[Federal Register Volume 86, Number 42 (Friday, March 5, 2021)]
[Notices]
[Pages 12963-12965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04574]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Certain 
Fixed and Portable Ceiling Lifts

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 fixed and portable ceiling lifts for 
healthcare purposes. Based upon the facts presented, CBP has concluded 
in the final determination that the ceiling lifts would not to be 
products of a foreign country or instrumentality designated pursuant to 
19 U.S.C. 2511(b) for purposes of U.S. Government procurement.

DATES: The final determination was issued on March 1, 2021. 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 April 5, 2021.

FOR FURTHER INFORMATION CONTACT: Albena Peters, Valuation and Special 
Programs Branch, Regulations and Rulings, Office of Trade, at (202) 
325-0321.

SUPPLEMENTARY INFORMATION: Notice is hereby given that on March 1, 
2021, CBP issued a final determination concerning the country of origin 
of fixed and portable ceiling lifts for purposes of Title III of the 
Trade Agreements Act of 1979. This final determination, HQ H311763, was 
issued at the request of the party-at-interest, 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 fixed and portable ceiling lifts would not be products 
of a foreign country or instrumentality designated pursuant to 19 
U.S.C. 2511(b) for purposes of U.S. Government procurement. 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.

    Dated: March 1, 2021.
Joanne R. Stump,
Acting Executive Director, Regulations and Rulings,Office of Trade.

HQ H311763

March 1, 2021

OT:RR:CTF:VS H311763 AP

CATEGORY: Origin

F. Scott Galt, Partner Armstrong Teasdale LLP CIPP/E 7700 Forsyth 
Blvd., Suite 1800 St. Louis, MO

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 Fixed and Portable Ceiling Lifts

Dear Mr. Galt:
    This is in response to your request of June 12, 2020, on behalf of 
Span America, Inc. (``SA''), for a final determination concerning the 
country of origin of certain fixed and portable ceiling lifts for 
healthcare purposes. This request is being sought because your client 
wants to confirm eligibility of the merchandise for U.S. government 
procurement purposes under Title III of the Trade Agreements Act of 
1979 (``TAA''), as amended (19 U.S.C. 2511 et seq.). SA is a party-at-
interest within the meaning of 19 CFR 177.22(d)(1) and 177.23(a).

FACTS:

    SA is a U.S.-based manufacturer of equipment and accessories for 
use in medical facilities. Its corporate headquarters and principal 
manufacturing facility is located in Greenville, South Carolina. SA 
manufactures fixed and portable ceiling lifts used in clinical or home 
settings to safely lift and/or transport immobilized individuals. SA 
produces two types of ceiling lifts: The Savaria FL Fixed Lift (``fixed 
lift'') and the Savaria PL Portable Lift (``portable lift''). The fixed 
and portable lifts are powered with rechargeable lithium ion batteries. 
Users can operate the lifts through the push buttons located on the 
spreader bars or a remote control. The fixed lift includes buttons that 
control vertical and lateral movement, while the portable lift only 
contains buttons to raise and lower the lift.
    The fixed lift attaches to ceiling-mounted track systems. Each 
fixed lift consists of: (1) A motor unit base which connects to the 
ceiling track system; (2) a spreader bar that is a horizontal bar with 
hooks on each end to which slings are attached used to support a 
person's

[[Page 12964]]

