83_FR_62559 83 FR 62327 - Notice of Issuance of Final Determination Concerning Airlift PTTD Brace

83 FR 62327 - Notice of Issuance of Final Determination Concerning Airlift PTTD Brace

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

Federal Register Volume 83, Issue 232 (December 3, 2018)

Page Range62327-62328
FR Document2018-26167

This document provides notice that U.S. Customs and Border Protection (``CBP'') has issued a final determination concerning the country of origin of the Airlift PTTD Brace. CBP has concluded that the country of origin of the Airlift PTTD Brace is Mexico for the purpose of U.S. Government procurement.

Federal Register, Volume 83 Issue 232 (Monday, December 3, 2018)
[Federal Register Volume 83, Number 232 (Monday, December 3, 2018)]
[Notices]
[Pages 62327-62328]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26167]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Airlift PTTD 
Brace

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 the Airlift PTTD Brace. CBP has concluded that the 
country of origin of the Airlift PTTD Brace is Mexico for the purpose 
of U.S. Government procurement.

DATES: The final determination was issued on November 23, 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 January 2, 2019

FOR FURTHER INFORMATION CONTACT: Joy Marie Virga, Valuation and Special 
Programs Branch, Regulations and Rulings, Office of Trade (202) 325-
1511.

SUPPLEMENTARY INFORMATION: Notice is hereby given that on 11/23/18, CBP 
issued a final determination concerning Airlift PTTD Brace, which may 
be offered to the United States Government under an undesignated 
government procurement contract. The final determination, HQ H299701, 
was issued at the request of DJO, LLC, 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 aircell produced in Mexico 
imparts the final product with its essential character. Further, the 
assembly operations completed in Mexico permanently attach the various 
parts to each other so that they lose their individual identities and 
become part of the completed Airlift. Therefore, the country of origin 
for purposes of U.S. Government procurement of the Airlift PTTD Brace 
is Mexico.
    Section 177.29, CBP Regulations (19 CFR 177.29), provides that 
notice of final determinations shall be published in the Federal 
Register within 60 days of the date the final determination is issued. 
Section 177.30, CBP Regulations (19 CFR 177.30), provides that any 
party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial 
review of a final determination within 30 days of publication of such 
determination in the Federal Register.

    Dated: November 23, 2018.
Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.

HQ H299701

November 23, 2018

OT:RR:CTF:VS: H299701 JMV

CATEGORY: Origin

Matthew M. Caligur
Baker & Hostetler, LLP
811 Main St., Suite 1100
Houston, TX 77002-6111

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

Dear Mr. Caligur,

    This is in response to your request of June 11, 2018 requesting 
a final determination regarding the country of origin of the Airlift 
PTTD Brace (``Airlift'') on behalf of DJO, LLC (``DJO'') pursuant to 
subpart B of Part 177, U.S. Customs and Border Protection (``CBP'') 
Regulations (19 C.F.R. Sec.  177.21, et seq.). As a domestic 
producer of merchandise, DJO is a party-at-interest within the 
meaning of 19 C.F.R. Sec.  177.22(d) and is entitled to request this 
final determination.
    You requested confidential treatment for certain information 
contained in your submission and in the file. Pursuant to 19 C.F.R. 
Sec.  177.2(b)(7), the identified information has been bracketed and 
will be redacted in the public version of this ruling.

FACTS:

