Assignment Detail

Assignment ID: FG133232908

Assignment:

Energizer Battery, Inc. (“Energizer”) is the manufacturer of the Generation II flashlight. The Generation II flashlight is comprised of approximately 50 different components, including 5 lightemitting diodes (“LEDs”) in white, red, green, blue, and infrared. Other than the white LED and the hydrogen getter, all components of the Generation II flashlight are of Chinese origin. All of the components that comprise the Generation II flashlight, other than the electrical wire and red LED, are specifically designed for use in the Generation II flashlight. The electrical wires are cut to lengths specific to the Generation II flashlight and the red LED is soldered to the Generation II flashlight printed circuit board prior to importation. The lens head subassembly of the Generation II flashlight is also partially assembled in China, prior to importation into the United States. The final assembly and packaging of the Generation II flashlight occurs at two work stations (“Work Station I” and “Work Station II”) at Energizer’s facility in Vermont. At Work Station I, a worker completes assembly of the lens head subassembly (imported from China partially assembled).

At Work Station II, a worker assembles the lens head subassembly with the remaining Generation II flashlight components, tests the final product, and places the finished Generation II flashlight in a box. The assembly, testing and boxing of a Generation II flashlight at the Vermont facility takes approximately seven minutes and ten seconds. The assembly operations performed at the Vermont facility do not require a change in the shape or material composition of any imported component. At the time of importation, each component used in producing the Generation II flashlight is intended for use in a finished Generation II flashlight.

As a result of the assembly operations performed at the Vermont facility, each of the imported components become part of a finished Generation II flashlight. The finished cost of a Generation II flashlight is $23.55, including parts and U.S. production costs, 45% of which is attributed to U.S. production costs. The total value of the imported components used in the production of the Generation II flashlight, including parts, duties, transportation and all costs is $12.96.

Question:

Should Energizer be allowed to advertise the Generation II flashlight as being “made in the U.S.A.”?