Notice2023-08771
Notice of Issuance of Final Determination Concerning Height Adjustable Workstations
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
April 26, 2023
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 height adjustable workstations. Based upon the facts presented, CBP has concluded that the imported components of the workstations undergo substantial transformation in the United States when made into the final workstations.
Full Text
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<title>Federal Register, Volume 88 Issue 80 (Wednesday, April 26, 2023)</title>
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[Federal Register Volume 88, Number 80 (Wednesday, April 26, 2023)]
[Notices]
[Pages 25413-25414]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-08771]
[[Page 25413]]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final Determination Concerning Height
Adjustable Workstations
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 height adjustable workstations. Based upon the
facts presented, CBP has concluded that the imported components of the
workstations undergo substantial transformation in the United States
when made into the final workstations.
DATES: The final determination was issued on April 10, 2023. 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 May 26, 2023.
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 April 10,
2023, U.S. Customs and Border Protection (CBP) issued a final
determination concerning the country of origin of height adjustable
workstations for purposes of title III of the Trade Agreements Act of
1979. This final determination, HQ H330862, was issued at the request
of RightAngle Products, 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 imported
components are substantially transformed in the United States when made
into the subject workstations.
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: April 21, 2023.
Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.
HQ H330862
April 10, 2023
OT:RR:CTF:VS H330862 AP
CATEGORY: Origin
Keeley Boeve
KB Contract Consulting
4444 132nd Avenue
Hamilton, MI 49419
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 Height Adjustable Workstations
Dear Ms. Boeve:
This is in response to your March 24, 2023 request, on behalf of
RightAngle Products (``RightAngle''), for a final determination
concerning the country of origin of certain height adjustable
workstations pursuant to Title III of the Trade Agreements Act of 1979
(``TAA''), as amended (19 U.S.C. 2511 et seq.), and subpart B of Part
177, U.S. Customs and Border Protection (``CBP'') Regulations (19 CFR
177.21, et seq.). RightAngle is a party-at-interest within the meaning
of 19 CFR 177.22(d)(1) and 177.23(a) and is therefore entitled to
request this final determination.
Facts
The height adjustable workstations at issue are part of the
RightAngle's NewHeights<SUP>TM</SUP> series, which include the
``Elegante XT,'' ``Eficiente LC,'' ``Bonita ET'' electric height
adjustable desks and the ``Levante'' manual height adjustable desk.
Each workstation has a laminate desktop and metal legs. The raw
materials for the desktop and the legs are sourced from the United
States. The laminate desktop is manufactured in the United States from
logs which go through a woodchipper and a flaking machine to create
particle boards with thermally fused laminate that are cut to size and
shape. The metal legs are made and welded together in the United
States. The only non-U.S. originating components are the table
controller and the digital keyboard for the controller, which are
manufactured in Hungary. You explain that these Hungarian components
are needed ``to move the table up and down as they are the push button
and control box that are wired into the tables and cannot be used on
their own.'' The controller will be attached to the bottom of the
tabletop by two screws. The square control panels will be mounted from
the bottom to the edge of the tabletop in a way that the keys will be
easily accessible. The control panels with a cable will be plugged into
the connector of the controller.
Issue
Whether the imported components are substantially transformed when
made into the height adjustable workstations in the United States.
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 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.
Emphasis added.
The Secretary of the Treasury's authority mentioned above, along
with other customs revenue functions, are delegated to CBP in the
Appendix to 19 CFR part 0--Treasury Department Order No. 100-16, 68 FR
28, 322 (May 23, 2003).
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.
See also 19 CFR 177.22(a).
In rendering advisory rulings and final determinations for purposes
of U.S. Government procurement, CBP applies the provisions of subpart B
of Part 177 consistent with the Federal Procurement Regulation
(``FAR''). See 19 CFR 177.21. In this regard, CBP recognizes that the
FAR restricts the U.S. Government's purchase of products to U.S.-made
or designated country end
[[Page 25414]]
products for acquisitions subject to the TAA. See 48 CFR 25.403(c)(1).
The FAR, 48 CFR 25.003, defines ``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.
