83 FR 18321 - Notice of Issuance of Final Determination Concerning Axion Series Led Video Display Cabinets

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

Federal Register Volume 83, Issue 81 (April 26, 2018)

Page Range		18321-18324
FR Document		2018-08811
This document provides notice that U.S. Customs and Border Protection (``CBP'') has issued a final determination concerning the country of origin of Axion series LED video display cabinets. Based upon the facts presented, CBP has concluded in the final determination that Taiwan is the country of origin of the Axion series LED video display cabinets for purposes of U.S. Government procurement.
Federal Register, Volume 83 Issue 81 (Thursday, April 26, 2018)
[Federal Register Volume 83, Number 81 (Thursday, April 26, 2018)]
[Notices]
[Pages 18321-18324]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08811]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Axion Series 
Led Video Display Cabinets

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 Axion series LED video display cabinets. Based 
upon the facts presented, CBP has concluded in the final determination 
that Taiwan is the country of origin of the Axion series LED video 
display cabinets for purposes of U.S. Government procurement.

[[Page 18322]]


DATES: The final determination was issued on April 19, 2018. 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 May 29, 2018.

FOR FURTHER INFORMATION CONTACT: Cynthia Reese, Valuation and Special 
Programs Branch, Regulations and Rulings, Office of Trade (202-325-
0046).

SUPPLEMENTARY INFORMATION: Notice is hereby given that on April 19, 
2018, CBP issued a final determination concerning the country of origin 
of Axion series LED video display cabinets which may be offered to the 
United States Government under an undesignated government procurement 
contract. This final determination, HQ H292849, was issued at the 
request of Vanguard LED Displays, Inc., under procedures set forth at 
19 CFR part 177, subpart B, which implements Title III of the Trade 
Agreements Act of 1979, as amended (19 U.S.C. Sec.  2511-18). In the 
final determination, CBP has concluded that, based upon the facts 
presented, the assembly of imported components does not substantially 
transform the components into a product of the United States, and 
therefore, the assembled Axion series LED video display cabinets derive 
their origin from the imported components, nearly all of which 
originate in Taiwan. Therefore, Taiwan is the country of origin of the 
Axion series LED video display cabinets for purposes of U.S. Government 
procurement.
    Section 177.29, CBP Regulations (19 CFR Sec.  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: April 19, 2018.
Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.
HQ H292849

April 19, 2018

OT:RR:CTF:VS H292849 CMR

CATEGORY: Origin

Frank S. Murray, Esq.
Foley & Lardner LLP
Washington Harbour
3000 K Street, NW
Suite 600
Washington, DC 20007

RE: U.S. Government Procurement; Title III, Trade Agreements Act of 
1979 (19 U.S.C. 2511); subpart B, Part 177, CBP Regulations; Light 
Emitting Diode video display cabinets

Dear Mr. Murray:

    This is in response to your request of December 15, 2017, on behalf 
of your client, Vanguard LED Displays, Inc. (hereinafter, Vanguard), 
requesting a final determination concerning Light Emitting Diode (LED) 
video display cabinets for purposes of government procurement under 
Title III of the Trade Agreements Act of 1979 (TAA), as amended (19 
U.S.C. Sec.  2511 et seq.). Vanguard is a party-at-interest within the 
meaning of 19 CFR Sec.  177.22(d)(1) and (d)(2), and is entitled to 
request this final determination under 19 CFR Sec.  177.23(a) and (b).
FACTS:
    Vanguard seeks a country of origin determination regarding its 
Axion series LED video display cabinets, model numbers P1 through P2.5. 
The video display cabinets are of a uniform size, 640 mm by 360 mm. 
There are 11 different models offering different degrees of ``pixel 
pitch.'' This request is limited to the first nine models in the 
series, i.e., P1, P1.2, P1.3, P1.4, P1.5, P1.6, P1.8, P2, P2.5.
    You explain that:

    The Axion series LED video display cabinets receive electronic 
signals and convert those signals into images that are displayed via 
the LEDs on the face of the cabinet. They are used by customers to 
display video images. The Axion series LED video cabinets can be used 
on a stand-alone basis, but are more commonly attached to other 
cabinets to create a much larger video screen, such as for the 
presentation of video images to large audiences.

