Source: http://ecfr.io/Title-49/pt49.7.583
Timestamp: 2020-01-18 20:01:17
Document Index: 753790820

Matched Legal Cases: ['art 583', 'art 583', 'art 583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', 'art 512', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583', '§583']

[49 CFR 583] Title 49 Part 583 : Code of Federal Regulations ';
Title 49 Part 583
Title 49 → Subtitle B → Chapter V → Part 583
§583.1 Scope.
§583.2 Purpose.
§583.3 Applicability.
§583.4 Definitions.
§583.5 Label requirements.
§583.6 Procedure for determining U.S./Canadian parts content.
§583.7 Procedure for determining major foreign sources of passenger motor vehicle equipment.
§583.8 Procedure for determining country of origin for engines and transmissions (for purposes of determining the information specified by §§583.5(a)(4) and 583.5(a)(5) only).
§583.9 Attachment and maintenance of label.
§583.10 Outside suppliers of passenger motor vehicle equipment.
§583.11 Allied suppliers of passenger motor vehicle equipment.
§583.12 Suppliers of engines and transmissions.
§583.13 Supplier certification and certificates.
§583.14 Currency conversion rate.
§583.15 Joint ownership.
§583.16 Maintenance of records.
§583.17 Reporting.
Authority: 49 U.S.C. 32304, 49 CFR 1.50, 501.2(f).
Source: 59 FR 37330, July 21, 1994, unless otherwise noted.
This part establishes requirements for the disclosure of information relating to the countries of origin of the equipment of new passenger motor vehicles.
The purpose of this part is to aid potential purchasers in the selection of new passenger motor vehicles by providing them with information about the value of the U.S./Canadian and foreign parts content of each vehicle, the countries of origin of the engine and transmission, and the site of the vehicle's final assembly.
This part applies to manufacturers of new passenger motor vehicles manufactured or imported for sale in the United States, suppliers of passenger motor vehicle equipment, and dealers of new passenger motor vehicles.
(a) Statutory terms. The terms allied supplier, carline, country of origin, dealer, foreign content, manufacturer, new passenger motor vehicle, of U.S./Canadian origin, outside supplier, passenger motor vehicle, passenger motor vehicle equipment, percentage (by value), State, and value added in the United States and Canada, defined in 49 U.S.C. 32304(a), are used in accordance with their statutory meanings except as further defined in paragraph (b) of this section.
(b) Other terms and further definitions.
(1) Administrator means the Administrator of the National Highway Traffic Safety Administration.
(2) Allied supplier means a supplier of passenger motor vehicle equipment that is wholly owned by the manufacturer, or in the case of a joint venture vehicle assembly arrangement, any supplier that is wholly owned by one member of the joint venture arrangement. A supplier is considered to be wholly owned by the manufacturer if a common parent company owns both the manufacturer and the supplier, or if a group of related companies own both the manufacturer and the supplier and no outside interests (interests other than the manufacturer itself or companies which own the manufacturer) own the supplier.
(3) Carline means a name denoting a group of vehicles which has a degree of commonality in construction (e.g., body, chassis). Carline does not consider any level of decor or opulence and is not generally distinguished by such characteristics as roof line, number of doors, seats, or windows, except for light duty trucks. Carline is not distinguished by country of manufacture, final assembly point, engine type, or driveline. Light duty trucks are considered to be different carlines than passenger cars. A carline includes all motor vehicles of a given nameplate. Special purpose vehicles, vans, and pickup trucks are classified as separate carlines.
(4) Final assembly means all operations involved in the assembly of a vehicle, performed at the final assembly point including but not limited to assembly of body panels, painting, final chassis assembly, trim installation, except engine and transmission fabrication and assembly and the fabrication of motor vehicle equipment components produced at the same final assembly point using forming processes such as stamping, machining or molding processes.
