83_FR_34743 83 FR 34603 - Notice of Issuance of Final Determination Concerning Certain Insufflation Tubing

83 FR 34603 - Notice of Issuance of Final Determination Concerning Certain Insufflation Tubing

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

Federal Register Volume 83, Issue 140 (July 20, 2018)

Page Range34603-34605
FR Document2018-15536

This document provides notice that U.S. Customs and Border Protection (``CBP'') has issued a final determination concerning the country of origin of certain insufflation tubing. Based upon the facts presented, CBP has concluded that the country of origin of the insufflation tubing in question is China, for purposes of U.S. Government procurement.

Federal Register, Volume 83 Issue 140 (Friday, July 20, 2018)
[Federal Register Volume 83, Number 140 (Friday, July 20, 2018)]
[Notices]
[Pages 34603-34605]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-15536]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Certain 
Insufflation Tubing

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 insufflation tubing. Based upon the facts 
presented, CBP has concluded that the country of origin of the 
insufflation tubing in question is China, for purposes of U.S. 
Government procurement.

DATES: The final determination was issued on July 13, 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 August 20, 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 July 13, 
2018, pursuant to subpart B of Part 177, U.S. Customs and Border 
Protection Regulations (19 CFR part 177, subpart B), CBP issued a final 
determination concerning the country of origin of certain insufflation 
tubing imported by Global Resources International, Inc. from the 
Dominican Republic, which may be offered to the U.S. Government under 
an undesignated government procurement contract. This final 
determination, HQ H298148, was issued under procedures set forth at 19 
CFR part 177, subpart B, which implements Title III of the Trade 
Agreements Act of 1979, as amended (19 U.S.C. 2511-18). In the final 
determination, CBP concluded that the country of origin of the 
insufflation tubing is China for purposes of U.S. Government 
procurement.
    Section 177.29, CBP Regulations (19 CFR 177.29), provides that a 
notice of final determination shall be published in the Federal 
Register within 60 days of the date the final determination is issued. 
Section 177.30, CBP Regulations (19 CFR 177.30), provides that any 
party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial 
review of a final determination within 30 days of publication of such 
determination in the Federal Register.

    Dated: July 13, 2018.
Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.

HQ H298148

July 13, 2018

OT:RR:CTF:VS H298148 YAG

CATEGORY: Origin

Ms. Christi Roos, LCB

M-PACT Solutions
P.O. Box 30209
4294 Swinnea Road
Memphis, TN 38118

RE: U.S. Government Procurement; Country of Origin of Insufflation 
Tubing; Title III, Trade Agreements Act of 1979 (19 U.S.C. Sec.  
2511 et seq.); Subpart B, Part 177, CBP Regulations

Dear Ms. Roos:

    This is in response to your correspondence dated March 26, 2018, 
requesting a final determination, on behalf of Global Resources 
International, Inc. (``Global Resources''), concerning the country 
of origin of certain

[[Page 34604]]

insufflation tubing, 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 Global Resources 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:

    Global Resources is the importer of insufflation tubing. 
Insufflation tubing is used to interconnect and deliver carbon 
dioxide gas (``CO2'') from the insufflator machine 
(CO2 ``gas pump'' or insufflator) to the patient during 
laparoscopic surgery. Insufflation tubing is typically 3 meters 
(around 10 feet) in length, composed of a long clear plastic tubing 
and a short blue plastic tubing, with a filter attached about 30 
centimeters (12 inches) from one end. The purpose of the filter is 
to prevent fluid backflow into the insufflator and to help prevent 
contaminants from entering the patient's abdominal cavity. One end 
of the tubing is comprised of a male Luer lock fitting, which always 
connects to an instrument that is inserted into the patient's 
abdomen. The other end connects to the insufflator, which may 
contain any number of types of fittings.
    The country of origin of the clear tubing, blue tubing, filter 
assembly, and fittings is China. The insufflation tubing is 
assembled, sterilized, packed, and labeled in the Dominican 
Republic.

