83_FR_45065 83 FR 44894 - Notice of Issuance of Final Determination Concerning the Visionary Advanced 2 Dietary Supplement Tablets

83 FR 44894 - Notice of Issuance of Final Determination Concerning the Visionary Advanced 2 Dietary Supplement Tablets

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

Federal Register Volume 83, Issue 171 (September 4, 2018)

Page Range44894-44896
FR Document2018-19162

This document provides notice that U.S. Customs and Border Protection (``CBP'') has issued a final determination concerning the country of origin of three Visionary Advanced 2 vitamin and mineral dietary supplement tablets. Based upon the facts presented, for purposes of U.S. Government procurement, CBP has concluded that the United States is the country of origin of the Advanced 2 vitamin and mineral dietary supplement tablets.

Federal Register, Volume 83 Issue 171 (Tuesday, September 4, 2018)
[Federal Register Volume 83, Number 171 (Tuesday, September 4, 2018)]
[Notices]
[Pages 44894-44896]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19162]



[[Page 44894]]

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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning the 
Visionary Advanced 2 Dietary Supplement Tablets

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 three Visionary Advanced 2 vitamin and mineral 
dietary supplement tablets. Based upon the facts presented, for 
purposes of U.S. Government procurement, CBP has concluded that the 
United States is the country of origin of the Advanced 2 vitamin and 
mineral dietary supplement tablets.

DATES: The final determination was issued on August 27, 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 October 4, 2018.

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

SUPPLEMENTARY INFORMATION: Notice is hereby given that on August 27, 
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 three versions of the 
Visionary Advanced 2 vitamin and mineral dietary supplement tablets 
which may be offered to the U.S. Government under an undesignated 
government procurement contract. This final determination, HQ H299717, 
copy attached, was issued under procedures set forth at 19 CFR part 
177, subpart B, which implements Title Ill of the Trade Agreements Act 
of 1979, as amended (19 U.S.C. 2511-18). The three products are 
Visionary Advanced 2 coated tablets, Visionary Orange Advanced 2 
chewable tablets, and Visionary Cherry Advanced 2 chewable tablets. 
Each of the dietary supplement tablets contains the same basic formula 
of vitamins and minerals, but with different flavorings. In the final 
determination, CBP concluded that the combining of the various vitamins 
and minerals in one tablet in the United States results in a product 
that has a name, character and use that is distinct from the individual 
ingredients that are used to make the dietary supplement.
    Therefore, for purposes of U.S. Government procurement, the United 
States is the country of origin. 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: August 27, 2018.
Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.

HQ H299717

August 27, 2018

OT:RR:CTF:VS H299717 RSD

CATEGORY: Origin

Mr. Marino Apollinari Visionary Vitamin Co. P.O. Box 1825 Dearborn, 
Michigan 48122

RE: U.S. Government Procurement; Country of Origin of Advanced 2 
Multiple Vitamin and Mineral Dietary Supplement Tablets; Substantial 
Transformation

Dear Mr. Apollinari:

    This is in response to the Visionary Vitamin Company's 
(Visionary's) request of June 4, 2018, for a final determination 
concerning the country of origin of products known as the Visionary 
Advanced 2 dietary supplements pursuant to subpart B of Part 177 of 
the U.S. Customs and Border protection (``CBP'') Regulations (19 
C.F.R. Part 177). The National Commodity Specialist Division 
forwarded your request to the Headquarters office of Regulations and 
Rulings to issue this final determination.
    As an importer, Visionary 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:

    Visionary is a manufacturer of dietary supplements. At issue are 
three different multiple vitamin and mineral dietary supplement 
tablets. The three dietary supplement tablets are the Advanced 2 
Coated tablets, the Visionary Orange Advanced 2 chewable tablets, 
and the Visionary Cherry Advanced 2 chewable tablets.
    The vitamin and mineral tablets contain the following raw 
materials:

------------------------------------------------------------------------
                                                   Country of origin
------------------------------------------------------------------------
Medicinal Ingredients:
    Vitamin C DC grade (Ascorbic Acid) (97%).  China.
    Vitamin E (As DL-Alpha Tocopherol          China.
     Acetate) 50%-Tab grad.
    Zinc (as oxide) (80.34%).................  India.
    Copper (as cupric oxide) (78.3%).........  USA.
    Lutein (5%) beadlets.....................  China.
    Zeaxanthin (5%) beadlets from Omnixan....  USA.
Other ingredients:
    DI Calcium Phosphate.....................  China.
    Micro crystalline Cellulose..............  India.
    Croscarmellose Sodium....................  Brazil.
    Silicon Dioxide..........................  USA.
    Magnesium Stearate (vegetable source)....  Spain.
    Stearic Acid Vegetable grade.............  Malaysia.
    Pharmaceutical Glaze (only used for        USA.
     coated tablets).
------------------------------------------------------------------------

    Instead of pharmaceutical glaze, the chewable orange and cherry 
tablets contain a natural masking flavor from the United States, 
either in a natural orange flavor or natural cherry flavor. In 
addition, the chewable cherry and orange tablets also incorporate 
sucralose from China. You have indicated that the most expensive 
single ingredient used in making the Advanced 2 dietary supplement 
tablets is the Zeaxanthin Omnixan from the United States.