(5) Final assembly point means the plant, factory, or other place, which is a building or series of buildings in close proximity, where a new passenger motor vehicle is produced or assembled from passenger motor vehicle equipment and from which such vehicle is delivered to a dealer or importer in such a condition that all component parts necessary to the mechanical operation of such automobile are included with such vehicle whether or not such component parts are permanently installed in or on such vehicle. For multi-stage vehicles, the final assembly point is the location where the first stage vehicle is assembled.
(6) Outside supplier means:
(i) A non-allied supplier of passenger motor vehicle equipment to a manufacturer's allied supplier and
(ii) Anyone other than an allied supplier who ships directly to the manufacturer's final assembly point.
(7) Passenger motor vehicle equipment means any system, subassembly, or component received at the final assembly point for installation on, or attachment to, such vehicle at the time of its initial shipment by the manufacturer to a dealer for sale to an ultimate purchaser. Passenger motor vehicle equipment also includes any system, subassembly, or component received by an allied supplier from an outside supplier for incorporation into equipment supplied by the allied supplier to the manufacturer with which it is allied.
(8) Person means an individual, partnership, corporation, business trust, or any organized group of persons.
(9) Ultimate purchaser means with respect to any new passenger motor vehicle, the first person, other than a dealer purchasing in its capacity as a dealer, who in good faith purchases such new passenger motor vehicle for purposes other than resale.
(1) U.S./Canadian parts content. The overall percentage, by value, of the passenger motor vehicle equipment that was installed on vehicles within the carline of which the vehicle is part, and that originated in the United States and/or Canada (the procedure for determining U.S./Canadian Parts Content is set forth in §583.6);
(2) Major sources of foreign parts content. The names of any countries other than the United States and Canada which contributed at least 15 percent of the average overall percentage, by value, of the passenger motor vehicle equipment installed on vehicles within the carline of which the vehicle is part, and the percentages attributable to each such country (if there are more than two such countries, the manufacturer need only provide the information for the two countries with the highest percentages; the procedure for determining major foreign sources of passenger motor vehicle equipment is set forth in §583.7);
(4) Country of origin for the engine. The country of origin of the passenger motor vehicle's engine (the procedure for making this country of origin determination is set forth in §583.8);
(5) Country of origin for the transmission. The country of origin of the passenger motor vehicle's transmission (the procedure for making this country of origin determination is set forth in §583.8);
U.S./Canadian Parts Content: (insert number) %
(Name of country with highest percentage): (insert number) %
(Name of country with second highest percentage): (insert number) %
Final Assembly Point: (city, state, country)
Engine: (name of country)
Transmission: (name of country)
(1) Be placed in a prominent location on each vehicle where it can be read from the exterior of the vehicle with the doors closed, and may be either part of the Monroney price information label required by 15 U.S.C. 1232, part of the fuel economy label required by 15 U.S.C. 2006, or a separate label. A separate label may include other consumer information.
(a) Each manufacturer, except as specified in §583.5 (f) and (g), shall determine the percentage U.S./Canadian Parts Content for each carline on a model year basis. This determination shall be made before the beginning of each model year. Items of equipment produced at the final assembly point (but not as part of final assembly) are treated in the same manner as if they were supplied by an allied supplier. All value otherwise added at the final assembly point and beyond, including all final assembly costs, is excluded from the calculation of U.S./Canadian parts content. The country of origin of nuts, bolts, clips, screws, pins, braces, gasoline, oil, blackout, phosphate rinse, windshield washer fluid, fasteners, tire assembly fluid, rivets, adhesives, grommets, and wheel weights, used in final assembly of the vehicle, is considered to be the country where final assembly of the vehicle takes place.
(b) Determining the value of items of equipment. (1) For items of equipment received at the final assembly point, the value is the price paid by the manufacturer for the equipment as delivered to the final assembly point.
(2) For items of equipment produced at the final assembly point (but not as part of final assembly), the value is the fair market price that a manufacturer of similar size and location would pay a supplier for such equipment.
(3) For items of equipment received at the factory or plant of an allied supplier, the value is the price paid by the allied supplier for the equipment as delivered to its factory or plant.