ISSUE:

    What is the country of origin of the insufflation tubing 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 advisory rulings and final determinations for 
purposes of U.S. Government procurement, CBP applies the provisions 
of subpart B of Part 177 consistent with the Federal Procurement 
Regulations. See 19 C.F.R. Sec.  177.21. In this regard, CBP 
recognizes that the Federal Acquisition Regulations restrict the 
U.S. Government's purchase of products to U.S.-made or designated 
country end products for acquisitions subject to the TAA. The 
regulations define a ``designated country end product'' as:
    WTO GPA [World Trade Organization Government Procurement 
Agreement] country end product, an FTA [Free Trade Agreement] 
country end product, a least developed country end product, or a 
Caribbean Basin country end product.
    A ``WTO GPA country end product'' is defined as an article that:
    (1) Is wholly the growth, product, or manufacture of a WTO GPA 
country; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a WTO GPA country into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product includes 
services (except transportation services) incidental to the article, 
provided that the value of those incidental services does not exceed 
that of the article itself.

See 48 C.F.R. Sec.  25.003.
    The Dominican Republic is a WTO GPA country. China is not. You 
assert that the insufflation tubing at issue is a product of the 
Dominican Republic for U.S. Government procurement purposes because 
all of the components of insufflation tubing, sourced from China, 
meet the requisite tariff shift rules under the Dominican Republic-
Central America-United States Free Trade Agreement (``DR-CAFTA''). 
Please note that this is an incorrect analysis to apply to determine 
the country of origin for U.S. Government procurement purposes. 
Rather, as set forth below, the relevant test is ``substantial 
transformation.''
    In the Court of International Trade's decision in Energizer 
Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the 
court interpreted the meaning of substantial transformation as used 
in the Trade Agreements Act of 1979 for purposes of government 
procurement. Energizer involved the determination of the country of 
origin of a flashlight, referred to as the Generation II flashlight, 
under the TAA. Other than a white LED and a hydrogen getter, all of 
the components of the Generation II flashlight were of Chinese 
origin. The components were imported into the United States where 
they were assembled into the finished Generation II flashlight.
    The court reviewed the ``name, character and use'' test in 
determining whether a substantial transformation had occurred, and 
reviewed various court decisions involving substantial 
transformation determinations. The court noted, citing Uniroyal, 
Inc. v. United States, 3 CIT 220, 226, 542 F. Supp. 1026, 1031, 
aff'd, 702 F.2d 1022 (Fed. Cir. 1983), that when ``the post-
importation processing consists of assembly, courts have been 
reluctant to find a change in character, particularly when the 
imported articles do not undergo a physical change.'' Energizer at 
1318. In addition, the court noted that ``when the end-use was pre-
determined at the time of importation, courts have generally not 
found a change in use.'' Energizer at 1319, citing as an example, 
National Hand Tool Corp. v. United States, 16 CIT 308, 310, aff'd 
989 F.2d 1201 (Fed. Cir. 1993). Furthermore, courts have considered 
the nature of the assembly, i.e., whether it is a simple assembly or 
more complex, such that individual parts lose their separate 
identities and become integral parts of a new article.
    In reaching its decision in Energizer, the court examined 
whether the imported components retained their names after they were 
assembled into the finished Generation II flashlights. The court 
found ``[t]he constitutive components of the Generation II 
flashlight do not lose their individual names as a result [of] the 
post-importation assembly.'' The court also found that the 
components had a pre-determined end-use as parts and components of a 
Generation II flashlight at the time of importation and did not 
undergo a change in use due to the post-importation assembly 
process. Finally, the court did not find the assembly process to be 
sufficiently complex as to constitute a substantial transformation. 
Thus, the court found that Energizer's imported components did not 
undergo a change in name, character, or use as a result of the post-
importation assembly of the components into a finished Generation II 
flashlight. The court determined that China, the source of all but 
two components, was the correct country of origin of the finished 
Generation II flashlights under the government procurement 
provisions of the TAA.
    The assembly process of insufflation tubing is similar to that 
of the Generation II flashlight in Energizer. All of the components 
are sourced from China, and there is no evidence of a change in the 
shape or material composition of the components. See also 
Headquarters Ruling Letter (``HQ'') H035441, dated September 11, 
2008; and HQ 734214, dated November 18, 1991. In other words, the 
individual components do not lose their separate identities as a 
result of the assembly process in the Dominican Republic and do not 
undergo a change in their pre-determined uses. Considering the 
totality of the information provided to CBP, and relying upon the 
court's application of substantial transformation in Energizer, we 
find that the country of origin of the assembled insufflation 
tubing, produced as described herein, is China.

