(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Federal motor vehicle safety standards and regulations, with amendments and interpretations"

1.6/2:989 

il Motor Vehicle Safct. 



Federal Motor Vehicle Safety 
Standards and Regulations 

Supplement 40— Amendments 
and Interpretations Issued 
During 1989 

Page Control Char 




(1) PART 512— Confidential Business Information 

(a) Insert attached pages numbered PART 512; PRE 19 through PART 512; 
PRE 27-28 behind page in book numbered PART 512; PRE 17-18. 

(b) Substitute attached PART 512 for PART 512 in book. 

(2) PART 531— Average Fuel Economy Standards for Passenger Automobiles 

(a) Insert attached page numbered PART 531; PRE 177 behind page in book 
numbered PART 531; PRE 175-176. 

(b) Substitute attached PART 531 for PART 531 in book. 

(3) PART 541— Final Listing of High Tfieft Lines for 1990 Model Year. 

(a) Insert attached pages numbered PART 541 -PRE 63 through PART 
541-PRE 65-66 behind page in book numbered PART 541; PRE 61-62. 

(b) Substitute attached pages numbered PART 541-A-1-2 and PART 541 
A-3-4 for similarly numbered pages in book. Insert attached page PART 
541-5-6 behind new page PART 541-A-3-4. 

(4) PART 544— Insurer Reporting Requirements 

(a) Insert attached page numbered PART 544— PRE 33 behind page in book 
numbered PART 544-PRE 31-32. 

(b) Substitute attached page numbered PART 554— B-1 for similarly 
numbered page in book. 

(Continued on reverse side) 

The Federal Motor Vehicle Safety Standards and amendments published in this format are for 
reference purposes only. They should not be considered as legally binding or be used as a 
source of authority In matters of litigation. The United States Code o1 Federal Regulations is 
the only source of legal authority for the standards. 



(5) PART 565— Vehicle Identification Number 

(a) Insert attached pages numbered PART 565— PRE 9-10 behind page in 
book numbered PART 565-PRE 8. 

(b) Substitute attached page numbered PART 565-1 for similarly 
numbered page in book. 

(6) PART 567— Certification 

(a) Insert attached pages numbered PART 567-PRE 91 through PART 
567-PRE 95-96 behind page in book numbered PART 567-PRE 90. 

(b) Substitute attached pages numbered PART 567-3 through PART 
567—7-8 for similarly numbered pages in book. 

(7) PART 575— Consumer Information 

(a) Insert attached pages numbered PART 575-PRE 155 through PART 
575-PRE 159-160 behind page in book numbered PART 575-PRE 
153-154. 

(b) Substitute attached PART 575 for PART 575 in book. 

(8) PART 591— Importation of Vehicles and Equipment, etc. 

(9) PART 592— Registered Importers of Vehicles, etc. 

(10) PART 593— Determinations That a Vehicle Not Originally, etc. 

(11) PART 594-Schedule of Fees Authorized by NTVSA 

Insert new PARTS 591, 592, 593, and 594 sequentially behind page in book 
numbered PART 590-3-4. 



PREAMBLE TO AN AMENDMENT TO PART 512 

Confidential Business Information 

(Docket No. 78-10; Notice 10) 

PIN 2127-AC95 



ACTION: Final Rule. 



SUMMARY: This notice revises and reissues the 
existing regulation contained in 49 CFR Part 512— 
Confidential Business Information. Revisions to the 
existing regulation are necessary to ensure efficient 
processing and proper protection of business infor- 
mation received by the National Highway Traffic 
Safety Administration (NHTSA). This action is in- 
tended to clarify certain provisions, to revise certain 
sections to conform to statutory and case law, to 
include additional class determinations and to add a 
presumptive class determination. 

EFFECTIVE DATE: November 28, 1989. "Confi- 
dential Business Information," as a final rule on 
June 7, 1982, 47 PR 24587. This regulation has not 
been amended or revised since that time. The agency 
believes that the procedures for submitting confiden- 
tial business information have generally worked 
well since 1982, but practical experience in process- 
ing this information has shown that some improve- 
ments and clarifications are advisable. The proposed 
modifications were published in the Federal Register 
on July 7, 1989 (54 FR 28696) (the NPRM). 

Six organizations responded to the agency's solic- 
itation for public comments. Although five minor 
revisions have been made in the final regulation in 
response to comments, the comments generally re- 
flect approval of the proposed changes. NHTSA has 
also modified Appendices A and B and §512. 5(b) to 
make clarifications in response to comments. 

Discussion of Comments 
The agency's proposals for which commenters ex- 
pressed support or no opinion have not been included 
in the Discussion of Comments. The explanation of 
such proposals contained in the NPRM is incorpo- 
rated by reference for the purposes of this Notice. 

Impairment of Protectable Government Interests 
The revision in §512.5 relating to the impairment 
of protectable government interests attracted the 
attention of Ford Motor Company. While basically 
agreeing with need for a change. Ford suggested 
expanding this section to include the concept that 



confidentiality should be granted if disclosure was 
likely to impair a "private interest." Ford proposed 
to accomplish this by inserting the words "or pri- 
vate" after "government" in §512.4fbX3Xviii) and 
§512. 5(c) in recognition of dicta in cases cited in the 
NPRM. The agency is reluctant to make this change 
in the absence of clear judicial decisions which 
determine that the disclosure of confidential infor- 
mation causes a private harm other than a substan- 
tial harm to the competitive position of the submit- 
ter. The addition of §512.5(c) and §512.4(bX3Xviii) in 
the NPRM responds to a genuine need for protection 
of government interests that are not otherwise rec- 
ognized, i.e., the impairment of program effective- 
ness or compliance. However, the agency believes 
that the regulation sufficiently covers private inter- 
ests in §512.4(g) and §512.5(a), and therefore will not 
incorporate Ford's proposed amendment. 

Submitter's Supporting Certification 
Volkswagen of America, Inc., and Ford requested 
changes to the certification in Appendix A. Volkswa- 
gen wanted Appendix A to include both the form of 
the affidavit and the form of the certification if the 
agency was truly willing to accept either format. By 
expressing willingness in the NPRM to accept affi- 
davits which contain the statements contained in 
the proposed Appendix A, the agency did not intend 
to formally create an optional format. NHTSA is 
satisfied with one format, but a certification in that 
format, that is also notarized, will not be rejected as 
insufficient. 

Ford asserted that the qualifying words "to the 
best of my information, knowledge and belief," 
which were deleted from paragraph (6) of the certi- 
fication, should be retained. Ford also questioned 
whether it was possible for a busy company execu- 
tive to make the "personal inquiry" indicated in 
paragraph (3) of the certification without the use of 
such qualifying language. NHTSA agrees to correct 
this oversight by adding the words "information and 
belief," after "knowledge" in paragraph (4). The 
agency believes that this will adequately address 
Ford's concern for fairness to the declarant who may 



PART 512; PRE 19 



use subordinates to aid him in his inquiries, and yet, 
not interfere with the statutory requirements of 28 
use §1746 and 18 USC §1001 concerning unsworn 
declarations to the government under penalty of 
perjury. 

New Class Determinations 

All of the commenters provided suggestions con- 
cerning the class determinations listed and proposed 
for listing in Appendix B. If the agency determines 
that public release of a particular class of informa- 
tion typically would result in substantial competi- 
tive harm and publishes that determination in Ap- 
pendix B, a rebuttable presumption is created about 
the likelihood of such harm if information of that 
type were publicly released. This presumption has 
the effect of eliminating the requirement that the 
submitter initially demonstrate the elements con- 
tained in §512.4(bX3Xvi). 

The commenting automobile manufacturers gener- 
ally supported the General Motors Corporation's peti- 
tion for the agency to make a class determination 
about cost information. General Motors offered an 
amendment to its original draft limiting "cost" to 
"manufacturer's cost." Volkswagen suggested that the 
presumptive determination include "future actual as 
well as estimated cost." Ford asked that the agency 
craft a presumption that includes the kinds of cost 
data that the agency generally has withheld. Chrysler 
Motors Corporation asserted that no distinction should 
be made between general cost estimates, ranges of 
costs and specific actual cost data relating to a product 
because all could be damaging if disclosed. 