    Vanguard manufactures, sells and distributes LED video display 
cabinets for both indoor and outdoor use. With regard to the Axion 
series LED video display cabinets at issue, Vanguard imports the 
components of the video display cabinets and assembles the cabinets 
from the imported components at their facility in Lakeland, Florida. 
You indicate that the components of the Axion series LED video display 
cabinets (some of which are imported with pre-packaged screws for use 
in assembling the components to the display cabinet) are:
    LED Modules--Manufactured in Taiwan. Each cabinet includes eight 
LED modules. Each LED module is composed of two subcomponents--LEDs and 
LED display drivers. These subcomponents are manufactured in Taiwan. 
The quantity of LEDs and LED display drivers in each LED module depends 
upon the desired pixel pitch of the video display.
    Receiving Card--Manufactured in China.
    Printed Circuit Board (PCB)--Manufactured in Taiwan.
    Hub Card--Manufactured in Taiwan.
    Power Supply--Manufactured in Taiwan.
    Cabinet--Manufactured in China.
    You indicate that the LED modules are specifically designed to be 
used in a particular LED video display, based upon the desired pixel 
pitch and the size of the cabinet, as ordered by a customer. The PCB is 
custom-made to meet the criteria specifically requested. While a 
particular PCB board could theoretically be used in another LED video 
display, it could not be used in other types of LED goods. The hub card 
is designed to specifically handle the particular receiving card 
designed to be used in the specific LED video display as ordered by the 
customer. In theory, it could be used in a different LED video display, 
but it could not be used in other types of LED goods. Similarly, the 
receiving card, power supply, and cabinet can be used in other LED 
video displays, but cannot be used in other types of LED goods.
    You state that the LEDs constitute the majority of the component 
costs of the video display cabinets. You describe the function of the 
LEDs as ``a type of semi-conductor that conveys electronic signals into 
infrared-rays or light.'' The LED display driver is described as ``an 
integrated circuit that provides the circuitry necessary to interface 
most common microprocessors or digital systems to an LED display. [It] 
is an electrical device that regulates the power to an LED or a string 
(or strings) of LEDs.'' The receiving card ``reads the program commands 
from the sending card or the computer transmitting the signals 
regulating the brightness/chromaticity of the LEDs.'' The PCB 
``mechanically and electrically connects electronic components.'' 
Vanguard receives the PCB with the hub card integrated onto the PCB. 
The hub card ``sends power to the LED modules, as well as instructions/
information from the receiving card. The LED modules and the receiving 
card are attached to the PCB by Vanguard. The power supply component 
receives electrical power from an external source and provides power to 
the electrical components of the LED video cabinet. Finally, the 
cabinet, a die-cast aluminum cabinet, provides the structure into which 
the other

[[Page 18323]]