    DJO is a global provider of orthopedic devices, including a 
broad range of products used for rehabilitation, pain management and 
physical therapy. The Airlift, one of the items that DJO develops, 
is designed for the treatment of posterior tibial tendon dysfunction 
(``PTTD''), or for early signs and symptoms of the adult acquired 
flat foot. A sample of the finished article and photographs of the 
components were submitted with your request. The Airlift is 
essentially a brace that covers the ankle and foot. Depending on the 
severity of the patient's condition, the Airlift can be prescribed 
for use as part of a conservative treatment to stabilize the foot 
and ankle to help prevent further degeneration. It can also be 
prescribed for use post-surgically and during rehabilitation. The 
Airlift is produced in three sizes for both the left and right foot 
with varying dimensions, but all have the same structure and 
composition and are manufactured using the process described below. 
Foot support and ankle stabilization are provided by the Airlift's 
integrated aircell and semi-rigid shells. The aircell, located under 
the foot arch, is integral to preventing and rehabilitating flat 
foot. The aircell is adjustable using a hand bulb, which is included 
with the brace. When inflated, the aircell can accommodate variances 
in arch shapes and heights. The semi-rigid shells are anatomically 
designed to the shape of the ankle for secure support and 
stabilization. These shells help realign the ankle and support the 
patient. The Airlift uses a rear entry design which allows the 
patient to slip his or her foot into the back of the brace. Two hook 
and loop straps secure the brace and can be used to adjust fit. 
These design elements eliminate the need for lacing, improve patient 
compliance and make the Airlift easier to put on than custom braces.
    The Airlift is produced from the following components: a form 
assembly from [country A], a springloaded valve from [country B], a 
hand bulb from [country A], an aircell from Mexico, tubing from 
[country C], a pneumatic coupler from [country D], an elbow from 
[country D], resin polyether from [country D], colorant from 
[country D], foam from [country C], polyurethane laminate from 
[country D], and polyurethane film from [country D]. Production of 
the Airlift takes place at DJO's facility in Tijuana, Mexico. DJO 
produces the aircells in Mexico using

[[Page 62328]]

laminate polyurethane from [country D], stuffing them with foam and 
sewing the sides closed. DJO places the pneumatic coupling on the 
fixture. DJO connects the tubing to the pneumatic coupling. DJO 
places the aircell on the fixture to assemble the side of pneumatic 
coupling in the aircell tubing. DJO then inserts the completed 
aircells into the wrap, ensuring that the tubing is exposed and 
open. DJO then places the elbow and valve into the pneumatic 
fixtures to create an assembly, which is also placed into the wrap 
and connected to the tubing. The Airlift is then packaged into a box 
along with the hand bulb and instructional information, which is 
labeled for shipping.
    You state that the Airlift is classified under subheading 
9021.10.00, Harmonized Tariff Schedule of the United States 
(``HTSUS''), which provides for ``Orthopedic appliances, including 
crutches, surgical belts and trusses; splints and other fracture 
appliances; artificial parts of the body; hearing aids and other 
appliances which are worn or carried, or implanted in the body, to 
compensate for a defect or disability; parts and accessories 
thereof; Orthopedic or fracture appliances, and parts and 
accessories thereof.''

ISSUE:

    What is the country of origin of the Airlift 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.).
    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 determining whether the combining of parts constitutes a 
substantial transformation, the determinative issue for CBP is the 
extent of operations performed and whether the parts lose their 
identity and become an integral part of the new article. Belcrest 
Linens v. United States, 6 C.I.T. 204 (1983), aff'd, 741 F.2d 1368 
(Fed. Cir. 1984). Assembly operations that are minimal or simple, as 
opposed to complex or meaningful, will generally not result in a 
substantial transformation. See Headquarters Ruling Letter (``HQ'') 
H125975, dated January 19, 2011. CBP considers the totality of the 
circumstances and makes such determinations on a case-by-case basis.
    The Court of International Trade has also applied the ``essence 
test'' to determine whether the identity of an article is changed 
through assembly or processing. For example, in Uniroyal, Inc. v. 
United States, 3 C.I.T. 220, 225 (1982), aff'd, 702 F.2d 1022 (Fed. 
Cir. 1983), the court held that imported shoe uppers added to an 
outer sole in the United States were the ``very essence of the 
finished shoe'' and thus were not substantially transformed into a 
product of the United States. Further, the court noted that the 
attachment of the outsole to the upper was a minor manufacturing or 
combining process which left the identity of the upper intact.
    Here, the manufacturing operations that combine the Airlift into 
a finished product are completed at DJO's facility in Mexico and 
cause the various parts to lose their individual identities. In 
Mexico, DJO creates the tubing used to inflate the aircell, cuts the 
laminate polyurethane to size and shape for the aircell, fills the 
aircell with foam, and sews it closed. DJO then connects the tubing 
into the aircell using a coupler and plastic elbow, after which the 
aircell is sewn into the Airlift. This processing permanently 
attaches the various parts to each other so that they lose their 
individual identities and become part of the completed Airlift.
    Further, similar to the shoe upper in Uniroyal, the aircell 
imparts the essence of the brace as it is the part that provides 
arch support to prevent or reduce adult onset flat foot, and 
supports the ankle to treat PTTD. While the form assembly is 
imported with lateral stays that work to immobilize the ankle, it is 
not until the insertion of the aircell that the Airlift is suitable 
for treatment of these conditions. Therefore, a customer is likely 
to make the decision to purchase the Airlift based on the function 
of the aircell.
    As such, we find the manufacture of the aircell in Mexico and 
additional processing to create a fully functioning brace results in 
a substantial transformation of the components such that the country 
of origin for government procurement purposes is Mexico.