However, these suggestions do not adequately ad- 
dress the concern of the agency that a highly inclu- 
sive presumption may erroneously encompass costs 
that under certain circumstances are not entitled to 
confidential protection. Public Citizen and the Free- 
dom of Information Clearinghouse echoed this con- 
cern, stating that it is difficult to draft a determina- 
tion relating to cost that is not overbroad. While the 
presumption would be rebuttable, NHTSA wants to 
avoid confusion, misunderstanding and wasteful ef- 
fort considering claims involving, for example, 
meaninglessly overbroad estimates of future costs or 
cost elements which may have inadvertently been 
introduced into the public domain. NHTSA does not 
believe that it will suffer an impaired ability to 
obtain cost information without the presumption, as 
one commenter suggested, nor does it believe that 
the evidence on cost submissions is clear enough to 
permit the drafting of a sufficiently narrow provi- 
sion at this time. The agency therefore has decided 
that a new class determination relating to costs is 
not advisable. General Motors' suggested class de- 
termination is, therefore, not adopted. 

Three companies made comments on NHTSA's 



proposed amendments to paragraphs (2) and (3) of 
the current class determinations in Appendix B. 
General Motors and Volkswagen suggested that i 
"model year" be clarified to mean the vehicle pro- ^ 
duction period. Ford proposed that product plans be 
protected until the date on which the last of the 
specific models to which the product plans pertain is 
first offered for sale. 

All of these comments demonstrate the necessity 
for clarification of the terminology "product plans" 
and "model year." The phrase "first offered for sale" 
is more precise than "the beginning of the model 
year" in paragraph (2). Also the concept of "pro- 
duction period" is better suited for explaining the 
presumption in paragraph (3). NHTSA believes that 
paragraphs (2) and (3) have been simplified and more 
correctly stated by the adoption of these changes. 

In addition, Volkswagen wanted model plans pro- 
tected to the end of the production period, not the 
beginning, because certain specific products or fea- 
tures are scheduled for introduction some time after 
such period begins. The agency does not agree with 
Volkswagen's suggestion to protect model plans until 
the end of the model production period. K there is a 
specific change that is scheduled to take place relating 
to a certain model vehicle after production of such 
model begins, it should be pointed out by the submitter 
when such change will be offered to the public. The 
specific change can then be protected until it is offered | 
to the public, while the remainder of the information 
pertaining to that vehicle will be released when the 
vehicle is first offered to the public. 

Miscellaneous Provisions 
The amendment relating to voluntary submis- 
sions in §512.5 was the subject of comments from 
both Ford and General Motors. Ford suggested that 
this section be expanded to include the concept that 
confidentiality should be granted if disclosure was 
likely to impair the ability of NHTSA to obtain 
necessary similar information in the future, even 
though NHTSA could compel disclosure of such 
information. General Motors made the point that 
material that is ostensibly obtainable via compul- 
sory process might be considered, in some instances, 
the equivalent of a voluntary submission. However, 
as was stated in the NPRM on page 28698 and by 
General Motors in its comments, whether future 
submissions of information could be compelled is 
only a factor to be considered in deciding if govern- 
mental access to information will be impaired by 
disclosure, but it is not necessarily dispositive. Pub- 
lic Citizen Health Research Group v. FDA, 704 F.2d 
1280, 1291 n. 29 (D.C. Cir. 1983); Washington Post 
Ca V. HHS, 690 F2d 252 (D.C. Cir 1982). Moreover, | 
the agency recognizes tnat courts have given great 
weight to agency determinations that the release of 



PART 512; PRE 20 



information will not cause impairment. General 
Electric Ca v. NRC, 750 F.2d 1394, 1402 (7th Cir. 
1984); AT&T Information Systems a GSA, 627 F. 
Supp. 1396, 1401 (D.D.C. 1986), reversed and re- 
manded on procedural grounds, 810 F2d 1233 (D.C. 
Cir. 1987). 

The changes proposed in the NPRM were intended 
to reflect more accurately the established case law 
but not to enumerate every factor to be considered 
when deciding whether information should be pro- 
tected from disclosure. Furthermore, this regulation 
is intended to be procedural, and not substantive. 
Because of these factors, the agency believes that it 
is inappropriate to attempt to amend the regulation 
according to the ongoing judicial development of 
highly specific disclosure exceptions under the Free- 
dom of Information Act. Consequently, the agency is 
satisfied that the regulation should provide broad 
categories and a flexible framework based upon well 
established judicial precedent. In order to respond to 
the concerns expressed by Ford and General Motors 
and to avoid future confusion about voluntary sub- 
missions of information as outlined in recent judicial 
decisions, the regulation has been modified to delete 
entirely the references to voluntary submissions in 
§512. 5(b). The agency will, however, make no change 
to §512.4(bX3Xvii) which permits the submitter to 
explain impairment when the information is submit- 
ted voluntarily. This modification of the proposal 
also accommodates precisely the issues raised by 
General Motors and Ford, reflects accurately the 
established case law and maintains a broad, flexible 
framework for submitters using the regulation. 

Public Citizen and the Freedom of Information 
Clearinghouse expressed concern about the timing 
of NHTSA's confidentiality determinations. On this 
point, the NPRM did not propose any substantive 
changes from the original regulation. Nevertheless, 
these commenters suggested that the agency should 
decide on and publish a date certain by which 
confidentiality determinations will be made. Ten 
days were recommended to be a reasonable period of 
time. The commenters said that without further 
clarification, §512. 6(b), which requires placing in 
the public file copies of documents from which infor- 
mation claimed to be confidential or privileged has 
been deleted pending resolution of such claim, is 
likely to mislead the public. 

The agency does not agree that the procedures in 
§512. 6(b) are misleading. All persons having an 
interest in files from which information has been 
redacted, may, and frequently do, make further in- 
quiries about additional information pursuant to the 
Freedom of Information Act. In these situations, 
NHTSA's practical experience with the regulation 
has been excellent, as explained below, and the 
agency is satisfied that the public has pursued 



information under this statute in instances where 
more information was wanted. In such instances, as 
noted in §5 12.6(c), the agency must respond within 
the statutory time periods. It is also important to 
point out that because of practical manpower re- 
straints, the agency would not always be able to 
meet a self-imposed deadline for redacted informa- 
tion about which there was no expressed public 
interest and also fulfill its obligations to persons 
requesting information under statutory deadlines. 
Moreover, the agency believes that the processing of 
voluminous files for which confidential treatment 
has been requested has been expeditious and orderly 
under the applicable provisions of the existing reg- 
ulation. Accordingly, the agency declines to make 
the suggested changes. 

Public Citizen and the Freedom of Information 
Clearinghouse also objected to the proposed change 
in §512.4(j) (currently §512.4(i)). In this section, the 
agency proposed to replace the provision requiring 
the denial of confidential claims when information is 
submitted without the certification required by 
§5 12.4(e) with a provision making it discretionary to 
deny or accept such claims, (general Motors com- 
mented in support of the change, noting that the 
automatic denial of confidential treatment is "an 
unnecessarily harsh penalty for what may be an 
inadvertent omission." 

The provisions of §512. 4(e) mandate that the sub- 
mitter's certification be included with every request 
to the agency for the confidential protection of infor- 
mation. The agency continues to believe that the 
certification is the best method by which a submitter 
can demonstrate compliance with the requirements 
of the Freedom of Information Act. Furthermore, 
NHTSA is prepared to deny claims which do not 
reasonably comply with §5 12. 4(e). However, it is not 
justifiable for the agency to be compelled to deny a 
claim for confidential treatment which includes no 
certification but which is clearly exempt from disclo- 
sure pursuant to the Freedom of Information Act, 5 
U.S.C. 552(bX4). In circumstances where the agency 
is absolutely satisfied that a submitter has made a 
serious claim for confidential protection of informa- 
tion, the information has not been released to the 
public, and the information is properly protectable 
under Exemption 4, the agency should not require 
itself to disclose the information. The proposed mod- 
ification realistically retains the certification re- 
quirement without creating the potentially im- 
proper technical conflict between the regulation's 
procedures and the demands of the Freedom of 
Information Act. For this reason, NHTSA believes 
that this comment lacks merit. Accordingly, the 
proposed change has been adopted. 

