[Code of Federal Regulations]
[Title 49, Volume 5]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR583.7]

[Page 962-963]
 
                        TITLE 49--TRANSPORTATION
 
                            OF TRANSPORTATION
 
PART 583--AUTOMOBILE PARTS CONTENT LABELING--Table of Contents
 
Sec. 583.7  Procedure for determining major foreign sources of passenger motor vehicle equipment.

    (a) Each manufacturer, except as specified in Sec. 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 
Sec. 583.6(b).
    (c) Determining the country of origin of items of equipment.(1) 
Except as provided in (c)(2), the country of origin of each item is the 
country which contributes the greatest amount of value added to that 
item (treating the U.S. and Canada together).
    (2) Instead of making country of origin determinations in the manner 
specified in (c)(1), a manufacturer may, at its option, use any other 
methodology that is used for customs purposes (U.S. or foreign), so long 
as a consistent methodology is employed for all items of equipment, and 
the U.S. and Canada are treated together.
    (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--
    (1) Adding up the total value of all of the passenger motor vehicle 
equipment (regardless of country of origin) expected to be installed in 
that carline during the next model year;
    (2) Adding up the value of such equipment which originated in each 
country other than the U.S. or Canada;
    (3) Dividing the amount calculated in paragraph (d)(2) of this 
section for each

[[Page 963]]

country by the amount calculated in paragraph (d)(1) of this section, 
and multiplying each result by 100.
    (e) A country is a major foreign source of passenger motor vehicle 
equipment for a carline only if the country is one other than the U.S. 
or Canada and if 15 or more percent of the total value of the carline's 
passenger motor vehicle equipment is attributable to the country.
    (f) In determining 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, no value which is counted as 
U.S./Canadian parts content is also counted as being value which 
originated in a country other than the U.S. or Canada.

[59 FR 37330, July 21, 1994, as amended at 60 FR 47895, Sept. 15, 1995; 
64 FR 40781, July 28, 1999]