CBP Determines China as Country of Origin for Video Teleconferencing Server
CBP issued a Sept. 11 final determination concluding that China is the country of origin of CyberPoint International’s video teleconferencing server Prescient T7-FW. The server, which captures motion picture images and sound and sends them digitally, ensures that the digital data is sent securely between two units via Ethernet. CBP said the key hardware components of the server are the video board, which converts image and sound into digital data, and the filter board that is programmed with Linus software to protect the Ethernet connection from malware infiltration. The video board is manufactured in China and “has connections for various video input and output formats, two USB connections and two Ethernet connections,” CBP said. The filter board that provides the necessary and secure LAN connection of the server is also made from a DreamPlug unit manufactured in China, though it is programmed with software and reinstalled later in the U.S., according a letter from the Office of International Trade. The server’s power supply and metal case are also produced in China.
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CBP found that “the essence of the imported good is its use as a video conferencing server” and that “addition of the U.S. developed software may add 40 percent to the unit’s value." However, the software “only adds a characteristic to the server” but “does not change its main function which is to send images and sound.” Therefore, CBP determined that the hardware components that “impart the essential character to the finish product are of Chinese origin.” Pursuant to the rule of origin, CBP concluded that China is the country of origin for purposes of U.S. government procurement.