HOLDING:

    The country of origin of the Airlift for purposes of U.S. 
Government procurement is Mexico.
    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 CFR 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. 2018-26167 Filed 11-30-18; 8:45 am]
 BILLING CODE 9111-14-P



                                                                           Federal Register / Vol. 83, No. 232 / Monday, December 3, 2018 / Notices                                                 62327

                                               DATES:  The meeting will be held on                     the purpose of U.S. Government                        Dear Mr. Caligur,
                                               December 8, 2018, from 8:00 a.m. to                     procurement.                                             This is in response to your request of June
                                               5:30 p.m. (EST).                                                                                              11, 2018 requesting a final determination
                                                                                                       DATES: The final determination was
                                                                                                                                                             regarding the country of origin of the Airlift
                                               ADDRESSES: The meeting will be                          issued on November 23, 2018. A copy                   PTTD Brace (‘‘Airlift’’) on behalf of DJO, LLC
                                               videocast. A link to the videocast will                 of the final determination is attached.               (‘‘DJO’’) pursuant to subpart B of Part 177,
                                               be posted on the NCCIH website,                         Any party-at-interest, as defined in 19               U.S. Customs and Border Protection (‘‘CBP’’)
                                               https://nccih.nih.gov/node/12170, once                  CFR 177.22(d), may seek judicial review               Regulations (19 C.F.R. § 177.21, et seq.). As
                                               available.                                              of this final determination within                    a domestic producer of merchandise, DJO is
                                                                                                       January 2, 2019                                       a party-at-interest within the meaning of 19
                                               FOR FURTHER INFORMATION CONTACT:     For                                                                      C.F.R. § 177.22(d) and is entitled to request
                                               information concerning this meeting,                    FOR FURTHER INFORMATION CONTACT: Joy
                                                                                                                                                             this final determination.
                                               see the NCCIH website, https://                         Marie Virga, Valuation and Special                       You requested confidential treatment for
                                               nccih.nih.gov/node/12170, or contract                   Programs Branch, Regulations and                      certain information contained in your
                                               Dr. Angela Arensdorf, Science Policy                    Rulings, Office of Trade (202) 325–1511.              submission and in the file. Pursuant to 19
                                               Analyst, Office of Policy, Planning, and                SUPPLEMENTARY INFORMATION: Notice is                  C.F.R. § 177.2(b)(7), the identified
                                               Evaluation, National Center for                         hereby given that on 11/23/18, CBP                    information has been bracketed and will be
                                               Complementary and Integrative Health,                   issued a final determination concerning               redacted in the public version of this ruling.
                                               9000 Rockville Pike, Building 31, Suite                 Airlift PTTD Brace, which may be                      FACTS:
                                               2B11, Bethesda, MD 20892, telephone:                    offered to the United States Government                  DJO is a global provider of orthopedic
                                               301–827–8277; email:                                    under an undesignated government                      devices, including a broad range of products
                                               angela.arensdorf@nih.gov.                               procurement contract. The final                       used for rehabilitation, pain management and
                                               SUPPLEMENTARY INFORMATION: This                         determination, HQ H299701, was issued                 physical therapy. The Airlift, one of the items
                                                                                                       at the request of DJO, LLC, under                     that DJO develops, is designed for the
                                               workshop will be an all-day meeting
                                                                                                       procedures set forth at 19 CFR part 177,              treatment of posterior tibial tendon
                                               held on December 8, 2018 and will                                                                             dysfunction (‘‘PTTD’’), or for early signs and
                                               bring together representatives from the                 subpart B, which implements Title III of
                                                                                                                                                             symptoms of the adult acquired flat foot. A
                                               NIH, FDA, DEA, academia, and industry                   the Trade Agreements Act of 1979, as                  sample of the finished article and
                                               to discuss the issues related to                        amended (19 U.S.C. 2511–18). In the                   photographs of the components were
                                               conducting research with cannabinoids.                  final determination, CBP concluded that               submitted with your request. The Airlift is
                                               The goals of this meeting are to gain an                the aircell produced in Mexico imparts                essentially a brace that covers the ankle and
                                               understanding of how to navigate this                   the final product with its essential                  foot. Depending on the severity of the
                                                                                                       character. Further, the assembly                      patient’s condition, the Airlift can be