[[Page 44895]]

    The manufacturing processes of the three products occurs at 
Visionary's facility in Michigan, United States. The same basic 
procedures are used to manufacture the three different dietary 
supplement tablets. A flow chart of the processes was submitted. The 
active and inactive ingredients in powder form are weighed and all 
vital information is logged in.
    Next, the ingredients are dispensed, and the dry mix is blended. 
A vibro sifter is used to pass the raw powder materials through a 
40-mesh screen, while being added to a drum for mixing. Weight and 
yield are recorded. Mixing and lubrication is performed by a 
blender.
    The approved blend is then transferred to the compression area. 
The blend is loaded into the hopper of a tablet press. The tablet 
press is set for the specified parameters and the details are noted 
in a start-up test during the tablet compression. The weight of the 
first few tablets is taken and checked against the actual weight of 
the product. Adjustments in the weight of the tablets are made until 
the right weight is obtained. The hardness of the tablets is also 
adjusted by carefully turning the pressure rollers by hand until the 
correct hardness is obtained. The tablets are then compared to 
previous samples. A series of in-process quality checks are 
performed in various intervals while the tablets are produced. These 
include: 1) appearance; 2) average weight per 10 tablets; 3) tablet 
thickness); 4) disintegration of tablet; 5) friability; 6) hardness; 
and 7) temperature and humidity.
    The coating solution is prepared by loading the tablets in a pan 
and recording the actual weight. The tablets are pre-heated until 
the temperature reaches 100 degrees Fahrenheit. The coating solution 
is sprayed on the tablets until all surfaces of the tablets are 
covered. The tablets are unloaded into trays and placed in an oven 
room for drying. The tablets are then sorted and damaged tablets 
(such as broken, color or thickness variance, capping issues, or 
black/foreign material) are rejected.
    Next, the product moves to the packaging line using the 
following equipment: an unscrambler, a conveyor, a tablet counter, a 
cottoner, a capper labeler, induction sealer, heat tunnel, printer 
coder, accumulation table and weighing balance. A system of quality 
controls occurs to ensure that the tablets are properly packaged, 
coded, and labeled.

ISSUE:

    What is the country of origin of the Visionary Advanced 2 Coated 
tablets, Visionary Orange Advanced 2 Chewable tablets, and Visionary 
Cherry Advanced 2 Chewable tablets 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, as 
amended (19 U.S.C. Sec.  2511 et seq.) (``TAA'').
    Under the rule of origin set forth under 19 U.S.C. Sec.  
2518(4)(8):

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 Federal Acquisition 
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. 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.

48 C.F.R. Sec.  25.003.
    A substantial transformation occurs when an article emerges from 
a process with a new name, character or use different from that 
possessed by the article prior to processing. A substantial 
transformation will not result from a minor manufacturing or 
combining process that leaves the identity of the article intact. 
See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); 
and, National Juice Products Association v. United States, 628 F. 
Supp. 978 (Ct. lnt'I Trade 1986).
    With respect to whether combining and mixing different materials 
results in a substantial transformation, CBP held in Headquarters 
Ruling Letter (``HQ'') 731685, dated March 15, 1990, that converting 
fruit concentrates and other ingredients into fruit drinks in Mexico 
constituted a substantial transformation. The manufacturing process 
involved mixing the juice concentrates with other ingredients 
including water, artificial flavor, sodium benzoate, and food 
coloring. CBP held that, considering the totality of the 
circumstances, a substantial transformation had occurred because 
``[t]he juice concentrates are subsumed into a product that is no 
longer considered a juice.'' This situation is distinguished from a 
situation considered in National Juice Products Ass'n v. United 
States, 628 F. Supp. 978 (Ct. lnt'I Trade 1986), in which the United 
States Court of International Trade (``CIT'') upheld CBP's decision 
in HQ 728557, dated September 4, 1985, that imported orange juice 
concentrate was not substantially transformed when it was mixed with 
water, essential oils, flavoring ingredients and domestic fresh 
juice in order to produce frozen concentrated orange juice and 
reconstituted orange juice. CBP found that the manufacturing process 
did not create an article with a new name, character or use. The CIT 
agreed that the manufacturing process did not change the 
``fundamental character of the product'' as ``it was still 
essentially the juice of oranges``. See HQ H237605 dated June 25, 
2014. In HQ 731685, a substantial transformation was found because 
the raw ingredients had been converted into a different article of 
commerce through a process beyond simple combining, packaging or 
mere diluting.
    In the context of the manufacture of chemical products such as 
pharmaceuticals, CBP has consistently examined the complexity of the 
processing and whether the final article retains the essential 
identity and character of the raw material. CBP has generally held 
that the processing of pharmaceutical products from bulk form into 
measured doses does not result in a substantial transformation. See, 
e.g., HQ 561975, dated April 3, 2002; HQ 561544, dated May 1, 2000; 
HQ 735146, dated November 15, 1993; HQ H267177, dated November 5, 
2016; HQ H233356, dated December 26, 2012; and, HQ 561975, dated 
April 3, 2002. However, where the processing from bulk form into 
measured doses involves the combination of two or more active 
ingredients and the resulting combination offers additional 
medicinal benefits compared to taking each alone, CBP has held that 
a substantial transformation occurs. See, e.g., HQ 563207, dated 
June 1, 2005.
    For example, in HQ 563207, CBP held that the combination of two 
APls to form Actoplus Met, an alternative treatment for type 2 
diabetes, constituted a substantial transformation. The first API, 
Pioglitazone HCI sourced from Japan or other countries, functioned 
as an insulin sensitizer that targets insulin resistance in the 
body. The second API, biguanide sourced from Japan, Spain, and other 
countries, functioned to decrease the amount of glucose produced by 
the liver and to make muscle tissue more sensitive to insulin so 
glucose can be absorbed. In Japan, the two APls were mixed together 
to form the Ectoplasm Met. In holding that a substantial 
transformation occurred when the two APl's were combined, CBP 
emphasized that ``[w]hile we note that pioglitazone and metformin 
may be prescribed separately, the final product, Actoplus Met, 
increases the individual effectiveness of piofliazone and metformin 
in treating type 2 diabetes patients.''
    Similarly, in HQ H253443, dated March 13, 2015, CSP held that 
the combination of two APls in China to produce Prepopik, ``a dual-
acting osmotic and stimulant laxative bowel preparation for a 
colonoscopy in adults,'' constituted a substantial transformation. 
CBP found that taking Prepopik had ``a more stimulative laxative 
effect'' than taking each of the APls individually. Further, in HQ 
H290684, dated July 2, 2018, CSP considered the country of origin of 
Malarone, a drug indicated for the prevention and treatment of 
acute, uncomplicated Plasmodium falciparum malaria. Two separate 
APls were

