[Federal Register Volume 82, Number 223 (Tuesday, November 21, 2017)]
[Notices]
[Pages 55387-55388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25146]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Notice of Issuance of Final Determination Concerning Roasted
Coffee
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 roasted coffee. Based upon the facts presented,
CBP has concluded in the final determination that Canada or the United
States, i.e., the country where the raw green coffee beans are roasted,
is the country of origin of the roasted coffee for purposes of U.S.
Government procurement.
DATES: The final determination was issued on November 15, 2017. 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 December 21, 2017.
FOR FURTHER INFORMATION CONTACT: Cynthia Reese, Valuation and Special
Programs Branch, Regulations and Rulings, Office of Trade (202-325-
0046).
SUPPLEMENTARY INFORMATION: Notice is hereby given that on November 15,
2017, CBP issued a final determination concerning the country of origin
of roasted coffee which may be offered to the United States Government
under an undesignated government procurement contract. This final
determination, HQ H291135, was issued at the request of Keurig Green
Mountain, 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 roasting of raw
green coffee beans substantially transforms the coffee beans into a
product of the country where the raw green coffee beans are roasted,
i.e. Canada or the United States, for purposes of U.S. Government
procurement.
Section 177.29, CBP 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
[[Page 55388]]
177.22(d), may seek judicial review of a final determination within 30
days of publication of such determination in the Federal Register.
Dated: November 15, 2017,
Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.
HQ H291135
November 15, 2017
OT:RR:CTF:VS H291135 CMR
CATEGORY: Origin
Marian E. Ladner, Esq.
Ladner & Associates PC
420 Heights Boulevard
Houston, TX 77007
RE: U.S. Government Procurement; Title III, Trade Agreements Act of
1979 (19 U.S.C. 2511); subpart B, Part 177, CBP Regulations; Roasted
Coffee
Dear Ms. Ladner:
This is in response to your request of September 29, 2017, on
behalf of your client, Keurig Green Mountain (``Keurig''), requesting a
final determination concerning roasted coffee for purposes of
government procurement under Title III of the Trade Agreements Act of
1979 (TAA), as amended (19 U.S.C. 2511 et seq.). This final
determination concerns the country of origin of roasted coffee produced
from raw green coffee beans roasted in Canada or the United States. As
an importer of this merchandise, Keurig is a party-at-interest within
the meaning of 19 CFR 177.23(a) and is entitled to request this final
determination.
FACTS:
The coffee will be produced from raw green coffee beans imported
into either Canada or the United States. The green coffee beans will
either be in their natural caffeinated state or decaffeinated. The
decaffeination of the beans is a separate process occurring in a
country on the Designated Country list in 48 CFR 52.225-5(a) prior to
importation into Canada or the United States. Once imported, the green
beans, caffeinated and decaffeinated, undergo a roasting and packaging
process. Keurig cleans, blends and roasts the beans. A small percentage
of beans are sprayed with flavoring ingredients. After the roasting and
flavoring processes are complete, Keurig grinds, degasses and packages
the coffee beans for sale. All of the processes after receipt of the
green beans, caffeinated or decaffeinated, occur in the country of
receipt, i.e., Canada or the United States. We note, in some cases the
coffee will remain in bean form.
ISSUE:
Whether the raw green coffee beans are substantially transformed by
the roasting process for purposes of United States Government
procurement.
LAW AND ANALYSIS:
U.S. Customs and Border Protection (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 United States law or practice for products offered for
sale to the United States Government, pursuant to subpart B of Part
177, 19 CFR 177.21 et seq., which implements Title III, Trade
Agreements Act of 1979, as amended (19 U.S.C. 2511-2518).
The rule of origin set forth in 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 United States Government procurement, CBP applies the provisions of
subpart B of Part 177 consistent with the Federal Procurement
Regulations. See 19 CFR 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 CFR 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.
See 48 CFR 25.003.
For more than 30 years, CBP has recognized that roasting green
coffee beans substantially transforms the beans into a new and
different article of commerce. See Headquarters Ruling Letter (HQ)
733563, dated June 24, 1991, citing HQ 070395, dated June 6, 1983; HQ
722980, dated October 17, 1983; HQ 722360, dated June 6, 1984; and, HQ
725641, dated July 25, 1984. These rulings from 1983 and 1984 concluded
that roasting, or roasting and blending, of coffee was sufficient to
change its character and use and thus effect a substantial
transformation. Based on this long held position, depending on where
the coffee beans are roasted, the roasting of the green coffee beans
substantially transforms the coffee beans into either a product of
Canada, or a product of the United States, for purposes of government
procurement.
As the decaffeination occurs prior to the roasting of the green
beans, we see no need to address it. In addition, as all of the other
processing, i.e., flavoring, grinding, degassing and packaging, occur
in the same country as roasting, there is no need to address these
additional processes. The resulting roasted coffee, ground or in bean
form, is a product of Canada or the United States.
HOLDING:
Based on the facts and analysis set forth above, for United States
Government procurement purposes, the country of origin of the roasted
coffee, in ground or bean form, is the country where the raw green
coffee beans are roasted, i.e., Canada or the United States.
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 after publication of the Federal Register
notice referenced above, seek judicial review of this final
determination before the Court of International Trade.
Sincerely,
Alice A. Kipel, Executive Director
Regulations and Rulings
Office of Trade
[FR Doc. 2017-25146 Filed 11-20-17; 8:45 am]
BILLING CODE 9111-14-P