[Federal Register Volume 75, Number 124 (Tuesday, June 29, 2010)]
[Notices]
[Pages 37453-37455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-15710]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Dimmer and 
Fan Speed Switch Controls

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 dimmer and fan speed switch controls which 
may be offered to the United States Government under a government 
procurement contract. Based upon the facts presented, in the final 
determination CBP concluded that Mexico is the country of origin of the 
dimmer and fan speed switch controls for purposes of U.S. Government 
procurement.

DATES: The final determination was issued on June 15, 2010. 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 July 29, 2010.

FOR FURTHER INFORMATION CONTACT: Karen S. Greene, Valuation and Special 
Programs Branch, Regulations and Rulings, Office of International Trade 
(202-325-0041).

SUPPLEMENTARY INFORMATION: Notice is hereby given that on June 15, 
2010, pursuant to subpart B of part 177, Customs Regulations (19 CFR 
part 177, subpart B), CBP issued a final determination concerning the 
country of origin of certain dimmer and fan speed switch controls which 
may be offered to the United States Government under a government 
procurement contract. This final determination, in HQ H098417, was 
issued at the request of Pass & Seymour, Inc. 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, based upon the facts 
presented, certain articles will be substantially

[[Page 37454]]

transformed in Mexico. Therefore, CBP found that Mexico is the country 
of origin of the finished articles for purposes of U.S. Government 
procurement.
    Section 177.29, Customs 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: June 15, 2010.
George F. McCray,
Acting Executive Director, Office of Regulations and Rulings, Office of 
International Trade.
HQ H098417
June 15, 2010

OT:RR:CTF:VS H098417 KSG

Daniel B. Berman, Esq.
Hancock & Estabrook LLP
1500 AXA Tower I
100 Madison Street
Syracuse, NY 13202
Re: U.S. Government Procurement; Title III, Trade Agreements Act of 
1979; Country of Origin of Titan dimmer and fan speed switch control; 
substantial transformation
    Dear Mr. Berman:
    This is in response to your letter, dated March 5, 2010, requesting 
a final determination on behalf of Pass & Seymour Inc., pursuant to 
subpart B of 19 CFR Part 177.
    Under these regulations, which implement Title III of the Trade 
Agreements Act of 1979, as amended (19 U.S.C. 2511 et seq.) (``TAA''), 
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.
    This final determination concerns the country of origin of certain 
dimmer and fan speed control switches that Pass & Seymour may sell to 
the U.S. Government. We note that Pass & Seymour is a party-at-interest 
within the meaning of 19 CFR 177.22(d)(1) and is entitled to request 
this final determination.
    You also asked about the tariff classification for the components 
and the tariff classification and the country of origin marking 
requirements for the imported good. We have referred these questions to 
the Tariff Classification and Marking Branch of this office for their 
response directly to you.

Facts:

    Pass & Seymour (``P & S'') designs, manufactures and distributes 
dimmer and fan speed control switches in the U.S. for residential and 
commercial use in electrical circuits of less than 1,000 volts. This 
case involves two models: the Titan model dimmer and fan speed switch 
control and the Harmony dimmer.
    Legrand, the French parent company of P & S, produces the 
subcomponents of the dimmers in Hong Kong. The subcomponents are then 
shipped to Mexico for assembly. The finished product is then imported 
into the U.S.
    The processing in Mexico includes the following: (1) The assembly 
of the bare printed circuit board into a final printed circuit board 
(``PCB''), and the assembly of the PCB with other components into the 
finished product. The titan dimmer has a total of 34 components in 
addition to the PCB. The harmony dimmer contains a PCB in addition to 
28 other components.

Issue:

    What is the country of origin of the imported dimmer and fan 
switches described above for the purpose of U.S. government 
procurement?

Law and Analysis:

    Pursuant to Subpart B of Part 177, 19 CFR 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.), 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.
    Under the rule of origin set forth under 19 U.S.C. 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 CFR 
177.22(a).

    In determining whether the combining of parts or materials 
constitutes a substantial transformation, the determinative issue 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, 573 F. Supp. 1149 (Ct. Int'l Trade 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 C.S.D. 80-111, C.S.D. 
85-25, C.S.D. 89-110, C.S.D. 89-118, C.S.D. 90-51, and C.S.D. 90-97. In 
C.S.D. 85-25, 19 Cust. Bull. 844 (1985), CBP held that for purposes of 
the Generalized System of Preferences (``GSP''), the assembly of a 
large number of fabricated components onto a printed circuit board in a 
process involving a considerable amount of time and skill resulted in a 
substantial transformation. In that case, in excess of 50 discrete 
fabricated components (such as resistors, capacitors, diodes, 
integrated circuits, sockets, and connectors) were assembled. Whether 
an operation is complex and meaningful depends on the nature of the 
operation, including the number of components assembled, number of 
different operations, time, skill level required, attention to detail, 
quality control, the value added to the article, and the overall 
employment generated by the manufacturing process.
    In order 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. No one 
factor is determinative.
    CBP recently ruled in H047362, dated March 26, 2009, that a similar 
product of P & S, electrical components, were substantially transformed 
when Chinese parts were assembled in Mexico into the finished article. 
That case also involved the production of the PCB and the assembly of 
the PCB and 29 other parts in a process that took about 10 minutes into 
the finished product. We find that this case is very similar to 
H047362. The assembly in Mexico is sufficiently complex and the 
components are substantially transformed into a final product that has 
a new name, character and use. Therefore, the country of origin of the 
Titan dimmer and fan switch and the harmony dimmer for government 
procurement purposes is Mexico.

[[Page 37455]]

Holding:

    Based on the facts of this case, the country of origin of the Titan 
dimmer and fan switch and the Harmony Dimmer is Mexico for purposes of 
U.S. Government procurement.
    Notice of this final determination will be given in the Federal 
Register, as required by 19 CFR Sec.  177.29. Any party-at-interest 
other than the party which requested this final determination may 
request, pursuant to 19 CFR Sec.  177.31 that CBP reexamine the matter 
anew and issue a new final determination. Pursuant to 19 CFR Sec.  
177.30, any party-at-interest may, within 30 days after publication of 
the Federal Register Notice referenced above, seek judicial review of 
this final determination before the Court of International Trade.

     Sincerely,

George F. McCray,

Acting Executive Director, Office of Regulations and Rulings, Office 
of International Trade.
[FR Doc. 2010-15710 Filed 6-28-10; 8:45 am]
BILLING CODE 9111-14-P