                                               regulatory space, discuss future research
                                                                                                       operations completed in Mexico                        prescribed for use as part of a conservative
                                               opportunities, and foster collaborations.                                                                     treatment to stabilize the foot and ankle to
                                               The focus of this workshop will be on                   permanently attach the various parts to
                                                                                                                                                             help prevent further degeneration. It can also
                                               the state of the science and working                    each other so that they lose their
                                                                                                                                                             be prescribed for use post-surgically and
                                               within current regulations. This meeting                individual identities and become part of              during rehabilitation. The Airlift is produced
                                               will NOT discuss challenging or                         the completed Airlift. Therefore, the                 in three sizes for both the left and right foot
                                               changing current Federal laws, policies                 country of origin for purposes of U.S.                with varying dimensions, but all have the
                                               or regulations.                                         Government procurement of the Airlift                 same structure and composition and are
                                                                                                       PTTD Brace is Mexico.                                 manufactured using the process described
                                                 Dated: November 23, 2018.                                Section 177.29, CBP Regulations (19                below. Foot support and ankle stabilization
                                               David Shurtleff,                                        CFR 177.29), provides that notice of                  are provided by the Airlift’s integrated aircell
                                               Acting Director, National Center for                    final determinations shall be published               and semi-rigid shells. The aircell, located
                                               Complementary and Integrative Health,                   in the Federal Register within 60 days                under the foot arch, is integral to preventing
                                               National Institutes of Health.                                                                                and rehabilitating flat foot. The aircell is
                                                                                                       of the date the final determination is
                                               [FR Doc. 2018–26127 Filed 11–30–18; 8:45 am]                                                                  adjustable using a hand bulb, which is
                                                                                                       issued. Section 177.30, CBP Regulations               included with the brace. When inflated, the
                                               BILLING CODE 4140–01–P                                  (19 CFR 177.30), provides that any                    aircell can accommodate variances in arch
                                                                                                       party-at-interest, as defined in 19 CFR               shapes and heights. The semi-rigid shells are
                                                                                                       177.22(d), may seek judicial review of a              anatomically designed to the shape of the
                                                                                                       final determination within 30 days of                 ankle for secure support and stabilization.
                                               DEPARTMENT OF HOMELAND                                  publication of such determination in the              These shells help realign the ankle and
                                               SECURITY                                                Federal Register.                                     support the patient. The Airlift uses a rear
                                                                                                                                                             entry design which allows the patient to slip
                                               U.S. Customs and Border Protection                        Dated: November 23, 2018.                           his or her foot into the back of the brace. Two
                                                                                                       Alice A. Kipel,                                       hook and loop straps secure the brace and
                                               Notice of Issuance of Final                             Executive Director, Regulations and Rulings,          can be used to adjust fit. These design
                                               Determination Concerning Airlift PTTD                   Office of Trade.                                      elements eliminate the need for lacing,
                                               Brace                                                                                                         improve patient compliance and make the
                                                                                                       HQ H299701                                            Airlift easier to put on than custom braces.
                                               AGENCY:  U.S. Customs and Border                        November 23, 2018                                        The Airlift is produced from the following
                                               Protection, Department of Homeland                      OT:RR:CTF:VS: H299701 JMV
                                                                                                                                                             components: a form assembly from [country
                                               Security.                                                                                                     A], a springloaded valve from [country B], a
                                                                                                       CATEGORY: Origin                                      hand bulb from [country A], an aircell from
                                               ACTION: Notice of final determination.
                                                                                                       Matthew M. Caligur                                    Mexico, tubing from [country C], a pneumatic
khammond on DSK30JT082PROD with NOTICES




