83_FR_24237 83 FR 24136 - Notice of Issuance of Final Determination Concerning Country of Origin of Fleetcam Vehicle Cameras

83 FR 24136 - Notice of Issuance of Final Determination Concerning Country of Origin of Fleetcam Vehicle Cameras

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

Federal Register Volume 83, Issue 101 (May 24, 2018)

Page Range24136-24138
FR Document2018-11091

This document provides notice that U.S. Customs and Border Protection (``CBP'') has issued a final determination concerning the country of origin of a vehicle digital video camera known as the FleetCam<SUP>TM</SUP>. Based upon the facts presented, CBP has concluded that the processing in the United States does not substantially transform the imported digital video cameras for purposes of U.S. Government procurement.

Federal Register, Volume 83 Issue 101 (Thursday, May 24, 2018)
[Federal Register Volume 83, Number 101 (Thursday, May 24, 2018)]
[Notices]
[Pages 24136-24138]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-11091]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Country of 
Origin of Fleetcam Vehicle Cameras

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 a vehicle digital video camera known as the 
FleetCamTM. Based upon the facts presented, CBP has 
concluded that the processing in the United States does not 
substantially transform the imported digital video cameras for purposes 
of U.S. Government procurement.

DATES: The final determination was issued on May 18, 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 June 25, 2018.

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

SUPPLEMENTARY INFORMATION: Notice is hereby given that on May 18, 2018, 
pursuant to subpart B of Part 177, Customs and Border Protection (CBP) 
Regulations (19 CFR part 177, subpart B), CBP issued a final 
determination concerning the country of origin of the 
FleetCamTM digital video camera, which may be offered to the 
United States Government under an undesignated government procurement 
contract. This final determination, HQ H294933, was issued under the 
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 the country of 
origin of the finished FleetCamTM was China, where the 
digital video camera and the camera's firmware were manufactured.
    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: May 18, 2018.
Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.

HQ H294933

May 18, 2018

OT:RR:CTF:VS H294933 RSD

CATEGORY: Origin

Upneet S. Teji, Esq.
Greensfelder, Hemker & Gale, P.C.
220 Madison Street, Suite 3300
Chicago, Illinois 60606

RE: Final Determination of U.S. Government Procurement; Country of 
Origin of a FleetCamTM vehicle camera

Dear Mr. Teji:
    This is in response to your eruling request of January 27, 2018, 
for a final determination on behalf of Forward Thinking Systems LLC, 
(the Company), concerning the country of origin of a FleetCam 
vehicle camera pursuant to subpart B of Part 177, U.S. Customs and 
Border Protection (``CBP'') Regulations (19 CFR Sec.  177.21 et. 
seq.). We note that the Company is a party-at-interest within the 
meaning of 19 CFR Sec.  177.22(d)(1) and is entitled to request this 
final determination.

FACTS:

    The product at issue is referred to as a FleetCam, which is a 
high-resolution digital video camera installed in a vehicle for 
streaming and recording images in real time. The FleetCam allows 
companies who purchase the product to watch the drivers that they 
employee in real-time, as well as view recorded speeding and other 
behavior moments. The FleetCam is also able to capture, record, and 
transmit images of a driver's view of the road ahead. The FleetCam 
is comprised of a physical digital video camera or several cameras 
setup together. The product also contains related cabling and a 
receiver that is compatible for use specifically with the Company's 
software and mobile applications. To use the FleetCam product, a 
user must purchase the hardware and a subscription to the software 
from the Company.
    The FleetCam's physical digital video camera is made in China 
and sourced by the Company from a Chinese firm. The firmware that is 
loaded onto the camera to allow it to be operational with the 
Company's software was also developed by the Chinese firm; however, 
you state that the firmware was developed based upon the design, 
specifications, and software architecture produced by the Company's 
staff located in the United States. The firmware developed for the 
FleetCam is designed specifically for use with the Company's fleet 
management software. The digital camera hardware (together with the 
firmware) is purchased by the Company from a Chinese producer.
    The firmware is not loaded onto the camera hardware until it is 
received by the Company in the United States. Upon receipt of the 
camera and the firmware code, the Company's engineers load and 
install the firmware on the camera hardware at the Company's offices 
in the United States. An additional hardware component of the

[[Page 24137]]

