Source: https://regulations.justia.com/regulations/fedreg/2007/02/28/E7-3482.html
Timestamp: 2019-08-22 16:48:16
Document Index: 386331439

Matched Legal Cases: ['art 177', 'art 177', 'art 177', 'art 177', 'art 177', 'art 177', 'art 177', 'art 177', 'art 177', 'art 177', 'art 177', 'art 177']

Notice of Issuance of Final Determination Concerning Digital Color Multifunctional Systems, 9014-9017 [E7-3482] :: Customs And Border Protection Bureau :: Department Of Homeland Security :: Regulation Tracker :: Justia
Justia Regulation Tracker Department Of Homeland Security Customs And Border Protection Bureau Notice of Issuance of Final Determination Concerning Digital Color Multifunctional Systems, 9014-9017 [E7-3482]
Notice of Issuance of Final Determination Concerning Digital Color Multifunctional Systems, 9014-9017 [E7-3482]
Download as PDF 9014 Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices opportunity for public comment on proposed collections of information, the Substance Abuse and Mental Health Services Administration (SAMHSA) will publish periodic summaries of proposed projects. To request more information on the proposed projects or to obtain a copy of the information collection plans, call the SAMHSA Reports Clearance Officer on (240) 276– 1243. Comments are invited on: (a) Whether the proposed collections of information are necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Proposed Project: Underage Drinking Prevention: Town Hall Meeting Feedback Form—New The Substance Abuse and Mental Health Services Administration’s (SAMHSA), Center for Substance Abuse Prevention (CSAP) is proposing the project the 2008 Underage Drinking Prevention: Town Hall Meetings (THM) Initiative. In 2006, approximately 1,510 THMs were held in 1,262 communitybased organizations (CBO) throughout the Nation. Each of the THMs strived to increase the understanding and awareness of underage alcohol use and its consequences by encouraging individuals, families, and communities to address the problem. The local THMs gave communities the opportunity to come together to learn more about the new research on underage alcohol use and its impact on both the individuals and the community. They also discussed how their communities can best prevent underage alcohol use. To help guide decision making and planning for future THMs, SAMHSA/ CSAP plans to conduct a process assessment of the THMs to be held in 2008. CBOs who agree to participate in this initiative will be asked to provide feedback about the implementation and results of the THMs in their community. This information collection is being implemented under the authority of Section 501(d) (4) of the Public Health Service Act (42 U.S.C. 290aa). The contractor conducting this information collection will distribute a brief feedback form to all participating organizations. The form includes 14 items about the THM, including where, when, and who conducted the meeting, number of attendees, format of meeting, participants in the presentations, actions planned, media coverage of the meeting, composition of the audience, responses of the attendees, materials provided in the town hall meetings, and indications of increased awareness and increased involvement. In addition to distributing the feedback form, the contractor will be responsible for collecting, compiling, analyzing, and reporting on information requested through this feedback form. The feedback form will be completed by an estimated 1,200 employees from CBOs. The paper form will take an average of 10 minutes (.167 hours) to review instructions, complete the form, and mail it in a self-addressed, stamped envelope. This burden estimate is based on comments from several potential respondents who reviewed the form and provided comments on how long it would take them to complete it. Form name Number of respondents Responses per respondent Hours per response Total hour burden Feedback Form ................................................................................................ 1,200 1 .167 120 Send comments to Summer King, SAMHSA Reports Clearance Officer, Room 7–1044, One Choke Cherry Road, Rockville, MD 20857. Written comments should be received within 60 days of this notice. Dated: February 22, 2007. Elaine Parry, Acting Director, Office of Program Services. [FR Doc. E7–3468 Filed 2–27–07; 8:45 am] BILLING CODE 4162–20–P DEPARTMENT OF HOMELAND SECURITY sroberts on PROD1PC70 with NOTICES Bureau of Customs and Border Protection Notice of Issuance of Final Determination Concerning Digital Color Multifunctional Systems U.S. Customs and Border Protection, Department of Homeland Security. ACTION: Notice of final determination. AGENCY: VerDate Aug<31>2005 16:08 Feb 27, 2007 Jkt 211001 SUMMARY: This document provides notice that the Bureau of Customs and Border Protection (CBP) has issued a final determination concerning the country of origin of certain digital color multifunctional systems to be offered to the United States Government under an undesignated government procurement contract. Based on the facts presented, the final determination found that Japan is the country of origin of the subject digital color multifunctional systems for purposes of U.S. government procurement. The final determination was issued on February 8, 2007. 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 30 days of February 28, 2007. FOR FURTHER INFORMATION CONTACT: Daniel Cornette, Valuation and Special Programs Branch, Office of International Trade; telephone (202) 572–8731. SUPPLEMENTARY INFORMATION: Notice is hereby given that on February 8, 2007, DATES: PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 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 certain digital color multifunctional systems to be offered to the United States Government under an undesignated government procurement contract. The CBP ruling number is HQ 563491. This final determination was issued at the request of Sharp Electronics Corporation 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). The final determination concluded that, based upon the facts presented, the assembly in Japan of Japanese and foreign components to create the subject digital color multifunctional systems substantially transformed the foreign components into a product of Japan. 