HOLDING:

    Based on the facts provided, insufflation tubing will be 
considered a product of China 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.


[[Page 34605]]


Sincerely,
Alice A. Kipel,

Executive Director Regulations and Rulings Office of Trade.

[FR Doc. 2018-15536 Filed 7-19-18; 8:45 am]
 BILLING CODE P



                                                                                Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices                                                 34603

                                               information technology, e.g., permitting                   Estimated Number of Total Annual                    177.22(d), may seek judicial review of
                                               electronic submission of responses. The                  Responses: 34,006,000.                                this final determination within August
                                               comments that are submitted will be                        Estimated Time per Response: 4                      20, 2018.
                                               summarized and included in the request                   minutes.                                              FOR FURTHER INFORMATION CONTACT:
                                               for approval. All comments will become                     Estimated Total Annual Burden                       Yuliya A. Gulis, Valuation and Special
                                               a matter of public record.                               Hours: 2,278,402.                                     Programs Branch, Regulations and
                                                                                                          Verbal Declarations:                                Rulings, Office of Trade, at (202) 325–
                                               Overview of This Information                               Estimated Number of Respondents:
                                               Collection                                                                                                     0042.
                                                                                                        233,000,000.                                          SUPPLEMENTARY INFORMATION: Notice is
                                                  Title: Customs Declaration.                             Estimated Number of Total Annual                    hereby given that on July 13, 2018,
                                                  OMB Number: 1651–0009.                                Responses: 233,000,000.                               pursuant to subpart B of Part 177, U.S.
                                                  Form Number: CBP Form 6059B.                            Estimated Time per Response: 10                     Customs and Border Protection
                                                  Abstract: CBP Form 6059B, Customs                     seconds.                                              Regulations (19 CFR part 177, subpart
                                               Declaration, is used as a standard report                  Estimated Total Annual Burden                       B), CBP issued a final determination
                                               of the identity and residence of each                    Hours: 669,000.                                       concerning the country of origin of
                                               person arriving in the United States.                      APC Terminals:                                      certain insufflation tubing imported by
                                               This form is also used to declare                          Estimated Number of Respondents:                    Global Resources International, Inc.
                                               imported articles to U.S. Customs and                    70,000,000.                                           from the Dominican Republic, which
                                               Border Protection (CBP) in accordance                      Estimated Number of Total Annual                    may be offered to the U.S. Government
                                               with 19 CFR 122.27, 148.12, 148.13,                      Responses: 70,000,000.                                under an undesignated government
                                               148.110, 148.111; 31 U.S.C. 5316 and                       Estimated Time per Response: 2
                                                                                                                                                              procurement contract. This final
                                               section 498 of the Tariff Act of 1930, as                minutes.
                                                                                                                                                              determination, HQ H298148, was issued
                                               amended (19 U.S.C. 1498).                                  Estimated Total Annual Burden
                                                  Section 148.13 of the CBP regulations                                                                       under procedures set forth at 19 CFR
                                                                                                        Hours: 2,310,000.
                                               prescribes the use of the CBP Form                                                                             part 177, subpart B, which implements
                                                                                                          MPC App:
                                               6059B when a written declaration is                        Estimated Number of Respondents:                    Title III of the Trade Agreements Act of
                                               required of a traveler entering the                      500,000.                                              1979, as amended (19 U.S.C. 2511–18).
                                               United States. Generally, written                          Estimated Number of Total Annual                    In the final determination, CBP
                                               declarations are required from travelers                 Responses: 500,000.                                   concluded that the country of origin of
                                               arriving by air or sea. Section 148.12                     Estimated Time per Response: 2                      the insufflation tubing is China for
                                               requires verbal declarations from                        minutes.                                              purposes of U.S. Government
