31354 Federal Register / Vol. 76, No. 104 / Tuesday, May 31, 2011 / Notices

Estimated time per Response: 5 assembled in the United States from body, , and wheels. The TCE is then minutes. parts made in the United States, Turkey, assembled in the U.S. from both imported Estimated Total Annual Burden Switzerland, Hungary, Japan, Germany, and U.S.-origin components. Hours: 35,939. Canada, the United Kingdom, and A Bill of Materials was submitted with the request. Apart from the glider, parts for the Dated: May 24, 2011. various other countries is substantially TCE are also imported from Switzerland, Tracey Denning, transformed in the United States, such Hungary, Japan, Germany, Canada, the that the United States is the country of Agency Clearance Officer, U.S. Customs and United Kingdom, and various other Border Protection. origin of the finished article for countries. According to the submission, the purposes of U.S. Government TCE vehicle is composed of 31 components, [FR Doc. 2011–13302 Filed 5–27–11; 8:45 am] procurement. of which 14 are of U.S.-origin. For purposes BILLING CODE 9111–14–P Section 177.29, Customs Regulations of this decision, we assume that the (19 CFR 177.29), provides that notice of components of U.S. origin are produced in final determinations shall be published the U.S. or are substantially transformed in DEPARTMENT OF HOMELAND the U.S. and considered products of the U.S. SECURITY in the Federal Register within 60 days The U.S. assembly occurs at various of the date the final determination is stations. The assembly stations at AM U.S. Customs and Border Protection issued. Section 177.30, Customs General, the manufacturing subcontractor, Regulations (19 CFR 177.30), provides are described as follows: Notice of Issuance of Final that any party-at-interest, as defined in Station 0: A visual quality inspection of the Determination Concerning the Transit 19 CFR 177.22(d), may seek judicial glider is performed and the materials Connect review of a final determination within necessary for assembly are delivered to the 30 days of publication of such proper stations. AGENCY: U.S. Customs and Border determination in the Federal Register. Station 1: A Vehicle Identification Number Protection, Department of Homeland is assigned. Holes are drilled into the glider Security. Dated: May 24, 2011. and brackets are installed to support the battery pack and other electric assembly ACTION: Notice of final determination. Sandra L. Bell, Executive Director, Regulations and Rulings, components. The fuel door of the glider is SUMMARY: This document provides Office of International Trade. removed, assembled into a charge port, and the charge port is installed. The cab wiring Attachment notice that U.S. Customs and Border harnesses and instrument clusters are Protection (‘‘CBP’’) has issued a final HQ H155115 removed and replaced with U.S. origin cab determination concerning the country of wiring harnesses and Hungarian instrument origin of the Transit Connect Electric May 24, 2011 OT:RR:CTF:VS H155115 BGK clusters appropriate for electric vehicles. The Vehicle. Based upon the facts presented, CATEGORY: Marking low-voltage battery is removed. CBP has concluded in the final Station 2: A U.S.-origin battery pack, U.S. Scott T. Harrison engine bay wiring harness, German power determination that the United States is Chief Executive Officer the country of origin of the vehicle for steering pump and motor, German battery Azure Dynamics Corporation coolant pump heater, and Turkish power purposes of U.S. Government 14925 W 11 Mile Road steering lines are installed. Four Oak Park, MI 48237 procurement. subassemblies, which previously are DATES: The final determination was RE: Government Procurement; Country of assembled at four substations using certain Origin of Electric Vehicles; Substantial U.S. and foreign components, are also issued on May 24, 2011. A copy of the Transformation final determination is attached. Any assembled and installed: Cooling pack Dear Mr. Harrison: party-at-interest, as defined in 19 CFR subassembly, hoses assembly, high voltage This is in response to your letter, dated junction box assembly, and traction 177.22(d), may seek judicial review of March 16, 2011, as amended April 6, 2011, assembly. this final determination on or before and April 7, 2011, requesting a final The cooling pack subassembly involves the June 30, 2011. determination on behalf of Azure Dynamics removal of the condenser from the radiator FOR FURTHER INFORMATION CONTACT: (Azure), pursuant to subpart B of 19 C.F.R. included with the glider and the replacement Barbara Kunzinger, Valuation and part 177. of the radiator included with glider with a Special Programs Branch: (202) 325– Under these regulations, which implement Canadian radiator that is compatible with Title III of the Trade Agreements Act of 1979, 0359. electric vehicles. U.S. hoses are then as amended (19 U.S.C. 2511 et seq.), U.S. installed onto the radiator. SUPPLEMENTARY INFORMATION: Notice is Customs and Border Protection (CBP) issues The hoses subassembly involves measuring hereby given that on May 24, 2011, country of origin advisory rulings and final and cutting U.S.-origin coolant hoses and pursuant to subpart B of part 177, determinations as to whether an article is or installing U.S.