FleetCam product is the telematics gateway unit (the ``cabling''). 
The cabling units, including the receivers, are purchased from one 
or more manufacturers, and they are manufactured and procured from 
other TAA-compliant jurisdictions. The digital camera contains dual 
SD Cards that allow it to internally record the events that took 
place.
    The basic software component of the FleetCam product is produced 
in the United States. In addition, other than the firmware 
development for the camera hardware, all of the FleetCam software 
(including without limitation, software applications and mobile 
applications) are designed, developed, and integrated with the 
Company's cloud service in the United States. In order for the 
FleetCam to be functional and operational, the hardware and the 
related firmware is installed with the cabling and integrated with 
the FleetCam software platform. This compilation process occurs 
entirely in the United States.
    The Company sells the FleetCam software as a software-as-a 
service subscription, whereby the Company's customers enter into a 
separate subscription for use of the FleetCam software. After 
purchase of the FleetCam hardware, the Company's customers pay a 
separate monthly fee for using its proprietary software. The 
FleetCam hardware and software must be purchased together as part of 
the same package. Without the FleetCam software, it is stated that 
the camera and the related components are not operational. If a 
customer cancels its software subscription, the FleetCam product 
will no longer be functional.

ISSUE:

    Whether the imported components including the digital video 
camera and cabling for the FleetCam are substantially transformed 
through the downloading of the Company's proprietary software in the 
United States so as to make the FleetCam a product of the United 
States.

LAW AND ANALYSIS:

    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, 
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.).

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 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 
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 Trade Agreements Act. See 48 C.F.R. 
Sec.  25.403(c)(1). The Federal Acquisition Regulations define 
``U.S.-made end product'' as ``an article that is mined, produced, 
or manufactured in the United States or that is substantially 
transformed in the United States into a new and different article of 
commerce with name, character, or use distinct from that of the 
article or articles from which it was transformed.'' See 48 C.F.R 
Sec.  25.003.
    In Data General v. United States, 4 C.I.T. 182 (1982), the court 
determined that the programming of a foreign PROM (Programmable 
Read-Only Memory chip) in the United States substantially 
transformed the PROM into a U.S. article. In the United States, the 
programming bestowed upon each integrated circuit its electronic 
function, that is, its ``memory'' which could be retrieved. A 
distinct physical change was effected in the PROM by the opening or 
closing of the fuses, depending on the method of programming. The 
essence of the article, its interconnections or stored memory, was 
established by programming. See also, Texas Instruments v. United 
States, 681 F.2d 778, 782 (CCPA 1982) (stating the substantial 
transformation issue is a ``mixed question of technology and customs 
law''); HQ 735027, dated September 7, 1993 (programming blank media 
(EEPROM) with instructions that allow it to perform certain 
functions that prevent piracy of software constitutes a substantial 
transformation); and, HQ 734518, dated June 28, 1993 (motherboards 
are not substantially transformed by the implanting of the central 
processing unit on the board because, whereas in Data General use 
was being assigned to the PROM, the use of the motherboard had 
already been determined when the importer imported it).
    ``The term `character' is defined as `one of the essentials of 
structure, form, materials, or function that together make up and 
usually distinguish the individual.' '' National Hand Tool Corp. v. 
United States, 16 C.I.T. 308, 311 (1992) (citing Webster's Third New 
International Dictionary (1981)). In National Juice Prods. Ass'n v. 
United States, the Court of International Trade applied the 
``essence test'' and found that the fundamental character of orange 
juice concentrate was not changed by the addition of water, orange 
essences, and oils to make frozen concentrated orange juice, and 
hence, there was no substantial transformation. 10 C.I.T. 48, 628 F. 
Supp. 978 (1986).
    HQ H258960, dated May 19, 2016, reviewed the country of origin 
of hardware components of certain transceivers in two scenarios that 
are instructive to the case at issue here. The hardware components 
of the transceivers were wholly manufactured in a foreign country 
and imported into the United States. In the first scenario, the 
transceivers were ``blanks'' and completely non-functional and 
specialized proprietary software was developed and downloaded in the 
United States, making the transceivers functional and compatible 
with the OEM technology. In the second scenario, the transceivers 
were preprogrammed with a generic program that was replaced with 
specialized proprietary software. It was argued that in both 
scenarios, the imported hardware was substantially transformed by 
the development, configuration, and downloading operations of the 
U.S. origin software. In the first scenario, we found that the non-
functional transceivers were substantially transformed as a result 
of downloading performed in the United States, with proprietary 
software developed in the United States. However, in the second 
scenario, it was determined that since the transceivers had generic 
network functionality, programming them merely to customize their 
network compatibility would not actually change the identity of the 
imported transceivers. See also HQ H241177, dated December 3, 2013. 
Accordingly, it was determined that the country where the last 
substantial transformation occurred was China or another Asian 
country where the hardware components were manufactured.
    A similar finding was made in HQ H284523, dated August 23, 2017, 
where imported tablet computers were preprogrammed with a generic 
program when they were first imported. The tablets could perform all 
of the standard functions of an android tablet in their imported 
condition. After importation, the imported tablets were customized 
for a particular use as part of a system to collect and transmit a 
patient's medical data by the installation of proprietary software. 
The original tablet had the ability to perform all of previous 
functions, but it was determined that for ease of use and for other 
reasons it was best to disable these functions and to consolidate 
them in one function via the specialized software. It was stated 
that the general functionality of the tablet was removed and 
replaced so that it was easier for patients to use the device and 
access the system. It was also stated that the security of the 
patient's medical data would be better protected. In HQ H284523, we 
noted that it was clear that merely loading the specialized software 
onto the tablet computer that remained fully functional as a 
computer would be insufficient to constitute a new and different 
article of commerce, since all of the functionality of the original 
computer would be retained.
    In this case, the Company's proprietary software is being 
installed onto a digital video camera so that the camera can provide 
live-streaming of a driver and his view of the road from multiple 
vantage points. In addition, after the software is installed onto 
the FleetCam, it is able to capture, record, and store footage of 
particular incidents that may have occurred. While the particular 
proprietary software is written and downloaded in the United States, 
we note that the firmware being used to operate the FleetCam, 
although designed in the United States, was not written in the 
United States, but in China. Therefore, similar to HQ H284523, where 
the tablet could function, in this case, because the digital camera 
contains SD cards, it can fully function as a digital

