Notice2021-12352
Notice of Issuance of Final Determination Concerning Certain Fixed and Portable Patient Ceiling Lift Systems
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 14, 2021
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
This document provides notice that U.S. Customs and Border Protection (CBP) has issued a final determination concerning the country of origin of certain fixed and portable patient ceiling lift systems that will be installed at a patient's residence or healthcare setting. Based upon the facts presented, CBP has concluded in the final determination that the patient ceiling lift systems would not be products of a foreign country or instrumentality designated pursuant to 19 U.S.C. 2511(b) for purposes of U.S. Government procurement.
Full Text
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<title>Federal Register, Volume 86 Issue 112 (Monday, June 14, 2021)</title>
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[Federal Register Volume 86, Number 112 (Monday, June 14, 2021)]
[Notices]
[Pages 31510-31512]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-12352]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final Determination Concerning Certain
Fixed and Portable Patient Ceiling Lift Systems
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: Notice of final determination.
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SUMMARY: This document provides notice that U.S. Customs and Border
Protection (CBP) has issued a final determination concerning the
country of origin of certain fixed and portable patient ceiling lift
systems that will be installed at a patient's residence or healthcare
setting. Based upon the facts presented, CBP has concluded in the final
determination that the patient ceiling lift systems would not be
products of a foreign country or instrumentality designated pursuant to
19 U.S.C. 2511(b) for purposes of U.S. Government procurement.
DATES: The final determination was issued on June 4, 2021. 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 no later than July 14, 2021.
FOR FURTHER INFORMATION CONTACT: Albena Peters, Valuation and Special
Programs Branch, Regulations and Rulings, Office of Trade, at (202)
325-0321.
SUPPLEMENTARY INFORMATION: Notice is hereby given that on June 4, 2021,
CBP issued a final determination concerning the country of origin of
fixed and portable patient ceiling lift systems for purposes of Title
III of the Trade Agreements Act of 1979. This final determination, HQ
H309124, was issued at the request of the party-at-interest, 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 has concluded that, based
upon the facts presented, the fixed and portable patient ceiling lift
systems would not be products of a foreign country or instrumentality
designated pursuant to 19 U.S.C. 2511(b) for purposes of U.S.
Government procurement. Section 177.29, CBP Regulations (19 CFR
177.29), provides that a notice of final determination shall be
published in the Federal Register within 60 days of the date the final
determination is issued. Section 177.30, CBP Regulations (19 CFR
177.30), provides that any party-at-interest, as defined in 19 CFR
177.22(d), may seek judicial review of a final determination within 30
days of publication of such determination in the Federal Register.
Dated: June 4, 2021.
Joanne R. Stump,
Acting Executive Director, Regulations and Rulings, Office of Trade.
HQ H309124
June 4, 2021
OT:RR:CTF:VS H309124 AP
CATEGORY: Origin
Luis F. Arandia, Jr.
Polsinelli PC
2950 N Harwood St., Ste. 2100
Dallas, TX 75201
RE: U.S. Government Procurement; Title III, Trade Agreements Act of
1979 (19 U.S.C. 2511); Subpart B, Part 177, CBP Regulations; Country
of Origin of Fixed and Portable Patient Ceiling Lift Systems
Dear Mr. Arandia:
[[Page 31511]]
This is in response to your February 4, 2020 request,\1\ on
behalf of Handicare USA, for a final determination concerning the
country of origin of patient ceiling lift systems. This request is
being sought because your client wants to confirm eligibility of the
merchandise for U.S. government procurement purposes under Title III
of the Trade Agreements Act of 1979 (``TAA''), as amended (19 U.S.C.
2511 et seq.). Handicare USA is a party-at-interest within the
meaning of 19 CFR 177.22(d)(1) and 177.23(a).
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\1\ You submitted a supplemental letter on February 26, 2020.
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Facts
Handicare USA is the U.S. subsidiary of the Handicare Group AB
based in Stockholm, Sweden, which manufactures patient ceiling lift
systems.\2\ Handicare USA's North American headquarters and
manufacturing facility is in St. Louis, Missouri with local offices
across the U.S. and Canada. These offices are full-service centers
that include inventory, customer service, technical support, sales,
and a showroom.
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\2\ See Handicare, Ceiling Lifts, <a href="https://www.handicareusa.com/product-category/homecare/ceiling-lifts/">https://www.handicareusa.com/product-category/homecare/ceiling-lifts/</a> (last visited May 17,
2021).
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You describe the subject patient ceiling lift systems as
consisting of a ceiling lift unit mounted on a XY rail system. Each
ceiling lift system is assembled and installed at a patient's
residence or healthcare setting. The ceiling systems can be fixed
(model C-625) or portable (model P-440). The fixed lift remains on
the same track system and cannot be moved to another room. For the
portable system, the lift is designed to be taken down from the
track system and moved to a different track system in another room.
The major components of the fixed and portable ceiling lift
systems are the regular and super tracks, charging station
subassembly, gantry subassembly, ceiling lift motor subassembly, and
patient carry bar subassembly. The regular and super tracks \3\ of
Canadian or Mexican origin are sub-components of the entire system
and are imported with no additional assembly. The charging station
of U.S. origin consists of a charging battery, housing, and cables.
