CBP Finds U.S. is Country of Origin for Pwn Plugs
CBP issued a final determination that the country of origin of Pwn Plugs for purposes of U.S. government procurement is the U.S. CBP concluded that the assembly and programming operations performed in the U.S. substantially transform the components of the projectors. The determination ran in the Federal Register July 23.
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The final determination was issued at the request of Pwnie Express.
(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.)
Programming Done in U.S.
The subject merchandise is the Pwn Plug, a full security testing suite within a micro-server that provides covert, encrypted access to conduct cyber security audits. Pwnie Express imports microcomputer devices from China and programs them with proprietary software developed in the U.S for the Pwn Plug. The Pwn Plug then is then packaged for sale together with a USB adapter made in China, a USB Ethernet adapter made in China, a USB modem made in China, a 16GB SD card made in Taiwan, various cables made in China, and the product literature printed in the U.S.
CBP Says Programming of a Device Constitutes Transformation
Past CBP rulings have said the programming of a device that changes or defines its use generally constitutes substantial transformation. For instance, in ruling HQ H014068, (2007), CBP said a cellular phone designed in Sweden, assembled in either China or Malaysia and shipped to Sweden, where it was loaded with software was a product of Sweden. Once the software was installed on the phones in Sweden, they became devices with a new name, character and use,
As a result of the Pwn Plug programming performed in the U.S., with software developed in the U.S., CBP found that the imported microcomputer devices are substantially transformed in the U.S.
Any Party-at-Interest May Request Judicial Review by August 22
CBP said any party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial review of a final determination by August 22. 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.