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CBP Identifies Country of Origin of Ethernet Switch Products

Monday, February 05, 2018
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has issued a final determination concerning the country of origin of certain Ethernet switch products that may be offered to the U.S. government under an undesignated government procurement contract. Any party-at-interest may seek judicial review of this determination by March 7. 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.

The switches consist of one or more printed circuit board assemblies manufactured in China from components from Korea, Taiwan, and China. These assemblies are packaged and shipped to Mexico, where they and other components are installed into a chassis that is then completed with a metal housing. An operating system and configuration data developed in the U.S. are loaded and the finished product is tested to ensure proper functioning.

CBP states that the PCBAs from China are substantially transformed by the final assembly, software loading, configuration, and testing operations in Mexico. Accordingly, the switches will be considered a product of Mexico for purposes of U.S. government procurement.

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