General Motors questioned whether documents 
submitted under a claim of confidentiality would be 



PART 512; PRE 21 



adequately protected until the Chief Counsel has 
made a determination and suggested that the regu- 
lation provide appropriate safeguards to prevent 
inadvertent disclosure of documents. NHTSA is sat- 
isfied that this concern is covered by the regulation 
in §512.6(h) which provides that no information will 
be released prior to the time that the Chief Counsel 
makes a decision under the regulation. Further- 
more, the purpose of this rule is to establish proce- 
dures to consider claims of confidentiality and not to 
specify internal agency procedures for document 
protection. Consequently, no change is being made 
in the Final Rule. 

Ford raised an issue relating to the whether 
§512.4(jXl) should reference paragraph (a) or sub- 
paragraphs (aXl), (aX2) and (aX3) of this section. The 
agency considered this suggestion, but believes that 
all of the subparagraphs of paragraph (a) are suffi- 
ciently inter-related to justify the reference to the 
entire paragraph. The agency believes that the sub- 
mitter should be responsible for providing a cor- 
rectly sanitized second copy of information in accor- 
dance with subparagraphs {aX4) and (aX5), or suffer 
the consequences of waiver arising out of an inad- 
vertent disclosure. NHTSA cannot agree to be re- 
sponsible for finding errors in such second copies, 
and believes that waiver of the claim is fair and is 
the proper result of such submitter error. 

Finally, Ford suggested that in §512.9(a) the word 
"and" be replaced with "or" in the series "§§512.4, 
512.6 and 512.7" because such sections would never 
be invoked simultaneously in claiming or determin- 
ing confidentiality. The agency agrees with this 
comment and has adopted it in this Final Rule. 

In consideration of the foregoing, 49 C.F.R. Part 
512 is revised to read as follows: 

PART 512— CONFIDENTIAL BUSINESS 
INFORMATION 

Sec. 

512.1 Purpose and scope. 

512.2 Applicability. 

512.3 Definitions. 

512.4 Asserting a claim for confidential treatment of 
information. 

512.5 Substantive standards for affording confiden- 
tial treatment. 

512.6 Determination of confidential treatment. 

512.7 Petitions for reconsideration upon denial of a 
request for confidential treatment. 

512.8 Modification of confidentiality determinations. 

512.9 Release of confidential business information. 

512.10 Class determinations. 

Appendix A to P&rt 512— Certificate In Support of 
Request for Confidentiality. 
Appendix B to Part 512— Class Determinations. 
Appendix C to Part 512— 0MB Clearance. 



Authority: 49 U.S.C. 322; 5 U.S.C. 552; 15 U.S.C. 
1401; 15 U.S.C. 1402; 15 U.S.C. 1407; 15 U.S.C. 
1418; 15 U.S.C. 1914; 15 U.S.C. 1944; 15 U.S.C. 
1990d; 15 U.S.C. 2005; 15 U.S.C. 2029; delegation of 
authority at 49 C.F.R. 1.50. 

§512.1 Purpose and scope. 

The purpose of this part is to establish the proce- 
dure by which NHTSA will consider claims that 
information submitted to the agency, or which the 
agency otherwise obtains, is confidential business 
information, as described in 5 U.S.C. 552(bX4). 

§512.2 Applicability. 

(a) This part applies to all information which is 
submitted to NHTSA, or which NHTSA otherwise 
obtains, except as provided in paragraph (b) of this 
section. 

(b) Information received as part of the procure- 
ment process is subject to the Federal Acquisition 
Regulation, 48 CFR, Chapter 1, as well as this part. 
In any case of conflict between the Federal Acquisi- 
tion Regulation and this part, the provisions of the 
Federal Acquisition Regulation prevail. 

§512.3 Definitions. 

"Administrator" means the Administrator of the 
National Highway Traffic Safety Administration. 

"Chief Counsel" means the Chief Counsel of the 
National Highway Traffic Safety Administration. 

"Confidential business information" means infor- 
mation described in 5 U.S.C. 552(bX4). 

"NHTSA" means the National Highway Traffic 
Safety Administration. 

"Substantial competitive harm" encompasses 
"significant competitive damage" under Title V of 
the Motor Vehicle Information and Cost Savings Act, 
15 U.S.C. 2001 et seq. 

§512.4 Asserting a claim for confidential treatment 
of information. 

(a) Any person submitting information to NHTSA 
and requesting that the information be withheld 
from public disclosure as confidential business infor- 
mation shall: 

(1) Stamp or mark "confidential," or some other 
term which clearly indicates the presence of informa- 
tion claimed to be confidential, on the top of each page 
containing information claimed to be confidential. 

(2) On each page marked in accordance with 
paragraph (aXD of this section, mark each item of 
information which is claimed to be confidential with 
brackets "[ ]". 

(3) If an entire page is claimed to be confidential, 
indicate clearly that the entire page is claimed to be 
confidential. 

(4) Submit two copies of the documents containing 



PART 512; PRE 22 



allegedly confidential information (except only one 
copy of blueprints) and one copy of the documents 
from which information claimed to be confidential 
has been deleted to the Office of Chief Counsel, 
National Highway Traffic Safety Administration, 
Room 5219, 400 Seventh Street, S.W., Washington, 
D.C. 20590. Include the name, address, and tele- 
phone number of a representative for receipt of a 
response from the Chief Counsel under this part. 

(5) If a document containing information claimed 
to be confidential is submitted in connection with an 
investigation or proceeding, a rulemaking action, or 
pursuant to a reporting requirement, for which there 
is a public file or docket, simultaneously submit to 
the appropriate NHTSA official a copy of the docu- 
ment from which information claimed to be confi- 
dential has been deleted. This copy will be placed in 
the public file or docket pending the resolution of the 
claim for confidential treatment. 

GjXD When submitting each item of information 
marked confidential in accordance with paragraph 
(a) of this section, the submitter shall also submit to 
the Office of the Chief Counsel information support- 
ing the claim for confidential treatment in accor- 
dance with paragraph (bX3) and paragraph (e) of this 
section. 

(2) If submission of the supporting information is 
not possible at the time the allegedly confidential 
information is submitted, a request for an extension 
of time in which to submit the information, accom- 
panied by an explanation describing the reason for 
the extension and the length of time needed, must be 
submitted. The Chief Counsel shall determine the 
length of the extension. The recipient of an exten- 
sion shall submit the supporting information in 
accordance with the extension determination made 
by the Chief Counsel and subparagraph (3) of this 
section. 

(3) The supporting information must show: 

(i) That the information claimed to be confidential 
is a trade secret, or commercial or financial informa- 
tion that is privileged or confidential. 

(ii) Measures taken by the submitter of the infor- 
mation to ensure that the information has not been 
disclosed or otherwise made available to any person, 
company, or organization other than the submitter 
of the information. 

(iii) Insofar as is known by the submitter of the 
information, the extent to which the information has 
been disclosed, or otherwise become available, to per- 
sons other than the submitter of the information, and 
why such disclosvu-e or availability does not compro- 
mise the confidential nature of the information. 

(iv) Insofar as is known by the submitter of the 
information, the extent to which the information has 
appeared publicly, regardless of whether the submit- 
ter has authorized that appearance or confirmed the 



accuracy of the information. The submitter must 
include citations to such public appearances, and an 
explanation of why such appearances do not compro- 
mise the confidential nature of the information. 

(v) Prior determinations of NHTSA or other Fed- 
eral agencies or Federal courts relating to the confi- 
dentiality of the submitted information, or similar 
information possessed by the submitter including 
class determinations under this part. The submitter 
must include any written notice or decision con- 
nected with any such prior determination, or a 
citation to any such notice or decision, if published 
in the Federal Register. 