components are installed to create a video display cabinet.
    You describe the assembly process in the United States as follows:
    1. Attaching and affixing (via screws) the power cable to the 
cabinet frame.
    2. Affixing the power supply to its mount via screws and connecting 
the power cable to the power supply's adapter.
    3. Placing the integrated PCB/hub card assembly on top of the 
previously attached components, centered in the cabinet, and affixing 
the PCB/hub card assembly (via screws) to the power supply.
    4. Affixing the integrated PCB/hub assembly (via screws) to the 
cabinet.
    5. Affixing the receiving card to the integrated PCB/hub card 
assembly via a notch in the hub card. (The hub card . . . has a notch 
into which the receiving card is to be installed.)
    6. Installing each of the eight magnetized LED modules into the 
cabinet by attaching them to their respective data/power slots in the 
integrated PCB/hub card assembly.
    After the video display cabinets are assembled, Vanguard tests them 
to ensure they function properly. Then, the video display cabinets are 
packaged for shipment to customers. You indicate that the processing in 
the United States, including the assembly, testing, and packaging 
generally requires no more than a day to complete, with the testing and 
packaging taking more time than the assembly.
    You submit that the manufacturing processes which occur in Taiwan 
to create the Taiwanese components of the video display cabinet are 
more complex than the assembly process which occurs in the United 
States or the manufacturing processes which occur in China to create 
the two components of Chinese origin utilized in the assembly of the 
finished video display cabinets. In addition, you indicate that the 
collective value of the Taiwanese-manufactured components is 
overwhelmingly the majority of the component costs of the completed 
video display cabinets. Thus, you submit that the country of origin of 
the finished video display cabinets is Taiwan.
ISSUE:
    What is the country of origin of the Axion series LED video display 
cabinets described herein for U.S. government procurement purposes?
LAW AND ANALYSIS:
    U.S. Customs and Border Protection (CBP) issues country of origin 
advisory rulings and final determinations as to whether an article is 
or would be a product of a designated country or instrumentality for 
the purpose of granting waivers of certain ``Buy American'' 
restrictions in U.S. law or practice for products offered for sale to 
the U.S. Government, pursuant to subpart B of Part 177, 19 CFR 177.21 
et seq., which implements Title III, Trade Agreements Act of 1979, as 
amended (19 U.S.C. 2511-2518).
    The rule of origin set forth in 19 U.S.C. 2518(4)(B) states:

    An article is a product of a country or instrumentality only if (i) 
it is wholly the growth, product, or manufacture of that country or 
instrumentality, or (ii) in the case of an article which consists in 
whole or in part of materials from another country or instrumentality, 
it has been substantially transformed into a new and different article 
of commerce with a name, character, or use distinct from that of the 
article or articles from which it was so transformed.

See also 19 CFR 177.22(a).
    In rendering advisory rulings and final determinations for purposes 
of U.S. Government procurement, CBP applies the provisions of subpart B 
of Part 177 consistent with the Federal Procurement Regulations. See 19 
CFR 177.21. In this regard, CBP recognizes that the Federal Acquisition 
Regulations restrict the U.S. Government's purchase of products to 
U.S.-made or designated country end products for acquisitions subject 
to the TAA. See 48 CFR 25.403(c)(1). The Federal Acquisition 
Regulations define ``U.S.-made end product'' as:

    . . . an article that is mined, produced, or manufactured in the 
United States or that is substantially transformed in the United States 
into a new and different article of commerce with a name, character, or 
use distinct from that of the article or articles from which it was 
transformed.
    The regulations define a ``designated country end product'' as:
    WTO GPA [World Trade Organization Government Procurement Agreement] 
country end product, an FTA [Free Trade Agreement] country end product, 
a least developed country end product, or a Caribbean Basin country end 
product.
    A ``WTO GPA country end product'' is defined as an article that:
    (1) Is wholly the growth, product, or manufacture of a WTO GPA 
country; or
    (2) In the case of an article that consists in whole or in part of 
materials from another country, has been substantially transformed in a 
WTO GPA country into a new and different article of commerce with a 
name, character, or use distinct from that of the article or articles 
from which it was transformed. The term refers to a product offered for 
purchase under a supply contract, but for purposes of calculating the 
value of the end product includes services (except transportation 
services) incidental to the article, provided that the value of those 
incidental services does not exceed that of the article itself.
See 48 CFR 25.003.

Taiwan is a WTO GPA country; China is not.

