U.S. Customs and Border Protection (‘‘CBP’’) issued a final determination concerning the country of origin of two pieces of exercise equipment known as the Matrix G3– S60 Selectorized Dip/Chin Assist and the Matrix G3–FW52 Back Extension Bench. Based upon the facts presented, CBP concluded that the country of origin of the exercise equipment is the United States under Scenario One and China under Scenario 2.

There are two scenarios for assembling the exercise equipment, which consists of component parts produced in China from Chinese materials, in the United States. The first scenario applies to both pieces of equipment and involves importing all component parts from China and welding, painting and assembling them in the United States. The second scenario only applies to one piece and is similar to the first except that some of the sub-assemblies would be welded together in China.

CBP ruled that in the first scenario the extent of U.S. assembly operations – which include welding, cleaning, degreasing, grinding down and spraying with paint as well as assembly – is sufficiently complex and meaningful to result in a substantial transformation. In addition, those who will perform these operations will require significant education, skill and attention to detail. As a result, the country of origin of the exercise equipment in this scenario is the U.S.

In the second scenario, however, components that together impart the very essence of the finished product will be imported as pre-assembled components. As a result, the processing in the United States does not result in a substantial transformation and the country of origin of the equipment is China.

The final determination was issued on May 10, 2016. Any party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial review of this final determination no later than June 15, 2016.

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.