CBP Finds U.S. is Country of Origin for Solar Photovoltaic Panel Systems
U.S. Customs and Border Protection has issued a final determination that the U.S. is the country of origin for certain solar photovoltaic systems1 for purposes of U.S. government procurement.
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The final determination was issued at the request of Solyndra, Inc.
(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.)
Research, Development, Processing Occur in U.S. with U.S. & Foreign Parts
The solar photovoltaic panel systems at issue contain 10 components of U.S. origin and 13 components of foreign-origin that are produced in Germany, Switzerland, Singapore, Malaysia, Belgium, and China. In addition, the panels utilize certain raw materials (molybdenum, copper, indium, gallium, selenium, etc.) from six foreign sources.
Solyndra conducts all the research and development for its product in the U.S. It also has a manufacturing facility in California where both a front end process and a back end process are performed, which takes approximately six and one half days to complete. The front end process converts bare glass tubes into functional PV cells. The back end process encapsulates these tubes in a glass outer tube, isolating the active material from the environment by a true hermetic seal. The last step in the back end process is to assemble these finished modules onto a panel frame, resulting in a solar panel ready for rooftop installation.
CBP Finds Substantial Transformation Occurs in U.S.
CBP states that in this case, all of the research and development for the solar PV panel system is performed in the U.S. In addition, the systems are produced in a U.S. production facility, and a significant number of the components used to make these products are of U.S.-origin. Further, this case clearly involves complex and meaningful assembly operations performed in the U.S. which transform components into a solar PV panel system with a new name, different and specialized characteristics and use.
Therefore, CBP finds that the imported components are substantially transformed in the U.S. and that the country of origin of the solar PV panel systems is the U.S. for purposes of U.S. Government procurement.
(However, CBP suggests that Solyndra contact the Federal Trade Commission to determine whether the solar panel systems may be marked “Made in the U.S.A.”, which is within their jurisdiction.)
Any Party-at-Interest May Request Judicial Review by Nov 4
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 4, 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.
1The photovoltaic panel systems convert sunlight on low-slope commercial rooftops into electricity.
CBP contact -- Karen Greene (202) 325-0041
(FR Pub 10/05/10, HQ H095409)