    In the Court of International Trade's decision in Energizer 
Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the court 
interpreted the meaning of ``substantial transformation'' as used in 
the Trade Agreements Act of 1979 for purposes of government 
procurement. Energizer involved the determination of the country of 
origin of a flashlight, referred to as the Generation II flashlight, 
under the TAA. Other than a white LED and a hydrogen getter, all of the 
components of the Generation II flashlight were of Chinese origin. The 
components were imported into the United States where they were 
assembled into the finished Generation II flashlight.
    The court reviewed the ``name, character and use'' test in 
determining whether a substantial transformation had occurred, and 
reviewed various court decisions involving substantial transformation 
determinations. The court noted, citing Uniroyal, Inc. v. United 
States, 3 CIT 220, 226, 542 F. Supp. 1026, 1031, aff'd, 702 F.2d 1022 
(Fed. Cir. 1983), that when ``the post-importation processing consists 
of assembly, courts have been reluctant to find a change in character, 
particularly when the imported articles do not undergo a physical 
change.'' Energizer at 1318. In addition, the court noted that ``when 
the end-use was pre-determined at the time of importation, courts have 
generally not found a change in use.'' Energizer at 1319, citing as an 
example, National Hand Tool Corp. v. United States, 16 CIT 308, 310, 
aff'd 989 F.2d 1201 (Fed. Cir. 1993). Furthermore, courts have 
considered the nature of the assembly, i.e., whether it is a simple 
assembly or more complex, such that individual parts lose their 
separate identities and become integral parts of a new article.
    In reaching its decision in Energizer, the court expressed the 
question as one of whether the imported components retained their names 
after they were assembled into the finished Generation II flashlights. 
The court found ``[t]he constitutive components of the Generation II 
flashlight do not lose their

[[Page 18324]]

individual names as a result [of] the post-importation assembly.'' The 
court also found that the components had a pre-determined end-use as 
parts and components of a Generation II flashlight at the time of 
importation and did not undergo a change in use due to the post-
importation assembly process. Finally, the court did not find the 
assembly process to be sufficiently complex as to constitute a 
substantial transformation. Thus, the court found that Energizer's 
imported components did not undergo a change in name, character, or use 
as a result of the post-importation assembly of the components into a 
finished Generation II flashlight. The court determined that China, the 
source of all but two components, was the correct country of origin of 
the finished Generation II flashlights under the government procurement 
provisions of the TAA.
    The production process of the Axion series LED video display 
cabinets is similar to that of the Generation II flashlight in 
Energizer. All but two components are sourced from Taiwan. The post-
importation assembly process involves manual assembly of components 
that are dedicated for use as components of the LED video display 
cabinets. The individual components do not lose their separate 
identities as a result of the assembly process and do not undergo a 
change in their pre-determined uses. The assembly process, while more 
time consuming than that in Energizer, is not sufficiently complex as 
to amount to a substantial transformation of the imported components. 
Considering the totality of the information provided to CBP, and 
relying upon the court's application of substantial transformation in 
Energizer, we find that the country of origin of the assembled Axion 
series LED video display cabinets, produced as described herein, is 
Taiwan.
HOLDING:
    Based on the information provided, and the analysis set forth 
above, the imported components of the Axion series LED video display 
cabinets are not substantially transformed as a result of their 
assembly in the United States. Therefore, the country of origin of the 
assembled Axion series LED video display cabinets at issue, is Taiwan, 
the country where all of the components of the Axion series LED video 
display cabinets, except two, are made.
    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 after publication of the Federal Register 
notice referenced above, seek judicial review of this final 
determination before the Court of International Trade.

Sincerely,


Alice A. Kipel,
Executive Director Regulations and Rulings Office of Trade.

[FR Doc. 2018-08811 Filed 4-25-18; 8:45 am]
 BILLING CODE P
Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices 18321

