[Federal Register Volume 86, Number 112 (Monday, June 14, 2021)]
[Notices]
[Pages 31510-31512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12352]


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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 Patient Ceiling Lift Systems

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 patient ceiling lift 
systems that will be installed at a patient's residence or healthcare 
setting. Based upon the facts presented, CBP has concluded in the final 
determination that the patient ceiling lift systems 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.

DATES: The final determination was issued on June 4, 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 July 14, 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 June 4, 2021, 
CBP issued a final determination concerning the country of origin of 
fixed and portable patient ceiling lift systems for purposes of Title 
III of the Trade Agreements Act of 1979. This final determination, HQ 
H309124, 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 patient ceiling lift 
systems 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: June 4, 2021.
Joanne R. Stump,
Acting Executive Director, Regulations and Rulings, Office of Trade.

HQ H309124

June 4, 2021

OT:RR:CTF:VS H309124 AP

CATEGORY: Origin

Luis F. Arandia, Jr.
Polsinelli PC
2950 N Harwood St., Ste. 2100
Dallas, TX 75201

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 Patient Ceiling Lift Systems

Dear Mr. Arandia:


[[Page 31511]]


    This is in response to your February 4, 2020 request,\1\ on 
behalf of Handicare USA, for a final determination concerning the 
country of origin of patient ceiling lift systems. 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.). Handicare USA is a party-at-interest within the 
meaning of 19 CFR 177.22(d)(1) and 177.23(a).
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    \1\ You submitted a supplemental letter on February 26, 2020.
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Facts

    Handicare USA is the U.S. subsidiary of the Handicare Group AB 
based in Stockholm, Sweden, which manufactures patient ceiling lift 
systems.\2\ Handicare USA's North American headquarters and 
manufacturing facility is in St. Louis, Missouri with local offices 
across the U.S. and Canada. These offices are full-service centers 
that include inventory, customer service, technical support, sales, 
and a showroom.
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    \2\ See Handicare, Ceiling Lifts, https://www.handicareusa.com/product-category/homecare/ceiling-lifts/ (last visited May 17, 
2021).
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    You describe the subject patient ceiling lift systems as 
consisting of a ceiling lift unit mounted on a XY rail system. Each 
ceiling lift system is assembled and installed at a patient's 
residence or healthcare setting. The ceiling systems can be fixed 
(model C-625) or portable (model P-440). The fixed lift remains on 
the same track system and cannot be moved to another room. For the 
portable system, the lift is designed to be taken down from the 
track system and moved to a different track system in another room.
    The major components of the fixed and portable ceiling lift 
systems are the regular and super tracks, charging station 
subassembly, gantry subassembly, ceiling lift motor subassembly, and 
patient carry bar subassembly. The regular and super tracks \3\ of 
Canadian or Mexican origin are sub-components of the entire system 
and are imported with no additional assembly. The charging station 
of U.S. origin consists of a charging battery, housing, and cables. 
The gantry of U.S. origin consists of trolley wheels, track 
brackets, fasteners, washers, and spacers, and may include a charger 
block. The carry bar of Chinese or Canadian origin is fitted with 
bull horn or spring latch connectors, and narrow or wide bars. You 
describe the ceiling lift motor subassembly as ``the heart'' of the 
entire lift system and as U.S.-originating. It consists of the 
ceiling lift motor, circuit board, and housing. The portable ceiling 
lift motor subassembly (model P-440) has a U.S. originating motor 
and circuit board. The fixed ceiling lift motor subassembly (model 
C-625) has a U.K.-originating motor and U.S.-originating board.
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    \3\ The regular track is the standard rail for most applications 
while the super track is a heavier rail for longer free spans 
between attachment points.
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    The hardware components are the above-ceiling attachments that 
comprise the mounting for the patient lift system and include the 
perpendicular brace strut channel (U.S. or Taiwanese origin), 
bracket (Canadian or Mexican origin), end pin (Chinese origin), end 
cap (Canadian or Mexican origin), strut channel (U.S. or Taiwanese 
origin), and bolt, lock washer, threaded rod, hex nut, fitting, lock 
washer, channel nut, coupler nut, seismic wedge anchor, and square 
washer (originating from various countries including China).
    The charging station, gantry, and ceiling lift motor 
subassemblies occurs in Handicare USA's manufacturing facility in 
St. Louis. At the customer installation site, Handicare USA modifies 
the tracks and assembles them with the charging station, gantry, 
ceiling lift motor, and carry bar subassemblies into the patient 
ceiling lift system. The installation process involves measuring and 
laying out where the tracks and the attachment points to concrete 
deck and ceiling brackets should go; installing the structure and 
the parallel tracks; installing the traversing track, trolley and 
lift; and testing and verification. The installation includes 
machine processes such as cutting struts using a band saw, cutting a 
threaded rod, and drilling into a ceiling.

Issue

    What is the country of origin of the subject patient lift 
systems for purposes of U.S. 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 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, 
provided that the value of those incidental services does not exceed 
that of the article itself.
    Canada and the U.K. are WTO GPA countries. China and Mexico are 
not.
    You advise that the lift motor, charging station, and gantry are 
of U.S. origin and are sub-assembled in the U.S. The key components 
of the lift motor, which is the most important subassembly 
characterized as ``the heart'' of the patient lift systems, are the 
motor and circuit board. The motor is of U.S. (portable lift) or 
U.K. origin (fixed lift), and the board is of U.S. origin (both 
fixed and portable lifts). The final assembly in the U.S. fully 
integrates the subassemblies, the tracks, and the above-ceiling 
attachments. The U.S. installation involves cutting struts using a 
band saw and cutting a threaded rod. The U.S. operations as 
described are complex and meaningful requiring significant skill, 
technical expertise, and quality control. As a result of the U.S. 
operations, the subassemblies are substantially transformed to 
produce the fully functional and operational fixed and portable 
patient lift systems.
    Accordingly, the instant fixed and portable patient lift systems 
would not be products of a foreign country or instrumentality 
designated pursuant to 19 U.S.C. 2511(b)(1). As to whether they 
qualify as ``U.S.-made end product,'' we encourage you to review the 
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.

[[Page 31512]]

Holding

    The subject fixed and portable patient lift systems 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. 2021-12352 Filed 6-11-21; 8:45 am]
BILLING CODE 9111-14-P