Interpretation ID: nht94-4.8

TYPE: INTERPRETATION-NHTSA

DATE: August 23, 1994

FROM: Earl L. Hartley, Jr. -- Ryan Freight Services, Inc.

TO: John Womack -- Chief Counsel, NHTSA; Ed Glancy

TITLE: Reference: Briggs & Stratton Corporation Compliance with 49 CFR Part 583

ATTACHMT: Attached to 2/3/95 letter from Philip R. Recht to Earl L. Hartley, Jr. (A43; Part 583)

TEXT: Gentlemen:

Pursuant to my recent conversation with Mr. Glancy, I am sending this letter to list some questions we have concerning the requirements of Part 583 and the proper way comply with these regulations.

We are in the process of supplying country of origin information to the auto manufacturers we sell to and would like to have confirmation that we are properly interpreting the regulations. Therefore, we request that you respond to our questions at your earliest convenience.

583.6(c) - We interpret this to mean that if the U.S./Canada value added is 70% or more we are to report the U.S./Canada percentage to be 100%. If the U.S./Canada value added is less than 70% we are to report the U.S./Canada percentage to be -0-%. Is t his correct?

583.7(a)/583.7(e)/583.7(f) - If the U.S./Canadian percentage of the value is -0-% then we should report the two largest "Major Foreign Sources" which are over 15% each. Is this correct?

583.7(c)(1) - This requirement is completely independent from the determination of the percentage of the value determination. Therefore it is possible for a part to be of U.S.A. origin and have -0-% U.S./Canadian Percentage of Value. Are we correct in t his assumption?

583.10(a)-(c) - from these parts we assume the following requirements: Our certificate must show:

1. The name and address of the supplier,

2. The part number and description of the part or assembly,

3. The selling price to our customer,

4. Whether the part has or does not have 70% percent of its value from the United States/Canada as determined under 583.6(c),

5. If the United States/Canada percentage is less than 70% the country of origin determined under 583.7(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 of the certification, and,

8. One certificate can cover multiple parts and assemblies.

If the United States/Canada percentage of the value added is -0- percent, should we show the two largest "Major Foreign Sources" which are over 15% on our certificate? This information does not seem to be required by 583.10(a).

583.13 - This section requires us to certify the information provided on our certificate to be in accordance with DOT regulations. Please provide us with a copy of these DOT regulations or advise where we can secure a copy of these regulations so we can know the regulations to which we are subscribing.

583.10 (c) (1) - (2) - We can issue our certificate for the calendar year from January 1, through December 31 of each year.

We ask that you review the assumptions we are making based on our interpretations of these regulations and advise us if you feel we are correct or what we need to do to correct any errors we have made. We look forward to hearing from you in the near fut ure.

Thank you for you assistance and cooperation in handling this matter.

Sincerely:

Earl L. Hartley Jr. Atty-in-fact