Notice of Granted Buy America Waiver -- Giesecke & Divrient

Printer Friendly Number 65 FR 63672

[Federal Register:  October 24, 2000  (Volume 65, Number 206)]
[Page 63672-63673]
From the Federal Register Online via GPO Access []
Federal Transit Administration
Notice of Granted Buy America Waiver
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice of Granted Buy America Waiver.
SUMMARY: This waiver allows ticket vending machine manufacturers to 
install the Giesecke & Devrient (``G&D'') banknote identification 
modules (BIM) and count it as domestic for purposes of Buy America 
compliance. It is predicated on the non-availability of the item 
domestically and granted on July 21, 2000, for the period of two years, 
or until such time as a domestic source for this BIM becomes available, 
whichever occurs first. This notice shall insure that the public, 
particularly potential manufacturers, is aware of this waiver. FTA 
requests that the public notify it of any relevant changes in the 
domestic market. FTA also granted an identical waiver to Mars 
Electronics, a competitor of G&D and manufacturer of a similar device. 
That waiver is published elsewhere in today's Federal Register.
Counsel, Room 9316, (202) 366-4011 (telephone) or (202) 366-3809 (fax).
SUPPLEMENTARY INFORMATION: The above-referenced waiver follows:

July 21, 2000.
Mr. Klaus J. Krauth, Vice President, Chief Financial Officer, 
Giesecke & Devrient America, Inc., 45925 Horseshoe Drive, Dulles, 
Virginia 20166.
Re: Application for Waiver of Buy America for Automated Fare 
Collection System Component
    Dear Mr. Krauth: This letter responds to your correspondence of 
June 1, 2000, in which you request a Buy America component waiver 
based upon nonavailability for certain banknote identification 
modules (BIM) manufactured for use in ticket vending machines. The 
BIM at issue here features unique security functions and the ability 
to be upgraded for currency changes.
    Based upon the fact that there were no known domestic sources, 
the Federal Transit Administration (FTA) has granted Buy America 
waivers to one of your competitors, Mars Electronics, for its bill 
handling unit (BHU), an item with similar functionality to the BIM. 
Upon hearing from both Mars and G&D on the subject of a component 
waiver, FTA contacted Cubic Transportation Systems, Inc., a 
manufacturer of ticket vending machines using both BIM's and BHU's 
and requested that it submit its assessment of the state of this 
    Cubic contended, by letter dated April 19, 2000, that based upon 
an extensive survey of the market, which is continuously updated by 
technical staff, there is no known U.S. manufacturer of a BIM/BHU 
that perform the functions listed herein. To date, Cubic has 
qualified only two sources for the BIM/BHU used in its ticket 
vending machines; those sources are G&D and Mars Electronics. This 
letter incorporates, by reference, the information contained in the 
above-referenced correspondence.
    FTA's requirements concerning domestic preference for federally 
funded transit projects are set forth in 49 U.S.C. Sec. 5323(j). 
However, Section 5323(j)(2)(B) states that those requirements shall 
not apply if the item or items being procured are not produced in 
the U.S. in sufficient and reasonably available quantities and of a 
satisfactory quality. The implementing regulation also provides that 
a waiver may be requested ``for a specific item or material that is 
used in the production of a manufactured product.'' 49 CFR 661.7(g). 
The regulations allow a bidder or supplier to request a waiver only 
if it is being sought under this section. See 49 CFR 661.7(g) and 49 
CFR 661.9(d). This waiver would allow G&D to treat the BIM as 
[[Page 63673]]
    Based on the above-referenced information, I have determined 
that the grounds for a ``nonavailability'' waiver exist. Therefore, 
pursuant to the provisions of 49 U.S.C. Sec. 5323(j)(2)(B), the 
waiver is hereby granted for manufacture of the BIM model number 
2020 for the period of two years, or until such time as a domestic 
source for this type of component becomes available, whichever 
occurs first. In order to insure that the public is aware of this 
waiver, particularly potential manufacturers, it will be published 
in the Federal Register.
    If you have any questions, pleased contact Meghan G. Ludtke at 
(202) 366-4011.
    Very truly yours,
Gregory B. McBride,
Deputy Chief Counsel.

    Issued on: October 19, 2000.
Nuria I. Fernandez,
Acting Administrator.
[FR Doc. 00-27297 Filed 10-23-00; 8:45 am]