CBP Finds Country of Origin of Exercise Equipment Either U.S. or China for Government Procurement

Two pieces of exercise equipment considered of U.S. or Chinese origin for government procurement purposes, depending on which of two processes is involved, said CBP in a final determination (here). In the first scenario, the two pieces of equipment will consist of hundreds of parts produced from China and is assembled mostly in the U.S. CBP said the U.S. assembly "will involve fastening hardware; adding rubber grips; capping off tube ends; positioning pulleys; adding weights, cables, or belts; and placing warning placards," and along with U.S. welding operations, "this assembly will cause the individual parts to lose their separate identities and to become integral components of a product with a new name, character, and use." That means the origin is U.S. for procurement purposes for that first scenario. The second scenario involves some of the welding to take place in China before being sent to the U.S. as "pre-welded components." Because "these critical components together impart the 'very essence' of the finished product" the "processing in the United States thus will not result in a substantial transformation," said CBP. China is the country of origin in the second scenario, said CBP.