Code of Federal Regulations Title 40. Protection of Environment § 40.1060.610 Temporary exemptions for manufacturing and assembling equipment and fuel-system components

(a) If you are a certificate holder, you may ship components or equipment requiring further assembly between two of your facilities, subject to the provisions of this paragraph (a). Unless we approve otherwise, you must maintain ownership and control of the products until they reach their destination. We may allow for shipment where you do not maintain actual ownership and control of the engines (such as hiring a shipping company to transport the products) but only if you demonstrate that the products will be transported only according to your specifications. Notify us of your intent to use the exemption in this paragraph (a) in your application for certification, if applicable. Your exemption is effective when we grant your certificate. You may alternatively request an exemption in a separate submission;  for example, this would be necessary if you will not be the certificate holder for the products in question. We may require you to take specific steps to ensure that such products are in a certified configuration before reaching the ultimate purchaser. Note that since this is a temporary exemption, it does not allow you to sell or otherwise distribute equipment in an uncertified configuration to ultimate purchasers. Note also that the exempted equipment remains new and subject to emission standards until its title is transferred to the ultimate purchaser or it otherwise ceases to be new.

(b) If you certify equipment, you may ask us at the time of certification for an exemption to allow you to ship your equipment without a complete fuel system. We will generally approve an exemption under this paragraph (b) only if you can demonstrate that the exemption is necessary and that you will take steps to ensure that equipment assembly will be properly completed before reaching the ultimate purchaser. We may specify conditions that we determine are needed to ensure that shipping the equipment without such components will not result in the equipment operating with uncertified components or otherwise in an uncertified configuration. For example, we may require that you ship the equipment to manufacturers that are contractually obligated to install certain components. See 40 CFR 1068.261.