                                               travelers entering the United States.                      Estimated Total Annual Burden                       procurement.
                                                                                                                                                                 Section 177.29, CBP Regulations (19
                                               Generally, verbal declarations are                       Hours: 16,500.
                                                                                                                                                              CFR 177.29), provides that a notice of
                                               required from travelers arriving by land.                  Dated: July 17, 2018.                               final determination shall be published
                                               CBP continues to find ways to improve                    Seth D. Renkema,                                      in the Federal Register within 60 days
                                               the entry process through the use of
                                                                                                        Branch Chief, Economic Impact Analysis                of the date the final determination is
                                               mobile technology to ensure it is safe                   Branch, U.S. Customs and Border Protection.           issued. Section 177.30, CBP Regulations
                                               and efficient. To that end, CBP is testing
                                                                                                        [FR Doc. 2018–15561 Filed 7–19–18; 8:45 am]           (19 CFR 177.30), provides that any
                                               the operational effectiveness of a
                                                                                                        BILLING CODE 9111–14–P                                party-at-interest, as defined in 19 CFR
                                               process which allows travelers to use a
                                                                                                                                                              177.22(d), may seek judicial review of a
                                               mobile app to submit information to
                                                                                                                                                              final determination within 30 days of
                                               CBP prior to arrival. This process, called               DEPARTMENT OF HOMELAND                                publication of such determination in the
                                               Mobile Passport Control (MPC) which is                   SECURITY                                              Federal Register.
                                               a mobile app that allows travelers to
                                               self-segment upon arrival into the                                                                               Dated: July 13, 2018.
                                                                                                        U.S. Customs and Border Protection
                                               United States—a process also known as                                                                          Alice A. Kipel,
                                               intelligent queuing. Another electronic                  Notice of Issuance of Final                           Executive Director, Regulations and Rulings,
                                               process that CBP is testing in lieu of the               Determination Concerning Certain                      Office of Trade.
                                               paper 6059B is the Automated Passport                    Insufflation Tubing                                   HQ H298148
                                               Control (APC). This is a CBP program                                                                           July 13, 2018
                                               that facilitates the entry process for                   AGENCY:  U.S. Customs and Border
                                               travelers by providing self-service                      Protection, Department of Homeland                    OT:RR:CTF:VS H298148 YAG
                                               kiosks in CBP’s Primary Inspection area                  Security.
                                                                                                                                                              CATEGORY: Origin
                                               that travelers can use to make their                     ACTION: Notice of final determination.
                                                                                                                                                              Ms. Christi Roos, LCB
                                               declaration.
                                                                                                        SUMMARY:   This document provides                     M–PACT Solutions
                                                  A sample of CBP Form 6059B can be
                                                                                                        notice that U.S. Customs and Border                   P.O. Box 30209
                                               found at: http://www.cbp.gov/travel/us-
                                                                                                        Protection (‘‘CBP’’) has issued a final               4294 Swinnea Road
                                               citizens/sample-declaration-form.                                                                              Memphis, TN 38118
                                                  Current Actions: This submission is                   determination concerning the country of
                                               being made to extend the expiration                      origin of certain insufflation tubing.                RE: U.S. Government Procurement; Country
                                                                                                        Based upon the facts presented, CBP has                    of Origin of Insufflation Tubing; Title III,
                                               date of this information collection with                                                                            Trade Agreements Act of 1979 (19 U.S.C.
                                               no change to the burden hours or to the                  concluded that the country of origin of
daltland on DSKBBV9HB2PROD with NOTICES