[[Page 44896]]

mixed to create a fixed combination drug that offered additional 
medicinal benefits compared to taking each API alone. The first API, 
atovaquone, was not indicated for the prevention or treatment of 
malaria, the second API, proguanil hydrochloride, was used to treat 
malaria, but was less effective than Malarone. Because of the 
``synergies in [the APls'] method of action,'' which resulted in a 
product that ``interfere[s] with 2 different pathways'' to prevent 
and treat malaria, CBP held that the combination of atovaquone, 
proguanil hydrochloride, and inactive ingredients to form the 
Malarone tablets in Canada resulted in a substantial transformation.
    In this case, to make the dietary supplement tablets, various 
ingredients from different countries of origin are mixed together 
based on a specific formula. This results in a finished product that 
differs from any of the individual ingredients. The vitamins and 
minerals are put together in one tablet for the purposes of creating 
a product that is designed to promote certain effects that are 
distinct from the effects if only the individual ingredients were 
taken. Similar to HQ H253443, the combination of the vitamins and 
minerals in a single tablet creates a product with a synergistic 
effect that promotes benefits that otherwise would only be possible 
by taking the individual ingredients separately. In other words, the 
combination of the various vitamins and minerals in one tablet 
results in a product that has an identity, character and use that is 
different from and more convenient to use than taking the individual 
raw materials. Accordingly, we find that the three Visionary dietary 
supplement tablets have a new name, character and use different from 
the individual vitamins, minerals, and the inert ingredients used in 
the production of the finished tablets. Therefore, we find that the 
country of origin of the Visionary Advanced 2 multiple vitamin and 
mineral dietary supplement tablets is the United States, where the 
manufacturing process take place.

HOLDING:

    The country of origin of the Visionary Advanced 2 Coated 
Tablets, Visionary Orange Advanced 2 Chewable Tablets, and Visionary 
Cherry Advanced 2 Chewable Tablets for purpose of U.S. Government 
procurement is the United States.
    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 & Rulings Office of 
Trade