(vi) Whether the submitter of the information 
asserts that disclosure would be likely to result in 
substantial competitive harm, what the harmful 
effects of disclosure would be, why the effects should 
be viewed as substantial, and the causal relationship 
between the effects and disclosure. 

(vii) If information is voluntarily submitted, why 
disclosure by NHTSA would be likely to impair 
NHTSA's ability to obtain similar information in the 
future. 

(viii) Whether the submitter of the information 
asserts that disclosure would be likely to impair 
other protectable government interests, what the 
effect of disclosure is likely to be and why disclosure 
is likely to impair such interests. 

(ix) The period of time for which confidentiality is 
claimed (permanently or until a certain date or until 
the occurrence of a certain event) and why earlier 
disclosuie would result in the harms set out in 
paragraph (bX2Xvi), (vii) or (viii) of this section. 

(c) If any element of the showing to support a claim 
for confidentiality required under paragraph (bX3) of 
this section is presumptively established by a class 
determination, as issued pursuant to §512.10, affect- 
ing the information for which confidentiality is 
claimed, the submitter of information need not es- 
tablish that element again. 

(d) Information in support of a claim for confiden- 
tiality submitted to NHTSA under paragraph (b) of 
this section must consist of objective data to the 
maximum extent possible. To the extent that opin- 
ions are given in support of a claim for confidential 
treatment of information, the submitter of the infor- 
mation shall submit in writing to NHTSA the basis 
for the opinions, and the name, title and credentials 
showing the expertise of the person supplying the 
opinion. 

(e) The submitter of information for which confi- 
dential treatment is requested shall submit to 
NHTSA with the request a certification in the form 
set out in Appendix A from the submitter or an 
agent of the submitter that a diligent inquiry has 
been made to determine that the information has 
not been disclosed, or otherwise appeared publicly. 



PART 512; PRE 23 



except as indicated in accordance with paragraphs 
(bX3Xiii) and (iv) of this section. 

(f) A single submission of supporting information, in 
accordance with paragraph (b) of this section, may be 
used to support a claim for confidential treatment of 
more than one item of information claimed to be 
confidential. However, general or nonspecific asser- 
tions or analysis may be insufficient to form an ade- 
quate basis for the agency to find that information 
may be afforded confidential treatment, and may re- 
sult in the denial of a claim for confidentiality. 

(g) Where confidentiality is claimed for informa- 
tion obtained by the submitter from a third party, 
such as a supplier, the submitter of the information 
is responsible for obtaining all 'nformation and a 
certification from the third party necessary to com- 
ply with paragraphs (b), (d) and (e) of this section. 

(h) Information received by NHTSA that is identi- 
fied as confidential and whose claim for confidenti- 
ality is submitted in accordance with this section 
will be kept confidential until a determination of its 
confidentiality is made under section 512.6 of this 
part. Such information will not be publicly disclosed 
except in accordance with this part. 

(i) A submitter of information shall promptly 
amend supporting information provided under para- 
graphs (b) or (e) of this section if the submitter 
obtains information upon the basis of which the 
submitter knows that the supporting information 
was incorrect when provided, or that the supporting 
information, though correct when provided, is no 
longer correct and the circumstances are such that a 
failure to amend the supporting information is in 
substance a knowing concealment. 

(j) Noncompliance with this section may result in a 
denial of a claim for confidential treatment of infor- 
mation. Noncompliance with paragraph (i) of this 
section may subject a submitter of information to 
civil penalties. 

(1) If the submitter fails to comply with paragraph 
(a) of this section at the time the information is 
submitted to NHTSA so that the agency is not aware of 
a claim for confidentiality, or the scope of a claim for 
confidentiality, the claim for confidentiality may be 
waived unless the agency is notified of the claim before 
the information is disclosed to the public. Placing the 
information in a public docket or file is disclosure to 
the public within the meaning of this part, and any 
claim for confidential treatment of information dis- 
closed to the public may be precluded. 

(2) If the submitter of the information does not 
provide all of the supporting information required in 
paragraphs (bX3) and (e) of this section, or if the 
information is insufficient to establish that the 
information may be afforded confidential treatment 
under the substantive tests set out in §512.5, a 
request that such information be afforded confiden- 



tial protection may be denied. The Chief Counsel 
may notify a submitter of information of inadequa- 
cies in the supporting information, and may allow 
the submitter additional time to supplement the 
showing, but is under no obligation to provide either 
notice or additional time to supplement the showing. 

§512.5 Substantive standards for affording confi- 
dential treatment. 

Information submitted to or otherwise obtained by 
NHTSA may be afforded confidential treatment if it 
is a trade secret, or commercial or financial informa- 
tion that is privileged or confidential. Information is 
considered to be confidential when: 

(a) Disclosure of the information would be likely to 
result in substantial competitive harm to the sub- 
mitter of the information; or 

(b) Failure to afford the information confidential 
treatment would impair the ability of NHTSA to 
obtain similar information in the future; or 

(c) Disclosure of the information would be likely to 
impair other protectable government interests. 

§512.6 Determination of confidential treatment. 

(a) The decision as to whether an item of informa- 
tion shall be afforded confidential treatment under 
this part is made by the Office of Chief Counsel. 

(b) Copies of documents submitted to NHTSA 
under §512.4(aX5), from which information claimed 
to be confidential or privileged has been deleted, are 
placed in the public file or docket pending the 
resolution of the claim for confidential treatment. 

(c) When information claimed to be confidential or 
privileged is requested under the Freedom of Infor- 
mation Act, the determination of confidentiality is 
made within ten working days after NHTSA receives 
such a request, or within twenty working days in 
unusual circumstances as provided under 5 U.S.C. 
552(aX6). 

(d) For information not requested pursuant to the 
Freedom of Information Act, the determination of 
confidentiality is made within a reasonable period of 
time at the discretion of the Chief Counsel. 

(e) The time periods prescribed in paragraph (c) of 
this section may be extended by the Chief Counsel 
for good cause shown on the Chief Counsel's own 
motion, or on request from any person. An extension 
is made only in accordance with 5 U.S.C. 552, and is 
accompanied by a written statement setting out the 
reasons for the extension. 

(f) If the Chief Counsel believes that information 
which a submitter of information asserts to be 
within a class of information set out in Appendix B 
is not within that class, the Chief Counsel: 

(1) Notifies the submitter of the information that 
the information does not fall within the class as 
claimed, and briefly explains why the information 
does not fall within the class; and 



PART 512; PRE 24 



(2) Renders a determination of confidentiality in 
accordance with paragraph (g) of this section. 

(g) A person submitting information to NHTSA 
with a request that the information be withheld 
from public disclosure as confidential or privileged 
business information is given notice of the Chief 
Counsel's determination regarding the request as 
soon as the determination is made. 

(1) If a request for confidentiality is granted, the 
submitter of the information is notified in writing of 
that determination and of any appropriate limitations. 

(2) If a request for confidentiality is denied in 
whole or in part, the submitter of the information is 
notified in writing of that decision, and is informed 
that the information will be made available to the 
public not less than ten working days after the 
submitter of the information has received notice of 
the denial of the request for confidential treatment, 
if practicable, or some earlier date if the Chief 
Counsel determines in writing that the public inter- 
est requires that the information be made available 
to the public on such earlier date. The wTitten 
notification of a denial specifies the reasons for 
denying the request. 

(h) There will be no release of information proc- 
essed pursuant to this section until the Chief Coun- 
sel advises the appropriate ofTiceCs) of NHTSA that 
the confidentiality decision is final according to this 
section, §512.7 or §512.9. 

§512.7 Petitions for reconsideration upon denial of 
a request for confidential treatment. 

(a) A submitter of information whose request for 
confidential treatment is denied may petition for 
reconsideration of that denial. Petitions for reconsid- 
eration must be addressed to and received by the 
Office of Chief Counsel prior to the date on which 
the information would otherwise be made available 
to the public. The determination by the Chief Coun- 
sel upon such petition for reconsideration shall be 
administratively final. 

