upr000043 46

product or conducting any business listed in Schedule I or for necessary oper­ating supplies for such production or business; (ii) AA-2 for maintenance or repair of facilities reauired for producing any product or conducting any business listed in Schedule n or for necessary operating supplies for such production or business;' and (iii) AA-5 for necessary maintenance or repair of facilities required for pro­ducing any product or conducting any business not listed in Schedule I or Schedule n or for necessary operating supplies for any such purpose.1 (2) A preference rating assigned un­der this paragraph (d) shall be applied only by use of the ? following certifica­tion (or the alternative form of •certifica­tion provided in CMP Regulation No. 7), signed manually or as provided in Priori­ties Regulation No. 7: Preference rating__:___(specify rating)— MRO. The undersigned certifies, subject to the criminal penalties for misrepresentation contained in section 35 (A) of the United States Criminal Code, that the items covered by this order are required for essential main­tenance repair or operating supplies; that this order is rated and placed in compliance with CMP Regulation No. 5: and that the delivery requested will not result in a viola­tion of the quantity restrictions contained "in paragraph (f) of said regulation. (3) [Deleted Feb. 26, 19441 ‘ (e) Plants engaged in several activi­ties. If a single plant or operating unit is engaged in several activities which are not all listed on the same schedule (or if some are so listed and others are un­listed) , and it is impracticable to ap­portion requirements for maintenance, repair and operating supplies between such activities, the principal activity alone shall be considered for purposes of determining whether controlled ma­terials may be obtained under paragraph (c) of this, regulation and also for de­termining which preference ratings may be applied under paragraph (d). (f) Quantity restrictions. A person who uses the MRO rating or symbol as­signed by this regulation must not buy . any more material and products than is permitted under this paragraph, (1) General quota. A person must not order for delivery0 in any calendar quar­ter MRO (maintenance, repair and op­erating supplies) costing more than one- fourth of what he spent for MRO in 1942 (or his fiscal year ending nearest to December'31, 1942),. (2) Seasonal quota. A .person engaged in a seasonal business must not order MRO for delivery * in any calendar quar­ter in an amount more than the amount he spent for MRO in the corresponding' quarter of 1342. A person may choose either the seasonal quota explained in ‘See also: Direction No. 3; Rerating of or­ders placed before May 16 is not compulsory; Direction No. 5: Farmers are not entitled to use AA-5 rating. '? See also: Direction No. 8: Quota may be determined on a receipt basis. this paragraph or the general quota ex­plained in sub-paragraph (1) above, but he may not afterwards change to the other quota without special authoriza­tion by the War Production Board. (3) Quota for new businesses. In the case of a plant or other operating unit which was not in operation during the base periods mentioned in subparagraphs (1) or (2) above, the person operating the plant may take as a quota the amount he spent for MRO during the first quarter of 1943 (or during the part of the quarter the plant was in operation) reasonably adjusted for seasonal or other variable factors. However, he must first notify the War Production Board, in writing, of the base which he is taking, why he is selecting that base, and what adjust­ments he has made. In the case of a plant starting operations after February 28, 1943, MRO may be bought under this regulation in the minimum amounts nec­essary for operation up to $5,000 per quarter. If more than this amount is needed, application may be made to the War Production Board as provided in paragraph (f) (8). (4) When increased quotas can be used as a base. If a person’s quota has been increased by specific authorization of the War Production Board pursuant to ap- plication, he may continue to operate on the basis of the increased quota-. How- ever, if a substantial part of the increase was to take care of an abnormal situa­tion, as for example, where he required a large amount of special tools and equipment in order to produce a new product, he may not use that increased quota as a base. Note: Former subparagraph (4) deleted Feb. 26, 1944, because obsolete. (5) How to figure the quota. In flgur- ing his quota, a person must include .every expenditure during the base period which he charged to a maintenance, re­pair or operating supplies account. He must not include any expenditure which was charged to a capital account. In each quarter he must charge against his quota (i) everything he buys for MRcT whether he uses the MRO rating and symbol, or another ratisg or symbol, or no rating; and (ii V fnaterial and prod­ucts he buys- for minor capital addi­tions for which he uses the MRO racing or symbol. (Note, that in deciding whether, a single capital addition falls within the cost limits of paragraph (b) (3), the cost of all material and products must be included whether a preference rating' or symbol is used or not), In figuring his quota, a person may at his option exclude the cost of his own labor, or the cost of any item on List A or B of