                                                                                                        the insufflation tubing in question is                     § 2511 et seq.); Subpart B, Part 177, CBP
                                               information collected.                                                                                              Regulations
                                                  Type of Review: Extension (without                    China, for purposes of U.S. Government
                                                                                                                                                              Dear Ms. Roos:
                                               change).                                                 procurement.
                                                                                                                                                                This is in response to your correspondence
                                                  Affected Public: Individuals.                         DATES: The final determination was                    dated March 26, 2018, requesting a final
                                                  CBP Form 6059B:                                       issued on July 13, 2018. A copy of the                determination, on behalf of Global Resources
                                                  Estimated Number of Respondents:                      final determination is attached. Any                  International, Inc. (‘‘Global Resources’’),
                                               34,006,000.                                              party-at-interest, as defined in 19 CFR               concerning the country of origin of certain



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                                               34604                            Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices

                                               insufflation tubing, pursuant to subpart B of            purchase of products to U.S.-made or                  the end-use was pre-determined at the time
                                               Part 177 of the U.S. Customs and Border                  designated country end products for                   of importation, courts have generally not
                                               Protection (‘‘CBP’’) Regulations (19 C.F.R.              acquisitions subject to the TAA. The                  found a change in use.’’ Energizer at 1319,
                                               § 177.21 et seq.).                                       regulations define a ‘‘designated country end         citing as an example, National Hand Tool
                                                  We note that Global Resources is a party-             product’’ as:                                         Corp. v. United States, 16 CIT 308, 310, aff’d
                                               at-interest within the meaning of 19 C.F.R.                 WTO GPA [World Trade Organization                  989 F.2d 1201 (Fed. Cir. 1993). Furthermore,
                                               § 177.22(d)(1) and is entitled to request this           Government Procurement Agreement]                     courts have considered the nature of the
                                               final determination.                                     country end product, an FTA [Free Trade               assembly, i.e., whether it is a simple
                                                                                                        Agreement] country end product, a least               assembly or more complex, such that
                                               FACTS:                                                                                                         individual parts lose their separate identities
                                                                                                        developed country end product, or a
                                                  Global Resources is the importer of                   Caribbean Basin country end product.                  and become integral parts of a new article.
                                               insufflation tubing. Insufflation tubing is                 A ‘‘WTO GPA country end product’’ is                  In reaching its decision in Energizer, the
                                               used to interconnect and deliver carbon                  defined as an article that:                           court examined whether the imported
                                               dioxide gas (‘‘CO2’’) from the insufflator                  (1) Is wholly the growth, product, or              components retained their names after they
                                               machine (CO2 ‘‘gas pump’’ or insufflator) to             manufacture of a WTO GPA country; or                  were assembled into the finished Generation
                                               the patient during laparoscopic surgery.                    (2) In the case of an article that consists in     II flashlights. The court found ‘‘[t]he
                                               Insufflation tubing is typically 3 meters                whole or in part of materials from another            constitutive components of the Generation II
                                               (around 10 feet) in length, composed of a                country, has been substantially transformed           flashlight do not lose their individual names
                                               long clear plastic tubing and a short blue               in a WTO GPA country into a new and                   as a result [of] the post-importation
                                               plastic tubing, with a filter attached about 30          different article of commerce with a name,            assembly.’’ The court also found that the
                                               centimeters (12 inches) from one end. The                character, or use distinct from that of the           components had a pre-determined end-use as
                                               purpose of the filter is to prevent fluid                article or articles from which it was                 parts and components of a Generation II
                                               backflow into the insufflator and to help                transformed. The term refers to a product             flashlight at the time of importation and did
                                               prevent contaminants from entering the                   offered for purchase under a supply contract,         not undergo a change in use due to the post-
                                               patient’s abdominal cavity. One end of the               but for purposes of calculating the value of          importation assembly process. Finally, the
                                               tubing is comprised of a male Luer lock                  the end product includes services (except             court did not find the assembly process to be
                                               fitting, which always connects to an                     transportation services) incidental to the            sufficiently complex as to constitute a
                                               instrument that is inserted into the patient’s           article, provided that the value of those             substantial transformation. Thus, the court
                                               abdomen. The other end connects to the                   incidental services does not exceed that of           found that Energizer’s imported components
                                               insufflator, which may contain any number                the article itself.                                   did not undergo a change in name, character,
                                               of types of fittings.                                                                                          or use as a result of the post-importation
                                                                                                        See 48 C.F.R. § 25.003.
                                                  The country of origin of the clear tubing,                                                                  assembly of the components into a finished
                                                                                                           The Dominican Republic is a WTO GPA
                                               blue tubing, filter assembly, and fittings is                                                                  Generation II flashlight. The court
                                                                                                        country. China is not. You assert that the
                                               China. The insufflation tubing is assembled,                                                                   determined that China, the source of all but
                                                                                                        insufflation tubing at issue is a product of the
                                               sterilized, packed, and labeled in the                                                                         two components, was the correct country of
