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CBP Finds U.S. Is Country of Origin for Certain Fairplay Electric Vehicles

U.S. Customs and Border Protection has issued a final determination that the U.S. is the country of origin of the Fairplay Legacy line of golf and recreational electric vehicles1 for purposes of U.S. government procurement.

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The final determination was issued at the request of Fairplay Electric Cars, LLC.

(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.)

Some Components Are from China, Assembled in U.S. from U.S. & Foreign Parts

Fairplay states that it imports the following parts for these vehicles from China: chassis, plastic body parts and various miscellaneous pieces of plastic trim.

These parts are assembled together in the U.S. with U.S.-made battery packs, motors, electronics, wiring assemblies, seats, and chargers. Depending on the model, a vehicle may have between approximately 53 and 62 inputs, when items such as logos/decals, warranty registration cards, and labor are counted along with the parts. Of these, between 12 and 17 inputs are of U.S. origin or are performed in the U.S.

Assembly in the U.S. takes between 11 and 14.25 hours. Testing of the fully assembled vehicle lasts between 90 and 195 minutes, and quality control inspections are performed at each station as well as randomly. Packing and shipping operations last between 30 and 45 minutes.

CBP Says Foreign Components Substantially Transformed in U.S., Etc.

CBP finds that the Chinese-origin chassis, plastic body parts and plastic pieces of trim are substantially transformed by the assembly operations performed in the U.S. to produce electric vehicles. Under the described assembly process, the imported parts lose their individual identities and become integral parts of a new article possessing a new name, character and use. Further, components crucial to the making of an electric vehicle (the battery pack, motor, electronics, wiring assemblies, and charger) are of U.S. origin.

Based on these facts, CBP finds that the country of origin of the Fairplay Legacy line1 of electric vehicles for purposes of U.S. Government procurement is the U.S.

Any Party-at-Interest May Request Judicial Review by Nov 18

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 18, 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 models of vehicles at issue are the following: Legacy Eco 2P, Legacy Eco 2P XR, Legacy Eco 4P, Legacy Deluxe 2P, Legacy Deluxe XR 2P, Legacy Deluxe LTD 2P, Legacy Deluxe HP 2P, and the Legacy Transport.

CBP contact -- Heather Pinnock (202) 325-0034

(FR Pub 10/19/10, HQ H118435)