[[Page 24138]]

video camera by capturing images and recording footage. The 
installation of the proprietary software onto the FleetCam only 
customizes the digital cameras to the Company's particular use and 
does not change the basic identity of the imported digital video 
cameras because they retain all their functions with the same name, 
character and use of the imported digital video cameras. Therefore, 
we find that the FleetCam is not substantially transformed by the 
downloading of the Company's proprietary software onto the imported 
digital video cameras, and the country of origin of the FleetCam 
will be China where the main hardware, including the digital cameras 
and the firmware, is manufactured.

HOLDING:

    Based on the information presented in this case, the imported 
digital video cameras are not substantially transformed by the 
processing performed in the United States. Therefore, the country of 
origin of the FleetCams is the country where the digital video 
cameras and the firmware were originally produced, which in this 
case is China.
    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,

Alice A. Kipel,

Executive Director,
Regulations and Rulings

[FR Doc. 2018-11091 Filed 5-23-18; 8:45 am]
 BILLING CODE 9111-14-P



                                                24136                           Federal Register / Vol. 83, No. 101 / Thursday, May 24, 2018 / Notices

                                                   CBPL No.            ASTM                                                                        Title

                                                27–13 ..............   D4294     Standard Test Method for Sulfur in Petroleum and Petroleum Products by Energy-Dispersive X-ray Fluorescence
                                                                                   Spectrometry.
                                                27–46 ..............   D5002     Standard Test Method for Density and Relative Density of Crude Oils by Digital Density Analyzer.
                                                Pending ..........     D3227     Standard Test Method for (Thiol Mercaptan) Sulfur in Gasoline, Kerosene, Aviation Turbine, and Distillate Fuels
                                                                                   (Potentiometric Method).
                                                Pending ..........     D4007     Standard Test Method for Water and Sediment in Crude Oil by the Centrifuge Method (Laboratory Procedure).
                                                Pending ..........     D4807     Standard Test Method for Sediment in Crude Oil by Membrane Filtration.
                                                Pending ..........     D5705     Standard Test Method for Measurement of Hydrogen Sulfide in the Vapor Phase Above Residual Fuel Oils.