Priorities Regulation No. 3, as long y he excludes cost of such items both from the computation of the quota and from charges against the quota. (6) Records. Each person who is sub­ject to this paragraph (f) must figure his quota and must keep his computation and supporting work sheets in his files for two years after his last purchase un­der the regulation. He must indicate on his computation any election which he makes under this paragraph (f), and in the case of paragraph (f) (3) “Quota for new businesses” or (f) (4) “When in­creased quotas can be used as a base”, he must indicate the base which he se- lects. He must also maintain a record of his expenditure for a period of not less than two years. (7) Treatment of separate plants. A person who has several plants or other operating units which maintain sep­arate records of maintenance, repair and operating supplies shall treat each of them separately for purposes of com­plying with the provisions of this para­graph (f). Note: Paragraph (7), formerly (2), re­designated Feb. 26, 1944. (8) Applications for increased quota. In any case where the quota provided in this paragraph (f) is not enough for nec- essary operations, a person may apply for a larger quota by letter in triplicate sent to the War Production Board, Washing­ton 25, D. C., Reference: CMP Regulation 5, stating the relevant facts. (9) Persons who use less than $5,000 a year worth of MRO not limited. The quantity restrictions in this paragraph (f) shall not apply to persons whose ag­gregate requirements of maintenance, repair and operating supplies do not ex­ceed $5,000 per year. (10) Further reports and limitations in special cases. The War Production Board may, by further regulations or or­ders, require specified persons or classes of persons to fils applications or reports regarding their requirements of mainte­nance, repair and operating supplies and 'may prescribe specific quantitative limits for the same, either larger or smaller than the limits provided above in this paragraph (f). Note: Paragraphs (9) and (10), formerly (5) and (6), redesignated Feb. 26, 1944. (g) Special provisions for Claimant Agencies, exports and ship repairs. Maintenance, repair and operating sup­plies, required either by a Claimant Agency (except for the purposes men­tioned in Schedule I or It) or for export, as regular procurement items covered by specific programs, and material required for ship repairs programmed by the Mari­time Commission, shall not be obtained under this regulation, but, if they are GPO— War Board 9893A— p. 2 controlled materials or Class A products, shall be obtained only by the use of allotments in the same manner as pro^ duction materials under CMP Regula­tion No. 1, and, if they are other mate^ rials or products, shall be obtained only by such preference ratings as may be specifically assigned for the purpose. (g-1) Use of customer’s or tenant’s MRO symbol and rating. (1) Any person (such as a service repair shop) engaged in the business of doing maintenance or repair work for Others may use the same allotment symbol and preference rating (including any allotment symbol or preference rating assigned for MRO by CMP Regulation 5A or any p or U order) to obtain materials needed in - the performance of the work which his customer would be en­titled to use if the customer did the work himself. The cost of materials used in the performance of maintenance or repair work shall be treated as ex­penditures of the customer for the purpose. of computing his quantity re­strictions under paragraph (f). A per­son engaged in such business may, instead, request an allotment of con­trolled materials and a preference rat­ing by applying to the War Production Board on Form CMP-4B, but, if he does so, he must use that method exclusively -and may not use a customer’s rating or symbol. (2) A landlord may use his tenant’s allotment symbol and rating to obtain maintenance, repair and operating sup­plies (including controlled materials) for the leased property if the tenant is en­gaged in the. production of a product or in a business listed in Schedule I or n or if the tenant is assigned a rating or symbol for MRO CMP Regulation 5A or by any P or U order; but if the same property is occupied by several tenants and the supplies are not for the exclusive benefit of a single ten­ant the landlord may only use a tenant’s rating if 75 percent or more of the leased property is leased to tenants on Schedule I or n and, in such case, if any are on Schedule II, he can only use the AA-2 rating, (3) A person who leases equipment to others which he agrees to keep in good order may use either his own or his cus­tomer’s rating and symbol (regardless of whether tile rating is assigned by this regulation or CMP Regulation 5A or any ' order in the P or P series) to get ma­terials needed to repair and maintain the equipment. (h) Restrictions on use of MRO sym­bol, rating, and materials—(1) Use of symbol and rating. No person shall use the MRO symbol or the preference rat- ing assigned to him by this regulation to get anything except-materials which he needs for essential maintenance, re­pairer operating supplies, or minor cap­ital additions as permitted by paragraph .