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 E:\FR\FM\28FEN1.SGM 28FEN1 Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices issued. Section 177.30, CBP Regulations (19 CFR 177.30), states that any partyat-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: February 21, 2007. Sandra L. Bell, Executive Director, Office of Regulations and Rulings, Office of International Trade. HQ 563491 February 8, 2007. sroberts on PROD1PC70 with NOTICES MAR–2–05 RR:CTF:VS 563491 DCC Category: Marking. Ms. Fusae Nara, Pillsbury Winthrop Shaw Pittman, 1540 Broadway, New York, NY 10036–4039. Reference: U.S. Government Procurement; Final Determination; country of origin of digital color multifunctional systems; substantial transformation; 19 CFR Part 177. Dear Ms. Nara: This is in response to your letter dated April 24, 2006, requesting a final determination on behalf of Sharp Electronics Corporation (‘‘Sharp’’) pursuant to subpart B of Part 177, Customs and Border Protection (‘‘CBP’’) Regulations (19 CFR 177.21 et seq.). Under these regulations, which implement Title III of the Trade Agreements Act of 1979, as amended (codified at 19 U.S.C. 2411 et seq.), CBP issues country of origin advisory rulings and final determinations on whether an article is or would be a product of a designated foreign 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 certain digital color multifunctional systems that Sharp may sell to the U.S. Government. We note that Sharp is a party-at-interest within the meaning of 19 CFR 177.22(d)(1) and is entitled to request this final determination. Facts: The products subject to this ruling are digital color multifunctional systems manufactured by Sharp, Model Nos. MX–2300NJ and MX–2700NJ (hereinafter the ‘‘J–Models’’), imported from Japan for the purpose of sales to U.S. government agencies. The J-Models have photocopying, printing, faxing, and scanning functions. The primary difference between the two models is the speed at which they are able to process images. The MX–2300NJ prints 23 pages per minute compared to 27 pages per minute for the MX–2700NJ. VerDate Aug<31>2005 16:08 Feb 27, 2007 Jkt 211001 Sharp’s parent company (‘‘Sharp Japan’’) developed the J-Model in Japan, and performs the entire engineering, development, design, and art work processes for both models in Japan. According to your submission, the production process may be broken down into four stages. In the first stage, the following key subassemblies are assembled: laser scanner unit (‘‘LSU’’) (assembled in China); first transfer unit subassembly (assembly begins in China and is finished in Japan); process unit subassembly (assembled in China); and controller unit subassembly (assembled in Japan). In addition, four minor subassemblies are assembled in China: first transfer cleaner unit; cabinet subassembly; auto document feeder subassembly, and fuser unit. The finished systems have one unit each of five different kinds of applicationspecific integrated circuits (‘‘ASIC’’), all of which are made in Japan. The second stage is the final physical assembly of the J-Models. In the third stage, Sharp Japan makes adjustments and conducts testing of the J-Models. In the fourth stage, the J-Models undergo final inspection and packaging for shipment to the United States. 1. Subassembly Preparation (a) Laser Scanner Unit Subassembly The LSU writes the image data of the documents or graphics onto the drum unit. While the components comprising the LSU are assembled in China, the charge coupled device (‘‘CCD’’) and the ASIC, which are mounted on the cabinet as well as the laser diodes (‘‘LDs’’), are made in Japan. Color images are created by exposing the laser lights of the LDs to four color-specific drums (black, cyan, magenta, and yellow). The ASIC is designed to control the exposure of the laser lights following the scanned data with speed and precision. (b) First Transfer Unit Subassembly The first transfer unit is where the four color images, which are created by the four color drums, are transformed into an integrated color image that is then transferred onto paper. The image is transferred to the paper by a wide belt known as a transfer belt. The transfer belt rotates around the first transfer unit generating print images, while a cleaner cartridge continuously cleans the surface of the belt. The unfinished first transfer unit is manufactured in China and completed in Japan where the transfer belt is manufactured and installed. PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 9015 (c) Process Unit Subassembly The process unit is a combination of the drum, developer, and toner cartridges. Because the J-Models are color multifunctional systems, they require four sets of the process units, which includes a drum, developer and toner for each of the four colors, i.e., black, yellow, cyan, and magenta. The developer and toner materials, as well as the drums, are produced in Japan. The process unit subassembly is assembled by attaching each of the four drums to the four drum cartridges. The toner and developer cartridges are filled with toner and developer and installed on the subassembly for testing purposes. (d) Control Box Unit Subassembly The control box unit is the ‘‘brain’’ of the J-Model machines. The control printed wiring board (‘‘PWB’’) and