                                                  Anyone wishing to employ this entity                    final determination is attached. Any                  220 Madison Street, Suite 3300
                                                to conduct laboratory analyses and                        party-at-interest, as defined in 19 CFR               Chicago, Illinois 60606
                                                gauger services should request and                        177.22(d), may seek judicial review of                RE: Final Determination of U.S. Government
                                                receive written assurances from the                       this final determination within June 25,                   Procurement; Country of Origin of a
                                                entity that it is accredited or approved                  2018.                                                      FleetCamTM vehicle camera
                                                by the U.S. Customs and Border                            FOR FURTHER INFORMATION CONTACT:                      Dear Mr. Teji:
                                                Protection to conduct the specific test or                                                                         This is in response to your eruling request
                                                                                                          Robert Dinerstein, Valuation and                      of January 27, 2018, for a final determination
                                                gauger service requested. Alternatively,                  Special Programs Branch, Regulations                  on behalf of Forward Thinking Systems LLC,
                                                inquiries regarding the specific test or                  and Rulings, Office of Trade (202–325–                (the Company), concerning the country of
                                                gauger service this entity is accredited                  0132).                                                origin of a FleetCam vehicle camera pursuant
                                                or approved to perform may be directed                    SUPPLEMENTARY INFORMATION: Notice is                  to subpart B of Part 177, U.S. Customs and
                                                to the U.S. Customs and Border                            hereby given that on May 18, 2018,                    Border Protection (‘‘CBP’’) Regulations (19
                                                Protection by calling (202) 344–1060.                     pursuant to subpart B of Part 177,                    CFR § 177.21 et. seq.). We note that the
                                                The inquiry may also be sent to                                                                                 Company is a party-at-interest within the
                                                                                                          Customs and Border Protection (CBP)                   meaning of 19 CFR § 177.22(d)(1) and is
                                                CBPGaugersLabs@cbp.dhs.gov. Please                        Regulations (19 CFR part 177, subpart                 entitled to request this final determination.
                                                reference the website listed below for a                  B), CBP issued a final determination
                                                complete listing of CBP approved                          concerning the country of origin of the               FACTS:
                                                gaugers and accredited laboratories.                      FleetCamTM digital video camera, which                   The product at issue is referred to as a
                                                http://www.cbp.gov/about/labs-                            may be offered to the United States                   FleetCam, which is a high-resolution digital
                                                scientific/commercial-gaugers-and-                        Government under an undesignated                      video camera installed in a vehicle for
                                                laboratories.                                                                                                   streaming and recording images in real time.
                                                                                                          government procurement contract. This                 The FleetCam allows companies who
                                                  Dated: May 16, 2018.                                    final determination, HQ H294933, was                  purchase the product to watch the drivers
                                                Dave Fluty,                                               issued under the procedures set forth at              that they employee in real-time, as well as
                                                Executive Director, Laboratories and                      19 CFR part 177, subpart B, which                     view recorded speeding and other behavior
                                                Scientific Services.                                      implements Title III of the Trade                     moments. The FleetCam is also able to
                                                [FR Doc. 2018–11090 Filed 5–23–18; 8:45 am]               Agreements Act of 1979, as amended                    capture, record, and transmit images of a
                                                                                                          (19 U.S.C. 2511–18). In the final                     driver’s view of the road ahead. The
                                                BILLING CODE 9111–14–P
                                                                                                          determination, CBP concluded the                      FleetCam is comprised of a physical digital
                                                                                                                                                                video camera or several cameras setup
                                                                                                          country of origin of the finished                     together. The product also contains related
                                                DEPARTMENT OF HOMELAND                                    FleetCamTM was China, where the                       cabling and a receiver that is compatible for
                                                SECURITY                                                  digital video camera and the camera’s                 use specifically with the Company’s software
                                                                                                          firmware were manufactured.                           and mobile applications. To use the
                                                U.S. Customs and Border Protection                           Section 177.29, CBP Regulations (19                FleetCam product, a user must purchase the
                                                                                                          CFR 177.29), provides that a notice of                hardware and a subscription to the software
                                                Notice of Issuance of Final                               final determination shall be published                from the Company.
                                                Determination Concerning Country of                       in the Federal Register within 60 days                   The FleetCam’s physical digital video
                                                Origin of Fleetcam Vehicle Cameras                        of the date the final determination is                camera is made in China and sourced by the
                                                                                                                                                                Company from a Chinese firm. The firmware
                                                AGENCY:  U.S. Customs and Border                          issued. Section 177.30, CBP Regulations
                                                                                                                                                                that is loaded onto the camera to allow it to
                                                Protection, Department of Homeland                        (19 CFR 177.30), provides that any                    be operational with the Company’s software
                                                Security.                                                 party-at-interest, as defined in 19 CFR               was also developed by the Chinese firm;
                                                                                                          177.22(d), may seek judicial review of a              however, you state that the firmware was
                                                ACTION: Notice of final determination.
                                                                                                          final determination within 30 days of                 developed based upon the design,
                                                SUMMARY:   This document provides                         publication of such determination in the              specifications, and software architecture
                                                notice that U.S. Customs and Border                       Federal Register.                                     produced by the Company’s staff located in
                                                Protection (‘‘CBP’’) has issued a final                                                                         the United States. The firmware developed
                                                                                                            Dated: May 18, 2018.                                for the FleetCam is designed specifically for
                                                determination concerning the country of                   Alice A. Kipel,                                       use with the Company’s fleet management
                                                origin of a vehicle digital video camera                  Executive Director, Regulations and Rulings,          software. The digital camera hardware
                                                known as the FleetCamTM. Based upon                       Office of Trade.                                      (together with the firmware) is purchased by
                                                the facts presented, CBP has concluded                                                                          the Company from a Chinese producer.
sradovich on DSK3GMQ082PROD with NOTICES