As indicated above, the height adjustable workstations are produced
with two non-U.S. components, the table controller and the digital
keyboard. The desktop and the legs are manufactured in the United
States.
In order to determine whether a substantial transformation occurs,
CBP considers the totality of the circumstances and makes such
determinations on a case-by-case basis. The country of origin of the
item's components, extent of the processing that occurs within a
country, and whether such processing renders a product with a new name,
character, and use are primary considerations in such cases.
Additionally, CBP considers factors such as the resources expended on
product design and development, the extent and nature of post-assembly
inspection and testing procedures, and worker skill required during the
actual manufacturing process when determining whether a substantial
transformation has occurred. No one factor is determinative.
A new and different article of commerce is an article that has
undergone a change in commercial designation or identity, fundamental
character, or commercial use. A determinative issue is the extent of
the operations performed and whether the materials lose their identity
and become an integral part of the new article. See Nat'l Hand Tool
Corp. v. United States, 16 CIT 308 (1992), aff'd, 989 F.2d 1201 (Fed.
Cir. 1993). In Carlson Furniture Indus. v. United States, 65 Cust. Ct.
474, Cust. Dec. 4126 (1970), which involved wooden chair parts, the
court held that the assembly operations after importation were
substantial in nature and more than a simple assembly of parts. The
importer assembled, fitted, and glued the wooden parts together,
inserted steel pins into the key joints, cut the legs to length and
leveled them, and in some instances, upholstered the chairs and fitted
the legs with glides and casters. The assembly operations resulted in
the creation of a new article of commerce.
Headquarters Ruling Letter (``HQ'') H280512, dated Mar. 7, 2017,
considered the origin of a desktop workstation for purposes of U.S.
Government procurement. The main components of the sit-to-stand
workstation were a Chinese-origin lift assembly of base metal, and a
U.S.-originating laminated particle board work surface and keyboard
tray. The lift assembly provided user assisted lift functionality by
means of spring force to allow adjustment of the workstation between
sitting and standing positions. In the United States, the Chinese lift
assembly was attached to components fabricated in the United States
including the work surface, keyboard tray, right and left keyboard
support brackets, and metal support bar to form the workstation. The
processes in the United States included sawing, profiling, sanding,
hot-pressing and trimming to manufacture the work surface and keyboard
tray as well as laser-cutting, bending and painting of the sheet metal
components followed by final assembly of the U.S.-origin and the
imported components. CBP determined that the imported lift assembly was
substantially transformed as a result of the assembly performed in the
United States to produce the finished desktop workstation. The decision
noted that the lift assembly was not functional to an end user by
itself as it did not include the primary features of the U.S.-origin
work surface and keyboard tray which allowed the work to be conducted,
and without which, the lifting mechanism was incapable of being used as
a workstation. CBP found the lift assembly was substantially
transformed in the United States into a desktop workstation.
Similar to the lift assembly in HQ H280512, the imported controller
and digital keyboard here are substantially transformed when they are
mounted to the desktop and when the control panels with a cable are
plugged into the connector of the controller to produce the finished
height adjustable workstations. The controller and the digital keyboard
are not functional to end users by themselves but they become an
integral part of the workstations. To move the workstations up and
down, the controller and the digital keyboard need to be attached and
wired into the desktop.
Based on the foregoing, we find that the last substantial
transformation occurs in the United States, and therefore, the height
adjustable workstation is not a product of a foreign country or
instrumentality designated pursuant to 25 U.S.C. 2511(b). As to whether
the workstation produced in the United States qualifies as a ``U.S.-
made end product,'' you may wish to consult with the relevant
government procuring agency and review Acetris Health, LLC v. United
States, 949 F.3d 719 (Fed. Cir. 2020).
Holding
Based on the information outlined above, we determine that the
components imported into the United States undergo a substantial
transformation when made into the subject height adjustable
workstations.
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 U.S. Court of International Trade.
Sincerely,
Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.
[FR Doc. 2023-08771 Filed 4-25-23; 8:45 am]
BILLING CODE 9111-14-P
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</html>Indexed from Federal Register on April 26, 2023.
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