(c) Determining the U.S./Canadian percentage of the value of items of equipment. (1) Equipment supplied by an outside supplier to a manufacturer or allied supplier is considered:
(i) 100 percent U.S./Canadian, if 70 percent or more of its value is added in the United States and/or Canada; and
(ii) To otherwise have the actual percent of its value added in the United States and/or Canada, rounded to the nearest five percent.
(2) The extent to which an item of equipment supplied by an allied supplier is considered U.S./Canadian is determined by dividing the value added in the United States and/or Canada by the total value of the equipment. The resulting number is multiplied by 100 to determine the percentage U.S./Canadian content of the equipment.
(3) In determining the value added in the United States and/or Canada of equipment supplied by an allied supplier, any equipment that is delivered to the allied supplier by an outside supplier and is incorporated into the allied supplier's equipment, is considered:
(i) 100 percent U.S./Canadian, if at least 70 percent of its value is added in the United States and/or Canada; and
(4)(i) Value added in the United States and/or Canada by an allied supplier or outside supplier includes—
(A) The value added in the U.S. and/or Canada for materials used by the supplier, determined according to (4)(ii) for outside suppliers and (4)(iii) for allied suppliers, plus,
(B) For passenger motor vehicle equipment assembled or produced in the U.S. or Canada, the value of the difference between the price paid by the manufacturer or allied supplier for the equipment, as delivered to its factory or plant, and the total value of the materials in the equipment.
(ii) Outside suppliers of passenger motor vehicle equipment will determine the value added in the U.S. and/or Canada for materials in the equipment as specified in paragraphs (A) and (B).
(A)(1) For any material used by the supplier which was produced or assembled in the U.S. or Canada, the supplier will subtract from the total value of the material any value that was not added in the U.S. and/or Canada. The determination of the value that was not added in the U.S. and/or Canada shall be a good faith estimate based on information that is available to the supplier, e.g., information in its records, information it can obtain from its suppliers, the supplier's knowledge of manufacturing processes, etc.
(2) The supplier shall consider the amount of value added and the location in which that value was added—
(i) At each earlier stage, counting from the time of receipt of a material by the supplier, back to and including the two closest stages each of which represented a substantial transformation into a new and different product with a different name, character and use.
(ii) The value of materials used to produce a product in the earliest of these two substantial transformation stages shall be treated as value added in the country in which that stage occurred.
(B) For any material used by the supplier which was imported into the United States or Canada from a third country, the value added in the United States and/or Canada is presumed to be zero. However, if documentation is available to the supplier which identifies value added in the United States and/or Canada for that material (determined according to the principles set forth in (A), such value added in the United States and/or Canada is counted.
(iii) Allied suppliers of passenger motor vehicle equipment shall determine the value that is added in the U.S. and/or Canada for materials in the equipment in accordance with (c)(3).
(iv) For the minor items listed in the §583.4 definition of “passenger motor vehicle equipment” as being excluded from that term, outside and allied suppliers may, to the extent that they incorporate such items into their equipment, treat the cost of the minor items as value added in the country of assembly.
(v) For passenger motor vehicle equipment which is imported into the territorial boundaries of the United States or Canada from a third country, the value added in the United States and/or Canada is presumed to be zero. However, if documentation is available to the supplier which identifies value added in the United States and/or Canada for that equipment (determined according to the principles set forth in the rest of (c)(4)), such value added in the United States and/or Canada is counted.
(vi) The payment of duty does not result in value added in the United States and/or Canada.
(5) Except as provided in paragraph (c)(6) of this section, if a manufacturer or allied supplier does not receive information from one or more of its suppliers concerning the U.S./Canadian content of particular equipment, the U.S./Canadian content of that equipment is considered zero. This provision does not affect the obligation of manufacturers and allied suppliers to request this information from their suppliers or the obligation of the suppliers to provide the information.