[FR Doc. 2018-19162 Filed 8-31-18; 8:45 am]
 BILLING CODE P



                                                44894                                Federal Register / Vol. 83, No. 171 / Tuesday, September 4, 2018 / Notices

                                                DEPARTMENT OF HOMELAND                                                    versions of the Visionary Advanced 2                                         Dated: August 27, 2018.
                                                SECURITY                                                                  vitamin and mineral dietary supplement                                     Alice A. Kipel,
                                                                                                                          tablets which may be offered to the U.S.                                   Executive Director, Regulations and Rulings,
                                                U.S. Customs and Border Protection                                        Government under an undesignated                                           Office of Trade.
                                                                                                                          government procurement contract. This                                      HQ H299717
                                                Notice of Issuance of Final
                                                Determination Concerning the                                              final determination, HQ H299717, copy
                                                                                                                                                                                                     August 27, 2018
                                                Visionary Advanced 2 Dietary                                              attached, was issued under procedures
                                                Supplement Tablets                                                        set forth at 19 CFR part 177, subpart B,                                   OT:RR:CTF:VS H299717 RSD
                                                                                                                          which implements Title Ill of the Trade                                    CATEGORY: Origin
                                                AGENCY:  U.S. Customs and Border                                          Agreements Act of 1979, as amended
                                                Protection, Department of Homeland                                                                                                                   Mr. Marino Apollinari
                                                                                                                          (19 U.S.C. 2511–18). The three products                                    Visionary Vitamin Co.
                                                Security.                                                                 are Visionary Advanced 2 coated                                            P.O. Box 1825
                                                ACTION: Notice of final determination.                                    tablets, Visionary Orange Advanced 2                                       Dearborn, Michigan 48122
                                                SUMMARY:    This document provides                                        chewable tablets, and Visionary Cherry                                     RE: U.S. Government Procurement; Country
                                                notice that U.S. Customs and Border                                       Advanced 2 chewable tablets. Each of                                       of Origin of Advanced 2 Multiple Vitamin
                                                Protection (‘‘CBP’’) has issued a final                                   the dietary supplement tablets contains                                    and Mineral Dietary Supplement Tablets;
                                                determination concerning the country of                                   the same basic formula of vitamins and                                     Substantial Transformation
                                                origin of three Visionary Advanced 2                                      minerals, but with different flavorings.                                   Dear Mr. Apollinari:
                                                vitamin and mineral dietary supplement                                    In the final determination, CBP                                               This is in response to the Visionary
                                                tablets. Based upon the facts presented,                                  concluded that the combining of the                                        Vitamin Company’s (Visionary’s) request of
                                                for purposes of U.S. Government                                           various vitamins and minerals in one                                       June 4, 2018, for a final determination
                                                procurement, CBP has concluded that                                       tablet in the United States results in a                                   concerning the country of origin of products
                                                the United States is the country of origin                                product that has a name, character and                                     known as the Visionary Advanced 2 dietary
                                                of the Advanced 2 vitamin and mineral                                     use that is distinct from the individual                                   supplements pursuant to subpart B of Part
                                                dietary supplement tablets.                                                                                                                          177 of the U.S. Customs and Border
                                                                                                                          ingredients that are used to make the                                      protection (‘‘CBP’’) Regulations (19 C.F.R.
                                                DATES: The final determination was                                        dietary supplement.                                                        Part 177). The National Commodity
                                                issued on August 27, 2018. A copy of                                         Therefore, for purposes of U.S.                                         Specialist Division forwarded your request to
                                                the final determination is attached. Any                                                                                                             the Headquarters office of Regulations and
                                                                                                                          Government procurement, the United
                                                party-at-interest, as defined in 19 CFR                                                                                                              Rulings to issue this final determination.
                                                                                                                          States is the country of origin. Section
                                                177.22(d), may seek judicial review of                                                                                                                  As an importer, Visionary is a party-at-
                                                this final determination within October                                   177.29, CBP Regulations (19 CFR                                            interest within the meaning of 19 C.F.R.
                                                4, 2018.                                                                  177.29), provides that a notice of final                                   § 177.22(d)(1) and is entitled to request this
                                                                                                                          determination shall be published in the                                    final determination.
                                                FOR FURTHER INFORMATION CONTACT:
                                                Robert Dinerstein, Valuation and                                          Federal Register within 60 days of the                                     FACTS:
                                                Special Programs Branch, Regulations                                      date the final determination is issued.
                                                                                                                                                                                                       Visionary is a manufacturer of dietary
                                                and Rulings, Office of Trade, at (202)                                    Section 177.30, CBP Regulations (19                                        supplements. At issue are three different
                                                325–0132.                                                                 CFR 177.30), provides that any party-at-                                   multiple vitamin and mineral dietary
                                                SUPPLEMENTARY INFORMATION: Notice is
                                                                                                                          interest, as defined in 19 CFR 177.22(d),                                  supplement tablets. The three dietary
                                                hereby given that on August 27, 2018,                                     may seek judicial review of a final                                        supplement tablets are the Advanced 2
                                                                                                                          determination within 30 days of                                            Coated tablets, the Visionary Orange
                                                pursuant to subpart B of part 177, U.S.                                                                                                              Advanced 2 chewable tablets, and the
                                                Customs and Border Protection                                             publication of such determination in the
                                                                                                                                                                                                     Visionary Cherry Advanced 2 chewable
                                                Regulations (19 CFR part 177, subpart                                     Federal Register.                                                          tablets.
                                                B), CBP issued a final determination                                                                                                                   The vitamin and mineral tablets contain
                                                concerning the country of origin of three                                                                                                            the following raw materials:

                                                                                                                                                                                                                                                     Country of
                                                                                                                                                                                                                                                       origin

