CBP Finds Taiwan is Country of Origin for Certain Digital Projectors
U.S. Customs and Border Protection has issued a final determination that the country of origin of certain digital projectors is Taiwan for purposes of U.S. government procurement, as CBP concluded that the assembly and programming operations performed in Taiwan substantially transform the components of the projectors.
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The final determination was issued at the request of Mastriani & Schaumberg LLP.
(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 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.)
4 Taiwanese & 18 Chinese Components Assembled into Projectors in Taiwan
The subject merchandise is two models of digital projectors, the main differences between the two being the resolution of the projected image and the throw ratio (the viewing distance from the screen). The projectors are composed of four components of Taiwanese origin and 18 components of Chinese origin.
First, components from Taiwan and China are assembled in China and shipped to Taiwan. In Taiwan, the imported components are inspected and assembled into a complete digital projector using miscellaneous Chinese components (screws, tape, etc.). The projector is then programmed with two types of firmware developed in Taiwan, and subjected to various tests. During the testing stage, the projector is loaded with Taiwanese-origin EDID firmware, which programs the identification of the projector into the electronically erasable programmable read only memory (EEPROM) on a main board of Chinese origin.
CBP Says Assembly & Programming Performed in Taiwan Create New Article
CBP notes that various Chinese and Taiwanese components are assembled in Taiwan to form a complete projector. After assembly, the projector is programmed in Taiwan with three types of firmware developed in Taiwan.
CBP states that through the operations undertaken in Taiwan, the individual parts lose their identities and become integral to the new and different article, i.e., the projector. Accordingly, CBP finds the country of origin of the projectors is Taiwan because the assembly and programming performed in Taiwan substantially transform the components of the projector from China, a non-TAA country1.
Any Party-at-Interest May Request Judicial Review by Sept 12
CBP states that any party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial review of a final determination by September 12, 2011. In addition, under 19 CFR 177.31, any party-at-interest other than the party which requested this final determination may request that CBP reexamine the matter anew and issue a new final determination.
1This determination request was made pursuant to 19 CFR 177, which implements the Trade Agreements Act of 1979 (TAA), to which Taiwan is a designated country and China is not. Under the TAA, the President may waive, in whole or in part, the application of any law, regulation, procedure, or practice regarding Government procurement that would, if applied to eligible foreign products and suppliers of such products, result in treatment less favorable than that accorded (1) to U.S. products and suppliers of such products; or (2) to eligible products of another foreign country which is a party to the TAA and suppliers of such products.
CBP Contact -- Heather Pinnock (202) 325-0034
(FR Pub 08/11/11, HQ H146735)