(b) If submission of a petition for reconsideration is 
not feasible by the date on which the information 
would otherwise be made available to the public, a 
request for an extension of time in which to submit 
a petition, accompanied by an explanation describ- 
ing the reason for the request and the length of time 
needed, must be received by the Office of Chief 
Counsel by that date. The Chief Counsel determines 
whether to grant or deny the extension and the 
length of the extension. 

(c) Upon receipt of a petition or request for an 
extension, the Chief Counsel shall postpone making 
the information available to the public in order to 
consider the petition, unless the Chief Counsel de- 



termines in writing that disclosure would be in the 
public interest. 

(d) If a petition for reconsideration is granted, the 
petitioner is notified in writing of that determina- 
tion and of any appropriate limitations. 

(e) If a petition for reconsideration is denied in 
whole or in part or a request for an extension for 
additional time to submit a petition for reconsider- 
ation is denied, the petitioner is notified in writing 
of that denial, and is informed that the information 
will be made available to the public not less than ten 
working days after the petitioner has received notice 
of the denial of the petition, if practicable, or some 
earlier date if the Chief Counsel determines in 
writing that the public interest requires that the 
information be made available to the public on such 
earlier date. The written notification of a denial 
specifies the reasons for denying the petition. 

§512.8 Modification of confidentiality determinations. 

(a) A determination that information is confiden- 
tial or privileged business information remains in 
effect in accordance with its terms, unless modified 
by a later determination based upon: 

(1) Newly discovered or changed facts, 

(2) A change in the applicable law, 

(3) A class determination under §512.10, or 

(4) A finding that the prior determination is 
clearly erroneous. 

(b) If NHTSA believes that an earlier determina- 
tion of confidentiality should be modified based on 
one or more of the factors listed in paragraphs (aXD 
through (aX4) of this section, the submitter of the 
information is notified in writing that NHTSA has 
modified its earlier determination and of the reasons 
for that modification, and is informed that the 
information will be made available to the public in 
not less than ten working days from the date of 
receipt of notice under this paragraph. The submit- 
ter may seek reconsideration of the modification 
pursuant to §512.7. 

§512.9 Release of confidential business information. 

(a) Information that has been claimed or deter- 
mined to be confidential business information under 
§§512.4, 512.6 or 512.7 may be disclosed to the 
public by the Administrator notwithstanding such 
determination or claim if disclosure would be in the 
public interest as follows: 

(1) Information obtained under Part A, Subchapter 
I of the National Traffic and Motor Vehicle Safety 
Act, relating to the establishment, amendment, or 
modification of Federal motor vehicle safety stan- 
dards, may be disclosed when relevant to a proceed- 
ing under that part. 

(2) Information obtained under Part B, Subchapter 
I of the National Traffic and Motor Vehicle Safety 



PART 512; PRE 25 



Act, relating to motor vehicle safety defects, and 
failures to comply with applicable motor vehicle 
safety standards, may be disclosed if the Adminis- 
trator determines that disclosure is necessary to 
carry out the pvirposes of the Act. 

(3) Information obtained under Title I, V or VI of 
the Motor Vehicle Information and Cost Savings Act 
may be disclosed when that information is relevant 
to a proceeding under the title under which the 
information was obtained. 

(b) No information is disclosed under this section 
unless the submitter of the information is given 
written notice of the Administrator's intention to 
disclose information under this section. Written no- 
tice is normally given at least ten working days 
before the day of release, although the Administra- 
tor may provide shorter notice if the Administrator 
finds that such shorter notice is in the public inter- 
est. The notice under this paragraph includes a 
statement of the Administrator's reasons for deter- 
mining to disclose the information, and affords the 
submitter of the information an opportunity to com- 
ment on the contemplated release of information. 
The Administrator may also give notice of the con- 
templated release of information to other persons, 
and may allow these persons the opportunity to 
comment. When a decision is made to release infor- 
mation pursuant to this section, the Administrator 
will consider ways to make the release with the least 
possible adverse effects to the submitter. 

(c) Notwithstanding any other provision of this 
part, information which has been determined or 
claimed to be confidential business information, 
may be released: 

(1) To Congress; 

(2) Pursuant to an order of a court v/ith valid 
jurisdiction; 

(3) Ta the Office of the Secretary, United States 
Department of Transportation and other Executive 
branch offices or other Federal agencies in accord- 
ance with applicable laws; 

(4) With the consent of the submitter of the 
information; 

(5) To contractors, if necessary for the performance 
of a contract with the Administration. In such in- 
stances, the contract limits further release of the 
information to named employees of the contractor 
with a need to know and provides that unauthorized 
release constitutes a breach of the contract for which 
the contractor may be liable to third parties. 

§512.10 Class determinations. 

(a) The Chief Counsel may issue a class determi- 
nation relating to confidentiality under this section 
if the Chief Counsel determines that one or more 
characteristics common to each item of information 
in that class will in most cases necessarily result in 



identical treatment of each item of information 
under this part, and that it is appropriate to treat all 
such items as a class for one or more purposes under 
this part. The Chief Counsel obtains the concurrence 
of the Office of the General Counsel, United States 
Department of Transportation, for any class deter- 
mination that has the effect of raising the presump- 
tion that all information in that class is eligible for 
confidential treatment. Class determinations are 
published in the Federal Register. 

(b) A class determination clearly identifies the 
class of information to which it pertains. 

(c) A class determination may state that all of the 
information in the class: 

(1) Is or is not governed by a particular section of 
this part, or by a particular set of substantive 
criteria under this part. 

(2) Fails to satisfy one or more of the applicable 
substantive criteria, and is therefore ineligible for 
confidential treatment, 

(3) Satisfies one or more of the applicable substan- 
tive criteria, and is therefore eligible for confidential 
treatment, or 

(4) Satisfies one of the substantive criteria during 
a certain period of time, but will be ineligible for 
confidential treatment thereafter. 

(d) Class determinations will have the effect of 
establishing rebuttable presumptions, and do not 
conclusively determine any of the factors set out in 
paragraph (c) of this section. 

Appendix A to Part 512— Certificate in Support 
of Request for Confidentiality 

Certificate in Support of Request for Confidentiality 
I, , pursuant to the provi- 
sions of 49 C.F.R. 512, state as follows: 

(1)1 am (official) and I am authorized by (company) 
to execute documents on behalf of (company): 

(2) The information contained in (pertinent docu- 
ment[s]) is confidential and proprietary data and is 
being submitted with the claim that it is entitled to 
confidential treatment under 5 U.S.C. §552(bX4) 
(as incorporated by reference in and modified by 
the statute under which the information is being 
submitted.) 

(3) I have personally inquired of the responsible 
(company) personnel who have authority in the nor- 
mal course of business to release the information for 
which a claim of confidentiality has been made to 
ascertain whether such information has ever been 
released outside (company). 

(4) Based upon such inquiries, to the best of my 
knowledge, information and belief the information 
for which (company) has claimed confidential treat- 
ment has never been released or become available 
outside (company) except as hereinafter specified: 

(5) I make no representations beyond those con- 



PART 512; PRE 26 



tained in this certificate and in particular I make no 
representations as to whether this information may 
become available outside (company) because of un- 
authorized or inadvertent disclosure except as stated 
in Paragraph 4; and 

(6) I certify under penalty of perjury that the 
foregoing is true and correct. Executed on this the 

. (K executed outside of the 

United States of America: I certify under penalty of 
perjury under the laws of the United States of 
America that the foregoing is true and correct.) 

(signature of official) 



only until the date on which the specific model to 
which the plan pertains is first offered for sale); 

(3) Future vehicle production or sales figures for 
specific models (to be protected only until the termi- 
nation of the production period for the model year 
vehicle to which the information pertains). 

Appendix C to Part 512— 0MB Clearance 

The 0MB Clearance number for this regulation is 
2127-0025. 

Issued on November 21, 1989. 



Appendix B to Part 512— Class Determinations. 