                                                Medicinal Ingredients:
                                                    Vitamin C DC grade (Ascorbic Acid) (97%) ..............................................................................................................................                       China.
                                                    Vitamin E (As DL-Alpha Tocopherol Acetate) 50%-Tab grad ..................................................................................................                                    China.
                                                    Zinc (as oxide) (80.34%) ...........................................................................................................................................................          India.
                                                    Copper (as cupric oxide) (78.3%) .............................................................................................................................................                USA.
                                                    Lutein (5%) beadlets .................................................................................................................................................................        China.
                                                    Zeaxanthin (5%) beadlets from Omnixan .................................................................................................................................                       USA.
                                                Other ingredients:
                                                    DI Calcium Phosphate ...............................................................................................................................................................          China.
                                                    Micro crystalline Cellulose .........................................................................................................................................................         India.
                                                    Croscarmellose Sodium ............................................................................................................................................................            Brazil.
                                                    Silicon Dioxide ...........................................................................................................................................................................   USA.
                                                    Magnesium Stearate (vegetable source) ..................................................................................................................................                      Spain.
sradovich on DSK3GMQ082PROD with NOTICES




                                                    Stearic Acid Vegetable grade ....................................................................................................................................................             Malaysia.
                                                    Pharmaceutical Glaze (only used for coated tablets) ...............................................................................................................                           USA.



                                                  Instead of pharmaceutical glaze, the                                    natural cherry flavor. In addition, the                                    ingredient used in making the Advanced 2
                                                chewable orange and cherry tablets contain a                              chewable cherry and orange tablets also                                    dietary supplement tablets is the Zeaxanthin
                                                natural masking flavor from the United                                    incorporate sucralose from China. You have                                 Omnixan from the United States.
                                                States, either in a natural orange flavor or                              indicated that the most expensive single



                                           VerDate Sep<11>2014         17:54 Aug 31, 2018         Jkt 244001      PO 00000       Frm 00038       Fmt 4703       Sfmt 4703      E:\FR\FM\04SEN1.SGM              04SEN1


                                                                           Federal Register / Vol. 83, No. 171 / Tuesday, September 4, 2018 / Notices                                                44895