(6) If a manufacturer or allied supplier requests information in a timely manner from one or more of its outside suppliers concerning the U.S./Canadian content of particular equipment, but does not receive that information despite a good faith effort to obtain it, the manufacturer or allied supplier may make its own good faith value added determinations, subject to the following provisions:
(i) The manufacturer or allied supplier shall make the same value added determinations as would be made by the outside supplier;
(ii) The manufacturer or allied supplier shall consider the amount of value added and the location in which the value was added for all of the stages that the outside supplier would be required to consider;
(iii) The manufacturer or allied supplier may determine that particular value is added in the United States and/or Canada only if it has a good faith basis to make that determination;
(iv) A manufacturer and its allied suppliers may, on a combined basis, make value added determinations for no more than 10 percent, by value, of a carline's total parts content from outside suppliers;
(v) Value added determinations made by a manufacturer or allied supplier under this paragraph shall have the same effect as if they were made by the outside supplier;
(vi) This provision does not affect the obligation of outside suppliers to provide the requested information.
(d) Determination of the U.S./Canadian percentage of the total value of a carline's passenger motor vehicle equipment. The percentage of the value of a carline's passenger motor vehicle equipment that is U.S./Canadian is determined by—
(1) Adding the total value of all of the equipment (regardless of country of origin) expected to be installed in that carline during the next model year;
(2) Dividing the value of the U.S./Canadian content of such equipment by the amount calculated in paragraph (d)(1) of this section, and
(3) Multiplying the resulting number by 100.
(e) Alternative calculation procedures. (1) A manufacturer may submit a petition to use calculation procedures based on representative or statistical sampling, as an alternative to the calculation procedures specified in this section to determine U.S./Canadian parts content and major sources of foreign parts content.
(2) Each petition must—
(i) Be submitted at least 120 days before the manufacturer would use the alternative procedure;
(ii) Be written in the English language;
(iii) Be submitted in three copies to: Administrator, National Highway Traffic Safety Administration, 400 Seventh Street SW., Washington, DC 20590;
(iv) State the full name and address of the manufacturer;
(v) Set forth in full the data, views and arguments of the manufacturer that would support granting the petition, including—
(A) the alternative procedure, and
(B) analysis demonstrating that the alternative procedure will produce substantially equivalent results to the procedure set forth in this section;
(vi) Specify and segregate any part of the information and data submitted in the petition that is requested to be withheld from public disclosure in accordance with part 512 of this chapter (the basic alternative procedure and basic supporting analysis must be provided as public information, but confidential business information may also be used in support of the petition).
(3) The NHTSA publishes in the Federal Register, affording opportunity for comment, a notice of each petition containing the information required by this part. A copy of the petition is placed in the public docket. However, if NHTSA finds that a petition does not contain the information required by this part, it so informs the petitioner, pointing out the areas of insufficiency and stating that the petition will not receive further consideration until the required information is submitted.
(4) If the Administrator determines that the petition does not contain adequate justification, he or she denies it and notifies the petitioner in writing, explaining the reasons for the denial. A copy of the letter is placed in the public docket.
(5) If the Administrator determines that the petition contains adequate justification, he or she grants it, and notifies the petitioner in writing. A copy of the letter is placed in the public docket.
(6) The Administrator may attach such conditions as he or she deems appropriate to a grant of a petition, which the manufacturer must follow in order to use the alternative procedure.
[60 FR 47894, Sept. 15, 1995; as amended at 61 FR 46390, Sept. 3, 1996; 62 FR 33761, June 23, 1997; 64 FR 40780, July 28, 1999]
(a) Each manufacturer, except as specified in §583.5(f) and (g), shall determine the countries, if any, which are major foreign sources of passenger motor vehicle equipment and the percentages attributable to each such country for each carline on a model year basis, before the beginning of each model year. The manufacturer need only determine this information for the two such countries with the highest percentages. Items of equipment produced at the final assembly point (but not as part of final assembly) are treated in the same manner as if they were supplied by an allied supplier. In making determinations under this section, the U.S. and Canada are treated together as if they were one (non-foreign) country. The country of origin of nuts, bolts, clips, screws, pins, braces, gasoline, oil, blackout, phosphate rinse, windshield washer fluid, fasteners, tire assembly fluid, rivets, adhesives, grommets, and wheel weights, used in final assembly of the vehicle, is considered to be the country where final assembly of the vehicle takes place.