(b) (3). If he is assigned different rat­ings by this regulation for different busi- nesses and it is practicable to segregate his purchases, he must not use a higher rating to get material for a purpose for which he is assigned a, lower rating. If it is not practicable for him to segregate his purchases, -paragraph (e) explains what rating he may, use. (2) Use of material. If a person has bought material under this regulation for MRO and then finds that he has another use for it, he may use the material for the other purpose if a preference rating or allotment symbol is assigned to him by any certificate or order for that purpose. However, if he uses the material for an­other use he may not replace it in inven­tory by use of the rating or symbol as- signed by this regulation. If he replaces it, he must use the rating or symbol as­signed for the purpose for which the ma­terials were used. Also, if he uses ma- terial bought under , this regulation for another use, his records must be adequate to show that his purchases of material are substantially proportionate to his authorized uses. For example, a manu­facturer has a rating of AA-2 under this regulation for MRO and also has a rating of AA-3 for a construction project.' He may take lumber from his MRO inven­tory which he bought on the AA—2 rat­ing and use it on the construction job, but if he replaces it in his inventory he must use the AA-3 rating for this pur­pose, so that he will not, in effect, have filled both his MRO and his construction requirements at the AA-2 rating. Ex­changes of this kind may be made only where the material is acquired in good faith for use as MRO. The manufac­turer may not use the AA-2 ratings to get lumber if he is getting it specifically for use in the construction project. (i) Inventory restrictions.. Nothing in this regulation shall be deemed to au­thorize any person to receive any deliv­ery of maintenance, repair or operating supplies if acceptance thereof would in­crease his inventory above a practicable working minimum as provided in § 944.14 Of Priorities Regulation No. 1 or would exceed the inventory limitations pre­scribed for such person by CMP Regula­tion No. 2, or by any other applicable regulation or order of the War Produc­tion Board. (J) Additional assistance in individual cases. Any person requiring mainte­nance, repair or operating supplies who is unable to obtain them with the rating assigned to him by this regulation, and any person requiring any controlled ma­terial for maintenance, repair Or oper­ating supplies who is not listed in Sehed- ule I or H and who is unable to obtain it from a warehouse or distributor under CMP Regulation No. 4 may apply to the nearest local office of War Production Board on Form WPB-541 (formerly PD- 1A) for a higher rating, or the right 'to use the MRO symbol to obtain con­trolled materials. Application for an increase in the quantity of expenditures for maintenance, repair and operating supplies permitted by paragraph (f) of this, regulation shall, however, be filed in the maimer specified in subparagraph (8) of paragraph (!). (k) Effect on other orders and proce­dures. (1) The preference ratings and allotment symbols assigned by this reg- ulation may be used by any person, un­less he is engaged in an activity or busi- ness which is covered by an order in the P or U series which specifically provide that the ratings assigned by CMP Regu­lation No. 5 may not be used. (2) [Deleted FCb. 26, 19441 (3) [Deleted Feb. 26, 19441 (4) When an order in the “E”, “L” or *‘M” series assigns a specific preference rating to deliveries of any particular material to be used by a particular in­dustry or for a specific purpose, such preference rating shall control and the preference ratings hereby assigned may not be applied. Note: Remainder of paragraph (k) (4) deleted Feb. 26, 1944. (5) Nothing in this regulation shall be construed to relieve any person from complying with any applicable priorities regulation or order of the Warr Produc­tion Board (including orders in the “E.” “L” and “M” series) or with 'any order of any other competent authority. (l) Industry reclassification. Any person who is. of the opinion that the business activity in which he is engaged should be listed in Schedule I, if it is listed in Schedule H, or should be listed in either Schedule I or Schedule n, if it is not listed in either of such schedules, may apply to have such activity so listed by filing a letter, in triplicate, with the appropriate Industry Division setting forth the relevant facts and the reasons why he considers such request should be granted. The War Production Board may cause such activity to be listed in one of the schedules attached to this regulation or, in special cases, may permit the appli­cant to operate under this regulation to the same extent as though his business activity were included in one of such schedules. . (m) Records. ? Each person acquiring maintenance,- repair or operating sup­plies pursuant to this regulation shall keep and preserve, for a period of not less thah two years, accurate and complete records of all such supplies so acquired, and used, which shall, upon request, be submitted -to audit and inspection by duly authorized representatives of the War Production Board. (n) Communications. All- communi­cations concerning this regulation should be addressed to: War Production Board, Washington 25, D. C., Ref; CMP Regula­tion No. 5. (o) Restriction on use of ratings. The preference rating assigned by thid regulation cannot be used to get any of (;pO— War Board 9893A— p. 3