[Federal Register Volume 76, Number 147 (Monday, August 1, 2011)]
[Notices]
[Pages 45845-45847]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-19400]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning a Certain 
Patient Transport Chair

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 a certain patient transport chair. Based upon the 
facts presented, CBP has concluded in the final determination that the 
U.S. is the country of origin of the patient transport chair for 
purposes of U.S. government procurement.

DATE: The final determination was issued on July 26, 2011. 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 on or before August 31, 2011.

FOR FURTHER INFORMATION CONTACT: Elif Eroglu, Valuation and Special 
Programs Branch: (202) 325-0277.

SUPPLEMENTARY INFORMATION: Notice is hereby given that on July 26, 
2011, 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 the BREEZ patient transport chair which may be 
offered to the U.S. Government under an undesignated government 
procurement contract. This final determination, Headquarters

[[Page 45846]]

Ruling Letter (``HQ'') H156919, was issued at the request of Electro 
Kinetic Technologies 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 assembly of the 
BREEZ patient transport chair in the U.S., from parts made in China, 
Canada, France, and the U.S., constitutes a substantial transformation, 
such that the U.S. is the country of origin of the finished article 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: July 26, 2011.
Sandra L. Bell,
Executive Director, Regulations and Rulings, Office of International 
Trade.

Attachment

HQ H156919
July 26, 2011
OT:RR:CTF:VS H156919 EE
CATEGORY: Marking
Robert Gardenier
M.E. Dey & Co., Inc.
700 W Virginia Street Suite 300
Milwaukee, WI 53204
RE: U.S. Government Procurement; Title III, Trade Agreements Act of 
1979 (19 U.S.C. Sec.  2511); Subpart B, Part 177, CBP Regulations; 
Patient Transport Chair
Dear Mr. Gardenier:
    This is in response to your correspondence of March 14, 2011, 
telephone conference on June 10, 2011, and additional information you 
submitted on July 21, 2011, requesting a final determination on behalf 
of Electro Kinetic Technologies (``Electro Kinetic''), pursuant to 
subpart B of part 177, U.S. Customs and Border Protection (``CBP'') 
Regulations (19 C.F.R. Sec.  177.21 et seq.). Under the pertinent 
regulations, which implement 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 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.
    This final determination concerns the country of origin of the 
BREEZ patient transport chair. We note that Electro Kinetic is a party-
at-interest within the meaning of 19 C.F.R. Sec.  177.22(d)(1) and is 
entitled to request this final determination.

FACTS:
    Electro Kinetic, headquartered in Germantown, Wisconsin, designs 
and manufactures ergonomically focused products used to transport 
people and materials within the retail, healthcare, and material 
handling industries. The merchandise at issue is the Electro Kinetic 
BREEZ patient transport chair engineered and assembled in the U.S. from 
U.S. and foreign components.
    The BREEZ transport chair is intended to transport patients or 
mobility impaired individuals. With the drive system integrated into 
the wheelchair, the patient transport chair can be maneuvered through 
tight or crowded hallways, elevators and rooms, transporting patients 
up to 750 lbs.
    The patient transport chair is produced in the U.S. from 
approximately 481 components. All of the components are of U.S., 
Chinese, Canadian, or French origin. The majority of the components are 
assembled in the U.S. into 26 subassemblies which are ultimately 
assembled with the remaining components into the final product.
    You submitted the costed bill of materials for the patient 
transport chair. The significant materials which comprise the patient 
transport chair include: wheels, casters, arm weldments, anti-tip 
weldments, swivel locks, 17 cable assemblies, a transaxle subassembly 
(which includes a Chinese-origin transaxle), a circuit breaker, a guard 
plate, a static strap subassembly, a Chinese-origin frame base 
weldment, a garment rod, a control box subassembly (which includes a 
French-origin handle circuit board, a control box, a key switch 
subassembly, and a forward/reverse switch subassembly), an s-drive 
subassembly, tire assemblies (which include wheel rims and foam filled 
tires), a charger subassembly (which includes a Canadian-origin 
charger), a control box plate, a high back flip seat, and batteries. It 
takes approximately six and a half hours to produce the finished 
patient transport chair.
    You state that the production of the BREEZ patient transport chair 
in the U.S. begins with the production of 17 cable subassemblies which 
include: positive and negative battery cable subassemblies, a handle 
cable subassembly, an emergency stop switch subassembly, a horn 
potentiometer subassembly, a speed potentiometer subassembly, a brake 
cable subassembly, a black horn cable subassembly, a controller cable 
subassembly, a brown horn cable subassembly, a charger cable 
subassembly, a motor cable subassembly, and a battery jumper 
subassembly.
    Next, the s-drive, which is part of s-drive subassembly, is 
programmed for acceleration, deceleration, and speed profiles. The 
transaxle subassembly, static strap subassembly, control box 
subassembly, keyswitch subassembly, forward/reverse switch subassembly, 
s-drive subassembly, tire assemblies, and charger assembly are 
produced. The wheels are added to the transaxle subassembly and 
assembled onto the frame. The control box subassembly, circuit breaker, 
charger assembly, horn and battery subassemblies are then installed 
onto the frame.
    In the final assembly stage, the rear casters, front anti-tip 
casters, seat, seat belt, headrest, arm rests, foot rests and the IV 
pole are installed.
    You provided a copy of the product brochure for the BREEZ patient 
transport chair.