                                                                                                        Dominican Republic for U.S. Government
                                               Dominican Republic.                                                                                            origin of the finished Generation II flashlights
                                                                                                        procurement purposes because all of the
                                                                                                                                                              under the government procurement
                                               ISSUE:                                                   components of insufflation tubing, sourced
                                                                                                                                                              provisions of the TAA.
                                                                                                        from China, meet the requisite tariff shift
                                                 What is the country of origin of the                                                                            The assembly process of insufflation tubing
                                                                                                        rules under the Dominican Republic-Central
                                               insufflation tubing for purposes of U.S.                                                                       is similar to that of the Generation II
                                                                                                        America-United States Free Trade Agreement
                                               Government procurement?                                                                                        flashlight in Energizer. All of the components
                                                                                                        (‘‘DR–CAFTA’’). Please note that this is an
                                                                                                                                                              are sourced from China, and there is no
                                               LAW AND ANALYSIS:                                        incorrect analysis to apply to determine the
                                                                                                                                                              evidence of a change in the shape or material
                                                  CBP issues country of origin advisory                 country of origin for U.S. Government
                                                                                                                                                              composition of the components. See also
                                               rulings and final determinations as to                   procurement purposes. Rather, as set forth
                                                                                                                                                              Headquarters Ruling Letter (‘‘HQ’’) H035441,
                                               whether an article is or would be a product              below, the relevant test is ‘‘substantial             dated September 11, 2008; and HQ 734214,
                                               of a designated country or instrumentality for           transformation.’’                                     dated November 18, 1991. In other words, the
                                               the purposes of granting waivers of certain                 In the Court of International Trade’s              individual components do not lose their
                                               ‘‘Buy American’’ restrictions in U.S. law or             decision in Energizer Battery, Inc. v. United         separate identities as a result of the assembly
                                               practice for products offered for sale to the            States, 190 F. Supp. 3d 1308 (2016), the court        process in the Dominican Republic and do
                                               U.S. Government, pursuant to subpart B of                interpreted the meaning of substantial                not undergo a change in their pre-determined
                                               Part 177, 19 C.F.R. § 177.21 et seq., which              transformation as used in the Trade                   uses. Considering the totality of the
                                               implements Title III of the Trade Agreements             Agreements Act of 1979 for purposes of                information provided to CBP, and relying
                                               Act of 1979 (‘‘TAA’’), as amended (19 U.S.C.             government procurement. Energizer involved            upon the court’s application of substantial
                                               § 2511 et seq.).                                         the determination of the country of origin of         transformation in Energizer, we find that the
                                                  Under the rule of origin set forth under 19           a flashlight, referred to as the Generation II        country of origin of the assembled
                                               U.S.C. § 2518(4)(B):                                     flashlight, under the TAA. Other than a white         insufflation tubing, produced as described
                                                  An article is a product of a country or               LED and a hydrogen getter, all of the                 herein, is China.
                                               instrumentality only if (i) it is wholly the             components of the Generation II flashlight
                                               growth, product, or manufacture of that                  were of Chinese origin. The components                HOLDING:
                                               country or instrumentality, or (ii) in the case          were imported into the United States where               Based on the facts provided, insufflation
                                               of an article which consists in whole or in              they were assembled into the finished                 tubing will be considered a product of China
                                               part of materials from another country or                Generation II flashlight.                             for purposes of U.S. Government
                                               instrumentality, it has been substantially                  The court reviewed the ‘‘name, character           procurement.
                                               transformed into a new and different article             and use’’ test in determining whether a                  Notice of this final determination will be
                                               of commerce with a name, character, or use               substantial transformation had occurred, and          given in the Federal Register, as required by
                                               distinct from that of the article or articles            reviewed various court decisions involving            19 C.F.R. § 177.29. Any party-at-interest other
                                               from which it was so transformed.                        substantial transformation determinations.            than the party which requested this final
                                               See also 19 C.F.R. § 177.22(a).                          The court noted, citing Uniroyal, Inc. v.             determination may request, pursuant to 19
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                                                  In rendering advisory rulings and final               United States, 3 CIT 220, 226, 542 F. Supp.           C.F.R. § 177.31, that CBP reexamine the
                                               determinations for purposes of U.S.                      1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir.           matter anew and issue a new final
                                               Government procurement, CBP applies the                  1983), that when ‘‘the post-importation               determination. Pursuant to 19 C.F.R.
                                               provisions of subpart B of Part 177 consistent           processing consists of assembly, courts have          § 177.30, any party-at-interest may, within 30
                                               with the Federal Procurement Regulations.                been reluctant to find a change in character,         days of publication of the Federal Register
                                               See 19 C.F.R. § 177.21. In this regard, CBP              particularly when the imported articles do            Notice referenced above, seek judicial review
                                               recognizes that the Federal Acquisition                  not undergo a physical change.’’ Energizer at         of this final determination before the Court
                                               Regulations restrict the U.S. Government’s               1318. In addition, the court noted that ‘‘when        of International Trade.