-origin hoses clips to the hoses. Customs Regulations (19 CFR part 177, would be a product of a designated country The high voltage junction box subassembly or instrumentality for the purpose of granting involves integrating a Canadian active subpart B), CBP issued a final waivers of certain ‘‘Buy American’’ determination concerning the country of discharge unit with various U.S. and foreign restrictions in U.S. law or practice for origin vent plugs, mounting studs, internal origin of the Transit Connect Electric products offered for sale to the U.S. harnesses, fuses and a fuse holder, and Vehicle which may be offered to the Government. various cables. U.S. Government under an This final determination concerns the The traction subassembly involves the undesignated procurement contract. country of origin of the Transit Connect assembly of a U.S. origin motor controller This final determination, in HQ Electric Vehicle (TCE). We note that Azure, (manufactured by Azure at a different plant H155115, was issued at the request of the U.S. importer and manufacturer, is a and referred to as the Force Drive electric party-at-interest within the meaning of 19 Azure Dynamics under procedures set powertrain), a U.S. origin gearbox, a German C.F.R. 177.22(d)(1) and is entitled to request electric motor, a German origin vacuum forth at 19 CFR part 177, subpart B, this final determination under 19 C.F.R. which implements Title III of the Trade pump, a Swiss charger, a Japanese AC 177.23(a). compressor, and a Japanese DC–DC Agreements Act of 1979, as amended FACTS: converter. (19 U.S.C. 2511–18). In the final Azure purchases and imports a Transit Station 3: Multiple quality control determination, CBP concluded that, Connect glider from Turkey. A glider is a inspections are performed. Various brackets, based upon the facts presented, the non-functional base without a powertrain or gaskets, nuts and bolts, and cords and wires Transit Connect Electric Vehicle, exhaust components, and consists of a frame, are installed. The original-low voltage battery

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is re-installed, along with the U.S. origin integral part of the new article. Belcrest operations performed in the U.S. to produce vehicle control unit, a German driveshaft, Linens v. United States, 573 F. Supp. 1149 an electric mini-. The decision was and a Japanese heater assembly. (Ct. Int’l Trade 1983), aff’d, 741 F.2d 1368 based on the fact that, under the described Station 4: The coolant, , and (Fed. Cir. 1984). The country of origin of the assembly process, the imported glider lost its windshield washer reservoirs are filled. A item’s components, extent of the processing individual identity and became an integral functional electric test, a diagnostic test, and that occurs within a country, and whether part of a new article possessing a new name, a complete system check are performed. such processing renders a product with a character, and use. In addition, a substantial Other various parts, including a new name, character, and use are primary number of the components added to the potentiometer to the heater blend door, a data considerations in such cases. Assembly imported glider were of U.S. origin. The link control wiring harness, and a operations that are minimal or simple, as sensor to the brake petal, are installed, and opposed to complex or meaningful, will glider was assembled with approximately 87 a tire inflation kit, labels, books, and manuals generally not result in a substantial different components, 68 of which were of are added to the vehicle. transformation. See C.S.D. 80–111, C.S.D. 85– U.S. origin. The batteries, charger, and gear Station 5: A tire pressure check, wheel 25, C.S.D. 89–110, C.S.D. 89–118, C.S.D. 90– box were of U.S. origin, and other major alignment, headlight aiming, brake test, 51, and C.S.D. 90–97. Whether an operation parts, including the electric motor and battery charge, road test, and underbody is complex and meaningful depends on the , were of foreign origin. check are performed. nature of the operation, including the As stated in HRL H022169 (citing HRL ISSUE: number of components assembled, number of 731076, dated November 1, 1988), CBP different operations, time, skill level What is the country of origin of the subject considers the manufacture of an automobile required, attention to detail, quality control, TCE vehicles for purposes of U.S. more than a mere simple assembly operation. the value added to the article, and the overall Government procurement? The assembly process here is complex and employment generated by the manufacturing LAW AND ANALYSIS: time-consuming and involves a significant process. U.S. contribution, in both parts and labor. Pursuant to subpart B of part 177, 19 C.F.R You claim that the U.S. assembly The components used to power the vehicle § 177.21 et seq., which implements Title III operations, along with the value of the U.S. are assembled together in the U.S., and then of the Trade Agreements Act of 1979, as origin contributions (labor and components), incorporated into the vehicle in the U.S. For amended (19 U.S.C. § 2511 et seq.), CBP results in a substantial transformation of the issues country of origin advisory rulings and imported parts, and warrants a determination example, the U.S.