The Administration has determined that the fol- 
lowing types of information would presumptively be 
likely to result in substantial competitive harm if 
disclosed to the public: 

(1) Blueprints and engineering drawings contain- 
ing process of production data where the subject 
could not be manufactured without the blueprints or 
engineering drawings except after significant re- 
verse engineering; 

(2) Future specific model plans (to be protected 



Jeffrey R. Miller 
Acting Administrator 
National Highway Traffic 
Safety Administration 

54 F.R. 48892 
November 28, 1989 



PART 512; PRE 27-28 



PART 512-CONFIDENTIAL BUSINESS INFORMATION 

(Docket No. 78-10; Notice 3) 



§ 512.1 Purpose and Scope. 

The purpose of this part is to estabhsh the pro- 
cedure by which NHTSA will consider claims that 
information submitted to the agency, or which the 
agency otherwise obtains, is confidential business in- 
formation, as described in 5 U.S.C. 552(b)(4). 

§ 512.2 Applicability. 

(a) This part applies to all information which is 
submitted to NHTSA, or which NHTSA otherwise 
obtains, except as provided in paragraph (b) of this 
section. 

(b) Information received as part of the procure- 
ment process, is subject to the Federal Acquisition 
Regulations, 48 CFR, Chapter 1, as well as this part. 
In any case of conflict between the Federal Acquisi- 
tion Regulations and this part, the provisions of the 
Federal Acquistion Regulations prevail. 

§512.3 Definitions. 

"Administrator" means the Administrator of the 
National Highway Traffic Safety Administration. 

"Chief Counsel" means the Chief Counsel of the 
National Highway Traffic Safety Administration. 

"Confidential business information" means infor- 
mation described in 5 U.S.C. 552(b)(4). 

"NHTSA" means the National Highway Traffic 
Safety Administration. 

I" Substantial competitive harm" encompasses 
"significant competitive damage" under Title V of 
the Motor Vehicle Information and Cost Savings Act 
15 U.S.C 2001 et seq. (54 F.R. 48892— November 28, 
1989. Effective: November 28, 1989)1 

§ 512.4 Asserting a claim for confidential treatment 
of information. 

(a) Any person submitting information to NHTSA 
and requesting that the information be withheld 
from public disclosure as confidential business infor- 
mation shall— 

(1) Stamp or mark "confidential" or some other 
term which clearly indicates the presence of informa- 



tion claimed to be confidential, on the top of each page 
containing information claimed to be confidential. 

(2) On each page marked in accordance with 
paragraph (a)(1) on this section, mark each item of 
information which is claimed to be confidential with 
brackets "[ ]". 

(3) If an entire page is claimed to be confidential, 
indicate clearly that the entire page is claimed to be 
confidential. 

(4) [Submit two copies of the documents contain- 
ing allegedly confidential information (except only one 
copy of blueprints) and one copy of the documents 
from which information claimed to be confidential has 
been deleted to the Office of Chief Counsel, National 
Highway Traffic Safety Administration, Room 5219. 
400 Seventh Street, S.W., Washington, D.C. 20590. 
Include the name, address, and telephone number of 
a representative for receipt of a response from the 
Chief Counsel under this part. (54 F.R. 48892— 
November 28, 1989. Effective: November 28, 1989)| 

[(5) If a document containing information claim- 
ed to be confidential is submitted in connection with 
an investigation cr proceeding, a rulemaking action, 
or pursuant to a reporting requirement, for which 
there is a public file or docket, simultaneously sub- 
mit to the appropriate NHTSA official a copy of the 
document from which information claimed to be con- 
fidential has been deleted. This copy will be placed 
in the public file or docket pending the resolution of 
the claim for confidential treatment. 

(b)(1) When submitting each item of information 
marked confidential in accordance with paragraph (a) 
of this section, the submitter shall also submit to the 
Office of the Chief Counsel information supporting 
the claim for confidential treatment in accordance 
with paragraph (bX3) and paragraph (e) of this section. 
(2) If submission of the supporting information 
is not possible at the time the allegedly confidential 
information is submitted, a request for an extension 
of time in which to submit the information, accom- 
panied by an explanation describing the reason for 



(Rev. 11/28/89) 



PART 512-1 



the extension and the length of time needed, must 
be submitted. The Chief Counsel shall determine the 
length of the extension. The recipient of an exten- 
sion shall submit the supporting information in ac- 
cordance with the extension determination made by 
the Chief Counsel and subparagraph (3) of this 
section. 

(3) The supporting information must show: 

(i) That the information claimed to be con- 
fidential is a trade secret, or commercial or finan- 
cial information that is privileged or confidential. 

(ii) Measures taken by the submitter of the in- 
formation to ensure that the information has not 
been disclosed or otherwise made available to any 
person, company, or organization other than the sub- 
mitter of the information. 

(iii) Insofar as is known by the submitter of 
the information, the extent to which the informa- 
tion has been disclosed, or otherwise become 
available, to persons other than the submitter of the 
information, and why such disclosure or availabil- 
ity does not compromise the confidential nature of 
the information. 

(iv) Insofar as is known by the submitter of 
the information, the extent to which the informa- 
tion has appeared publicly, regardless of whether the 
submitter has authorized that appearance or con- 
firmed the accuracy of the information. The submit- 
ter must include citations to such public ap- 
pearances, and an explanation of why such ap- 
pearances do not compromise the confidential nature 
of the information. 

(v) Prior determinations of NHTSA or other 
Federal agencies or Federal courts relating to the 
confidentiality of the submitted information, or 
similar information possessed by the submitter in- 
cluding class determinations under this part. The 
submitter must include any written notice or deci- 
sion connected with any such prior determination, 
or a citation to any such notice or decision, if pub- 
lished in the Federal Register. 

(vi) Whether the submitter of the information 
asserts that disclosure would be likely to result in 
substantial competitive harm, what the harmful 
effects of disclosure would be, why the effects should 
be viewed as substantial, and the causal relationship 
between the effects and disclosure. 

(vii) If information is voluntarily submitted. 
why disclosure by NHTSA would be likely to impair 
NHTSA's ability to obtain similar information in the 
future. 



(viii) Whether the submitter of the informa- 
tion asserts that disclosure would be likely to impair 
other protectable government interests, what the 
effect of disclosure is likely to be and why disclosure 
is likely to impair such interests. 

(ix) The period of time for which confidential- 
ity is claimed (permanently or until a certain date 
or until the occurrence of a certain event) and why 
earlier disclosure would result in the harms set out 
in paragraph (b)(2)(vi), (vii) or (viii) of this section. 

(c) If any element of the showing to support a 
claim for confidentiality required under paragraph 
(b)(3) of this section is presumptively established by 
a class determination, as issued pursuant to 
§ 512.10, affecting the information for which con- 
fidentiality is claimed, the submitter of information 
need not establish that element again. 

(d) Information in support of a claim for confiden- 
tiality submitted to NHTSA under paragraph (b) of 
this section must consist of objective data to the 
maximum extent possible. To the extent that opi- 
nions are given in support of a claim for confiden- 
tial treatment of information, the submitter of the 
information shall submit in writing to NHTSA the 
basis for the opinions, and the name, title and 
credentials showing the expertise of the person sup- 
plying the opinion. 

(e) The submitter of information for which con- 
fidential treatment is requested shall submit to 
NHTSA with the request a certification in the form 
set out in Appendix A from the submitter or an 
agent of the submitter that a diligent inquiry has 
been made to determine that the information has not 
been disclosed, or otherwise appeared publicly, 
except as indicated in accordance with paragraphs 
(b)(3)(iii) and (iv) of this section. 

(f) A single submission of supporting information, 
in accordance with paragraph (b) of this section, may 
be used to support a claim for confidential treatment 
of more than one item of information claimed to be 
confidential. However, general or nonspecific asser- 
tions or analysis may be insufficient to form an ade- 
quate basis for the agency to find that information 
may be afforded confidential treatment, and may 
result in the denial of a claim for confidentiality. 