                                                   The manufacturing processes of the three             Part 177, 19 C.F.R. § 177.21 et seq., which           essential oils, flavoring ingredients and
                                                products occurs at Visionary’s facility in              implements Title III of the Trade Agreements          domestic fresh juice in order to produce
                                                Michigan, United States. The same basic                 Act of 1979, as amended (19 U.S.C. § 2511 et          frozen concentrated orange juice and
                                                procedures are used to manufacture the three            seq.) (‘‘TAA’’).                                      reconstituted orange juice. CBP found that
                                                different dietary supplement tablets. A flow               Under the rule of origin set forth under 19        the manufacturing process did not create an
                                                chart of the processes was submitted. The               U.S.C. § 2518(4)(8):                                  article with a new name, character or use.
                                                active and inactive ingredients in powder               An article is a product of a country or               The CIT agreed that the manufacturing
                                                form are weighed and all vital information is           instrumentality only if (i) it is wholly the          process did not change the ‘‘fundamental
                                                logged in.                                              growth, product, or manufacture of that               character of the product’’ as ‘‘it was still
                                                   Next, the ingredients are dispensed, and             country or instrumentality, or (ii) in the case       essentially the juice of oranges‘‘. See HQ
                                                the dry mix is blended. A vibro sifter is used          of an article which consists in whole or in           H237605 dated June 25, 2014. In HQ 731685,
                                                to pass the raw powder materials through a              part of materials from another country or             a substantial transformation was found
                                                40-mesh screen, while being added to a drum             instrumentality, it has been substantially            because the raw ingredients had been
                                                for mixing. Weight and yield are recorded.              transformed into a new and different article          converted into a different article of commerce
                                                Mixing and lubrication is performed by a                of commerce with a name, character, or use            through a process beyond simple combining,
                                                blender.                                                distinct from that of the article or articles         packaging or mere diluting.
                                                   The approved blend is then transferred to            from which it was so transformed.                        In the context of the manufacture of
                                                the compression area. The blend is loaded               See also 19 C.F.R. § 177.22(a).                       chemical products such as pharmaceuticals,
                                                into the hopper of a tablet press. The tablet              In rendering advisory rulings and final            CBP has consistently examined the
                                                press is set for the specified parameters and           determinations for purposes of U.S.                   complexity of the processing and whether the
                                                the details are noted in a start-up test during         Government procurement, CBP applies the               final article retains the essential identity and
                                                the tablet compression. The weight of the               provisions of subpart B of Part 177 consistent        character of the raw material. CBP has
                                                first few tablets is taken and checked against          with Federal Acquisition Regulations. See 19          generally held that the processing of
                                                the actual weight of the product.                       C.F.R. § 177.21. In this regard, CBP                  pharmaceutical products from bulk form into
                                                Adjustments in the weight of the tablets are            recognizes that the Federal Acquisition               measured doses does not result in a
                                                made until the right weight is obtained. The            Regulations restrict the U.S. Government’s            substantial transformation. See, e.g., HQ
                                                hardness of the tablets is also adjusted by             purchase of products to U.S.-made or                  561975, dated April 3, 2002; HQ 561544,
                                                carefully turning the pressure rollers by hand          designated country end products for                   dated May 1, 2000; HQ 735146, dated
                                                until the correct hardness is obtained. The             acquisitions subject to the TAA. See 48               November 15, 1993; HQ H267177, dated
                                                tablets are then compared to previous                   C.F.R. § 25.403(c)(1). The Federal Acquisition        November 5, 2016; HQ H233356, dated
                                                samples. A series of in-process quality checks          Regulations define ‘‘U.S.-made end product’’          December 26, 2012; and, HQ 561975, dated
                                                are performed in various intervals while the            as:                                                   April 3, 2002. However, where the processing
                                                tablets are produced. These include: 1)                 . . . an article that is mined, produced, or          from bulk form into measured doses involves
                                                appearance; 2) average weight per 10 tablets;           manufactured in the United States or that is          the combination of two or more active
                                                3) tablet thickness); 4) disintegration of              substantially transformed in the United               ingredients and the resulting combination
                                                tablet; 5) friability; 6) hardness; and 7)              States into a new and different article of            offers additional medicinal benefits
                                                temperature and humidity.                               commerce with a name, character, or use               compared to taking each alone, CBP has held
                                                   The coating solution is prepared by loading          distinct from that of the article or articles         that a substantial transformation occurs. See,