the mother PWB are populated in China with diodes, resisters, and condensers. In Japan, Sharp forms a harness for the hard disk (either from Malaysia or China) that is then fastened to the harness board of the control box unit with screws. The hard disk is affixed to the harness and then to the PWB. Cushioning is installed around the hard disk and flash memory chips (i.e., the boot flash ROM, and the program flash ROM) are inserted into designated slots on the control box. 2. Final Assembly The final Japanese assembly process begins with the cabinet that houses the middle section of the finished product. The cabinet is fabricated in China and contains certain components, such as Japanese ASICs, that are installed in China. The major subassemblies described above are assembled into the cabinet as follows: a. The side panel of the cabinet is opened and the LSU subassembly is inserted and fastened to the cabinet with screws. b. The front panel of the cabinet is opened and the first transfer unit assembly is inserted into a slot and fastened to the cabinet with screws. c. Four drum cartridges, four developer cartridges, and four toner cartridges—one for each of the four colors (i.e., black, yellow, cyan, and magenta)—are installed. d. A small panel on the back of the cabinet is removed and the control box unit is inserted into a slot in the cabinet assembly and secured with screws. e. The automatic document feeder is fastened to the hinge on top of the cabinet assembly with screws. E:\FR\FM\28FEN1.SGM 28FEN1 9016 Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices sroberts on PROD1PC70 with NOTICES 3. Testing In Japan, extensive tests are conducted and adjustments are made to all functions, including scanning, image placement, color and darkness. a. Adjustments. The following adjustments are made to each unit: • Confirm data input circuitry by connecting the printer/scanner unit to a computer based on the destination of the finished unit. • Inspect the card reader by running a test card with a simulation program. • Apply high voltage to the printer unit and adjust it to be within the permitted range for each color. • Measure the bias voltage to confirm that the voltage used to remove excess toner is proper. • Confirm the rotation of the toner motor. • Confirm the functioning of the hard disk and the hard disk output on the LCD display panel of the operation unit. • Measure the distance between the drum ‘‘sleep’’ position and the toner cartridge magnet roller to ensure even print quality. • Adjust the amount of developer by connecting the developer unit for each color. • Attach the toner cartridge and adjust the darkness sensor. b. Test Copying. After the assembly adjustments are complete, the unit undergoes alignments by running test copies to confirm the following functions: Paper placement; print darkness; optical images; print placement; color balance for printer engine and print output; color pattern chart; manual copy; print and image output; two-sided copying; feeder functions; intermediate tone process control for various printing modes (i.e., letter, photograph, and combination); print output from an attached computer; USB cable connection; and memory. After testing is complete, each unit is reset to the default position to prepare for final inspection and packaging for shipment. 4. Final Inspection and Packaging The finished assembly is prepared for shipment by removing the drum cartridges, toner cartridges, and developer cartridges used for testing purposes and by cleaning the color toner pipes, printing mechanism, scanner surface, and exterior. New drum and developer cartridges are inserted and secured to the unit. An operator conducts a final inspection that includes testing the power supply, the LCD display panel, sensors, and proper operation of the unit. After final inspection, the finished unit is packaged for shipping. VerDate Aug<31>2005 16:08 Feb 27, 2007 Jkt 211001 Issue: Whether the multifunctional systems manufactured by Sharp (Model Nos. MX–2300NJ and MX–2700NJ) are products of Japan for purposes of U.S. Government procurement. Law and Analysis: Pursuant to Subpart B of Part 177, 19 CFR 177.21 et seq., which implements Title III of the Trade Agreements Act of 1979, as amended (19 U.S.C. 2511 et seq.), CBP issues country of origin advisory rulings and final determinations on 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. 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. See also, 19 CFR 177.22(a). A substantial transformation ‘‘results in an article having a name, character, or use differing from that of the imported article.’’ Uniroyal, Inc. v. United States, 542 F. Supp. 1026, 1029 (Ct. Int’l Trade 1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). In determining whether the combining of parts or materials constitutes a substantial transformation, the determinative issue is the extent of operations performed and whether the parts lose their identity and become an integral part of the new article. See Belcrest Linens v. United States, 573 F. Supp. 1149 (Ct. Int’l Trade 1983), aff’d, 741 F.2d 1368 (Fed. Cir. 1984). Assembly operations that are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. See C.S.D. 80–111, C.S.D. 85–25, C.S.D. 89–110, C.S.D. 89–118, C.S.D. 90–51, and C.S.D. 90–97. In C.S.D. 85–25, 19 Cust. Bull. 844 (1985), CBP held that for purposes of the Generalized System of Preferences (‘‘GSP’’), the assembly of a large number of fabricated components onto a printed circuit board in a process involving a considerable amount of time and skill resulted in a substantial transformation. In that case, in excess of 50 discrete fabricated components (such as resistors, capacitors, diodes, PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 integrated circuits, sockets, and connectors) were assembled. CBP has held in a number of cases involving similar merchandise that complex and meaningful assembly operations involving a large number of components will generally result in a substantial transformation. In Headquarters Ruling Letter (‘‘HRL’’) 562936, 69 FR 13577 (March 23, 2004), we addressed the country of origin of certain multifunction printers assembled in Japan of various Japaneseand Chinese-origin parts. In that ruling, we determined that the multifunction printer was a product of Japan based on the fact that a ‘‘substantial portion of the printer’s individual components and subassemblies [were] of Japanese origin.’’ Furthermore, we noted that some of the Japanese components and subassemblies were essential parts of the finished article, and other Japanese parts, including the reader scanner unit and the control panel unit, were critical to the production of the printer. Finally, HRL 562936 noted that the Japanese processing operations were complex and meaningful, that required ‘‘the assembly of a large number of components, and render[ed] a new and distinct article of commerce that possesse[d] a new name, character, and use.’’ In HRL 562495, dated November 13, 2002, color ink jet printers were assembled in Singapore of components imported from a number of other countries. In that ruling, we determined that the imported components were substantially transformed during assembly such that the country of origin of the assembled ink jet printers was Singapore. In support of this determination, we considered the processing occurring within Singapore to be complex and extensive, requiring the integration of 13 major subassemblies to the chassis, and that the resulting product was a new and distinct article of commerce that possessed a new name, character, and use. In HRL 561734, dated March 22, 2001, published in the Federal Register on March 29, 2001 (66 FR 17222), we held that certain multifunctional machines (consisting of printer, copier, and fax machines) assembled in Japan were a product of that country for purposes of U.S. Government procurement. The multifunctional machines were assembled from 227 parts (108 parts obtained from Japan, 92 from Thailand, 3 from China, and 24 from other countries) and eight subassemblies, each of which was assembled in Japan. One of the subassemblies produced in Japan, referred to as the scanner unit, was E:\FR\FM\28FEN1.SGM 28FEN1 sroberts on PROD1PC70 with NOTICES Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Notices described as the ‘‘heart of the machine.’’ In finding that the imported parts were substantially transformed in Japan, we stated that the individual parts and components lost their separate identities when they became part of the multifunctional machine. See also HRL 561568, dated March 22, 2001, published in the Federal Register on March 29, 2001 (66 FR 17222). By contrast, assembly operations that are minimal or simple will generally not result in a substantial transformation. For example, in HRL 734050, dated June 17, 1991, we determined that Japaneseorigin components were not substantially transformed in China when assembled in that country to form finished printers. The printers consisted of five main components identified as the ‘‘head,’’ ‘‘mechanism,’’ ‘‘circuit,’’ ‘‘power source,’’ and ‘‘outer case.’’ The circuit, power source and outer case units were entirely assembled or molded in Japan. The head and mechanical units were made in Japan but exported to China in an unassembled state. All five units were exported to China where the head and mechanical units were assembled with screws and screwdrivers. Thereafter, the head, mechanism, circuit, and power source units were mounted onto the outer case with screws. In holding that the country of origin for marking purposes was Japan, CBP recognized that the vast majority of the printer’s parts were of Japanese origin and that the operations performed in China were relatively simple assembly operations. In order to determine whether a substantial transformation occurs when components of various origins are assembled to form multifunctional machines, CBP considers the totality of the circumstances and makes such decisions on a case-by-case basis. The primary considerations in such cases are the country of origin of the machine’s components and subassemblies, extent of processing that occurs within a given country, and whether such processing renders a product with a new name, character, and use. In addition, facts such as resources expended on product design and development, extent and nature of post-assembly inspection procedures, and worker skills required during the actual manufacturing process will be considered when analyzing whether a substantial transformation has occurred; however, no single factor is determinative. Based on the facts and law of this case, we find that the assembled JModel multifunctional systems are products of Japan for purposes of U.S. Government procurement. Although several of the subassemblies are VerDate Aug<31>2005 16:08 Feb 27, 2007 Jkt 211001 assembled in China, we find that enough of the Japanese subassemblies and individual components serve major functions and are high in value, in particular, the transfer belt, control box unit, application-specific integrated circuits, charged couple device, and laser diodes. The process unit subassembly is also crucial in the performance of the multifunctional systems. While it is assembled in China, its key components, the developer and toner materials, and drums are produced in Japan. Furthermore, it is significant that although the PWB is of Chinese origin, the firmware for the control box unit subassembly is developed in Japan. This firmware programming controls the print engine, readout