83 FR 24811 - Notice of Issuance of Final Determination Concerning Certain Electric Scissor Lifts
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection Federal Register Volume 83, Issue 104 (May 30, 2018)
U.S. Customs and Border Protection
Federal Register Volume 83, Issue 104 (May 30, 2018)
| Page Range | 24811-24813 | |
| FR Document | 2018-11504 |
[Federal Register Volume 83, Number 104 (Wednesday, May 30, 2018)] [Notices] [Pages 24811-24813] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-11504] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection Notice of Issuance of Final Determination Concerning Certain Electric Scissor Lifts AGENCY: U.S. Customs and Border Protection, Department of Homeland Security. ACTION: Notice of final determination. ----------------------------------------------------------------------- SUMMARY: This document provides notice that U.S. Customs and Border Protection (``CBP'') has issued a final determination concerning the country of origin of certain electric scissor lifts. Based upon the facts presented, CBP has concluded that the country of origin of the electric scissor lifts in question is the United States, for purposes of U.S. Government procurement. DATES: The final determination was issued on May 21, 2018. A copy of the final determination is attached. Any party-at-interest, as defined in 19 C.F.R. 177.22(d), may seek judicial review of this final determination within June 29, 2018. FOR FURTHER INFORMATION CONTACT: Yuliya A. Gulis, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade, at (202) 325-0042. SUPPLEMENTARY INFORMATION: Notice is hereby given that on May 21, 2018 pursuant to subpart B of Part 177, U.S. Customs and Border Protection Regulations (19 C.F.R. part 177, subpart B), CBP issued a final determination concerning the country of origin of certain electric scissor lifts (R Series Scissor Lift models 2632R, 3246R, and 4045R), produced by JLG Industries, Inc., which may be offered to the U.S. Government under an undesignated government procurement contract. This final determination, HQ H294980, was issued under procedures set forth at 19 C.F.R. part 177, subpart B, which implements Title III of the Trade Agreements Act of 1979, as amended (19 U.S.C. 2511-18). In the final determination, CBP concluded that the country of origin of the electric scissor lifts is the United States for purposes of U.S. Government procurement. Section 177.29, CBP Regulations (19 C.F.R. 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 C.F.R. 177.30), provides that any party-at-interest, as defined in 19 C.F.R. 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 21, 2018. Alice A. Kipel, Executive Director, Regulations and Rulings, Office of Trade. HQ H294980 May 21, 2018 OT:RR:CTF:VS H294980 YAG CATEGORY: Origin Mr. Thomas A. Coulter 411 East Franklin Street, Suite 500 Richmond, VA 23219 RE: U.S. Government Procurement; Country of Origin of Electric Scissor Lifts; Title III, Trade Agreements Act of 1979 (19 U.S.C. Sec. 2511 et seq.); Subpart B, Part 177, CBP Regulations Dear Mr. Coulter: This is in response to your correspondence dated March 1, 2018, requesting a final determination, on behalf of your client, JLG Industries, Inc. (``JLG''), concerning the country of origin of certain electric scissor lifts, pursuant to subpart B of Part 177 of the U.S. Customs and Border Protection (``CBP'') Regulations (19 C.F.R. Sec. 177.21 et seq.). We note that JLG is a party-at-interest within the meaning of 19 C.F.R. Sec. 177.22(d)(1) and is entitled to request this final determination. FACTS: JLG is an Oshkosh Corporation Company, headquartered in McConnellsburg, Pennsylvania, and a global leader in the manufacture of electric powered and engine powered aerial work platforms. The electric scissor lifts under consideration are part of the JLG R Series family of Scissor Lift products. The R Series is partially assembled in Tianjin, China and then shipped to the United States for additional manufacturing and testing, and final assembly. Once completed, the product will be introduced in commerce and offered for sale, lease, or rental to the U.S. Government. CBP has previously issued an advisory country of origin ruling concerning JLG's electric scissor lifts and determined them to be of U.S.-origin. The R Series under review in this case are stated to be new models and 95 percent of the processing is the same, except there is a slight increase in the low-level, unskilled assembly in China and an increase in high-level skilled work on the brain of the product performed in the United States. The three R Series Scissor Lift models that JLG plans to manufacture are the 2632R, the 3246R, and the 4045R models. While the function of all three models is the same, the models differ in specifications, such as size and platform capacity. A Bill of Material was submitted for Model 4045R. You state that the Bills of Material for the other two R Series Scissor Lift models are substantially the same. As reflected in the detailed Bill of Material, there are 29 separate sub-assemblies/components, in varying quantities, of the R Series Scissor Lift. Approximately 40 percent of the parts are of U.S.