# 40 C.F.R. § 1054.610 (2026): What is the exemption for delegated final assembly? > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_610 ## Section - **Citation:** 40 C.F.R. § 1054.610 (2026) - **Heading:** What is the exemption for delegated final assembly? - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 40 CFR: Protection of Environment / Chapter I / Part 1054 / Subpart G / § 1054.610: § 1054.610 What is the exemption for delegated final assembly? ## Text The provisions of 40 CFR 1068.261 related to delegated final assembly do not apply for handheld engines certified under this part 1054. The provisions of 40 CFR 1068.261 apply for nonhandheld engines, with the following exceptions and clarifications: (a) Through the 2014 model year, you may use the provisions of this section for engines you sell to a distributor, where you establish a contractual arrangement in which you designate the distributor to be your agent in all matters related to compliance with the requirements of this section. Identify each of the distributors you intend to designate as your agent under this paragraph (a) in your application for certification. You may continue to use the provisions of this paragraph (a) this for later model years for specific distributors if we approve it based on your clear and convincing demonstration that each distributor can be expected to comply fully with the requirements of this section and 40 CFR 1068.261. We may set additional conditions beyond the provisions specified in this section to ensure that all engines will be in a certified configuration when installed by the equipment manufacturer. (b) If you identify distributors as your agents under paragraph (a) of this section, you must perform or arrange for audits of all participating distributors and equipment manufacturers based on the following auditing rate instead of the provisions specified in 40 CFR 1068.261(d)(3)(i) and (ii): (1) If you sell engines to 48 or more equipment manufacturers under the provisions of this section, you must annually perform or arrange for audits of twelve equipment manufacturers to whom you sell engines under this section. To select individual equipment manufacturers, divide all the affected equipment manufacturers into quartiles based on the number of engines they buy from you; select equal numbers of equipment manufacturers from each quartile each model year as much as possible is section, you must annually perform or arrange for audits of twelve equipment manufacturers to whom you sell engines under this section. To select individual equipment manufacturers, divide all the affected equipment manufacturers into quartiles based on the number of engines they buy from you; select equal numbers of equipment manufacturers from each quartile each model year as much as possible. Vary the equipment manufacturers selected for auditing from year to year, though audits may be repeated in later model years if you find or suspect that a particular equipment manufacturer is not properly installing aftertreatment devices. (2) If you sell engines to fewer than 48 equipment manufacturers under the provisions of this section, set up a plan to perform or arrange for audits of each equipment manufacturer on average once every four model years. ## Nearby sections - [40 C.F.R. § 1054.601 (2026) § 1054.601 What compliance provisions apply?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_601.md) - [40 C.F.R. § 1054.610 (2026) § 1054.610 What is the exemption for delegated final assembly?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_610.md) - [40 C.F.R. § 1054.612 (2026) § 1054.612 What special provisions apply for equipment manufacturers modifying certified nonhandheld engines?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_612.md) - [40 C.F.R. § 1054.615 (2026) § 1054.615 What is the exemption for engines certified to standards for Large SI engines?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_615.md) - [40 C.F.R. § 1054.620 (2026) § 1054.620 What are the provisions for exempting engines used solely for competition?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_620.md) - [40 C.F.R. § 1054.630 (2026) § 1054.630 What provisions apply for importation of individual items for personal use?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_630.md) - [40 C.F.R. § 1054.635 (2026) § 1054.635 What special provisions apply for small-volume engine and equipment manufacturers?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_635.md) - [40 C.F.R. § 1054.645 (2026) § 1054.645 What special provisions apply for converting an engine to use an alternate fuel?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_645.md) - [40 C.F.R. § 1054.650 (2026) § 1054.650 What special provisions apply for adding or changing governors?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_650.md) - [40 C.F.R. § 1054.655 (2026) § 1054.655 What special provisions apply for installing and removing altitude kits?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_655.md) - [40 C.F.R. § 1054.660 (2026) § 1054.660 What are the provisions for exempting emergency rescue equipment?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_660.md) - [40 C.F.R. § 1054.690 (2026) § 1054.690 What bond requirements apply for certified engines?](https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_690.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T40_P1054_S1054_610. 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