1.SGM   22FEN1



Document Created: 2016-02-19 23:57:09
Document Modified: 2016-02-19 23:57:09
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 February 12, 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 no later than March 23, 2016.
ContactRoss Cunningham, Valuation and Special Programs Branch, Regulations and Rulings, Office of International Trade (202) 325-0034.
FR Citation81 FR 8733 

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