                                                that the processing in the United States                  HQ H294933                                               The firmware is not loaded onto the
                                                does not substantially transform the                                                                            camera hardware until it is received by the
                                                                                                          May 18, 2018                                          Company in the United States. Upon receipt
                                                imported digital video cameras for
                                                purposes of U.S. Government                               OT:RR:CTF:VS H294933 RSD                              of the camera and the firmware code, the
                                                procurement.                                                                                                    Company’s engineers load and install the
                                                                                                          CATEGORY: Origin                                      firmware on the camera hardware at the
                                                DATES: The final determination was                        Upneet S. Teji, Esq.                                  Company’s offices in the United States. An
                                                issued on May 18, 2018. A copy of the                     Greensfelder, Hemker & Gale, P.C.                     additional hardware component of the



                                           VerDate Sep<11>2014     18:10 May 23, 2018   Jkt 244001   PO 00000   Frm 00056   Fmt 4703   Sfmt 4703   E:\FR\FM\24MYN1.SGM   24MYN1


                                                                              Federal Register / Vol. 83, No. 101 / Thursday, May 24, 2018 / Notices                                               24137

                                                FleetCam product is the telematics gateway              CBP applies the provisions of subpart B of            the United States, making the transceivers
                                                unit (the ‘‘cabling’’). The cabling units,              Part 177 consistent with the Federal                  functional and compatible with the OEM
                                                including the receivers, are purchased from             Procurement Regulations. See 19 C.F.R.                technology. In the second scenario, the
                                                one or more manufacturers, and they are                 § 177.21. In this regard, CBP recognizes that         transceivers were preprogrammed with a
                                                manufactured and procured from other TAA-               the Federal Acquisition Regulations restrict          generic program that was replaced with
                                                compliant jurisdictions. The digital camera             the U.S. Government’s purchase of products            specialized proprietary software. It was
                                                contains dual SD Cards that allow it to                 to U.S.-made or designated country end                argued that in both scenarios, the imported
                                                internally record the events that took place.           products for acquisitions subject to the Trade        hardware was substantially transformed by
                                                   The basic software component of the                  Agreements Act. See 48 C.F.R. § 25.403(c)(1).         the development, configuration, and
                                                FleetCam product is produced in the United              The Federal Acquisition Regulations define            downloading operations of the U.S. origin
                                                States. In addition, other than the firmware            ‘‘U.S.-made end product’’ as ‘‘an article that        software. In the first scenario, we found that
                                                development for the camera hardware, all of             is mined, produced, or manufactured in the            the non-functional transceivers were
                                                the FleetCam software (including without                United States or that is substantially                substantially transformed as a result of
                                                limitation, software applications and mobile            transformed in the United States into a new           downloading performed in the United States,
                                                applications) are designed, developed, and              and different article of commerce with name,          with proprietary software developed in the
                                                integrated with the Company’s cloud service             character, or use distinct from that of the           United States. However, in the second
                                                in the United States. In order for the                  article or articles from which it was                 scenario, it was determined that since the
                                                FleetCam to be functional and operational,              transformed.’’ See 48 C.F.R § 25.003.                 transceivers had generic network
                                                the hardware and the related firmware is                   In Data General v. United States, 4 C.I.T.         functionality, programming them merely to
                                                installed with the cabling and integrated with          182 (1982), the court determined that the             customize their network compatibility would
                                                the FleetCam software platform. This                    programming of a foreign PROM                         not actually change the identity of the
                                                compilation process occurs entirely in the              (Programmable Read-Only Memory chip) in               imported transceivers. See also HQ H241177,
                                                United States.                                          the United States substantially transformed           dated December 3, 2013. Accordingly, it was
                                                   The Company sells the FleetCam software              the PROM into a U.S. article. In the United           determined that the country where the last
                                                as a software-as-a service subscription,                States, the programming bestowed upon each            substantial transformation occurred was
                                                whereby the Company’s customers enter into              integrated circuit its electronic function, that      China or another Asian country where the
                                                a separate subscription for use of the                  is, its ‘‘memory’’ which could be retrieved. A        hardware components were manufactured.
                                                FleetCam software. After purchase of the                distinct physical change was effected in the             A similar finding was made in HQ
                                                FleetCam hardware, the Company’s                        PROM by the opening or closing of the fuses,          H284523, dated August 23, 2017, where
                                                customers pay a separate monthly fee for                depending on the method of programming.               imported tablet computers were
                                                using its proprietary software. The FleetCam            The essence of the article, its                       preprogrammed with a generic program
                                                hardware and software must be purchased                 interconnections or stored memory, was                when they were first imported. The tablets
                                                together as part of the same package. Without           established by programming. See also, Texas           could perform all of the standard functions
