Print PDF

Practice Areas

CBP Identifies Country of Origin for Computer Software for Government Procurement

Thursday, December 12, 2013
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has issued a final determination concerning the country of origin of certain computer software that may be offered to the U.S. government under an undesignated government procurement contract. CBP issues country of origin advisory rulings and final determinations as to whether an article is or would be a product of a designated country or instrumentality for the purposes of granting waivers of certain “Buy American” restrictions in U.S. law or practice for products offered for sale to the U.S. government. This determination was issued Dec. 4 and any party-at-interest may seek judicial review of it by Jan. 13.

The software at issue is a comprehensive suite of applications that simplify the deployment, monitoring and enforcement of governance policies for Microsoft SharePoint. CBP states that during the software build process, the source code modules developed in the U.S. and China are transferred to a server in the U.S, where the U.S. software development team creates the software by compiling the source code into object code and works out incompatibilities or bugs by re-writing or correcting source code as needed. Moreover, the U.S. team creates all the lines of the object code, makes all the software executable files in various versions and languages, and constructs the installation package as an easily installable unit. In addition, 90% of the software development research is performed in the U.S., as are aspects of programming the source code and testing and validation, such that 68% of the development of the software is attributed to work performed in the U.S.

Given these facts, CBP finds that the country of origin of the software is the U.S. for purposes of U.S. government procurement.

To get news like this in your inbox daily, subscribe to the Sandler, Travis & Rosenberg Trade Report.

Customs & International Headlines