-origin battery pack, motor final determinations as to whether an article that the U.S. is the country of origin for controller, and wiring harnesses are all is or would be a product of a designated purposes of U.S. Government procurement. critical components for the operation of the country or instrumentality for the purpose of You also note that ‘‘the 16 foreign electric vehicle. Furthermore, in HRLs granting waivers of certain ‘‘Buy American’’ components used in the assembly of the TCE H118435, H133455, and H022169, it was restrictions in U.S. law or practice for vehicle cannot function alone and must be found that the assembly of the U.S. and products offered for sale to the U.S. assembled with the U.S.-origin parts in order imported components was necessary for the Government. to constitute a working TCE vehicle.’’ You vehicles to function, and that the assembly Under the rule of origin set forth under 19 cite Headquarters Ruling Letter (HRL) resulted in a substantial transformation. We U.S.C. § 2518(4)(B): H022169, dated May 2, 2008, and HRL find the same to be true in this case. The An article is a product of a country or H118435; dated October 13, 2010, in support glider and other components cannot function instrumentality only if (i) it is wholly the of your argument. as an electric vehicle on their own. growth, product, or manufacture of that In HRL H118435, the U.S. was determined Therefore, based on the information country or instrumentality, or (ii) in the case to be the country of origin for purposes of discussed and the rulings cited, we find that of an article which consists in whole or in U.S. Government procurement for a line of the assembly of the glider and other part of materials from another country or electric golf and recreational vehicles. In that components of various origins constitutes a instrumentality, it has been substantially case, the chassis, plastic body parts, and substantial transformation and results in an transformed into a new and different article various miscellaneous pieces of plastic trim article with a new name, character, and use, of commerce with a name, character, or use were imported into the U.S. from China and such that the country of origin for the TCE distinct from that of the article or articles assembled with U.S.-origin battery packs, vehicle is the U.S. for purposes of U.S. motors, electronics, wiring assemblies, seats, from which it was so transformed. Government procurement. See also 19 C.F.R § 177.22(a). and chargers. The vehicles were composed of approximately 53 to 62 components, of HOLDING: In rendering advisory rulings and final which between 12 and 17 were of U.S. origin. Based on the facts of this case, the country determinations for purposes of U.S. HRL H118435 held that none of the imported of origin of the TCE vehicle is the United Government procurement, CBP applies the parts could function as an electric vehicle on States for purposes of U.S. Government provisions of subpart B of Part 177 consistent their own and needed to be assembled with procurement. with the Federal Procurement Regulations. other necessary U.S. components. See 19 C.F.R. § 177.21. In this regard, CBP Notice of this final determination will be Additionally, it was held that given the given in the Federal Register as required by recognizes that the Federal Procurement complexity and duration of the U.S. Regulations restrict the U.S. Government’s 19 C.F.R. § 177.29. Any party-at-interest other manufacturing process, the operations were than the party which requested this final purchase of products to U.S.-made or more than mere assembly. It was determined designated country end products for determination may request, pursuant to 19 that a substantial transformation occurred, C.F.R. § 177.31 that CBP reexamine the acquisitions subject to the TAA. See 48 and further, the critical components to matter anew and issue a new final C.F.R. § 25.403(c)(1). The Federal making an electric vehicle—battery pack, determination. Pursuant to 19 C.F.R. Procurement Regulations, 48 C.F.R. § 25.003, motor, electronics, wiring assemblies, and ‘‘ ’’ § 177.30, lany party-at-interest may, within define U.S.-made end product as: charger—were of U.S.-origin. The same [A]n article that is mined, produced, or conclusion was reached in HRL H133455, 30 days of publication of the Federal Register manufactured in the United States or that is dated December 9, 2010, in which a chassis Notice referenced above, seek judicial review substantially transformed in the United and various parts were imported from China of this final determination before the Court States into a new and different article of to be combined with U.S.-origin battery of International Trade. commerce with a name, character, or use packs, motors, electronics, wiring assemblies, Sincerely, distinct from that of the article or articles seats, and chargers. The ratio of imported Sandra L. Bell from which it was transformed. components to U.S.-made components Executive Director In determining whether the combining of varied, but the assembly process was the Office of Regulations and Rulings parts or materials constitutes a substantial same. Office of International Trade transformation, the determinative issue is the In HRL H022169, CBP found that an extent of operations performed and whether imported mini-truck glider was substantially [FR Doc. 2011–13384 Filed 5–27–11; 8:45 am] the parts lose their identity and become an transformed as a result of assembly BILLING CODE P

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