(b) Determining the value of items of equipment. The value of each item of equipment is determined in the manner specified in §583.6(b).
(d) Determination of the percentage of the total value of a carline's passenger motor vehicle equipment which is attributable to individual countries other than the U.S. and Canada. The percentage of the value of a carline's passenger motor vehicle equipment that is attributable to each country other than the U.S. and Canada is determined on a model year basis by—
(c) Determining the country of origin of components. (1) Except as provided in (c)(2), the country of origin of each item of equipment is the country which contributes the greatest amount of value added to that item (the U.S. and Canada are treated separately).
(d) Determination of the total value of an engine/transmission which is attributable to individual countries. The value of an engine/transmission that is attributable to each country is determined by adding the total value of all of the components installed in that engine/transmission which originated in that country. For the country where final assembly of the engine/transmission takes place, the assembly and labor costs incurred for such final assembly are also added.
(a) Attachment of the label. (1) Except as provided in (a)(2), each manufacturer shall cause the label required by §583.5 to be affixed to each new passenger motor vehicle before the vehicle is delivered to a dealer.
(2) For vehicles which are delivered to a dealer prior to the introduction date for the model in question, each manufacturer shall cause the label required by §583.5 to be affixed to the vehicle prior to such introduction date.
(4) A statement that the equipment has, or does not have, at least 70 percent of its value added in the United States and Canada, determined under §583.6(c);
(i) The country of origin of the equipment, determined under §583.7(c); and
(ii) The percent of its value added in the United States and Canada, to the nearest 5 percent, determined under §583.6(c).
(6) For equipment that may be used in an engine or transmission, the country of origin of the equipment, determined under §583.8(c);
(7) A certification for the information, pursuant to §583.13, and the date (at least giving the month and year) of the certification.
(c)(1) Except as provided in paragraph (c)(2) of this section, the information provided in the certificate shall be the supplier's best estimates of price, content, and country of origin for the unique type of equipment expected to be supplied during the 12 month period beginning on the first July 1 after receipt of the request. If the unique type of equipment supplied by the supplier is expected to vary with respect to price, content, and country of origin during that period, the supplier shall base its estimates on expected averages for these factors.
(d) For outside suppliers of engines and transmissions, the information and certification required by this section is in addition to that required by §583.12.
[59 FR 37330, July 21, 1994, as amended at 64 FR 40781, July 28, 1999]
(a) For each unique type of passenger motor vehicle equipment which an allied supplier supplies to the manufacturer with which it is allied, the allied supplier shall provide the manufacturer with a certificate providing the following information:
(3) The price of the equipment to the manufacturer;
(4) The percentage U.S./Canadian content of the equipment, determined under §583.6(c);
(5) The country of origin of the equipment, determined under §583.7(c);
(b)(1) Except as provided in paragraph (b)(2) of this section, the information provided in the certificate shall be the supplier's best estimates of price, content, and country of origin for the unique type of equipment expected to be supplied during the 12 month period beginning on the first July 1 after receipt of the request. If the unique type of equipment supplied by the supplier is expected to vary with respect to price, content, and country of origin during that period, the supplier shall base its estimates on expected averages for these factors.
(2) The 12 month period specified in (b)(1) may be varied in time and length by the manufacturer if it determines that the alteration is not likely to result in less accurate information being provided to consumers on the label required by this part.
(d) For allied suppliers of engines and transmissions, the information and certification required by this section is in addition to that required by §583.12.
(a) For each engine or transmission for which a manufacturer or allied supplier requests information, the supplier of such engine or transmission shall provide the manufacturer or allied supplier with a certificate providing the following information:
(2) A description of the engine or transmission;
(3) The country of origin of the engine or transmission, determined under §583.8;
(4) A certification for the information, pursuant to §583.13, and the date (at least giving the month and year) of the certification.