                                                the tablets in a pan and recording the actual           from which it was transformed.                        e.g., HQ 563207, dated June 1, 2005.
                                                weight. The tablets are pre-heated until the            48 C.F.R. § 25.003.                                      For example, in HQ 563207, CBP held that
                                                temperature reaches 100 degrees Fahrenheit.                A substantial transformation occurs when           the combination of two APls to form
                                                The coating solution is sprayed on the tablets          an article emerges from a process with a new          Actoplus Met, an alternative treatment for
                                                until all surfaces of the tablets are covered.          name, character or use different from that            type 2 diabetes, constituted a substantial
                                                The tablets are unloaded into trays and                 possessed by the article prior to processing.         transformation. The first API, Pioglitazone
                                                placed in an oven room for drying. The                  A substantial transformation will not result          HCI sourced from Japan or other countries,
                                                tablets are then sorted and damaged tablets             from a minor manufacturing or combining               functioned as an insulin sensitizer that
                                                (such as broken, color or thickness variance,           process that leaves the identity of the article       targets insulin resistance in the body. The
                                                capping issues, or black/foreign material) are          intact. See United States v. Gibson-Thomsen           second API, biguanide sourced from Japan,
                                                rejected.                                               Co., 27 C.C.P.A. 267 (1940); and, National            Spain, and other countries, functioned to
                                                   Next, the product moves to the packaging             Juice Products Association v. United States,          decrease the amount of glucose produced by
                                                line using the following equipment: an                  628 F. Supp. 978 (Ct. lnt’I Trade 1986).              the liver and to make muscle tissue more
                                                unscrambler, a conveyor, a tablet counter, a               With respect to whether combining and              sensitive to insulin so glucose can be
                                                cottoner, a capper labeler, induction sealer,           mixing different materials results in a               absorbed. In Japan, the two APls were mixed
                                                heat tunnel, printer coder, accumulation                substantial transformation, CBP held in               together to form the Ectoplasm Met. In
                                                table and weighing balance. A system of                 Headquarters Ruling Letter (‘‘HQ’’) 731685,           holding that a substantial transformation
                                                quality controls occurs to ensure that the              dated March 15, 1990, that converting fruit           occurred when the two APl’s were combined,
                                                tablets are properly packaged, coded, and               concentrates and other ingredients into fruit         CBP emphasized that ‘‘[w]hile we note that
                                                labeled.                                                drinks in Mexico constituted a substantial            pioglitazone and metformin may be
                                                                                                        transformation. The manufacturing process             prescribed separately, the final product,
                                                ISSUE:                                                  involved mixing the juice concentrates with           Actoplus Met, increases the individual
                                                  What is the country of origin of the                  other ingredients including water, artificial         effectiveness of piofliazone and metformin in
                                                Visionary Advanced 2 Coated tablets,                    flavor, sodium benzoate, and food coloring.           treating type 2 diabetes patients.’’
                                                Visionary Orange Advanced 2 Chewable                    CBP held that, considering the totality of the           Similarly, in HQ H253443, dated March 13,
                                                tablets, and Visionary Cherry Advanced 2                circumstances, a substantial transformation           2015, CSP held that the combination of two
                                                Chewable tablets for purposes of U.S.                   had occurred because ‘‘[t]he juice                    APls in China to produce Prepopik, ‘‘a dual-
                                                Government procurement?                                 concentrates are subsumed into a product              acting osmotic and stimulant laxative bowel
                                                                                                        that is no longer considered a juice.’’ This          preparation for a colonoscopy in adults,’’
                                                LAW AND ANALYSIS:                                       situation is distinguished from a situation           constituted a substantial transformation. CBP
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                                                   CBP issues country of origin advisory                considered in National Juice Products Ass’n           found that taking Prepopik had ‘‘a more
                                                rulings and final determinations as to                  v. United States, 628 F. Supp. 978 (Ct. lnt’I         stimulative laxative effect’’ than taking each
                                                whether an article is or would be a product             Trade 1986), in which the United States               of the APls individually. Further, in HQ
                                                of a designated country or instrumentality for          Court of International Trade (‘‘CIT’’) upheld         H290684, dated July 2, 2018, CSP considered
                                                the purposes of granting waivers of certain             CBP’s decision in HQ 728557, dated                    the country of origin of Malarone, a drug
                                                ‘‘Buy American’’ restrictions in U.S. law or            September 4, 1985, that imported orange               indicated for the prevention and treatment of
                                                practice for products offered for sale to the           juice concentrate was not substantially               acute, uncomplicated Plasmodium
                                                U.S. Government, pursuant to subpart B of               transformed when it was mixed with water,             falciparum malaria. Two separate APls were



