[Federal Register Volume 69, Number 36 (Tuesday, February 24, 2004)]
[Notices]
[Page 8488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3930]


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DEPARTMENT OF LABOR

Employment and Training Administration

[TA-W-53,209]


Computer Sciences Corporation Financial Services Group (``FSG''), 
East Hartford, Connecticut; Notice of Negative Determination on 
Reconsideration

    On January 5, 2004, the Department issued an Affirmative 
Determination Regarding Application for Reconsideration for the workers 
and former workers of the subject firm. The notice was published in the 
Federal Register on January 23, 2004 (69 FR 3391-3392).
    Pursuant to 29 CFR 90.18(c) reconsideration may be granted under 
the following circumstances:
    (1) If it appears on the basis of facts not previously considered 
that the determination complained of was erroneous;
    (2) If it appears that the determination complained of was based on 
a mistake in the determination of facts not previously considered; or
    (3) If in the opinion of the Certifying Officer, a mis-
interpretation of facts or of the law justified reconsideration of the 
decision.
    The TAA petition was filed on behalf of workers at Computer 
Sciences Corporation, Financial Services Group (``FSG''), East 
Hartford, Connecticut. The petition was denied because the petitioning 
workers did not produce an article within the meaning of section 222 of 
the Act.
    In the request for reconsideration, the petitioner alleged that the 
petitioning worker group produced a product and that production (in the 
form of design, coding, testing and delivery of software) shifted to 
India.
    Further contact with the company during reconsideration revealed 
that the petitioning workers did produce widely marketed software 
components on CD Rom and tapes, and thus did produce an article within 
the meaning of the Trade Act.
    However, although the company did report that some ``source 
coding'' did shift to India in the relevant period, the subject firm 
does not import completed software on physical media that is like or 
directly competitive with that which was produced at the subject 
facility. Business development, design, testing, and packaging remain 
in the United States.
    A National Import Specialist was contacted at the U.S. Customs 
Service to address whether software could be described as an import 
commodity. The Import Specialist confirmed that electronically 
transferred material is not a tangible commodity for U.S. Customs 
purposes. In cases where software is encoded on a medium (such as a CD 
Rom or floppy diskette), the software is given no import value, but 
rather evaluated exclusively on the value of the carrier medium. This 
standard is based on Treasury Decision 85-124 as issued on July 8, 
1985, by the U.S. Customs Service. In conclusion, this decision states 
that ``in determining the customs value of imported carrier media 
bearing data or instructions, only the cost or value of the carrier 
medium itself shall be taken into account. The customs value shall not, 
therefore, include the cost or value of the data or instructions, 
provided that this is distinguished from the cost or the value of the 
carrier medium.''
    Finally, the North American Industry Classification System (NAICS), 
published by the U.S. Department of Commerce, designates all manner of 
custom software applications and software systems, including analysis, 
development, programming, and integration as ``Services'' (see NAICS 
541511 and 541512.)

Conclusion

    After review of the application and investigative findings, I 
conclude that there has been no error or misinterpretation of the law 
or of the facts which would justify reconsideration of the Department 
of Labor's prior decision. Accordingly, the application is denied.

    Signed in Washington, DC, this 3rd day of February, 2004.
Elliott S. Kushner,
Certifying Officer, Division of Trade Adjustment Assistance.
[FR Doc. 04-3930 Filed 2-23-04; 8:45 am]
BILLING CODE 4510-30-P