Scratch and dent machines ALSO come off their production lines in Malaysia.
It is probably a half finished notebook with no optical drives, no memory and no CPU, so it goes through the same process of assembly as a normal machine:
Production in Malaysia
Placed in special pallets
Flown to TX
Software installation
Placed in a packaging line (aka shoving it in a box).
A scratch and dent machine is not always something that is sitting in a warehouse in Austin.