-origin and 60 [[Page 24812]] percent of Chinese origin. The remaining few components are sourced from South Korea, Italy, Ireland, and Germany (all designated countries for U.S. Government procurement purposes). JLG also submitted charts outlining the 25 separate operational sequences, man hours and skill level, for the operations performed in China and the United States in the manufacture of the R Series Scissor Lift. You state that the 15 operations performed in the United States are complex and meaningful, and require medium skill to accomplish, while the 10 operations performed in China are relatively simple hardware assembly and packaging. The following processes are performed in China: assembling the front and rear frame, assembling components (doors, etc.), assembling hydraulic tank and steering hose, building up and installing arm, building up routing and frame covers, installing rails and packaging the partially assembled unit into a cargo container for shipment to the United States. As imported, the Chinese good is stated to be a non-operable platform. You assert that the operations performed in the United States result in a ``self-propelled, saleable, scissor lift.'' Further, you claim a significant part of the final manufacturing and assembly process of JLG's electric scissor lift occurring in the United States consists of functional testing, quality verification, machine calibration, dimensional and structural inspection, and testing, requiring specialized employee training and skill. The electric scissor lifts have three control modules that act as the ``brain'' of the machine. It is stated that these modules are the most critical components in controlling the machine's functions. These modules are: (1) the platform module, (2) the power controller module, and (3) the logic module. With the exception of the shell of the logic module, which is manufactured in Mexico, all three control modules are manufactured in the United States. The other smart components that interface with the modules referenced above, are also manufactured, assembled, and installed in the United States. These components include batteries, a platform control box (allows the user to lift and lower the platform, and drive and steer the machine), and ground control panel (a secondary operator interface that allows the user to lift and lower the platform while not in the work platform). Finally, all software contained in the ``brain'' is developed and programmed entirely in the United States. The software and module development consumed over 8,000 hours of engineering time. The modules are installed and tested in the United States. Final machine calibration of the electric scissor lifts is also performed subsequent to importation. ISSUE: What is the country of origin of the electric scissor lifts for purposes of U.S. Government procurement? 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 (``TAA''), 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 a 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 determining whether the combining of parts or materials constitutes a substantial transformation, the determinative issue is the extent of the operations performed and whether the parts lose their identity and become an integral part of the new article. Belcrest Linens v. United States, 6 C.I.T. 204, 573 F. Supp. 1149 (1983), aff'd, 741 F.2d 1368 (Fed. Cir. 1984). If the manufacturing or combining process is a minor one that leaves the identity of the imported article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 C.I.T. 220, 542 F. Supp. 1026 (1982). In Headquarters Ruling Letter (``HQ'') H022169, dated May 2, 2008, a glider (consisting of a frame, finished cab, axels, and wheels) was imported into the United States and assembled with approximately 87 different component parts (including the essential parts: a motor, controller, and charger of Canadian origin; a gear box and axel of U.S. origin; and brakes of Indian origin) into an electric mini-truck. The process consisted of eight assembly work stations involving attachment and installation operations, as well as quality control and testing of the product. CBP held that the imported glider and other foreign components were substantially transformed into an electric mini-truck by the assembly operations that took place in the United States. Our decision was based on finding that the imported glider lost its individual identity and became an integral part of a new article possessing a new name, character, and use. Likewise, in HQ H155115, dated May 24, 2011, CBP found that assembly in the United States of an imported glider, and other imported and U.S.-origin parts constituted a substantial transformation into an article with a new name, character, and use. The assembly process in the United States was complex and time-consuming and involved a significant U.S. contribution in both parts and labor. Similarly, in HQ H118435, dated October 13, 2010, the assembly of a chassis, plastic body parts, and various miscellaneous pieces of plastic trim from China and U.S.-origin battery packs, motors, electronics, wiring assemblies, seats, and chargers into electric golf and recreational vehicles was considered a substantial transformation. CBP found that a substantial transformation occurred in the United States given the complexity and duration of the U.S. manufacturing process, along with the fact that between 12 and 17 of the 53 to 62 components were U.S. components and critical in making the electric vehicle. Based on the information provided in your letter and consistent with CBP rulings cited above, we note that while many important components of the R Series Scissor Lift products are of [[Page 24813]] Chinese origin, and many significant processing operations occur in China, the Chinese operations require less skill and precision, and the product remains inoperable when imported into the United States. In contrast, the final assembly of the product, 15 out of 25 operational sequences of which are performed in the United States, requires a good deal more skill, precision and technical expertise. Many of the critical operations involved in completing the product, such as installing the work platforms' software, manufacturing the ``brain'' of the system and attaching the modules to the product, are also performed in the United States. More importantly, 40 percent of the remaining components of the electric scissor lifts are of U.S.