(g) Where confidentiality is claimed for informa- 
tion obtained by the submitter from a third party, 
such as a supplier, the submitter of the information 
is responsible for obtaining all information and a cer- 
tification from the third party necessary to comply 
with paragraphs (b), (d) and (e) of this section. 



PART 512-2 



(h) Information received by NHTSA that is iden- 
tified as confidential and whose claim for confiden- 
tiality is submitted in accordance with this section 
will be kept confidential until a determination of its 
confidentiality is made under section 512.6 of this 
part. Such information will not be publicly disclosed 
except in accordance with this part. 

(i) A submitter of information shall promptly 
amend supporting information provided under 
paragraphs (b) or (e) of this section if the submitter 
obtains information upon the basis of which the sub- 
mitter knows that the supporting information was 
incorrect when provided, or that the supporting in- 
formation, though correct when provided, is no 
longer correct and the circumstances are such that 
a failure to amend the supporting information is in 
substance a knowing concealment. 

(j) Noncompliance with this section may result in 
a denial of a claim for confidential treatment of in- 
formation. Noncompliance with paragraph (i) of this 
section may subject a submitter of information to 
civil penalties. 

(1) If the submitter fails to comply with 
paragraph (a) of this section at the time the infor- 
mation is submitted to NHTSA so that the agency 
is not aware of a claim for confidentiality, or the 
scope of a claim for confidentiality, the claim for con- 
fidentiality may be waived unless the agency is 
notified of the claim before the information is dis- 
closed to the public. Placing the information in a 
public docket or file is disclosure to the public within 
the meaning of this part, and any claim for confiden- 
tial treatment of information disclosed to the public 
may be precluded. 

(2) If the submitter of the information does not 
provide all of the supporting information required 
in paragraphs (bX3) and (e) of this section, or if the 
information is insufficient to establish that the in- 
formation may be afforded confidential treatment 
under the substantive tests set out in § 512.5, a 
request that such information be afforded confiden- 
tial protection may be denied. The Chief Counsel 
may notify a submitter of information of inade- 
quacies in the supporting information, and may allow 
the submitter additional time to supplement the 
showing, but is under no obligation to provide either 
notice or additional time to supplement the showing. 
54 F.R. 48892— November 28, 1989. Effective: 
November 28, 1989)1 

§ 512.5 Substantive standards for affording 
confidential treatment. 

[Information submitted to or otherwise obtained 
by NHTSA may be afforded confidential treatment 



if it is a trade secret, or commercial or financial 
information that is privileged or confidential. 
Information is considered to be confidential when: 

(a) Disclosure of the information would be likely 
to result in substantial competitive harm to the sub- 
mitter of the information; or 

(b) Failure to afford the information confidential 
treatment would impair the ability of NHTSA to 
obtain similar information in the future; or 

(c) Disclosure of the information would be likely 
to impair other protectable government interests. 
(54 F.R. 48892— November 28, 1989. Effective: 
November 28, 1989)1 

§ 512.6 Determination of confidential treatment. 

1(a) The decision as to whether an item of infor- 
mation shall be afforded confidential treatment 
under this part is made by the Office of Chief 
Counsel. 

(b) Copies of documents submitted to NHTSA 
under § 512.4(aX5) from which information claimed 
to be confidential or privileged has been deleted, are 
placed in the public file or docket pending the resolu- 
tion of the claim for confidential treatment. 

(c) When information claimed to be confidential 
or privileged is requested under the Freedom of In- 
formation Act, the determination of confidentiality 
is made within ten working days after NHTSA 
receives such a request, or within twenty working 
days in unusual circumstances as provided under 5 
U.S.C. 552(aX6). 

(d) For information not requested pursuant to the 
Freedom of Information Act, the determination of 
confidentiality is made within a reasonable period 
of time at the discretion of the Chief Counsel. 

(e) The time periods prescribed in paragraph (c) 
of this section may be extended by the Chief Counsel 
for good cause shown on the Chief Counsel's own 
motion, or on request from any person. An exten- 
sion is made only in accordance with 5 U.S.C. 552, 
and is accompanied by a written statement setting 
out the reasons for the extension. 

(f) If the Chief Counsel believes that information 
which a submitter of information asserts to be within 
a class of information set out in Appendix B is not 
within that class, the Chief Counsel: 

(1) Notifies the submitter of the information 
that the information does not fall within the class 
as claimed, and briefly explains why the information 
does not fall within the class; and 

(2) Renders a determination of confidentiality 
in accordance with paragraph (g) of this section. 



PART 512-3 



(g) A person submitting information to NHTSA 
with a request that the information be withheld from 
public disclosure as confidential or privileged 
business information is given notice of the Chief 
Counsel's determination regarding the request as 
soon as the determination is made. 

(1) If a request for confidentiality is granted, the 
submitter of the information is notified in writing 
of that determination and of any appropriate 
limitations. 

(2) If a request for confidentiality is denied in 
whole or in part, the submitter of the information 
is notified in writing of that decision, and is informed 
that the information will be made available to the 
public not less than ten working days after the sub- 
mitter of the information has received notice of the 
denial of the request for confidential treatment, if 
practicable, or some earlier date if the Chief Counsel 
determines in writing that the public interest re- 
quires that the information be made available to the 
public on such earlier date. The written notification 
of a denial specifies the reasons for denying the 
request. 

(h) There will be no release of information pro- 
cessed pursuant to this section until the Chief 
Counsel advises the appropriate office(s) of NHTSA 
that the confidentiality decision is final according to 
this section, § 512.7 or § 512.9. (54 F.R. 
48892— November 28, 1989. Effective: November 28, 
1989)1 

§ 512.7 [Petitions for reconsideration upon denial 
of a request for confidential treatment. 

(a) A submitter of information whose request for 
confidential treatment is denied may petition for 
reconsideration of that denial. Petitions for recon- 
sideration must be addressed to and received by the 
Office of Chief Counsel prior to the date on which 
the information would otherwise be made available 
to the public. The determination by the Chief 
Counsel upon such petition for reconsideration shall 
be administratively final. 

(b) If submission of a petition for reconsideration 
is not feasible by the date on which the information 
would otherwise be made available to the public, a 
request for an extension of time in which to submit 
a petition, accompanied by an explanation describ- 
ing the reason for the request and the length of time 
needed, must be received by the Office of Chief 
Counsel by that date. The Chief Counsel determines 
whether to grant or deny the extension and the 
length of the extension. 



(c) Upon receipt of a petition or request for an ex- 
tension, the Chief Counsel shall postpone making the 
information available to the public in order to con- 
sider the petition, unless the Chief Counsel deter- 
mines in writing that disclosure would be in the 
public interest. 

(d) If a petition for reconsideration is granted, the 
petitioner is notified in writing of that determina- 
tion and of any appropriate limitations. 

(e) If a petition for reconsideration is denied in 
whole or in part or a request for an extension for 
additional time to submit a petition for reconsidera- 
tion is denied, the petitioner is notified in writing 
of that denial, and is informed that the information 
will be made available to the public not less than ten 
working days after the petitioner has received notice 
of the denial of the petition, if practicable, or some 
earlier date if the Chief Counsel determines in 
writing that the public interest requires that the in- 
formation be made available to the public on such 
earlier date. The written notification of a denial 
specifies the reasons for denying the petition. (54 
F.R. 48892— November 28, 1989. Effective: November 
28, 1989)1 

§ 512.8 [Modification of confidentiality 
determinations. 

(a) A determination that information is confiden- 
tial or privileged business information remains in ef- 
fect in accordance with its terms, unless modified 
by a later determination based upon: 

(1) Newly discovered or changed facts, 

(2) A change in the applicable law, 

(3) A class determination under § 512.10, or 

(4) A finding that the prior determination is 
clearly erroneous. 

(b) If NHTSA believes that an earlier determina- 
tion of confidentiality should be modified based on 
one or more of the factors listed in paragraphs (aXl) 
through (aX4) of this section, the submitter of the 
information is notified in writing that NHTSA has 
modified its earlier determination and of the reasons 
for that modification, and is informed that the in- 
formation will be made available to the public in not 
less than ten working days from the date of receipt 
of notice under this paragraph. The submitter may 
seek reconsideration of the modification pursuant 
to § 512.7. 54 F.R. 48892— November 28, 1989. Effec- 
tive: November 28, 1989.)1 



(Rev. 11/28/89) 



PART 512-4 



§512.9 [Release of confidential business 
information. 