mechanism, processes images for the copier, printer, fax, and scanner, and controls the operation panel display. We further note that the testing and adjustments performed in Japan are technical and complex. Finally, the assembly operations that occur in Japan are sufficiently complex and meaningful. Through the product assembly and testing and adjustment operations, the individual components and subassemblies of Japanese and foreignorigin are subsumed into a new and distinct article of commerce that has a new name, character, and use. Therefore, we find that the country of origin of the J-Models digital color multifunctional systems for purposes of U.S. Government procurement is Japan. Holding: Based on the facts of this case, we find that the processing in Japan substantially transforms the nonJapanese components. Therefore, the country of origin of the Sharp digital color multifunctional systems (Model Nos. MX–2300NJ and MX–2700NJ) is Japan for purposes of U.S. Government procurement. Notice of this final determination will be given in the Federal Register as required by 19 CFR 177.29. Any partyat-interest other than the party that requested this final determination may request, pursuant to 19 CFR 177.31, that CBP reexamine the matter anew and issue a new final determination. Any party-at-interest may, within 30 days after publication of the Federal Register notice reference above, seek judicial review of this final determination before the U.S. Court of International Trade. Sincerely, Sandra L. Bell, Executive Director, Office of Regulations and Rulings, Office of International Trade. [FR Doc. E7–3482 Filed 2–27–07; 8:45 am] BILLING CODE 9111–14–P PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 9017 DEPARTMENT OF HOMELAND SECURITY U.S. Citizenship and Immigration Services [CIS No. 2394–06; DHS Docket No. USCIS– 2006–0051] RIN 1615–ZA40 Special FOIA Processing Track for Individuals Appearing Before an Immigration Judge U.S. Citizenship and Immigration Services, DHS. ACTION: Notice. AGENCY: SUMMARY: U.S. Citizenship and Immigration Services (USCIS) is improving its processing of Freedom of Information Act (FOIA) requests from the general public by establishing a third processing track for individuals appearing before an immigration court. Currently, a large portion of FOIA requests are submitted by individuals who have received a Notice To Appear for a hearing before an immigration judge or by such individuals’ attorneys or representatives. By creating an additional processing track, USCIS will be able to provide the public with more expeditious service and to thereby improve customer satisfaction. DATES: This notice is effective March 30, 2007. FOR FURTHER INFORMATION CONTACT: Brian J. Welsh, Chief, Freedom of Information Act and Privacy Act, U.S. Citizenship and Immigration Services, Department of Homeland Security, P.O. Box 648010, Lee’s Summit, Missouri 64064, Phone: 816–350–5785, E-Mail: uscis.foia@dhs.gov . SUPPLEMENTARY INFORMATION: Background: Under the Freedom of Information Act, 5 U.S.C. 552 (‘‘FOIA’’), the Privacy Act, 5 U.S.C. 552a, and the Department of Homeland Security’s implementing regulations located at 6 CFR 5.5(b), the Secretary of Homeland Security may use two or more processing tracks for responding to FOIA requests. Currently, USCIS has two tracks: Track 1 is for less complex requests that can be processed in 20 working days or less. Track 2 is for complex requests that may require more than 20 working days to process and that include searching and line-byline review of numerous pages of information. With this notice, USCIS will establish a third processing track, the ‘‘Notice To Appear’’ track, which will allow for accelerated access to the Alien-File (A–File) for those individuals who have been served with a charging E:\FR\FM\28FEN1.SGM 28FEN1
[Federal Register Volume 72, Number 39 (Wednesday, February 28, 2007)]
[Pages 9014-9017]
[FR Doc No: E7-3482]
Notice of Issuance of Final Determination Concerning Digital
SUMMARY: This document provides notice that the Bureau of Customs and
Border Protection (CBP) has issued a final determination concerning the
country of origin of certain digital color multifunctional systems to
be offered to the United States Government under an undesignated
government procurement contract. Based on the facts presented, the
final determination found that Japan is the country of origin of the
subject digital color multifunctional systems for purposes of U.S.
DATES: The final determination was issued on February 8, 2007. 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 30 days of February 28, 2007.
FOR FURTHER INFORMATION CONTACT: Daniel Cornette, Valuation and Special
Programs Branch, Office of International Trade; telephone (202) 572-
SUPPLEMENTARY INFORMATION: Notice is hereby given that on February 8,
2007, pursuant to subpart B of part 177, Customs Regulations (19 CFR
part 177, subpart B), CBP issued a final determination concerning the
government procurement contract. The CBP ruling number is HQ 563491.
This final determination was issued at the request of Sharp Electronics
Corporation under procedures set forth at 19 CFR part 177, subpart B,
amended (19 U.S.C. 2511-18).
The final determination concluded that, based upon the facts
presented, the assembly in Japan of Japanese and foreign components to
create the subject digital color multifunctional systems substantially
transformed the foreign components into a product of Japan.
Register within 60 days of the date the final determination is
[[Page 9015]]
issued. Section 177.30, CBP Regulations (19 CFR 177.30), states 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.
Executive Director, Office of Regulations and Rulings, Office of
HQ 563491
MAR-2-05 RR:CTF:VS 563491 DCC
Category: Marking.
