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CBP Finds Canada is Country of Origin for Certain Heating Boilers

U.S. Customs and Border Protection has issued a final determination that Canada is the country of origin of certain heating boilers for purposes of U.S. Government procurement.

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The final determination was issued at the request of Camus Hydronics Ltd.

(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.)

Fabricated, Assembled and Packaged in Canada from Canadian & Foreign Parts

This case involves the Camus DynaFlame, DynaForce, and DynaMax heating boilers which are fabricated and assembled in Canada from sheet metal and components primarily of U.S., Canadian, and (in the case of the DynaMax) French origin.

Each boiler contains between 50-65 separate components, several of which are fabricated in Canada from imported sheet metal. The boilers go through both a sub-assembly stage and an assembly stage in Canada, as well as testing, quality control, and packaging in Canada.

CBP Says Fabrication & Assembly Meaningful, Foreign Parts Substantially Transformed

CBP states that all three heating boilers undergo a substantial amount of work in Canada, from the fabrication of the sheet metal into components, the assembly of parts into subassemblies, and the final assembly - combining the subassemblies and the remaining components into the finished boilers. The number of components, the least of which being 50, is a meaningful assembly of individual components into the finished boilers. Although some of the more expensive parts are not of Canadian origin, no one part could function or run the boiler without the others.

Therefore, CBP finds that the Canadian processing results in a substantial transformation of the components and that the DynaFlame, DynaForce, and DynaMax boilers should be considered products of Canada for the purpose of U.S. Government procurement.

Any Party-at-Interest May Request Judicial Review by Nov 22

CBP states that any party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial review of this final determination by November 22, 2010. 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.

CBP contact -- Barbara Kunzinger (202) 325-0059

(FR Pub 10/21/10, HQ H119218)