                                                the FleetCam software, it is stated that the            Instruments v. United States, 681 F.2d 778,           of an android tablet in their imported
                                                camera and the related components are not               782 (CCPA 1982) (stating the substantial              condition. After importation, the imported
                                                operational. If a customer cancels its software         transformation issue is a ‘‘mixed question of         tablets were customized for a particular use
                                                subscription, the FleetCam product will no              technology and customs law’’); HQ 735027,             as part of a system to collect and transmit a
                                                longer be functional.                                   dated September 7, 1993 (programming blank            patient’s medical data by the installation of
                                                ISSUE:                                                  media (EEPROM) with instructions that                 proprietary software. The original tablet had
                                                                                                        allow it to perform certain functions that            the ability to perform all of previous
                                                   Whether the imported components                      prevent piracy of software constitutes a              functions, but it was determined that for ease
                                                including the digital video camera and                  substantial transformation); and, HQ 734518,          of use and for other reasons it was best to
                                                cabling for the FleetCam are substantially              dated June 28, 1993 (motherboards are not             disable these functions and to consolidate
                                                transformed through the downloading of the              substantially transformed by the implanting           them in one function via the specialized
                                                Company’s proprietary software in the                   of the central processing unit on the board           software. It was stated that the general
                                                United States so as to make the FleetCam a              because, whereas in Data General use was              functionality of the tablet was removed and
                                                product of the United States.                           being assigned to the PROM, the use of the            replaced so that it was easier for patients to
                                                LAW AND ANALYSIS:                                       motherboard had already been determined               use the device and access the system. It was
                                                                                                        when the importer imported it).                       also stated that the security of the patient’s
                                                   CBP issues country of origin advisory                   ‘‘The term ‘character’ is defined as ‘one of       medical data would be better protected. In
                                                rulings and final determinations as to                  the essentials of structure, form, materials, or      HQ H284523, we noted that it was clear that
                                                whether an article is or would be a product             function that together make up and usually            merely loading the specialized software onto
                                                of a designated country or instrumentality for          distinguish the individual.’ ’’ National Hand         the tablet computer that remained fully
                                                the purposes of granting waivers of certain             Tool Corp. v. United States, 16 C.I.T. 308,           functional as a computer would be
                                                ‘‘Buy American’’ restrictions in U.S. law or            311 (1992) (citing Webster’s Third New                insufficient to constitute a new and different
                                                practice for products offered for sale to the           International Dictionary (1981)). In National         article of commerce, since all of the
                                                U.S. Government, pursuant to subpart B of               Juice Prods. Ass’n v. United States, the Court        functionality of the original computer would
                                                Part 177, 19 C.F.R. § 177.21 et seq., which             of International Trade applied the ‘‘essence          be retained.
                                                implements Title III of the Trade Agreements            test’’ and found that the fundamental                    In this case, the Company’s proprietary
                                                Act of 1979, as amended (19 U.S.C. § 2511 et            character of orange juice concentrate was not         software is being installed onto a digital
                                                seq.).                                                  changed by the addition of water, orange              video camera so that the camera can provide
                                                Under the rule of origin set forth under 19             essences, and oils to make frozen                     live-streaming of a driver and his view of the
                                                U.S.C. § 2518(4)(B): An article is a product of         concentrated orange juice, and hence, there           road from multiple vantage points. In
                                                a country or instrumentality only if (i) it is          was no substantial transformation. 10 C.I.T.          addition, after the software is installed onto
                                                wholly the growth, product, or manufacture              48, 628 F. Supp. 978 (1986).                          the FleetCam, it is able to capture, record,
                                                of that country or instrumentality, or (ii) in             HQ H258960, dated May 19, 2016,                    and store footage of particular incidents that
                                                the case of an article which consists in whole          reviewed the country of origin of hardware            may have occurred. While the particular
                                                or in part of materials from another country            components of certain transceivers in two             proprietary software is written and
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                                                or instrumentality, it has been substantially           scenarios that are instructive to the case at         downloaded in the United States, we note
                                                transformed into a new and different article            issue here. The hardware components of the            that the firmware being used to operate the
                                                of commerce with a name, character, or use              transceivers were wholly manufactured in a            FleetCam, although designed in the United
                                                distinct from that of the article or articles           foreign country and imported into the United          States, was not written in the United States,
                                                from which it was so transformed.                       States. In the first scenario, the transceivers       but in China. Therefore, similar to HQ
                                                See also 19 C.F.R. § 177.22(a).                         were ‘‘blanks’’ and completely non-                   H284523, where the tablet could function, in
                                                   In rendering final determinations for                functional and specialized proprietary                this case, because the digital camera contains
                                                purposes of U.S. Government procurement,                software was developed and downloaded in              SD cards, it can fully function as a digital



