Mr. Brian Batzloff
Director of Compliance
JCM American Corporation
925 Pilot Road
Las Vegas, Nevada 89119
Dear Mr. Batzloff:
This responds to your letter dated February 24, 2004, requesting a non-availability waiver of the Buy America requirements for the DBV-200 bill validator, used in fare collection systems. For the reasons below, I have determined that a waiver is appropriate here.
The Federal Transit Administrationís (FTA) requirements concerning domestic preference for federally funded transit projects are set forth in 49 U.S.C. §5323(j) and 49 C.F.R. 661. Manufactured products used in FTA-funded projects must be produced in the U.S. 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.
Arguments Made in Support of a Waiver
According to the information you submitted, there is no functional equivalent to the DBV-200 available from a domestic manufacturer. You also note that the DBV-200 is similar to other foreign validators already subject to a waiver.1 You explain that the DBV-200 reads currency using high end optical and infrared sensing technology and can read barcode printed tickets and detect and reject counterfeit money.
Summary of Comments
FTA posted a request for comments on this matter on our website and received none. Accordingly, there is no showing that there is a domestic manufacturer of a functionally equivalent product.
FTA is not aware of any domestic manufacturer of this equipment. Therefore, consistent with existing waivers for other currency handling devices used in fare collection equipment, I find that the grounds for a non-availability waiver exist. Pursuant to the provisions of 49 U.S.C. §5323(j)(2)(B), a waiver is hereby granted for the manufacture of the DBV-200 bill validator for a period of two years.
If you have any questions, please contact Meghan Ludtke at (202) 366-1936.
Very truly yours,
Gregory B. McBride
Deputy Chief Counsel
1 Please see Cashcode letter of June 11, 2003; Toyocom letter of December 13, 2002; Mars letter of December 10, 2002; and Asahi Seiko letter of December 9, 2002.