                                               SUMMARY:   This document provides                       Baker & Hostetler, LLP                                coupler from [country D], an elbow from
                                                                                                       811 Main St., Suite 1100                              [country D], resin polyether from [country D],
                                               notice that U.S. Customs and Border                     Houston, TX 77002–6111                                colorant from [country D], foam from
                                               Protection (‘‘CBP’’) has issued a final                                                                       [country C], polyurethane laminate from
                                                                                                       RE: U.S. Government Procurement; Title III,
                                               determination concerning the country of                   Trade Agreements Act of 1979 (19 U.S.C.             [country D], and polyurethane film from
                                               origin of the Airlift PTTD Brace. CBP                     § 2511); Subpart B, Part 177, CBP                   [country D]. Production of the Airlift takes
                                               has concluded that the country of origin                  Regulations; Country of Origin of Airlift           place at DJO’s facility in Tijuana, Mexico.
                                               of the Airlift PTTD Brace is Mexico for                   PTTD Brace                                          DJO produces the aircells in Mexico using



                                          VerDate Sep<11>2014   16:52 Nov 30, 2018   Jkt 247001   PO 00000   Frm 00038   Fmt 4703   Sfmt 4703   E:\FR\FM\03DEN1.SGM   03DEN1


                                               62328                       Federal Register / Vol. 83, No. 232 / Monday, December 3, 2018 / Notices

                                               laminate polyurethane from [country D],                 circumstances and makes such                          DEPARTMENT OF HOMELAND
                                               stuffing them with foam and sewing the sides            determinations on a case-by-case basis.               SECURITY
                                               closed. DJO places the pneumatic coupling                  The Court of International Trade has also
                                               on the fixture. DJO connects the tubing to the          applied the ‘‘essence test’’ to determine             U.S. Customs and Border Protection
                                               pneumatic coupling. DJO places the aircell              whether the identity of an article is changed
                                               on the fixture to assemble the side of                  through assembly or processing. For
                                                                                                                                                             Notice of Issuance of Final
                                               pneumatic coupling in the aircell tubing. DJO           example, in Uniroyal, Inc. v. United States,
                                                                                                       3 C.I.T. 220, 225 (1982), aff’d, 702 F.2d 1022        Determination Concerning Certain Jet
                                               then inserts the completed aircells into the
                                                                                                       (Fed. Cir. 1983), the court held that imported        Fuel
                                               wrap, ensuring that the tubing is exposed and
                                               open. DJO then places the elbow and valve               shoe uppers added to an outer sole in the
                                                                                                       United States were the ‘‘very essence of the          AGENCY:  U.S. Customs and Border
                                               into the pneumatic fixtures to create an                                                                      Protection, Department of Homeland
                                               assembly, which is also placed into the wrap            finished shoe’’ and thus were not
                                               and connected to the tubing. The Airlift is             substantially transformed into a product of           Security.
                                               then packaged into a box along with the hand            the United States. Further, the court noted           ACTION: Notice of final determination.
                                                                                                       that the attachment of the outsole to the
                                               bulb and instructional information, which is
                                                                                                       upper was a minor manufacturing or                    SUMMARY:    This document provides
                                               labeled for shipping.
                                                                                                       combining process which left the identity of
                                                 You state that the Airlift is classified under        the upper intact.
                                                                                                                                                             notice that U.S. Customs and Border
                                               subheading 9021.10.00, Harmonized Tariff                   Here, the manufacturing operations that            Protection (‘‘CBP’’) has issued a final
                                               Schedule of the United States (‘‘HTSUS’’),              combine the Airlift into a finished product           determination concerning the country of
                                               which provides for ‘‘Orthopedic appliances,             are completed at DJO’s facility in Mexico and         origin of certain jet fuel. Based upon the
                                               including crutches, surgical belts and trusses;         cause the various parts to lose their                 facts presented, CBP has concluded that
                                               splints and other fracture appliances;                  individual identities. In Mexico, DJO creates         the country of origin of this jet fuel is
                                               artificial parts of the body; hearing aids and          the tubing used to inflate the aircell, cuts the
                                               other appliances which are worn or carried,
                                                                                                                                                             India for purposes of U.S. Government
                                                                                                       laminate polyurethane to size and shape for
                                               or implanted in the body, to compensate for                                                                   procurement.
                                                                                                       the aircell, fills the aircell with foam, and
                                               a defect or disability; parts and accessories           sews it closed. DJO then connects the tubing          DATES: The final determination was
                                               thereof; Orthopedic or fracture appliances,             into the aircell using a coupler and plastic          issued on November 23, 2018. A copy
                                               and parts and accessories thereof.’’                    elbow, after which the aircell is sewn into the       of the final determination is attached.