(b) The information provided in the certificate shall be the supplier's best estimate of country of origin for the unique type of engine or transmission. If the unique type of equipment used in the engine or transmission is expected to vary with respect to price, content, and country of origin during that period, the supplier shall base its country of origin determination on expected averages for these factors.
(c) The information and certification required by paragraph (a) of this section shall be provided by outside suppliers to the manufacturer or allied supplier no later than 45 days after receipt of the request, or the date specified by the manufacturer/allied supplier, whichever is later. (A manufacturer or allied supplier may request that the outside supplier voluntarily provide the information and certification at an earlier date.)
(d) In the event that, during a model year, a supplier of engines or transmissions produces an engine of a new displacement or transmission of a new type or produces the same engine displacement or transmission in a different plant, the supplier shall notify the manufacturer of the origin of the new engine or transmission prior to shipment of the first engine or transmission that will be installed in a passenger motor vehicle intended for public sale.
(e) A single certificate may cover multiple engines or transmissions. If a certificate provided in advance of the delivery of an engine or transmission becomes inaccurate because of changed circumstances, a corrected certificate shall be provided no later than the time of delivery of the engine or transmission.
(f) For suppliers of engines and transmissions, the information and certification required by this section is in addition to that required by §§583.10 and 583.11.
Each supplier shall certify the information on each certificate provided under §§583.10, 583.11, and 583.12 by including the following phrase on the certificate: “This information is certified in accordance with DOT regulations.” The phrase shall immediately precede the other information on the certificate. The certificate may be submitted to a manufacturer or allied supplier in any mode (e.g., paper, electronic) provided the mode contains all information in the certificate.
(a) Manufacturers. (1) Unless a manufacturer has had a petition approved by the Environmental Protection Agency under 40 CFR 600.511-80(b)(1), for all calculations made by the manufacturer as a basis for the information provided on the label required by §583.5, manufacturers shall take the mean of the exchange rates in effect at the end of each quarter set by the Federal Reserve Bank of New York for twelve calendar quarters prior to and including the calendar quarter ending one year prior to the date that the manufacturer submits information for a carline under §583.17.
(2) A manufacturer that has had a petition approved by the Environmental Protection Agency under 40 CFR 600.511-80(b)(1), which provides for a different method of determining exchange rates, shall use the same method as a basis for the information provided on the label required by §583.5, and shall inform the Administrator of the exchange rate method it is using at the time the information required by §583.5 is submitted.
(b) Suppliers. For all calculations underlying the information provided on each certificate required by §§583.10, 583.11, and 583.12, suppliers shall take the mean of the exchange rates in effect at the end of each quarter set by the Federal Reserve Bank of New York for twelve calendar quarters prior to and including the calendar quarter ending one year prior to the date of such certificate.
(b)(1) The joint owners of a carline may designate, by written agreement, the manufacturer of record of that carline.
(2) The manufacturer of record is responsible for compliance with all the manufacturer requirements in this part with respect to the jointly owned carline. However, carline determinations must be consistent with §583.4(3).
(b) Manufacturers. Each manufacturer shall maintain all records which provide a basis for the information it provides on the labels required by §583.5, including, but not limited to, certificates from suppliers, parts lists, calculations of content, and relevant contracts with suppliers. The records shall be maintained for five years after December 31 of the model year to which the records relate.
(c) Suppliers. Each supplier shall maintain all records which form a basis for the information it provides on the certificates required by §§583.10, 583.11, and 583.12, including, but not limited to, calculations of content, certificates from suppliers, and relevant contracts with manufacturers and suppliers. The records shall be maintained for six years after December 31 of the calendar year set forth in the date of each certificate.
For each model year, manufacturers shall submit to the Administrator 3 copies of the information required by §583.5(a) to be placed on a label for each carline. The information for each carline shall be submitted not later than the date the first vehicle of the carline is offered for sale to the ultimate purchaser.