Public scoping is a process for considers those comments, we will number for this notice of intent and
determining the scope of issues to be prepare the final EIS and similarly provide a reason for each suggestion or
addressed in this EIS and for identifying announce its availability and solicit recommendation.
the issues related to the proposed action public review and comment. We accept anonymous comments. All
that may have a significant effect on the comments received will be posted
IV. Information Requested
project environment. The scoping without change to http://
process begins with publication of this We are seeking comments on the www.regulations.gov and will include
notice and ends after the U.S. Coast potential environmental impacts that any personal information you have
Guard has: may result from the development, provided. For more about privacy and
D Invited the participation of Federal, building, testing, and operation of up to the docket, visit http://
State, and local agencies, any affected three heavy polar icebreakers and www.regulations.gov/privacyNotice.
Indian tribe, and other interested potentially three medium icebreakers to Documents mentioned in this notice
persons; help in the development of an EIS. of intent as being available in the
D Consulted with affected Federally NEPA requires Federal agencies to docket, and all public comments, will
Recognized Tribes on a government-to- consider environmental impacts that be in our online docket at http://
government basis, and with affected may result from a proposed action, to www.regulations.gov and can be viewed
Alaska Native corporations, in inform the public of potential impacts by following that website’s instructions.
accordance with Executive Order 13175 and alternatives, and to facilitate public We plan to hold public meetings in
and other policies. Native concerns, involvement in the assessment process. Anchorage, Utqiaġvik (Barrow), Nome,
including impacts on Indian trust assets An EIS would include, among other and Kotzebue to receive oral comments
and potential impacts to cultural matters, discussions of the purpose and on this notice of intent. The dates,
resources, will be given appropriate need for the proposed action, a times, and locations of the public
consideration; description of alternatives, a description meetings will be announced in the local
D Requested the Environmental of the affected environment, and an papers (The Arctic Sounder, The
Protection Agency, the United States evaluation of the environmental impacts Anchorage Daily News, and The Nome
Fish and Wildlife Service, the National of the proposed action and alternatives. Nugget) and online at http://
Marine Fisheries Service, and the As required by the NEPA, the U.S. www.dcms.uscg.mil/Our-Organization/
United States Army Corps of Engineers Coast Guard also will analyze the No Assistant-Commandant-for-
to serve as cooperating agencies in the Action Alternative as a baseline for Acquisitions-CG-9/Programs/Surface-
preparation of this EIS. With this Notice comparing the impacts of the proposed Programs/Polar-Icebreaker/. If special
of Intent, we are asking Federal, State, action. For the purposes of this assistance is required to attend the
and local agencies with jurisdiction or proposed action, the No Action meetings, such as sign language
special expertise with respect to Alternative is defined as not approving interpretation or other reasonable
environmental issues in the project area, the design and build of new polar accommodations, contact the U.S. Coast
in addition to those we have already icebreakers. The U.S. Coast Guard Guard as indicated in FOR FURTHER
contacted, to formally cooperate with us encourages public participation in the INFORMATION CONTACT.
in the preparation of this EIS; EIS process. The scoping period will
begin upon publication of this notice in Dated: April 23, 2018.
D Determined the scope and the
the Federal Register and continue for a Ahmedur Majumder,
issues to be analyzed in depth in the
EIS; period of sixty (60) days. As part of the Deputy Program Manager, Polar Icebreaker
D Allocated responsibility for scoping process, and as authorized by Program, United States Coast Guard.
preparing the EIS components; 40 CFR 1508.22(b)(4), the U.S. Coast [FR Doc. 2018–08795 Filed 4–25–18; 8:45 am]
D Indicated any related environmental Guard will hold a public scoping BILLING CODE 9110–04–P
assessments or environmental impact meeting and informational open house
statements that are not part of this EIS; in Anchorage, Utqiaġvik (Barrow),
D Identified other relevant Nome, and Kotzebue, Alaska in May DEPARTMENT OF HOMELAND
environmental review and consultation 2018. Public comments will be accepted SECURITY
requirements, such as Coastal Zone at those meetings and can also be
Management Act consistency submitted to the docket, as previously U.S. Customs and Border Protection
determinations, and threatened and described under ADDRESSES. Notice of Issuance of Final
endangered species and habitat impacts; Determination Concerning Axion
D Indicated the relationship between V. Public Participation and Request for
Comments Series Led Video Display Cabinets
timing of the environmental review and
other aspects of the application process; Pursuant to the CEQ regulations, the AGENCY: U.S. Customs and Border
and U.S. Coast Guard invites public Protection, Department of Homeland
D Exercised our option under 40 CFR participation in the NEPA process. This Security.
1501.7(b) to hold the public scoping notice requests public participation in ACTION: Notice of final determination.
meeting announced in this notice. the scoping process, establishes a public
Once the scoping process is complete, comment period, and provides SUMMARY: This document provides
the U.S. Coast Guard will prepare a draft information on how to participate. notice that U.S. Customs and Border
EIS, and will publish a Federal Register We encourage you to submit Protection (‘‘CBP’’) has issued a final
notice announcing its public comments through the Federal portal at determination concerning the country of
amozie on DSK30RV082PROD with NOTICES