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                                                44896                      Federal Register / Vol. 83, No. 171 / Tuesday, September 4, 2018 / Notices

                                                mixed to create a fixed combination drug that           INTER-AMERICAN FOUNDATION                             Engineer, by telephone at 601–919–
                                                offered additional medicinal benefits                                                                         4668, by email to ramills@blm.gov, or at
                                                compared to taking each API alone. The first            Sunshine Act Meetings                                 the address indicated above. Persons
                                                API, atovaquone, was not indicated for the
                                                prevention or treatment of malaria, the
                                                                                                                                                              who use a telecommunications device
                                                                                                        TIME AND DATE:  September 6, 2018, 11:00              for the deaf (TDD) may call the Federal
                                                second API, proguanil hydrochloride, was                a.m.–12:00 p.m.
                                                used to treat malaria, but was less effective                                                                 Relay Service (FRS) at 1–800–877–8339
                                                than Malarone. Because of the ‘‘synergies in            PLACE: Via tele-conference hosted at                  to contact the above individual during
                                                [the APls’] method of action,’’ which resulted          Inter-American Foundation, 1331                       normal business hours. The FRS is
                                                in a product that ‘‘interfere[s] with 2 different       Pennsylvania Ave. NW, Suite 1200,                     available 24 hours a day, 7 days a week,
                                                pathways’’ to prevent and treat malaria, CBP            Washington, DC 20004.                                 to leave a message or question with the
                                                held that the combination of atovaquone,                STATUS: Meeting of the Board of                       above individual. You will receive a
                                                proguanil hydrochloride, and inactive                   Directors, Open to the public.
                                                ingredients to form the Malarone tablets in                                                                   reply during normal business hours.
                                                Canada resulted in a substantial                        MATTERS TO BE CONSIDERED:                             SUPPLEMENTARY INFORMATION: This coal
                                                transformation.                                         • Commemorating the IAF’s 50th                        lease sale is being held in response to
                                                   In this case, to make the dietary                      Anniversary                                         a lease by application (LBA) filed by
                                                supplement tablets, various ingredients from            FOR DIAL-IN INFORMATION CONTACT: Karen                Best Coal Company. The Federal coal
                                                different countries of origin are mixed                 Vargas, Executive Assistant, (202) 524–               reserves to be re-offered consist of all
                                                together based on a specific formula. This              8869.                                                 reserves recoverable by surface mining
                                                results in a finished product that differs from
                                                                                                        CONTACT PERSON FOR MORE INFORMATION:                  methods in the following described
                                                any of the individual ingredients. The
                                                vitamins and minerals are put together in one           Paul Zimmerman, General Counsel,                      lands located approximately 5 miles
                                                tablet for the purposes of creating a product           (202) 683–7118.                                       north of Mt. Olive, Alabama, in Jefferson
                                                that is designed to promote certain effects             Paul Zimmerman,
                                                                                                                                                              County, Alabama:
                                                that are distinct from the effects if only the
                                                                                                        General Counsel.                                      Huntsville Meridian, Alabama
                                                individual ingredients were taken. Similar to
                                                HQ H253443, the combination of the                      [FR Doc. 2018–19190 Filed 8–30–18; 11:15 am]          T. 15 S, R. 4 W,
                                                vitamins and minerals in a single tablet                BILLING CODE 7025–01–P                                  Sec. 24, SW1⁄4NW1⁄4, N1⁄2SW1⁄4, and
                                                creates a product with a synergistic effect                                                                       SE1⁄4SW1⁄4.
                                                that promotes benefits that otherwise would                                                                     The areas described aggregate 160.82 acres.
                                                only be possible by taking the individual
                                                                                                        DEPARTMENT OF THE INTERIOR                              The Narley Mine Coal Tract contains
                                                ingredients separately. In other words, the
                                                combination of the various vitamins and                                                                       three minable coal beds known as the
                                                minerals in one tablet results in a product
                                                                                                        Bureau of Land Management                             New Castle, Mary Lee, and Blue Creek
                                                that has an identity, character and use that            [LLES930000.LLES1320000.EL0000]                       seams of the Mary Lee coal group. The
                                                is different from and more convenient to use                                                                  seams are under private surface lands.
                                                than taking the individual raw materials.               Notice of Competitive Coal Lease Sale                 The minable thickness of these coal
                                                Accordingly, we find that the three Visionary           ALES–55199, Alabama                                   beds for this tract are approximately 4
                                                dietary supplement tablets have a new name,                                                                   to 5 feet. The tract contains
                                                character and use different from the                    AGENCY:   Bureau of Land Management,
                                                                                                                                                              approximately 469,000 tons of
                                                individual vitamins, minerals, and the inert            Interior.
                                                ingredients used in the production of the                                                                     recoverable high-volatile bituminous
                                                                                                        ACTION: Notice.                                       coal. The estimated average coal quality
                                                finished tablets. Therefore, we find that the
                                                country of origin of the Visionary Advanced             SUMMARY:   Notice is hereby given that                on an ‘‘as received basis’’ is as follows:
                                                2 multiple vitamin and mineral dietary                  the coal resources in the lands described
                                                supplement tablets is the United States,                below in Jefferson County, Alabama,                   12,500 ......... British Thermal Unit (Btu/lb).
                                                where the manufacturing process take place.                                                                   3.50 ............. Percent moisture.*
                                                                                                        will be re-offered for competitive lease
                                                HOLDING:                                                by sealed bid in accordance with the                  12.00 ........... Percent ash.
                                                                                                                                                              34 ................ Percent volatile matter.
                                                   The country of origin of the Visionary               provisions of the Mineral Leasing Act of              50.50 ........... Percent fixed carbon.
                                                Advanced 2 Coated Tablets, Visionary                    1920, as amended.                                     1.50 ............. Percent sulfur.
                                                Orange Advanced 2 Chewable Tablets, and                 DATES: The coal lease sale will be held                 * Estimated as received moisture; also
                                                Visionary Cherry Advanced 2 Chewable                    at 1 p.m. Central Daylight Time (CDT)                 used for calculating as received from dry
                                                Tablets for purpose of U.S. Government                  on a date to be determined by the BLM                 basis.
                                                procurement is the United States.
                                                   Notice of this final determination will be
                                                                                                        Eastern States Deputy State Director, no                 The tract will be leased to the
                                                given in the Federal Register, as required by           sooner than October 4, 2018. Sealed                   qualified bidder of the highest cash
                                                19 C.F.R. § 177.29. Any party-at-interest other         bids must be received on or before 10                 amount, provided that the bid meets or
                                                than the party which requested this final               a.m. CDT on the date of sale.                         exceeds the BLM’s estimate of the fair
                                                determination may request, pursuant to 19               ADDRESSES: The date of the sale will be               market value of the tract. The minimum
                                                C.F.R. § 177.31, that CBP reexamine the                 posted at https://www.blm.gov/eastern-                bid established by regulation is $100 per
                                                matter anew and issue a new final                       states. The lease sale will be held at the            acre or fraction thereof. The minimum
                                                determination. Pursuant to 19 C.F.R.
                                                                                                        Bureau of Land Management (BLM)                       bid is not intended to represent fair
                                                § 177.30, any party-at-interest may, within 30
                                                days of publication of the Federal Register             Southeastern States District Office                   market value. The fair-market value will
                                                Notice referenced above, seek judicial review           located at 273 Market Street, Flowood,                be determined by the authorized officer
                                                of this final determination before the Court            MS 39232. The Detailed Statement of                   after the sale.
                                                                                                        Lease Sale, the proposed coal lease, and                 The sealed bids should be sent by
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                                                of International Trade.
                                                Sincerely,                                              Casefile ALES–55199 are available at                  certified mail, return-receipt requested,
                                                                                                        this address. Sealed bids must be                     or be hand delivered to the cashier,
                                                Alice A. Kipel, Executive Director                      submitted to the Cashier, BLM                         BLM Southeastern States District Office,
                                                Regulations & Rulings
                                                                                                        Southeastern States District Office, at               at the address given above and clearly
                                                Office of Trade
                                                                                                        this same address.                                    marked ‘‘Sealed Bid for ALES–55199
                                                [FR Doc. 2018–19162 Filed 8–31–18; 8:45 am]             FOR FURTHER INFORMATION CONTACT:                      Coal Sale—Not to be opened before 1
                                                BILLING CODE P                                          Contact Randall Mills, BLM Mining                     p.m. CDT on (date of Sale), 2018.’’ The


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Document Created: 2018-09-01 02:59:40
Document Modified: 2018-09-01 02:59:40
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 August 27, 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 October 4, 2018.
ContactRobert Dinerstein, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade, at (202) 325-0132.
FR Citation83 FR 44894 

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