weight; and (3) a retractable belt which extends down from the motor 
unit to the spreader bar and connects these two components. The lift's 
base unit contains a motor that controls the retractable belt and 
allows the base unit to move laterally along the ceiling tracks. The 
base unit also has a display that shows the lift's battery life. 
Depending on the model, the fixed lift can lift 286, 440, or 600 
pounds.
    Each fixed lift is comprised of 124 specifically designed component 
parts and 245 total component parts sourced from Canada, China, the 
United States, Italy, and Taiwan, as reflected in the bill of 
materials. Most of the parts are from Canada and China. Some of the 
significant components of the fixed lift from Canada and China are: The 
lithium ion charger from China, the main printed circuit board assembly 
(``PCBA'') from China, the handset from China, the charging station 
assembly from Canada, the battery from China, and the carry bar 
assembly from Canada. In addition, the fixed lift is composed of 
subassemblies that contain the moving parts for the lifts which are 
manufactured in Greenville, South Carolina: The ``mega motor'' 
subassembly, comprised of two specifically designed parts and two total 
parts; the ``high limit'' subassembly, comprised of eight specifically 
designed parts and 18 total parts; the ``motorized trolley'' 
subassembly, comprised of 16 specifically designed parts and 25 total 
parts; the ``manual trolley'' subassembly, comprised of six 
specifically designed parts and nine total parts; and the ``drum'' 
subassembly, comprised of 11 specifically designed parts and 23 total 
parts. Specifically, for example, the ``motorized trolley'' subassembly 
consists of: A gear motor trolley from China, a bloc trolley from 
China, a shaft retaining ring from China, a motorized trolley wheel 
from China, a spacer idler from China, a gear wheel from China, a 
trolley idler gear from China, and a trolley motor gear from China. 
These components are assembled together in South Carolina to create the 
motorized trolley. The final assembly of the fixed lift in South 
Carolina then involves the combination of all subassemblies and 
component parts not already incorporated into a subassembly.
    The portable lift is not permanently mounted to overhead tracks. 
Rather, it clips to and detaches from overhead locations of the user's 
choice. The motor unit of the portable lift is located inside the 
spreader bar, and the belt is located inside the motor assembly. 
Depending on the model, the portable lift can lift 286 or 440 pounds. 
Each portable lift is comprised of 80 specifically designed component 
parts and 175 total component parts sourced from Canada, China, the 
United States, Italy, and Taiwan, as reflected in the bill of 
materials. Most of the parts are manufactured in Canada and China. The 
most significant components of the portable lift are: The portable 
handset from China, the bearing block from China, the portable battery 
from China, the main PCBA from China, the portable carry bar from 
China, and the worm gear from Canada.
    Similar to the fixed lift, the portable lift has subassemblies that 
contain the moving parts for the lifts, which are manufactured in 
Greenville, South Carolina: The ``spool'' subassembly comprised of 12 
specifically designed parts and 23 total parts; the ``high limit'' 
subassembly, comprised of nine specifically designed parts and 18 total 
parts; the ``cabin port'' subassembly comprised of seven specifically 
designed parts and seven total parts; and the ``motor'' subassembly 
containing two specifically designed parts and two total parts. 
Specifically, for example, the ``spool'' subassembly consists of: A 
strap from China, a pivot from China, a brake from China, a small disk 
from China, a spool from China, and a helical gear from Canada. As with 
the fixed lift, the final assembly of the portable lift involves the 
combination of all subassemblies and component parts not already 
incorporated into a subassembly.

ISSUE:

    What is the country of origin of the subject and portable lifts for 
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 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, 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 
is set forth in 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.
    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.
    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 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, 48 CFR 25.003, 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.

    Section 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,

[[Page 12965]]

provided that the value of those incidental services does not exceed 
that of the article itself.
    Canada, Italy, and Taiwan are WTO GPA countries. China is not.
    Most of the individual components of the fixed lift are 
manufactured in Canada while most of the components of the portable 
lift are manufactured in China. In addition, the parts of the ``high 
limit,'' ``motorized trolley,'' and ``manual trolley'' subassemblies of 
the fixed lift are predominantly of Chinese origin. The ``mega motor'' 
subassembly parts of the fixed lift are of Italian and Taiwanese origin 
and the ``drum'' subassembly parts of the fixed lift are predominantly 
of Canadian origin. The parts of the ``high limit'' and ``cabin port'' 
subassemblies of the portable lift are predominantly of Chinese origin, 
while the parts of the ``motor'' subassembly of the portable lift are 
entirely of Italian and Taiwanese origin, and the parts of the 
``spool'' subassembly of the portable lift are predominantly of U.S. 
and Canadian origin. The subassemblies are assembled in the U.S. The 
final assembly in the U.S. fully integrates the subassemblies and the 
component parts not already incorporated into a subassembly. The final 
assembly performed in the U.S. as described is substantial and 
meaningful, and requires a good deal of skill, precision, and technical 
expertise as well as sophisticated testing and inspection of the 
products. The lift subassemblies and component parts are substantially 
transformed as a result of the assembly operations performed in the 
U.S. to produce the fully functional and operational fixed and portable 
lifts.
    Therefore, the instant fixed and portable lifts would not be 
considered to be the products of a foreign country or instrumentality 
designated pursuant to 19 U.S.C. 2511(b)(1). As to whether the fixed 
and portable lifts assembled in the United States qualify as ``U.S.-
made end product,'' we encourage you to review the recent court 
decision in Acetris Health, LLC v. United States, 949 F.3d 719 (Fed. 
Cir. 2020), and to consult with the relevant government procuring 
agency.

HOLDING:

    The subject fixed and portable lifts would not be products of a 
foreign country or instrumentality designated pursuant to 19 U.S.C. 
2511(b)(1).
    You should consult with the relevant government procuring agency to 
determine whether the lifts qualify as ``U.S.-made end product'' for 
purposes of the Federal Acquisition Regulations implementing the TAA.
    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 Court of International Trade.

    Sincerely,

Joanne R. Stump,

Acting Executive Director, Regulations and Rulings, Office of Trade.

[FR Doc. 2021-04574 Filed 3-4-21; 8:45 am]
BILLING CODE 9111-14-P