availability. We will provide the public http://www.regulations.gov. If your origin of Axion series LED video display
with an opportunity to review and material cannot be submitted using cabinets. Based upon the facts
comment on the draft EIS. Comments http://www.regulations.gov, contact the presented, CBP has concluded in the
received during the draft EIS review person in the FOR FURTHER INFORMATION final determination that Taiwan is the
period will be available in the public CONTACT section of this document for country of origin of the Axion series
docket and made available in the final alternate instructions. In your LED video display cabinets for purposes
EIS. After the U.S. Coast Guard submission, please include the docket of U.S. Government procurement.

VerDate Sep<11>2014 16:58 Apr 25, 2018 Jkt 244001 PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 E:\FR\FM\26APN1.SGM 26APN1
Federal Register / Vol. 83, No. 81 / Thursday, April 26, 2018 / Notices 18323

components are installed to create a product of a designated country or the article or articles from which it was
video display cabinet. instrumentality for the purpose of transformed. The term refers to a
You describe the assembly process in granting waivers of certain ‘‘Buy product offered for purchase under a
the United States as follows: American’’ restrictions in U.S. law or supply contract, but for purposes of
1. Attaching and affixing (via screws) practice for products offered for sale to calculating the value of the end product
the power cable to the cabinet frame. the U.S. Government, pursuant to includes services (except transportation
2. Affixing the power supply to its subpart B of Part 177, 19 CFR 177.21 et services) incidental to the article,
mount via screws and connecting the seq., which implements Title III, Trade provided that the value of those
power cable to the power supply’s Agreements Act of 1979, as amended incidental services does not exceed that
adapter. (19 U.S.C. 2511–2518). of the article itself.
3. Placing the integrated PCB/hub The rule of origin set forth in 19 See 48 CFR 25.003.
card assembly on top of the previously U.S.C. 2518(4)(B) states: Taiwan is a WTO GPA country; China
attached components, centered in the An article is a product of a country or is not.
cabinet, and affixing the PCB/hub card instrumentality only if (i) it is wholly In the Court of International Trade’s
assembly (via screws) to the power the growth, product, or manufacture of decision in Energizer Battery, Inc. v.
supply. that country or instrumentality, or (ii) in
4. Affixing the integrated PCB/hub United States, 190 F. Supp. 3d 1308
the case of an article which consists in (2016), the court interpreted the
assembly (via screws) to the cabinet. whole or in part of materials from
5. Affixing the receiving card to the meaning of ‘‘substantial transformation’’
another country or instrumentality, it as used in the Trade Agreements Act of
integrated PCB/hub card assembly via a
has been substantially transformed into 1979 for purposes of government
notch in the hub card. (The hub card
a new and different article of commerce procurement. Energizer involved the
. . . has a notch into which the
with a name, character, or use distinct determination of the country of origin of
receiving card is to be installed.)
from that of the article or articles from a flashlight, referred to as the
6. Installing each of the eight
which it was so transformed. Generation II flashlight, under the TAA.
magnetized LED modules into the
cabinet by attaching them to their See also 19 CFR 177.22(a). Other than a white LED and a hydrogen
respective data/power slots in the In rendering advisory rulings and getter, all of the components of the
integrated PCB/hub card assembly. final determinations for purposes of Generation II flashlight were of Chinese
After the video display cabinets are U.S. Government procurement, CBP origin. The components were imported
assembled, Vanguard tests them to applies the provisions of subpart B of into the United States where they were
ensure they function properly. Then, the Part 177 consistent with the Federal assembled into the finished Generation
video display cabinets are packaged for Procurement Regulations. See 19 CFR II flashlight.
shipment to customers. You indicate 177.21. In this regard, CBP recognizes The court reviewed the ‘‘name,
that the processing in the United States, that the Federal Acquisition Regulations character and use’’ test in determining