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                                                                                Federal Register / Vol. 83, No. 140 / Friday, July 20, 2018 / Notices                                                 34605

                                               Sincerely,                                               percent of the total eligible costs. Federal          DEPARTMENT OF HOMELAND
                                               Alice A. Kipel,                                          funds provided under the Stafford Act for             SECURITY
                                               Executive Director Regulations and Rulings               Public Assistance also will be limited to 75
                                               Office of Trade.                                         percent of the total eligible costs, with the         Federal Emergency Management
                                               [FR Doc. 2018–15536 Filed 7–19–18; 8:45 am]              exception of projects that meet the eligibility       Agency
                                               BILLING CODE P
                                                                                                        criteria for a higher Federal cost-sharing
                                                                                                                                                              [Internal Agency Docket No. FEMA–4370–
                                                                                                        percentage under the Public Assistance
                                                                                                                                                              DR; Docket ID FEMA–2018–0001]
                                                                                                        Alternative Procedures Pilot Program for
                                               DEPARTMENT OF HOMELAND                                   Debris Removal implemented pursuant to                New Hampshire; Major Disaster and
                                               SECURITY                                                 section 428 of the Stafford Act.                      Related Determinations
                                                                                                          Further, you are authorized to make
                                               Federal Emergency Management                             changes to this declaration for the approved          AGENCY: Federal Emergency
                                               Agency                                                   assistance to the extent allowable under the          Management Agency, DHS.
                                                                                                        Stafford Act.                                         ACTION: Notice.
                                               [Internal Agency Docket No. FEMA–4371–
                                               DR; Docket ID FEMA–2018–0001]                              The Federal Emergency Management                    SUMMARY:   This is a notice of the
                                                                                                        Agency (FEMA) hereby gives notice that                Presidential declaration of a major
                                               New Hampshire; Major Disaster and                                                                              disaster for the State of New Hampshire
                                               Related Determinations                                   pursuant to the authority vested in the
                                                                                                        Administrator, under Executive Order                  (FEMA–4370–DR), dated June 8, 2018,
                                               AGENCY: Federal Emergency                                12148, as amended, James N. Russo, of                 and related determinations.
                                               Management Agency, DHS.                                  FEMA is appointed to act as the Federal               DATES: The declaration was issued June
                                               ACTION: Notice.                                          Coordinating Officer for this major                   8, 2018.
                                                                                                        disaster.                                             FOR FURTHER INFORMATION CONTACT:
                                               SUMMARY:   This is a notice of the                                                                             Dean Webster, Office of Response and
                                               Presidential declaration of a major                        The following areas of the State of
                                                                                                                                                              Recovery, Federal Emergency
                                               disaster for the State of New Hampshire                  New Hampshire have been designated
                                                                                                                                                              Management Agency, 500 C Street SW,
                                               (FEMA–4371–DR), dated June 8, 2018,                      as adversely affected by this major
                                                                                                                                                              Washington, DC 20472, (202) 646–2833.
                                               and related determinations.                              disaster:
                                                                                                                                                              SUPPLEMENTARY INFORMATION: Notice is
                                               DATES: The declaration was issued June                     Carroll, Rockingham, and Stafford Counties          hereby given that, in a letter dated June
                                               8, 2018.                                                 for Public Assistance.                                8, 2018, the President issued a major
                                               FOR FURTHER INFORMATION CONTACT:                           Carroll, Rockingham, and Stafford Counties          disaster declaration under the authority
                                               Dean Webster, Office of Response and                     for snow assistance under the Public                  of the Robert T. Stafford Disaster Relief
                                               Recovery, Federal Emergency                              Assistance program for any continuous 48-             and Emergency Assistance Act, 42
                                               Management Agency, 500 C Street SW,                      hour period during or proximate to the                U.S.C. 5121 et seq. (the ‘‘Stafford Act’’),
                                               Washington, DC 20472, (202) 646–2833.                    incident period.                                      as follows:
                                               SUPPLEMENTARY INFORMATION: Notice is                       All areas within the State of New
                                                                                                        Hampshire are eligible for assistance under              I have determined that the damage in
