Notice2025-17124
Notice of Issuance of Final Determination Concerning Neat Board Pro
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
September 8, 2025
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 the Neat Board Pro. Based upon the facts presented, CBP has concluded that the last substantial transformation of the Neat Board Pro occurs in Taiwan.
Full Text
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<title>Federal Register, Volume 90 Issue 171 (Monday, September 8, 2025)</title>
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[Federal Register Volume 90, Number 171 (Monday, September 8, 2025)]
[Notices]
[Pages 43193-43195]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17124]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final Determination Concerning Neat Board
Pro
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 the Neat Board Pro. Based upon the facts
presented, CBP has concluded that the last substantial transformation
of the Neat Board Pro occurs in Taiwan.
DATES: The final determination was issued on August 27, 2025. 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 October 8, 2025.
FOR FURTHER INFORMATION CONTACT: Anna Hedstrom, Valuation and Special
Programs Branch, Regulations and Rulings, Office of Trade, at (202)
325-0227.
SUPPLEMENTARY INFORMATION: Notice is hereby given that on August 27,
2025, CBP issued a final determination concerning the country of origin
of the Neat Board Pro for purposes of Title III of the Trade Agreements
Act of 1979. This final determination, Headquarters Ruling Letter (HQ)
H344638, was issued at the request of Amtran Technology Co., Ltd.,
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
the last substantial transformation of the Neat Board Pro occurs in
Taiwan.
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.
Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.
[GRAPHIC] [TIFF OMITTED] TN08SE25.001
HQ H344638
August 27, 2025
OT:RR:CTF:VS H344638 ACH
Category: Origin
Jaden Kuo, PricewaterhouseCoopers WMS Pte. Ltd., 25F No. 333 Sec. 1,
Keelung Rd., Xinyi Dist., Taipei, 110 Taiwan
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 Neat Board Pro
Dear Mr. Kuo:
This is in response to your January 23, 2025 request, on behalf
of Amtran Technology Co., Ltd. (``AmTRAN''), for a final
determination concerning the country of origin of the Neat Board
Pro, 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.). AmTRAN 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 Neat Board Pro is an all-in-one video conferencing device
specifically designed for medium-to-large meeting spaces. It
features a 65-inch multi-touch screen, audio and video, and
environmental sensors. It can function independently while also
offering support for integration with other Neat devices, third-
party audio, or a second screen. It operates with a power cord and
supports a variety of collaboration applications, such as Zoom,
Teams, the Neat App Hub, and Bring Your Own Device.
The Neat Board Pro is designed by AmTRAN, and the device's
prospective production will be handled by its Taiwanese supplier,
Rick Service Inc. (``Rick Service''). Rick Service will source
materials and components from both China and Taiwan and will produce
the finished product based on AmTRAN's design in Taiwan. Testing,
packing, and the integration of the software will also be conducted
in Taiwan.
AmTRAN will purchase the finished goods from Rick Service. Rick
Service will outsource the manufacturing of key components in
Taiwan, including the printed circuit board assemblies (``PCBAs''),
and will then source the remaining materials and components needed
to manufacture the product based on the design. For those key
components, Rick Service will send the materials and components to a
Taiwanese third party, Info-Tek Corporation, for commissioned
processing and preliminary testing. After processing, the components
will be shipped back to Rick Service for final assembly into
finished goods. Upon completion of the assembly, testing will be
performed in Taiwan to ensure the quality and operational integrity
of the device.
In Taiwan, five different PCBAs are produced from components
sourced from China and Taiwan. These PCBAs include the Main Board,
Power Board, Audio Board, Input/Output Board, and Sensor Board.
These PCBAs and all other components, including speakers, camera,
housing, display and touch screen, and electrical controls, will be
manufactured into the finished product. The final operational
software will also be installed in Taiwan. A majority of the Neat
Board Pro's components are sourced from
[[Page 43194]]
China, but the majority of the components' cost is attributed to
components sourced from Taiwan.
The software user interface for the Neat Board Pro will be
developed in the United States by Neatframe Inc. (``Neat''). After
receiving the finished goods in Taiwan, AmTRAN's software engineers
will integrate this basic functionality with the user interface
developed by Neat, ensuring the device incorporates Neat's features
and operates smoothly. Upon completion of the quality check, the
finished products will be packaged for shipment to the United
States.
Issue
What is the country of origin of the Neat Board Pro for the
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 purpose 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 comes from 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 the Secretary
of Homeland Security via Treasury Department Order (TO) 100-20
``Delegation of Customs revenue functions to Homeland Security,''
dated October 30, 2024, and are subject to further delegations to
CBP (see also 19 CFR part 177, subpart B).
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 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.
