[Federal Register Volume 88, Number 80 (Wednesday, April 26, 2023)]
[Notices]
[Pages 25413-25414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-08771]



[[Page 25413]]

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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Height 
Adjustable Workstations

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 height adjustable workstations. Based upon the 
facts presented, CBP has concluded that the imported components of the 
workstations undergo substantial transformation in the United States 
when made into the final workstations.

DATES: The final determination was issued on April 10, 2023. 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 May 26, 2023.

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 April 10, 
2023, U.S. Customs and Border Protection (CBP) issued a final 
determination concerning the country of origin of height adjustable 
workstations for purposes of title III of the Trade Agreements Act of 
1979. This final determination, HQ H330862, was issued at the request 
of RightAngle Products, 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 imported 
components are substantially transformed in the United States when made 
into the subject workstations.
    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: April 21, 2023.
Alice A. Kipel,
Executive Director, Regulations and Rulings, Office of Trade.

HQ H330862

April 10, 2023
OT:RR:CTF:VS H330862 AP
CATEGORY: Origin

Keeley Boeve
KB Contract Consulting
4444 132nd Avenue
Hamilton, MI 49419

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 Height Adjustable Workstations

Dear Ms. Boeve:

    This is in response to your March 24, 2023 request, on behalf of 
RightAngle Products (``RightAngle''), for a final determination 
concerning the country of origin of certain height adjustable 
workstations pursuant to Title III of the Trade Agreements Act of 1979 
(``TAA''), as amended (19 U.S.C. 2511 et seq.), and subpart B of Part 
177, U.S. Customs and Border Protection (``CBP'') Regulations (19 CFR 
177.21, et seq.). RightAngle is a party-at-interest within the meaning 
of 19 CFR 177.22(d)(1) and 177.23(a) and is therefore entitled to 
request this final determination.

Facts

    The height adjustable workstations at issue are part of the 
RightAngle's NewHeightsTM series, which include the 
``Elegante XT,'' ``Eficiente LC,'' ``Bonita ET'' electric height 
adjustable desks and the ``Levante'' manual height adjustable desk. 
Each workstation has a laminate desktop and metal legs. The raw 
materials for the desktop and the legs are sourced from the United 
States. The laminate desktop is manufactured in the United States from 
logs which go through a woodchipper and a flaking machine to create 
particle boards with thermally fused laminate that are cut to size and 
shape. The metal legs are made and welded together in the United 
States. The only non-U.S. originating components are the table 
controller and the digital keyboard for the controller, which are 
manufactured in Hungary. You explain that these Hungarian components 
are needed ``to move the table up and down as they are the push button 
and control box that are wired into the tables and cannot be used on 
their own.'' The controller will be attached to the bottom of the 
tabletop by two screws. The square control panels will be mounted from 
the bottom to the edge of the tabletop in a way that the keys will be 
easily accessible. The control panels with a cable will be plugged into 
the connector of the controller.

Issue

    Whether the imported components are substantially transformed when 
made into the height adjustable workstations in the United States.

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.

Emphasis added.
    The Secretary of the Treasury's authority mentioned above, along 
with other customs revenue functions, are delegated to CBP in the 
Appendix to 19 CFR part 0--Treasury Department Order No. 100-16, 68 FR 
28, 322 (May 23, 2003).
    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.

See also 19 CFR 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 Procurement Regulation 
(``FAR''). See 19 CFR 177.21. In this regard, CBP recognizes that the 
FAR restricts the U.S. Government's purchase of products to U.S.-made 
or designated country end

[[Page 25414]]

products for acquisitions subject to the TAA. See 48 CFR 25.403(c)(1).
    The FAR, 48 CFR 25.003, defines ``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.

    As indicated above, the height adjustable workstations are produced 
with two non-U.S. components, the table controller and the digital 
keyboard. The desktop and the legs are manufactured in the United 
States.
    In order to determine whether a substantial transformation occurs, 
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, CBP considers factors such as the resources expended on 
product design and development, the extent and nature of post-assembly 
inspection and testing procedures, and worker skill required during the 
actual manufacturing process when determining whether a substantial 
transformation has occurred. No one factor is determinative.
    A new and different article of commerce is an article that has 
undergone a change in commercial designation or identity, fundamental 
character, or commercial use. A determinative issue is the extent of 
the operations performed and whether the materials lose their identity 
and become an integral part of the new article. See Nat'l Hand Tool 
Corp. v. United States, 16 CIT 308 (1992), aff'd, 989 F.2d 1201 (Fed. 
Cir. 1993). In Carlson Furniture Indus. v. United States, 65 Cust. Ct. 
474, Cust. Dec. 4126 (1970), which involved wooden chair parts, the 
court held that the assembly operations after importation were 
substantial in nature and more than a simple assembly of parts. The 
importer assembled, fitted, and glued the wooden parts together, 
inserted steel pins into the key joints, cut the legs to length and 
leveled them, and in some instances, upholstered the chairs and fitted 
the legs with glides and casters. The assembly operations resulted in 
the creation of a new article of commerce.
    Headquarters Ruling Letter (``HQ'') H280512, dated Mar. 7, 2017, 
considered the origin of a desktop workstation for purposes of U.S. 
Government procurement. The main components of the sit-to-stand 
workstation were a Chinese-origin lift assembly of base metal, and a 
U.S.-originating laminated particle board work surface and keyboard 
tray. The lift assembly provided user assisted lift functionality by 
means of spring force to allow adjustment of the workstation between 
sitting and standing positions. In the United States, the Chinese lift 
assembly was attached to components fabricated in the United States 
including the work surface, keyboard tray, right and left keyboard 
support brackets, and metal support bar to form the workstation. The 
processes in the United States included sawing, profiling, sanding, 
hot-pressing and trimming to manufacture the work surface and keyboard 
tray as well as laser-cutting, bending and painting of the sheet metal 
components followed by final assembly of the U.S.-origin and the 
imported components. CBP determined that the imported lift assembly was 
substantially transformed as a result of the assembly performed in the 
United States to produce the finished desktop workstation. The decision 
noted that the lift assembly was not functional to an end user by 
itself as it did not include the primary features of the U.S.-origin 
work surface and keyboard tray which allowed the work to be conducted, 
and without which, the lifting mechanism was incapable of being used as 
a workstation. CBP found the lift assembly was substantially 
transformed in the United States into a desktop workstation.
    Similar to the lift assembly in HQ H280512, the imported controller 
and digital keyboard here are substantially transformed when they are 
mounted to the desktop and when the control panels with a cable are 
plugged into the connector of the controller to produce the finished 
height adjustable workstations. The controller and the digital keyboard 
are not functional to end users by themselves but they become an 
integral part of the workstations. To move the workstations up and 
down, the controller and the digital keyboard need to be attached and 
wired into the desktop.
    Based on the foregoing, we find that the last substantial 
transformation occurs in the United States, and therefore, the height 
adjustable workstation is not a product of a foreign country or 
instrumentality designated pursuant to 25 U.S.C. 2511(b). As to whether 
the workstation produced in the United States qualifies as a ``U.S.-
made end product,'' you may wish to consult with the relevant 
government procuring agency and review Acetris Health, LLC v. United 
States, 949 F.3d 719 (Fed. Cir. 2020).

Holding

    Based on the information outlined above, we determine that the 
components imported into the United States undergo a substantial 
transformation when made into the subject height adjustable 
workstations.
    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 U.S. Court of International Trade.

Sincerely,

Alice A. Kipel,

Executive Director, Regulations and Rulings, Office of Trade.

[FR Doc. 2023-08771 Filed 4-25-23; 8:45 am]
BILLING CODE 9111-14-P