[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: 49CFR583.8]

[Page 963]
 
                        TITLE 49--TRANSPORTATION
 
                            OF TRANSPORTATION
 
PART 583--AUTOMOBILE PARTS CONTENT LABELING--Table of Contents
 
Sec. 583.8  Procedure for determining country of origin for engines and transmissions (for purposes of determining the information specified by 
          Secs. 583.5(a)(4) and 583.5(a)(5) only).

    (a) Each supplier of an engine or transmission shall determine the 
country of origin once a year for each engine and transmission. The 
origin of engines shall be calculated for engines of the same 
displacement produced at the same plant. The origin for transmissions 
shall be calculated for transmissions of the same type produced at the 
same plant. Transmissions are of the same type if they have the same 
attributes including: Drive line application, number of forward gears, 
controls, and layout. The U.S. and Canada are treated separately in 
making such determination.
    (b) The value of an engine or transmission is determined by first 
adding the prices paid by the manufacturer of the engine/transmission 
for each component comprising the engine/transmission, as delivered to 
the assembly plant of the engine/transmission, and the fair market value 
of each individual part produced at the plant. The assembly and labor 
costs incurred for the final assembly of the engine/transmission are 
then added to determine the value of the engine or transmission.
    (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).
    (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 components.
    (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.
    (e) The country of origin of each engine and the country of origin 
of each transmission is the country which contributes the greatest 
amount of value added to that item of equipment (the U.S. and Canada are 
treated separately).

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