-origin. This includes the three control modules, which act as the ``brain'' of the machine, without which the machine cannot function; batteries; the platform control box; and, the ground control panel. We also recognize that the software contained in the three modules is completely developed and programmed in the United States. In addition, significant operations to produce the product are performed in the United States, such as sophisticated testing, inspection, calibration and preparation of the product. Consequently, we find that the imported partially assembled R Series lifts are substantially transformed as a result of the assembly operations performed in the United States to produce the fully functional and operational electric scissor lifts. Based on the information presented, it is our opinion that the country of origin of the RS Scissor Lift is the United States. HOLDING: Based on the facts provided, the finished electric scissor lifts will be considered a product of the United States for purposes of U.S. Government procurement. Notice of this final determination will be given in the Federal Register, as required by 19 C.F.R. Sec. 177.29. Any party-at-interest other than the party which requested this final determination may request, pursuant to 19 C.F.R. Sec. 177.31, that CBP reexamine the matter anew and issue a new final determination. Pursuant to 19 C.F.R. Sec. 177.30, any party-at-interest may, within 30 days of publication of the Federal Register Notice referenced above, seek judicial review of this final determination before the Court of International Trade. Sincerely, Alice A. Kipel, Executive Director Regulations and Rulings Office of Trade [FR Doc. 2018-11504 Filed 5-29-18; 8:45 am] BILLING CODE P
![Federal Register / Vol. 83, No. 104 / Wednesday, May 30, 2018 / Notices 24811
TABLE 1—ANNUALIZED ESTIMATED BURDEN FOR 2019 NSDUH—Continued
Responses
Number of Total number Hours per Total burden
Instrument per
respondents of responses response hours
respondent
Total .............................................................................. 137,231 ........................ 218,980 ........................ 79,851
Written comments and FOR FURTHER INFORMATION CONTACT: This is in response to your
recommendations concerning the Yuliya A. Gulis, Valuation and Special correspondence dated March 1, 2018,
proposed information collection should Programs Branch, Regulations and requesting a final determination, on
be sent by June 29, 2018 to the Rulings, Office of Trade, at (202) 325– behalf of your client, JLG Industries, Inc.
SAMHSA Desk Officer at the Office of 0042. (‘‘JLG’’), concerning the country of
Information and Regulatory Affairs, SUPPLEMENTARY INFORMATION: Notice is origin of certain electric scissor lifts,
OMB. To ensure timely receipt of hereby given that on May 21, 2018 pursuant to subpart B of Part 177 of the
comments, and to avoid potential delays pursuant to subpart B of Part 177, U.S. U.S. Customs and Border Protection
in OMB’s receipt and processing of mail Customs and Border Protection (‘‘CBP’’) Regulations (19 C.F.R. § 177.21
sent through the U.S. Postal Service, Regulations (19 C.F.R. part 177, subpart et seq.).
commenters are encouraged to submit B), CBP issued a final determination We note that JLG is a party-at-interest
their comments to OMB via email to: concerning the country of origin of within the meaning of 19 C.F.R.
OIRA_Submission@omb.eop.gov. certain electric scissor lifts (R Series § 177.22(d)(1) and is entitled to request
Although commenters are encouraged to Scissor Lift models 2632R, 3246R, and this final determination.
send their comments via email, 4045R), produced by JLG Industries, FACTS:
commenters may also fax their Inc., which may be offered to the U.S.
comments to 202–395–7285. JLG is an Oshkosh Corporation
Government under an undesignated
Commenters may also mail them to: Company, headquartered in
government procurement contract. This
OMB, Office of Information and McConnellsburg, Pennsylvania, and a
final determination, HQ H294980, was
Regulatory Affairs, New Executive global leader in the manufacture of
issued under procedures set forth at 19
Office Building, Room 10102, electric powered and engine powered
C.F.R. part 177, subpart B, which
Washington, DC 20503. aerial work platforms. The electric
implements Title III of the Trade
scissor lifts under consideration are part
Summer King, Agreements Act of 1979, as amended
of the JLG R Series family of Scissor Lift
Statistician. (19 U.S.C. 2511–18). In the final
products. The R Series is partially
determination, CBP concluded that the
[FR Doc. 2018–11536 Filed 5–29–18; 8:45 am] assembled in Tianjin, China and then
country of origin of the electric scissor
BILLING CODE 4162–20–P shipped to the United States for
lifts is the United States for purposes of
additional manufacturing and testing,
U.S. Government procurement.