                                               hereby given that, in a letter dated June                                                                      certain areas of the State of New Hampshire
                                               8, 2018, the President issued a major                    the Hazard Mitigation Grant Program.
                                                                                                                                                              resulting from a severe storm and flooding
                                               disaster declaration under the authority                   The following Catalog of Federal Domestic           during the period of March 2–8, 2018, is of
                                               of the Robert T. Stafford Disaster Relief                Assistance Numbers (CFDA) are to be used              sufficient severity and magnitude to warrant
                                               and Emergency Assistance Act, 42                         for reporting and drawing funds: 97.030,              a major disaster declaration under the Robert
                                               U.S.C. 5121 et seq. (the ‘‘Stafford Act’’),              Community Disaster Loans; 97.031, Cora                T. Stafford Disaster Relief and Emergency
                                                                                                        Brown Fund; 97.032, Crisis Counseling;                Assistance Act, 42 U.S.C. 5121 et seq. (the
                                               as follows:
                                                                                                        97.033, Disaster Legal Services; 97.034,              ‘‘Stafford Act’’). Therefore, I declare that such
                                                 I have determined that the damage in                   Disaster Unemployment Assistance (DUA);               a major disaster exists in the State of New
                                               certain areas of the State of New Hampshire              97.046, Fire Management Assistance Grant;             Hampshire.
                                               resulting from a severe winter storm and                 97.048, Disaster Housing Assistance to                   In order to provide Federal assistance, you
                                               snowstorm during the period of March 13–                                                                       are hereby authorized to allocate from funds
                                                                                                        Individuals and Households In Presidentially
                                               14, 2018, is of sufficient severity and                                                                        available for these purposes such amounts as
                                               magnitude to warrant a major disaster                    Declared Disaster Areas; 97.049,                      you find necessary for Federal disaster
                                               declaration under the Robert T. Stafford                 Presidentially Declared Disaster Assistance—          assistance and administrative expenses.
                                               Disaster Relief and Emergency Assistance                 Disaster Housing Operations for Individuals              You are authorized to provide Public
                                               Act, 42 U.S.C. 5121 et seq. (the ‘‘Stafford              and Households; 97.050, Presidentially                Assistance in the designated area and Hazard
                                               Act’’). Therefore, I declare that such a major           Declared Disaster Assistance to Individuals           Mitigation throughout the State. Consistent
                                               disaster exists in the State of New                      and Households—Other Needs; 97.036,                   with the requirement that Federal assistance
                                               Hampshire.                                               Disaster Grants—Public Assistance                     be supplemental, any Federal funds provided
                                                 In order to provide Federal assistance, you            (Presidentially Declared Disasters); 97.039,          under the Stafford Act for Hazard Mitigation
                                               are hereby authorized to allocate from funds             Hazard Mitigation Grant.                              will be limited to 75 percent of the total
                                               available for these purposes such amounts as                                                                   eligible costs. Federal funds provided under
                                               you find necessary for Federal disaster                  Brock Long,                                           the Stafford Act for Public Assistance also
                                               assistance and administrative expenses.                  Administrator, Federal Emergency                      will be limited to 75 percent of the total
                                                 You are authorized to provide Public                                                                         eligible costs, with the exception of projects
                                                                                                        Management Agency.
                                               Assistance in the designated areas and                                                                         that meet the eligibility criteria for a higher
                                               Hazard Mitigation throughout the State. You              [FR Doc. 2018–15599 Filed 7–19–18; 8:45 am]           Federal cost-sharing percentage under the
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                                               are further authorized to provide snow                   BILLING CODE 9111–23–P                                Public Assistance Alternative Procedures
                                               assistance under the Public Assistance                                                                         Pilot Program for Debris Removal
                                               program for a limited period of time during                                                                    implemented pursuant to section 428 of the
                                               or proximate to the incident period.                                                                           Stafford Act.
                                               Consistent with the requirement that Federal                                                                      Further, you are authorized to make
                                               assistance be supplemental, any Federal                                                                        changes to this declaration for the approved
                                               funds provided under the Stafford Act for                                                                      assistance to the extent allowable under the
                                               Hazard Mitigation will be limited to 75                                                                        Stafford Act.



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Document Created: 2018-07-20 01:18:33
Document Modified: 2018-07-20 01:18:33
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 July 13, 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 August 20, 2018.
ContactYuliya A. Gulis, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade, at (202) 325-0042.
FR Citation83 FR 34603 

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