The gantry of U.S. origin consists of trolley wheels, track
brackets, fasteners, washers, and spacers, and may include a charger
block. The carry bar of Chinese or Canadian origin is fitted with
bull horn or spring latch connectors, and narrow or wide bars. You
describe the ceiling lift motor subassembly as ``the heart'' of the
entire lift system and as U.S.-originating. It consists of the
ceiling lift motor, circuit board, and housing. The portable ceiling
lift motor subassembly (model P-440) has a U.S. originating motor
and circuit board. The fixed ceiling lift motor subassembly (model
C-625) has a U.K.-originating motor and U.S.-originating board.
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\3\ The regular track is the standard rail for most applications
while the super track is a heavier rail for longer free spans
between attachment points.
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The hardware components are the above-ceiling attachments that
comprise the mounting for the patient lift system and include the
perpendicular brace strut channel (U.S. or Taiwanese origin),
bracket (Canadian or Mexican origin), end pin (Chinese origin), end
cap (Canadian or Mexican origin), strut channel (U.S. or Taiwanese
origin), and bolt, lock washer, threaded rod, hex nut, fitting, lock
washer, channel nut, coupler nut, seismic wedge anchor, and square
washer (originating from various countries including China).
The charging station, gantry, and ceiling lift motor
subassemblies occurs in Handicare USA's manufacturing facility in
St. Louis. At the customer installation site, Handicare USA modifies
the tracks and assembles them with the charging station, gantry,
ceiling lift motor, and carry bar subassemblies into the patient
ceiling lift system. The installation process involves measuring and
laying out where the tracks and the attachment points to concrete
deck and ceiling brackets should go; installing the structure and
the parallel tracks; installing the traversing track, trolley and
lift; and testing and verification. The installation includes
machine processes such as cutting struts using a band saw, cutting a
threaded rod, and drilling into a ceiling.
Issue
What is the country of origin of the subject patient lift
systems for purposes of U.S. Government procurement?
Law and Analysis
U.S. Customs and Border Protection (``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 CFR 177.21-177.31, which implements Title III of the
TAA, as amended (19 U.S.C. 2511-2518).
CBP's authority to issue advisory rulings and final
determinations is set forth in 19 U.S.C. 2515(b)(1), which states:
For the purposes of this subchapter, the Secretary of the
Treasury shall provide for the prompt issuance of advisory rulings
and final determinations on whether, under section 2518(4)(B) of
this title, an article is or would be a product of a foreign country
or instrumentality designated pursuant to section 2511(b) of this
title.
The rule of origin set forth under 19 U.S.C. 2518(4)(B) states:
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.
In rendering advisory rulings and final determinations for
purposes of U.S. Government procurement, CBP applies the provisions
of subpart B of Part 177 consistent with the Federal Procurement
Regulations. See 19 CFR 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 CFR 25.403(c)(1).
The Federal Acquisition Regulations, 48 CFR 25.003, 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.
Section 25.003 defines ``designated country end product'' as:
a WTO GPA [World Trade Organization Government Procurement
Agreement] country end product, an FTA [Free Trade Agreement]
country end product, a least developed country end product, or a
Caribbean Basin country end product. Section 25.003 defines ``WTO
GPA country end product'' as an article that:
(1) Is wholly the growth, product, or manufacture of a WTO GPA
country; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a WTO GPA country into a new and different article of
commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to the article,
provided that the value of those incidental services does not exceed
that of the article itself.
Canada and the U.K. are WTO GPA countries. China and Mexico are
not.
You advise that the lift motor, charging station, and gantry are
of U.S. origin and are sub-assembled in the U.S. The key components
of the lift motor, which is the most important subassembly
characterized as ``the heart'' of the patient lift systems, are the
motor and circuit board. The motor is of U.S. (portable lift) or
U.K. origin (fixed lift), and the board is of U.S. origin (both
fixed and portable lifts). The final assembly in the U.S. fully
integrates the subassemblies, the tracks, and the above-ceiling
attachments. The U.S. installation involves cutting struts using a
band saw and cutting a threaded rod. The U.S. operations as
described are complex and meaningful requiring significant skill,
technical expertise, and quality control. As a result of the U.S.
operations, the subassemblies are substantially transformed to
produce the fully functional and operational fixed and portable
patient lift systems.
Accordingly, the instant fixed and portable patient lift systems
would not be products of a foreign country or instrumentality
designated pursuant to 19 U.S.C. 2511(b)(1). As to whether they
qualify as ``U.S.-made end product,'' we encourage you to review the
court decision in Acetris Health, LLC v. United States, 949 F.3d 719
(Fed. Cir. 2020), and to consult with the relevant government
procuring agency.
[[Page 31512]]
Holding
The subject fixed and portable patient lift systems would not be
products of a foreign country or instrumentality designated pursuant
to 19 U.S.C. 2511(b)(1). You should consult with the relevant
government procuring agency to determine whether the lifts qualify
as ``U.S.-made end product'' for purposes of the Federal Acquisition
Regulations implementing the TAA.
Notice of this final determination will be given in the Federal
Register, as required by 19 CFR 177.29. Any party-at-interest other
than the party which requested this final determination may request
pursuant to 19 CFR 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,
Joanne R. Stump,
Acting Executive Director, Regulations and Rulings, Office of Trade
[FR Doc. 2021-12352 Filed 6-11-21; 8:45 am]
BILLING CODE 9111-14-P
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</html>Indexed from Federal Register on June 14, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.