and final assembly. Once completed, the
Section 177.29, CBP Regulations (19
product will be introduced in commerce
DEPARTMENT OF HOMELAND C.F.R. 177.29), provides that a notice of
and offered for sale, lease, or rental to
SECURITY final determination shall be published
the U.S. Government.
in the Federal Register within 60 days CBP has previously issued an
U.S. Customs and Border Protection of the date the final determination is advisory country of origin ruling
issued. Section 177.30, CBP Regulations concerning JLG’s electric scissor lifts
Notice of Issuance of Final (19 C.F.R. 177.30), provides that any
Determination Concerning Certain and determined them to be of U.S.-
party-at-interest, as defined in 19 C.F.R. origin. The R Series under review in this
Electric Scissor Lifts 177.22(d), may seek judicial review of a case are stated to be new models and 95
AGENCY: U.S. Customs and Border final determination within 30 days of percent of the processing is the same,
Protection, Department of Homeland publication of such determination in the except there is a slight increase in the
Security. Federal Register. low-level, unskilled assembly in China
ACTION: Notice of final determination. Dated: May 21, 2018. and an increase in high-level skilled
Alice A. Kipel, work on the brain of the product
SUMMARY: This document provides Executive Director, Regulations and Rulings, performed in the United States.
notice that U.S. Customs and Border Office of Trade. The three R Series Scissor Lift models
Protection (‘‘CBP’’) has issued a final that JLG plans to manufacture are the
determination concerning the country of HQ H294980 2632R, the 3246R, and the 4045R
origin of certain electric scissor lifts. May 21, 2018 models. While the function of all three
Based upon the facts presented, CBP has OT:RR:CTF:VS H294980 YAG models is the same, the models differ in
concluded that the country of origin of specifications, such as size and platform
CATEGORY: Origin
the electric scissor lifts in question is capacity. A Bill of Material was
the United States, for purposes of U.S. Mr. Thomas A. Coulter
submitted for Model 4045R. You state
Government procurement. 411 East Franklin Street, Suite 500
that the Bills of Material for the other
sradovich on DSK3GMQ082PROD with NOTICES
Richmond, VA 23219
DATES: The final determination was two R Series Scissor Lift models are
issued on May 21, 2018. A copy of the RE: U.S. Government Procurement; substantially the same. As reflected in
final determination is attached. Any Country of Origin of Electric Scissor the detailed Bill of Material, there are 29
party-at-interest, as defined in 19 C.F.R. Lifts; Title III, Trade Agreements Act of separate sub-assemblies/components, in
177.22(d), may seek judicial review of 1979 (19 U.S.C. § 2511 et seq.); Subpart varying quantities, of the R Series
this final determination within June 29, B, Part 177, CBP Regulations Scissor Lift. Approximately 40 percent
2018. Dear Mr. Coulter: of the parts are of U.S.-origin and 60
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![Federal Register / Vol. 83, No. 104 / Wednesday, May 30, 2018 / Notices 24813
Chinese origin, and many significant Sincerely, Arlington, VA 20598–6011; telephone
processing operations occur in China, Alice A. Kipel, Executive Director (571) 227–2062; email TSAPRA@
the Chinese operations require less skill Regulations and Rulings tsa.dhs.gov.
and precision, and the product remains Office of Trade SUPPLEMENTARY INFORMATION: TSA
inoperable when imported into the published a Federal Register notice,
United States. In contrast, the final [FR Doc. 2018–11504 Filed 5–29–18; 8:45 am] with a 60-day comment period soliciting
assembly of the product, 15 out of 25 BILLING CODE P comments, of the following collection of
operational sequences of which are information on January 26, 2018, 83 FR
performed in the United States, requires 4502.