Ms. Fusae Nara, Pillsbury Winthrop Shaw Pittman, 1540 Broadway, New
York, NY 10036-4039.
Reference: U.S. Government Procurement; Final Determination; country of
origin of digital color multifunctional systems; substantial
transformation; 19 CFR Part 177.
Dear Ms. Nara: This is in response to your letter dated April 24,
2006, requesting a final determination on behalf of Sharp Electronics
Corporation (``Sharp'') pursuant to subpart B of Part 177, Customs and
Border Protection (``CBP'') Regulations (19 CFR 177.21 et seq.). Under
these regulations, which implement Title III of the Trade Agreements
Act of 1979, as amended (codified at 19 U.S.C. 2411 et seq.), CBP
issues country of origin advisory rulings and final determinations on
whether an article is or would be a product of a designated foreign
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 certain
digital color multifunctional systems that Sharp may sell to the U.S.
Government. We note that Sharp is a party-at-interest within the
meaning of 19 CFR 177.22(d)(1) and is entitled to request this final
The products subject to this ruling are digital color
multifunctional systems manufactured by Sharp, Model Nos. MX-2300NJ and
MX-2700NJ (hereinafter the ``J-Models''), imported from Japan for the
purpose of sales to U.S. government agencies. The J-Models have
photocopying, printing, faxing, and scanning functions. The primary
difference between the two models is the speed at which they are able
to process images. The MX-2300NJ prints 23 pages per minute compared to
27 pages per minute for the MX-2700NJ.
Sharp's parent company (``Sharp Japan'') developed the J-Model in
Japan, and performs the entire engineering, development, design, and
art work processes for both models in Japan. According to your
submission, the production process may be broken down into four stages.
In the first stage, the following key subassemblies are assembled:
laser scanner unit (``LSU'') (assembled in China); first transfer unit
subassembly (assembly begins in China and is finished in Japan);
process unit subassembly (assembled in China); and controller unit
subassembly (assembled in Japan). In addition, four minor subassemblies
are assembled in China: first transfer cleaner unit; cabinet
subassembly; auto document feeder subassembly, and fuser unit. The
finished systems have one unit each of five different kinds of
application-specific integrated circuits (``ASIC''), all of which are
The second stage is the final physical assembly of the J-Models. In
the third stage, Sharp Japan makes adjustments and conducts testing of
the J-Models. In the fourth stage, the J-Models undergo final
inspection and packaging for shipment to the United States.
1. Subassembly Preparation
(a) Laser Scanner Unit Subassembly
The LSU writes the image data of the documents or graphics onto the
drum unit. While the components comprising the LSU are assembled in
China, the charge coupled device (``CCD'') and the ASIC, which are
mounted on the cabinet as well as the laser diodes (``LDs''), are made
in Japan. Color images are created by exposing the laser lights of the
LDs to four color-specific drums (black, cyan, magenta, and yellow).
The ASIC is designed to control the exposure of the laser lights
following the scanned data with speed and precision.
(b) First Transfer Unit Subassembly
The first transfer unit is where the four color images, which are
created by the four color drums, are transformed into an integrated
color image that is then transferred onto paper. The image is
transferred to the paper by a wide belt known as a transfer belt. The
transfer belt rotates around the first transfer unit generating print
images, while a cleaner cartridge continuously cleans the surface of
the belt. The unfinished first transfer unit is manufactured in China
and completed in Japan where the transfer belt is manufactured and
(c) Process Unit Subassembly
The process unit is a combination of the drum, developer, and toner
cartridges. Because the J-Models are color multifunctional systems,
they require four sets of the process units, which includes a drum,
developer and toner for each of the four colors, i.e., black, yellow,
cyan, and magenta. The developer and toner materials, as well as the
drums, are produced in Japan. The process unit subassembly is assembled
by attaching each of the four drums to the four drum cartridges. The
toner and developer cartridges are filled with toner and developer and
installed on the subassembly for testing purposes.
(d) Control Box Unit Subassembly
The control box unit is the ``brain'' of the J-Model machines. The
control printed wiring board (``PWB'') and the mother PWB are populated
in China with diodes, resisters, and condensers. In Japan, Sharp forms
a harness for the hard disk (either from Malaysia or China) that is
then fastened to the harness board of the control box unit with screws.
The hard disk is affixed to the harness and then to the PWB. Cushioning
is installed around the hard disk and flash memory chips (i.e., the
boot flash ROM, and the program flash ROM) are inserted into designated
slots on the control box.