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                                                24138                         Federal Register / Vol. 83, No. 101 / Thursday, May 24, 2018 / Notices

                                                video camera by capturing images and                    ADDRESSES:   A copy of the plats may be               is received by the State Director for
                                                recording footage. The installation of the              obtained from the Alaska Public                       Alaska during regular business hours; if
                                                proprietary software onto the FleetCam only             Information Center at the BLM Alaska                  received after regular business hours, a
                                                customizes the digital cameras to the                   State Office, 222 W. 7th Avenue,                      notice of protest will be considered filed
                                                Company’s particular use and does not
                                                change the basic identity of the imported
                                                                                                        Anchorage, Alaska 99513, upon                         the next business day. A written
                                                digital video cameras because they retain all           required payment. The plats may be                    statement of reasons in support of a
                                                their functions with the same name,                     viewed at this location at no cost. Please            protest, if not filed with the notice of
                                                character and use of the imported digital               use this address when filing written                  protest, must be filed with the State
                                                video cameras. Therefore, we find that the              protests.                                             Director for Alaska within 30 calendar
                                                FleetCam is not substantially transformed by
                                                                                                        FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                              days after the notice of protest is filed.
                                                the downloading of the Company’s                                                                              If a notice of protest against a plat of
                                                proprietary software onto the imported                  Douglas N. Haywood, Chief, Branch of
                                                                                                        Cadastral Survey, Bureau of Land                      survey is received prior to the
                                                digital video cameras, and the country of                                                                     scheduled date of official filing, the
                                                origin of the FleetCam will be China where              Management, Alaska State Office, 222
                                                                                                        W. 7th Avenue, Anchorage, Alaska                      official filing of the plat of survey
                                                the main hardware, including the digital
                                                cameras and the firmware, is manufactured.              99513; 1–907–271–5481; dhaywood@                      identified in the notice of protest will be
                                                                                                        blm.gov. Persons who use a                            stayed pending consideration of the
                                                HOLDING:                                                                                                      protest. A plat of survey will not be
                                                                                                        telecommunications device for the deaf
                                                   Based on the information presented in this
                                                                                                        may call the Federal Relay Service (FRS)              officially filed until the dismissal or
                                                case, the imported digital video cameras are                                                                  resolution of all protests of the plat.
                                                not substantially transformed by the                    at 1–800–877–8339 to contact the above
                                                                                                                                                                 Before including your address, phone
                                                processing performed in the United States.              individual during normal business
                                                                                                                                                              number, email address, or other
                                                Therefore, the country of origin of the                 hours. The FRS is available 24 hours a
                                                                                                                                                              personal identifying information in a
                                                FleetCams is the country where the digital              day, 7 days a week, to leave a message
                                                                                                                                                              notice of protest or statement of reasons,
                                                video cameras and the firmware were                     or question with the above individual.
                                                originally produced, which in this case is                                                                    you should be aware that the documents
                                                                                                        You will receive a reply during normal
                                                China.                                                                                                        you submit, including your personal
                                                                                                        business hours.
                                                   Notice of this final determination will be                                                                 identifying information, may be made
                                                given in the Federal Register, as required by           SUPPLEMENTARY INFORMATION: The lands                  publicly available in their entirety at
                                                19 C.F.R. § 177.29. Any party-at-interest other         surveyed are:                                         any time. While you can ask us to
                                                than the party which requested this final               U.S. Survey No. 3813, accepted March 5,               withhold your personal identifying
                                                determination may request, pursuant to 19                 2018                                                information from public review, we
                                                C.F.R. § 177.31, that CBP reexamine the                 U.S. Survey No. 3923, accepted March 5,               cannot guarantee that we will be able to