a good deal more skill, precision and DEPARTMENT OF HOMELAND
SECURITY Comments Invited
technical expertise. Many of the critical
operations involved in completing the In accordance with the Paperwork
Transportation Security Administration Reduction Act of 1995 (44 U.S.C. 3501
product, such as installing the work
et seq.), an agency may not conduct or
platforms’ software, manufacturing the Revision of Agency Information
sponsor, and a person is not required to
‘‘brain’’ of the system and attaching the Collection Activity Under OMB Review:
respond to, a collection of information
modules to the product, are also TSA End of Course Level 1
unless it displays a valid OMB control
performed in the United States. More Evaluation—Instructor-Led Classroom
number. The ICR documentation will be
importantly, 40 percent of the remaining Training
available at http://www.reginfo.gov
components of the electric scissor lifts AGENCY: Transportation Security upon its submission to OMB. Therefore,
are of U.S.-origin. This includes the Administration, DHS. in preparation for OMB review and
three control modules, which act as the ACTION: 30-Day notice. approval of the following information
‘‘brain’’ of the machine, without which collection, TSA is soliciting comments
the machine cannot function; batteries; SUMMARY: This notice announces that to—
the platform control box; and, the the Transportation Security (1) Evaluate whether the proposed
ground control panel. We also recognize Administration (TSA) has forwarded the information requirement is necessary for
that the software contained in the three Information Collection Request (ICR), the proper performance of the functions
modules is completely developed and Office of Management and Budget of the agency, including whether the
programmed in the United States. In (OMB) control number 1652–0041, information will have practical utility;
abstracted below to OMB for review and (2) Evaluate the accuracy of the
addition, significant operations to
approval of a revision of the currently agency’s estimate of the burden;
produce the product are performed in
approved collection under the (3) Enhance the quality, utility, and
the United States, such as sophisticated Paperwork Reduction Act (PRA). The clarity of the information to be
testing, inspection, calibration and ICR describes the nature of the collected; and
preparation of the product. information collection and its expected (4) Minimize the burden of the
Consequently, we find that the imported burden. The collection involves the collection of information on those who
partially assembled R Series lifts are submission of ratings and written are to respond, including using
substantially transformed as a result of comments about the quality of training appropriate automated, electronic,
the assembly operations performed in instruction from TSA students who mechanical, or other technological
the United States to produce the fully successfully complete TSA instructor- collection techniques or other forms of
functional and operational electric led classroom training. TSA students information technology.
scissor lifts. Based on the information include TSA personnel, as well as State Consistent with the requirements of
presented, it is our opinion that the and local civilian personnel, who attend Executive Order (E.O.) 13771, Reducing
country of origin of the RS Scissor Lift the Explosives Detection Canine Regulation and Controlling Regulatory
is the United States. Handler Course, Passenger Screening Costs, and E.O. 13777, Enforcing the
Canine Handler Course, Bridge Course, Regulatory Reform Agenda, TSA is also
HOLDING: Canine Technical Operations Course, or requesting comments on the extent to
the Office of Security Operations Canine which this request for information could
Based on the facts provided, the be modified to reduce the burden on
finished electric scissor lifts will be (OSO) Management Course at the
Canine Training Center (CTC). respondents.
considered a product of the United
States for purposes of U.S. Government DATES: Send your comments by June 29, Information Collection Requirement
procurement. 2018. A comment to OMB is most Title: TSA End of Course Level 1
effective if OMB receives it within 30 Evaluation—Instructor-Led Classroom
Notice of this final determination will days of publication.
be given in the Federal Register, as Training.
ADDRESSES: Interested persons are Type of Request: Revision of a
required by 19 C.F.R. § 177.29. Any invited to submit written comments on currently approved collection.
party-at-interest other than the party the proposed information collection to OMB Control Number: 1652–0041.
which requested this final the Office of Information and Regulatory Forms(s): TSA Form 1904A.
determination may request, pursuant to Affairs, OMB. Comments should be Affected Public: Canine Handlers.
19 C.F.R. § 177.31, that CBP reexamine addressed to Desk Officer, Department Abstract: TSA’s CTC delivers the
the matter anew and issue a new final of Homeland Security/TSA, and sent via Explosives Detection Canine Handler
sradovich on DSK3GMQ082PROD with NOTICES
determination. Pursuant to 19 C.F.R. electronic mail to dhsdeskofficer@ Course, Passenger Screening Canine
§ 177.30, any party-at-interest may, omb.eop.gov. Handler Course, Bridge Course, Canine
within 30 days of publication of the Technical Operations Course, and the
FOR FURTHER INFORMATION CONTACT:
Federal Register Notice referenced OSO Management Course 1 to TSA
Christina A. Walsh, TSA PRA Officer,
above, seek judicial review of this final Office of Information Technology (OIT), 1 Because CTC is the sole DHS source for all TSA-
determination before the Court of TSA–11, Transportation Security trained canines and handlers, the TSA has
International Trade. Administration, 601 South 12th Street, Continued
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Document Created: 2018-05-30 01:02:02
Document Modified: 2018-05-30 01:02:02
| 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 May 21, 2018. A copy of the final determination is attached. Any party-at-interest, as defined in 19 C.F.R. 177.22(d), may seek judicial review of this final determination within June 29, 2018. | |
| Contact | Yuliya A. Gulis, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade, at (202) 325-0042. | |
| FR Citation | 83 FR 24811 |
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