                                                                                                       Airlift. This processing permanently attaches         Any party-at-interest, as defined in 19
                                               ISSUE:
                                                                                                       the various parts to each other so that they          CFR 177.22(d), may seek judicial review
                                                 What is the country of origin of the Airlift          lose their individual identities and become
                                               for purposes of U.S. Government                         part of the completed Airlift.                        of this final determination within
                                               Procurement?                                               Further, similar to the shoe upper in              January 2, 2019.
                                                                                                       Uniroyal, the aircell imparts the essence of          FOR FURTHER INFORMATION CONTACT:
                                               LAW AND ANALYSIS:
                                                                                                       the brace as it is the part that provides arch        Teresa M. Frazier, Valuation and
                                                  CBP issues country of origin advisory                support to prevent or reduce adult onset flat
                                               rulings and final determinations as to
                                                                                                                                                             Special Programs Branch, Regulations
                                                                                                       foot, and supports the ankle to treat PTTD.
                                               whether an article is or would be a product             While the form assembly is imported with              and Rulings, Office of Trade (202) 325–
                                               of a designated country or instrumentality for          lateral stays that work to immobilize the             0139.
                                               the purposes of granting waivers of certain             ankle, it is not until the insertion of the           SUPPLEMENTARY INFORMATION: Notice is
                                               ‘‘Buy American’’ restrictions in U.S. law or            aircell that the Airlift is suitable for treatment    hereby given that on 11/23/18, pursuant
                                               practice for products offered for sale to the           of these conditions. Therefore, a customer is         to subpart B of Part 177, U.S. Customs
                                               U.S. Government, pursuant to subpart B of               likely to make the decision to purchase the
                                                                                                       Airlift based on the function of the aircell.
                                                                                                                                                             and Border Protection Regulations (19
                                               Part 177, 19 C.F.R. § 177.21 et seq., which
                                               implements Title III of the Trade Agreements               As such, we find the manufacture of the            CFR part 177, subpart B), CBP issued a
                                               Act of 1979, as amended (19 U.S.C. § 2511 et            aircell in Mexico and additional processing           final determination concerning the
                                               seq.).                                                  to create a fully functioning brace results in        country of origin of certain jet fuel,
                                                  Under the rule of origin set forth under 19          a substantial transformation of the                   which may be offered to the U.S.
                                               U.S.C. § 2518(4)(B):                                    components such that the country of origin            Government under an undesignated
                                               An article is a product of a country or                 for government procurement purposes is                government procurement contract. This
                                               instrumentality only if (i) it is wholly the            Mexico.                                               final determination, HQ H272678, was
                                               growth, product, or manufacture of that                 HOLDING:                                              issued under procedures set forth at 19
                                               country or instrumentality, or (ii) in the case            The country of origin of the Airlift for           CFR part 177, subpart B, which
                                               of an article which consists in whole or in             purposes of U.S. Government procurement is            implements Title III of the Trade
                                               part of materials from another country or               Mexico.                                               Agreements Act of 1979, as amended
                                               instrumentality, it has been substantially                 Notice of this final determination will be
                                               transformed into a new and different article                                                                  (19 U.S.C. 2511–18). In the final
                                                                                                       given in the Federal Register, as required by         determination, CBP concluded that the
                                               of commerce with a name, character, or use              19 C.F.R. § 177.29. Any party-at-interest other
                                               distinct from that of the article or articles                                                                 processing in India results in a
                                                                                                       than the party which requested this final
                                               from which it was so transformed.                       determination may request, pursuant to 19
                                                                                                                                                             substantial transformation. Therefore,
                                               See also 19 C.F.R. § 177.22(a).                         C.F.R. §177.31, that CBP reexamine the                the country of origin of the jet fuel is
                                                  In determining whether the combining of              matter anew and issue a new final                     India for purposes of U.S. Government
                                               parts constitutes a substantial transformation,         determination. Pursuant to 19 CFR 177.30,             procurement. Section 177.29, CBP
                                               the determinative issue for CBP is the extent           any party-at-interest may, within 30 days of          Regulations (19 CFR 177.29), provides
                                               of operations performed and whether the                 publication of the Federal Register Notice            that a notice of final determination shall
                                               parts lose their identity and become an                 referenced above, seek judicial review of this        be published in the Federal Register
                                               integral part of the new article. Belcrest              final determination before the Court of               within 60 days of the date the final
khammond on DSK30JT082PROD with NOTICES