2. Final Assembly
The final Japanese assembly process begins with the cabinet that
houses the middle section of the finished product. The cabinet is
fabricated in China and contains certain components, such as Japanese
ASICs, that are installed in China. The major subassemblies described
above are assembled into the cabinet as follows:
a. The side panel of the cabinet is opened and the LSU subassembly
is inserted and fastened to the cabinet with screws.
b. The front panel of the cabinet is opened and the first transfer
unit assembly is inserted into a slot and fastened to the cabinet with
c. Four drum cartridges, four developer cartridges, and four toner
cartridges--one for each of the four colors (i.e., black, yellow, cyan,
and magenta)--are installed.
d. A small panel on the back of the cabinet is removed and the
control box unit is inserted into a slot in the cabinet assembly and
secured with screws.
e. The automatic document feeder is fastened to the hinge on top of
the cabinet assembly with screws.
[[Page 9016]]
In Japan, extensive tests are conducted and adjustments are made to
all functions, including scanning, image placement, color and darkness.
a. Adjustments. The following adjustments are made to each unit:
Confirm data input circuitry by connecting the printer/
scanner unit to a computer based on the destination of the finished
Inspect the card reader by running a test card with a
Apply high voltage to the printer unit and adjust it to be
within the permitted range for each color.
Measure the bias voltage to confirm that the voltage used
to remove excess toner is proper.
Confirm the rotation of the toner motor.
Confirm the functioning of the hard disk and the hard disk
output on the LCD display panel of the operation unit.
Measure the distance between the drum ``sleep'' position
and the toner cartridge magnet roller to ensure even print quality.
Adjust the amount of developer by connecting the developer
unit for each color.
Attach the toner cartridge and adjust the darkness sensor.
b. Test Copying. After the assembly adjustments are complete, the
unit undergoes alignments by running test copies to confirm the
following functions: Paper placement; print darkness; optical images;
print placement; color balance for printer engine and print output;
color pattern chart; manual copy; print and image output; two-sided
copying; feeder functions; intermediate tone process control for
various printing modes (i.e., letter, photograph, and combination);
print output from an attached computer; USB cable connection; and
memory. After testing is complete, each unit is reset to the default
position to prepare for final inspection and packaging for shipment.
4. Final Inspection and Packaging
The finished assembly is prepared for shipment by removing the drum
cartridges, toner cartridges, and developer cartridges used for testing
purposes and by cleaning the color toner pipes, printing mechanism,
scanner surface, and exterior. New drum and developer cartridges are
inserted and secured to the unit. An operator conducts a final
inspection that includes testing the power supply, the LCD display
panel, sensors, and proper operation of the unit. After final
inspection, the finished unit is packaged for shipping.
Whether the multifunctional systems manufactured by Sharp (Model
Nos. MX-2300NJ and MX-2700NJ) are products of Japan for purposes of
U.S. Government procurement.
Pursuant to Subpart B of Part 177, 19 CFR 177.21 et seq., which
implements Title III of the Trade Agreements Act of 1979, as amended
(19 U.S.C. 2511 et seq.), CBP issues country of origin advisory rulings
and final determinations on whether an article is or would be a product
of a designated country or instrumentality for the purposes of granting
practice for products offered for sale to the U.S. Government.
See also, 19 CFR 177.22(a). A substantial transformation ``results
in an article having a name, character, or use differing from that of
the imported article.'' Uniroyal, Inc. v. United States, 542 F. Supp.
1026, 1029 (Ct. Int'l Trade 1982), aff'd, 702 F.2d 1022 (Fed. Cir.
the extent of operations performed and whether the parts lose their
identity and become an integral part of the new article. See Belcrest
Linens v. United States, 573 F. Supp. 1149 (Ct. Int'l Trade 1983),
aff'd, 741 F.2d 1368 (Fed. Cir. 1984). Assembly operations that are
minimal or simple, as opposed to complex or meaningful, will generally
not result in a substantial transformation. See C.S.D. 80-111, C.S.D.
85-25, C.S.D. 89-110, C.S.D. 89-118, C.S.D. 90-51, and C.S.D. 90-97. In
C.S.D. 85-25, 19 Cust. Bull. 844 (1985), CBP held that for purposes of
the Generalized System of Preferences (``GSP''), the assembly of a
large number of fabricated components onto a printed circuit board in a
process involving a considerable amount of time and skill resulted in a
substantial transformation. In that case, in excess of 50 discrete
fabricated components (such as resistors, capacitors, diodes,
integrated circuits, sockets, and connectors) were assembled.
that complex and meaningful assembly operations involving a large
number of components will generally result in a substantial
transformation. In Headquarters Ruling Letter (``HRL'') 562936, 69 FR
13577 (March 23, 2004), we addressed the country of origin of certain
multifunction printers assembled in Japan of various Japanese- and
Chinese-origin parts. In that ruling, we determined that the
multifunction printer was a product of Japan based on the fact that a
``substantial portion of the printer's individual components and
subassemblies [were] of Japanese origin.'' Furthermore, we noted that
some of the Japanese components and subassemblies were essential parts
of the finished article, and other Japanese parts, including the reader
scanner unit and the control panel unit, were critical to the
production of the printer. Finally, HRL 562936 noted that the Japanese
processing operations were complex and meaningful, that required ``the
assembly of a large number of components, and render[ed] a new and
distinct article of commerce that possesse[d] a new name, character,
and use.''