Additionally, the FAR, 48 CFR 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.
Taiwan is a ``designated country,'' and products of Taiwan are
eligible for U.S. Government procurement. 48 CFR 25.003.
To determine whether a substantial transformation occurs when
components of various origins are assembled into completed products,
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, 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 will be considered when determining
whether a substantial transformation has occurred. No one factor is
determinative. See, e.g., Headquarters Ruling Letter (``HQ'')
H311606, dated June 16, 2021; and HQ H302801, dated October 3, 2019.
Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308
(Ct. Int'l Trade 2016), involved manufacture of a flashlight in
which all the components of the flashlight were of Chinese origin,
except for a white LED and a hydrogen getter. The components were
imported into the United States and assembled into the finished
Generation II flashlight. The Energizer Battery court applied the
``name, character and use'' test to determine whether a substantial
transformation had occurred and noted, citing Uniroyal, Inc. v.
United States, 542 F. Supp. 1026, 1031 (Ct. Int'l Trade 1982), that
when ``the post-importation processing consists of assembly, courts
have been reluctant to find a change in character, particularly when
the imported articles do not undergo a physical change.'' Energizer
Battery at 1318. In addition, the court noted that ``when the end-
use was pre-determined at the time of importation, courts have
generally not found a change in use.'' Energizer Battery at 1319,
citing as an example, National Hand Tool Corp. v. United States, 16
C.I.T. 308, 312 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993).
Further, courts have considered the nature of the assembly, i.e.,
whether it is a simple or complex assembly, such that individual
parts lose their separate identities and become integral parts of a
new article. Energizer Battery, 190 F. Supp. 3d 1308.
Regarding electronic equipment, CBP has found that circuit
boards undergo a substantial transformation into PCBAs when various
components are assembled onto the board via surface-mount technology
(``SMT''). See C.S.D. 85-25, 19 Cust. Bull. 844 (1985) (determining
that the assembly of the PCBA involved a very large number of
components and a significant number of different operations,
required a relatively significant period of time as well as skill,
attention to detail, and quality control, and resulted in
significant economic benefit to the beneficiary developing country
from the standpoint of both value added to the PCBA and the overall
employment generated thereby). Additionally, CBP has found that the
mere attachment of wires to a PCBA and installation into a case,
along with minor tuning processes, does not result in a substantial
transformation. HQ 561232, dated April 20, 2004.
However, in HQ H304677, dated April 21, 2023, CBP found that the
country of origin of laser printers was China, even though the main
PCBAs were manufactured and installed into the final product in
Mexico. In that case, the printer transports which included all the
mechanical components of the device, such as the housing, scanner,
power supply, and fuser, were manufactured in China. The PCBAs were
manufactured in Mexico, where components were added to the board
with SMT, and U.S. and Philippine-origin firmware was downloaded
onto the PCBA. The PCBAs were then installed into the printers, and
the devices underwent a series of tests. CBP determined that the
PCBAs were not the only fundamental functioning component of the
printer, since the Chinese printer transports also provided
character to the final article. Furthermore, since all the
mechanical printing functions were imparted by the Chinese
transports, the country of origin was China.
The programming of a device may also affect its country of
origin. In Data General v. United States, 4 C.I.T. 182 (1982), the
court determined that the programming of a foreign PROM
(``Programmable Read-Only Memory'' chip) in the United States
substantially transformed the PROM into a U.S. article. In
[[Page 43195]]
the United States, the programming bestowed upon each integrated
circuit its electronic function, that is, its ``memory'' which could
be retrieved. A distinct physical change was effected in the PROM by
the opening or closing of the fuses, depending on the method of
programming. The essence of the article, its interconnections or
stored memory, was established by programming. Texas Instruments v.
United States, 681 F.2d 778, 782 (CCPA 1982) (stating the
substantial transformation issue is a ``mixed question of technology
and customs law'').
In the instant case, based on the totality of the circumstances
and consistent with the pertinent authorities, we find that the
country of origin of the Neat Board Pro is Taiwan. Both the
production of the PCBAs and the assembly of the PCBAs into the
finished product will occur in Taiwan. The final testing, packing,
and programming of the Neat Board Pros will also occur in Taiwan.
Although a majority of the components come from China, the most
significant components come from Taiwan, and the cost of the
components from Taiwan is significantly higher. Therefore, we find
the country of origin of the Neat Board Pro to be Taiwan.
Holding
Based on the information provided, for purposes of U.S.
Government procurement, the Neat Board Pro is a product of Taiwan.
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. 2025-17124 Filed 9-5-25; 8:45 am]
BILLING CODE 9111-14-P
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</html>Indexed from Federal Register on September 8, 2025.
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