ISSUE:
    What is the country of origin of the BREEZ patient transport chair 
for the purpose of U.S. government procurement?

LAW AND ANALYSIS:
    Pursuant to subpart B of part 177, 19 C.F.R. 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. Sec.  
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.

[[Page 45847]]

    See also, 19 C.F.R. Sec.  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 Acquisition Regulations. See 19 
C.F.R. Sec.  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 C.F.R. Sec.  25.403(c)(1). The 
Federal Acquisition Regulations 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.
    48 C.F.R. Sec.  25.003.
    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. 
Additionally, factors such as the resources expended on product design 
and development, extent and nature of post-assembly inspection and 
testing procedures, and the degree of skill required during the actual 
manufacturing process may be relevant when determining whether a 
substantial transformation has occurred. No one factor is 
determinative.
    In Headquarters Ruling Letter (``HQ'') H095239, dated June 2, 2010, 
CBP held that certain upright and recumbent exercise bikes, assembled 
in the U.S., were products of the U.S. for purposes of U.S. government 
procurement. The exercise bikes were assembled from a range of U.S. and 
foreign components and subassemblies. With the exception of the 
standard console assembly, all of the subassemblies, which were 
ultimately assembled to produce the final product, were produced in the 
U.S. In finding that the imported components were substantially 
transformed in the U.S., CBP stated that the assembly process that 
occurred in the U.S. was complex and meaningful, required the assembly 
of a large number of components, and rendered the final article with a 
new name, character, and use.
    As in HQ H095239, the BREEZ patient transport chair comprises the 
assembly of a large number of components, namely, 481 components. The 
majority of the components are assembled in the U.S. into 26 
subassemblies which are then assembled with the remaining components 
into the finished patient transport chair. It takes approximately six 
and a half hours to produce the finished patient transport chair. We 
find that under the described assembly process, the foreign components 
lose their individual identities and become an integral part of the 
article, the patient transport chair, possessing a new name, character 
and use. The assembly process that occurs in the U.S. is complex and 
meaningful, involving the assembly of components into subassemblies 
which are then made into the final product. Therefore, based upon the 
information before us, we find that the imported components that are 
used to manufacture the patient transport chair are substantially 
transformed as a result of the assembly operations performed in the 
U.S. and that the country of origin of the patient transport chair for 
government procurement purposes is the U.S.

HOLDING:
    The imported components that are used to manufacture the BREEZ 
patient transport chair are substantially transformed as a result of 
the assembly operations performed in the U.S. Therefore, we find that 
the country of origin of the BREEZ patient transport chair for 
government procurement purposes is the U.S.
    Notice of this final determination will be given in the Federal 
Register, as required by 19 C.F.R. Sec.  177.29. Any party-at-interest 
other than the party which requested this final determination may 
request, pursuant to 19 C.F.R. Sec.  177.31, that CBP reexamine the 
matter anew and issue a new final determination. Pursuant to 19 C.F.R. 
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,
    Sandra L. Bell, Executive Director, Regulations and Rulings, Office 
of International Trade

[FR Doc. 2011-19400 Filed 7-29-11; 8:45 am]
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