In HRL 562495, dated November 13, 2002, color ink jet printers were
assembled in Singapore of components imported from a number of other
countries. In that ruling, we determined that the imported components
were substantially transformed during assembly such that the country of
origin of the assembled ink jet printers was Singapore. In support of
this determination, we considered the processing occurring within
Singapore to be complex and extensive, requiring the integration of 13
major subassemblies to the chassis, and that the resulting product was
a new and distinct article of commerce that possessed a new name,
character, and use.
In HRL 561734, dated March 22, 2001, published in the Federal
Register on March 29, 2001 (66 FR 17222), we held that certain
multifunctional machines (consisting of printer, copier, and fax
machines) assembled in Japan were a product of that country for
purposes of U.S. Government procurement. The multifunctional machines
were assembled from 227 parts (108 parts obtained from Japan, 92 from
Thailand, 3 from China, and 24 from other countries) and eight
subassemblies, each of which was assembled in Japan. One of the
subassemblies produced in Japan, referred to as the scanner unit, was
[[Page 9017]]
described as the ``heart of the machine.'' In finding that the imported
parts were substantially transformed in Japan, we stated that the
individual parts and components lost their separate identities when
they became part of the multifunctional machine. See also HRL 561568,
dated March 22, 2001, published in the Federal Register on March 29,
2001 (66 FR 17222).
By contrast, assembly operations that are minimal or simple will
generally not result in a substantial transformation. For example, in
HRL 734050, dated June 17, 1991, we determined that Japanese-origin
components were not substantially transformed in China when assembled
in that country to form finished printers. The printers consisted of
five main components identified as the ``head,'' ``mechanism,''
``circuit,'' ``power source,'' and ``outer case.'' The circuit, power
source and outer case units were entirely assembled or molded in Japan.
The head and mechanical units were made in Japan but exported to China
in an unassembled state. All five units were exported to China where
the head and mechanical units were assembled with screws and
screwdrivers. Thereafter, the head, mechanism, circuit, and power
source units were mounted onto the outer case with screws. In holding
that the country of origin for marking purposes was Japan, CBP
recognized that the vast majority of the printer's parts were of
Japanese origin and that the operations performed in China were
relatively simple assembly operations.
In order to determine whether a substantial transformation occurs
when components of various origins are assembled to form
multifunctional machines, CBP considers the totality of the
circumstances and makes such decisions on a case-by-case basis. The
primary considerations in such cases are the country of origin of the
machine's components and subassemblies, extent of processing that
occurs within a given country, and whether such processing renders a
product with a new name, character, and use. In addition, facts such as
resources expended on product design and development, extent and nature
of post-assembly inspection procedures, and worker skills required
during the actual manufacturing process will be considered when
analyzing whether a substantial transformation has occurred; however,
Based on the facts and law of this case, we find that the assembled
J-Model multifunctional systems are products of Japan for purposes of
U.S. Government procurement. Although several of the subassemblies are
assembled in China, we find that enough of the Japanese subassemblies
and individual components serve major functions and are high in value,
in particular, the transfer belt, control box unit, application-
specific integrated circuits, charged couple device, and laser diodes.
The process unit subassembly is also crucial in the performance of the
multifunctional systems. While it is assembled in China, its key
components, the developer and toner materials, and drums are produced
Furthermore, it is significant that although the PWB is of Chinese
origin, the firmware for the control box unit subassembly is developed
in Japan. This firmware programming controls the print engine, readout
mechanism, processes images for the copier, printer, fax, and scanner,
and controls the operation panel display. We further note that the
testing and adjustments performed in Japan are technical and complex.
Finally, the assembly operations that occur in Japan are sufficiently
complex and meaningful. Through the product assembly and testing and
adjustment operations, the individual components and subassemblies of
Japanese and foreign-origin are subsumed into a new and distinct
article of commerce that has a new name, character, and use. Therefore,
we find that the country of origin of the J-Models digital color
multifunctional systems for purposes of U.S. Government procurement is
Based on the facts of this case, we find that the processing in
Japan substantially transforms the non-Japanese components. Therefore,
the country of origin of the Sharp digital color multifunctional
systems (Model Nos. MX-2300NJ and MX-2700NJ) is Japan for purposes of
Register as required by 19 CFR 177.29. Any party-at-interest other than
the party that requested this final determination may request, pursuant
to 19 CFR 177.31, that CBP reexamine the matter anew and issue a new
final determination. Any party-at-interest may, within 30 days after
publication of the Federal Register notice reference above, seek
judicial review of this final determination before the U.S. Court of
[FR Doc. E7-3482 Filed 2-27-07; 8:45 am]