August 15, 2007 CBP Bulletin Notice on Country of Origin of Certain Remanufactured Photoreceptor Cartridges

Proposed revocation of rulings; proposed revocation of treatment. CBP is proposing to revoke two rulings on the country of origin of certain remanufactured photoreceptor cartridges. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.

CBP states that any party who has received a contrary written ruling or decision on the merchandise that is subject to the proposed ruling revocations, or any party involved with a substantially identical transaction, should advise CBP by September 14, 2007, the date that written comments on the proposed rulings are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.

In addition, CBP states that this notice covers any rulings on the subject merchandise that may exist but have not been specifically identified.

Country of origin of remanufactured photoreceptor cartridges. The imported merchandise consists of remanufactured photoreceptor cartridges designed for use with automatic data processing laser printers. The cartridges will be imported from Canada and will include a photoreceptor belt or cylinder, toner receptacle unit, toner developing unit, charge/discharge unit, and cleaning unit. A contractor manufactures the cartridges in Canada, in part from components salvaged from "spent" or used cartridges that are sourced from a variety of countries.

When the used cartridges arrive at the facility in Canada, they will undergo extensive disassembly operations. Salvageable parts from the spent cartridges will be placed in bins, and new parts will be ordered from inventory. Disassembled parts determined to be damaged or defective will be discarded. It is estimated that parts accounting for approximately 15 percent of the value of the used cartridges will be salvaged and reused. The remaining components used in the assembly of the remanufactured cartridges will be new parts originating in Canada and several other countries.

CBP is proposing to issue HQ H012926 in order to revoke HQ 560768 and HQ 561412 (which reconsidered HQ 560768). HQ 560768 held that, pursuant to 19 CFR 102.11(b), the country of origin of the refurbished cartridges is the country of origin of the single material that imparts the essential character to the good, which is the used cartridge. However, in addition, this ruling determined that since direct physical identification of the commingled cartridges is not practical, the country of origin of the refurbished cartridges shall be determined by an inventory management method of the appendix to 19 CFR Part 181.

CBP now proposes the view that no one single material imparts the essential character to the remanufactured cartridge. Therefore, 19 CFR 102.11(b) cannot be used to determine the country of origin of the remanufactured cartridges.

CBP also proposes that by application of 19 CFR 102.11(d)(3) the country of origin of the remanufactured cartridge should be the last country in which the good underwent production. The term "production," as defined in 19 CFR 102.1(n), includes manufacturing, processing, and assembling a good. The operations performed in Canada constitute production.

Accordingly, CBP proposes that the country of origin of the remanufactured cartridge is Canada, the last country in which the good underwent production prior to entering the U.S.

No change in classification.

August 15, 2007 CBP Bulletin (Vol. 41, No. 34) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2007/