including the assembly, testing, and restrict the U.S. Government’s purchase whether a substantial transformation
packaging generally requires no more of products to U.S.-made or designated had occurred, and reviewed various
than a day to complete, with the testing country end products for acquisitions court decisions involving substantial
and packaging taking more time than subject to the TAA. See 48 CFR transformation determinations. The
the assembly. 25.403(c)(1). The Federal Acquisition court noted, citing Uniroyal, Inc. v.
You submit that the manufacturing Regulations define ‘‘U.S.-made end United States, 3 CIT 220, 226, 542 F.
processes which occur in Taiwan to product’’ as: Supp. 1026, 1031, aff’d, 702 F.2d 1022
create the Taiwanese components of the . . . an article that is mined, (Fed. Cir. 1983), that when ‘‘the post-
video display cabinet are more complex produced, or manufactured in the importation processing consists of
than the assembly process which occurs United States or that is substantially assembly, courts have been reluctant to
in the United States or the transformed in the United States into a find a change in character, particularly
manufacturing processes which occur in new and different article of commerce when the imported articles do not
China to create the two components of with a name, character, or use distinct undergo a physical change.’’ Energizer
Chinese origin utilized in the assembly from that of the article or articles from at 1318. In addition, the court noted that
of the finished video display cabinets. which it was transformed. ‘‘when the end-use was pre-determined
In addition, you indicate that the The regulations define a ‘‘designated at the time of importation, courts have
collective value of the Taiwanese- country end product’’ as: generally not found a change in use.’’
manufactured components is WTO GPA [World Trade Organization Energizer at 1319, citing as an example,
overwhelmingly the majority of the Government Procurement Agreement] National Hand Tool Corp. v. United
component costs of the completed video country end product, an FTA [Free States, 16 CIT 308, 310, aff’d 989 F.2d
display cabinets. Thus, you submit that Trade Agreement] country end product, 1201 (Fed. Cir. 1993). Furthermore,
the country of origin of the finished a least developed country end product, courts have considered the nature of the
video display cabinets is Taiwan. or a Caribbean Basin country end assembly, i.e., whether it is a simple
product. assembly or more complex, such that
ISSUE: A ‘‘WTO GPA country end product’’ individual parts lose their separate
What is the country of origin of the is defined as an article that: identities and become integral parts of
Axion series LED video display cabinets (1) Is wholly the growth, product, or a new article.
described herein for U.S. government manufacture of a WTO GPA country; or In reaching its decision in Energizer,
amozie on DSK30RV082PROD with NOTICES

procurement purposes? (2) In the case of an article that the court expressed the question as one
consists in whole or in part of materials of whether the imported components
LAW AND ANALYSIS: from another country, has been retained their names after they were
U.S. Customs and Border Protection substantially transformed in a WTO assembled into the finished Generation
(CBP) issues country of origin advisory GPA country into a new and different II flashlights. The court found ‘‘[t]he
rulings and final determinations as to article of commerce with a name, constitutive components of the
whether an article is or would be a character, or use distinct from that of Generation II flashlight do not lose their

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Document Modified: 2018-11-02 08:20:18
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice of final determination.
Dates		The final determination was issued on April 19, 2018. 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 May 29, 2018.
Contact		Cynthia Reese, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade (202-325- 0046).
FR Citation		83 FR 18321
83 FR 18321 - Notice of Issuance of Final Determination Concerning Axion Series Led Video Display Cabinets

DEPARTMENT OF HOMELAND SECURITYU.S. Customs and Border Protection

Federal Register Volume 83, Issue 81 (April 26, 2018)

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