                                               Linens v. United States, 6 C.I.T. 204 (1983),           International Trade.
                                                                                                                                                             determination is issued. Section 177.30,
                                               aff’d, 741 F.2d 1368 (Fed. Cir. 1984).                     Sincerely,                                         CBP Regulations (19 CFR 177.30),
                                               Assembly operations that are minimal or                 Alice A. Kipel,
                                               simple, as opposed to complex or                                                                              provides that any party-at-interest, as
                                                                                                       Executive Director Regulations & Rulings              defined in 19 CFR 177.22(d), may seek
                                               meaningful, will generally not result in a              Office of Trade                                       judicial review of a final determination
                                               substantial transformation. See Headquarters
                                               Ruling Letter (‘‘HQ’’) H125975, dated January           [FR Doc. 2018–26167 Filed 11–30–18; 8:45 am]          within 30 days of publication of such
                                               19, 2011. CBP considers the totality of the             BILLING CODE 9111–14–P                                determination in the Federal Register.


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Document Created: 2018-12-01 00:56:09
Document Modified: 2018-12-01 00:56:09
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 November 23, 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 January 2, 2019
ContactJoy Marie Virga, Valuation and Special Programs Branch, Regulations and Rulings, Office of Trade (202) 325- 1511.
FR Citation83 FR 62327 

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