                                                matter anew and issue a new final                         2018
                                                determination. Pursuant to 19 C.F.R.
                                                                                                                                                              do so.
                                                                                                        U.S. Survey No. 4269, accepted March 5,
                                                § 177.30, any party-at-interest may, within 30            2018                                                  Authority: 43 U.S.C. Chap. 3.
                                                days of publication of the Federal Register             U.S. Survey No. 4738, accepted January 5,
                                                Notice referenced above, seek judicial review                                                                 Douglas N. Haywood,
                                                                                                          2018
                                                of this final determination before the Court            U.S. Survey No. 9891, accepted January 5,             Chief Cadastral Surveyor, Alaska.
                                                of International Trade.                                   2018                                                [FR Doc. 2018–11148 Filed 5–23–18; 8:45 am]
                                                Sincerely,                                              U.S. Survey No. 14461, accepted March 13,             BILLING CODE 4310–JA–P
                                                                                                          2018
                                                Alice A. Kipel,
                                                                                                        U.S. Survey No. 14462, accepted March 13,
                                                Executive Director,                                       2018                                                DEPARTMENT OF THE INTERIOR
                                                Regulations and Rulings                                 U.S. Survey No. 14478, accepted January 29,
                                                [FR Doc. 2018–11091 Filed 5–23–18; 8:45 am]               2018                                                National Park Service
                                                BILLING CODE 9111–14–P                                  Copper River Meridian, Alaska                         [NPS–WASO–NRNHL–DTS#–25581;
                                                                                                        T. 67 S., R. 75 E., accepted April 4, 2018            PPWOCRADI0, PCU00RP14.R50000]
                                                                                                        T. 67 S., R. 76 E., accepted April 4, 2018
                                                DEPARTMENT OF THE INTERIOR                              T. 68 S., R. 75 E., accepted April 4, 2018            National Register of Historic Places;
                                                                                                        T. 68 S., R. 76 E., accepted April 4, 2018            Notification of Pending Nominations
                                                Bureau of Land Management                               T. 69 S., R. 79 E., accepted March 26, 2018           and Related Actions
                                                                                                        T. 70 S., R. 79 E., accepted April 4, 2018
                                                [LLAK940000.L14100000. BX0000.                                                                                AGENCY:   National Park Service, Interior.
                                                                                                        T. 75 S., R. 86 E., accepted April 4, 2018
                                                18X.LXSS001L0100]
                                                                                                                                                              ACTION:   Notice.
                                                                                                        Kateel River Meridian, Alaska
                                                Filing of Plats of Survey: Alaska                       T. 2 S., R. 40 W., accepted May 1, 2018               SUMMARY:   The National Park Service is
                                                AGENCY:    Bureau of Land Management,                   T. 3 S., R. 40 W., accepted May 1, 2018               soliciting comments on the significance
                                                Interior.                                                  A person or party who wishes to                    of properties nominated before May 5,
                                                                                                        protest one or more plats of survey                   2018, for listing or related actions in the
                                                ACTION:  Notice of official filing.
                                                                                                        identified above must file a written                  National Register of Historic Places.
                                                SUMMARY:    The plats of survey of lands                notice of protest with the State Director             DATES: Comments should be submitted
                                                described in this notice are scheduled to               for Alaska, BLM. The notice of protest                by June 8, 2018.
                                                be officially filed in the Bureau of Land               must identify the plat(s) of survey that              ADDRESSES: Comments may be sent via
                                                Management (BLM), Alaska State Office,                  the person or party wishes to protest.                U.S. Postal Service and all other carriers
sradovich on DSK3GMQ082PROD with NOTICES




                                                Anchorage, Alaska. The surveys, which                   The notice of protest must be filed                   to the National Register of Historic
                                                were executed at the request of the U.S.                before the scheduled date of official                 Places, National Park Service, 1849 C St.
                                                Coast Guard, the Bureau of Indian                       filing for the plat(s) of survey being                NW, MS 7228, Washington, DC 20240.
                                                Affairs and BLM, are necessary for the                  protested. Any notice of protest filed                SUPPLEMENTARY INFORMATION: The
                                                management of these lands.                              after the scheduled date of official filing           properties listed in this notice are being
                                                DATES: Protests must be received by the                 will not be considered. A notice of                   considered for listing or related actions
                                                BLM by June 25, 2018.                                   protest is considered filed on the date it            in the National Register of Historic


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Document Created: 2018-05-24 00:05:12
Document Modified: 2018-05-24 00:05:12
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 May 18, 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 June 25, 2018.
ContactRobert Dinerstein, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade (202- 325-0132).
FR Citation83 FR 24136 

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