(a) Information that has been claimed or deter- 
mined to be confidential business information under 
§ 512 4. 512 6 or 512.7 may be disclosed to the public 
by the Administrator notwithstanding such deter- 
mination or claim if disclosure would be in the pubUc 
interest as follows: 

(1) Information obtained under Part A, Sub- 
chapter I of the National Traffic and Motor \'ehicle 
Safety Act, relating to the establishment, amend- 
ment, or modification of Federal motor vehicle 
safety standards, may be disclosed when relevant 
to a proceeding under that part. 

(2) Information obtained under Part B, Sub- 
chapter I of the National Traffic and Motor Vehicle 
Safetj' Act, relating to motor vehicle safetj' defects, 
and failures to comply with applicable motor vehi- 
cle safet}' standards, may be disclosed if the 
Administrator determines that disclosure is 
necessarj' to earn' out the purposes of the Act. 

(3) Information obtained under Title 1, V or M. 
of the Motor Vehicle Information and Cost Savings 
Act may be disclosed when that information is rele- 
vant to a proceeding under the title under which the 
information was obtained. 

(b) No information is disclosed under this section 
unless the submitter of the information is given writ- 
ten notice of the Administrator's intention to 
disclose information under this section. Written 
notice is normally given at least ten working days 
before the day of release, although the Admin- 
istrator may provide shorter notice if the Admin- 
istrator finds that such shorter notice is in the public 
interest. The notice under this paragraph includes 
a statement of the Administrator s reasons for deter- 
mining to disclose the information, and affords the 
submitter of the information an opportimitj^ to com 
ment on the contemplated release of information 
The Administrator may also give notice of the con 
templated release of information to other persons 
and may allow these persons the opportunit}- to com 
ment. When a decision is made to release informa- 
tion pursuant to this section, the Administrator wiU 
consider ways to make the release with the least 
possible adverse effects to the submitter. 

(c) Notwithstanding any other provision of this 
part, information which has been determined or 
claimed to be confidential business information, may 
be released: 

(1) To Congress; 

(2) Pursuant to an order of a court with valid 
jurisdiction; 



(3) To the Office of the Secretarv'. United States 
Department of Transportation and other Executive 
branch offices or other Federal agencies in accor- 
dance with applicable laws; 

(4) With the consent of the submitter of the 
information; 

(5) To contractors, if necessarv' for the perfor- 
mance of a contract with the Administration. In such 
instances, the contract limits further release of the 
information to named employees of the contractor 
with a need to know and provides that unauthorized 
release constitutes a breach of the contract for which 
the contractor may be liable to third parties. (54 F.R. 
November 28.1989. Effective: November 28, 1989)1 

§512.10 [Class detemiinations. 

(a) The Chief Counsel may issue a class determina- 
tion relating to confidentialitv' under this section if 
the Chief Counsel determines that one or more 
characteristics common to each item of information 
in that class will in most cases necessarily result in 
identical treatment of each item of information 
under this part, and that it is appropriate to treat 
all such items as a class for one or more purposes 
under this part. The Chief Counsel obtains the con- 
currence of the Office of the General Counsel, 
United States Department of Transportation, for 
any class determination that has the effect of rais- 
ing the presumption that all information in that class 
is eligible for confidential treatment. Class deter- 
minations are published in the Federal Register. 

(b) A class determination clearly identifies the 
class of information to which it pertains. 

(c) A class determination may state that all of the 
information in the class: 

(1) Is or is not governed by a particular section 
of this part, or by a particular set of substantive 
criteria under this part. 

(2) Fails to satisfv- one or more of the applicable 
substantive criteria, and is therefore ineUgible for 
confidential treatment, 

(3) Satisfies one or more of the applicable 
substantive criteria, and is therefore eligible for con- 
fidential treatment, or 

(4) Satisfies one of the substantive criteria dur- 
ing a certain period of time, but will be ineligible for 
confidential treatment thereafter. 

(d) Class determinations wiU have the effect of 
establishing rebuttable presumptions, and do not 
conclusively determine any of the factors set out in 
paragraph (c) of this section. (54 F.R. 
48892— November 28, 1989. Effective: November 28. 
1989)1 



PART 512-5-6 



APPENDIX A 

Certificate in Support of Request for 

Confidentiality 



United States of America: I certify under penalty 
of perjury under the laws of the United States of 
America that the foregoing is true and correct.) 



I, , pursuant to the 

provicions of 49 C.F.R. 512 state as follows: 

(1) I am (official) and I am authorized by (com- 
pany) to execute documents on behalf of (company). 

(2) The information contained in (pertinent 
doewment[sJ) is confidential and proprietary data and 
is being submitted with the claim that it is entitled 
to confidential treatment under 5 U.S.C. 552(b)(4) 
[as incorporated by reference in a modified by 
§ 505(dXl) of Title 5 of Motor Vehicle Information 
and Cost Savings Act.] 

(3) I have personally inquired of the responsi- 
ble (company) personnel who have authority in the 
normal course of business to release the information 
for which a claim of confidentiality has been made 
to ascertain whether such information has ever been 
released outside (company. 

(4) Based upon such inquires, to the best of my 
knowledge, informaton for which (company) has 
claimed confidential treatment has never beem 
release or become available outside (company) ex- 
cept as hereinafter specified. 

(5) I make no representation beyond those con- 
tained in this certificate and in particular I make no 
representations as to whether this information may 
become available outside (company) because of 
unatuhorized or inadvertent disclosure except as 
stated in Paragraph 4; and 

(6) [I certify under penalty of perjury that the 
foregoing is true and correct. Executed on this the 
. (If executed outside of the 



(Official) 

APPENDIX B 
Class Determination 

The Administration has determined that the 
following types of information would presumptively 
result in significant competitive damage or would 
presumptively be likely to result in substantial com- 
petitive harm if desclosed to the public— 

[(1) Blueprints and engineering drawings con- 
taining process of production data where the sub- 
ject could not be manufactured without the 
blueprints or engineering drawings except after 
significant reverse engineering; 

(2) Future specific model plans (to be protected 
only until the date on which the specific model to 
which the plan pertains is first offered for sale); 

(3) Future vehicle production or sales figures 
for specific models (to be protected only until the ter- 
mination of the production period for the model year 
vehicle to which the information pertains). (54 F.R. 
48892— November 28, 1989. Effective 28, 1989.)] 



APPENDIX C 
0MB Clearance 

The 0MB clearance number for this regulation is 
2127-(00251. 



PART 512-7-8 



PREAMBLE TO AN AMENDMENT TO PART 531 

Passenger Automobile Average Fuel Economy Standards 
Final Decision to Grant Exemption 
(Docket No. LVM 86-02: NoUce 2) 



ACTION: Final decision granting exe-p::on irz~ 
average fuel economy standards and es:ab'.:sh:ng an 
alternative standard. 

SUMMARY: This decision is issued in response to a 
pennon filed by Rolls-Royce Motors. Ltd. ^Rolls-Royce) 
requesting that it be exempted from the generally 
applicable average fuel economy standard of 27.5 miles 
per gallon tmpgi for model year iMYi 1990 and 1991 
passenger automobiles, and that lower alternative 
standards be estabhshed for it. This decision grants 
Rolls-Royce that exemption and establishes an alter- 
native standard of 12.7 mpg for NfY 1990 and 12.7 for 
MY 1991. 

EFFECTIVE DATE: October 16. 1989. This exemption 
and alternative standard applv to Rolls-Royce for 
model years 1990 and 1991. 

SUPPLEMENTARY INFORMATION: NHTSA is 

exempting Rolls-Royce from the generally api^cable 
average fuel economy standard for 1990 and 1991 
model year passenger automobiles and estaWishing an 
alternative standard applicable to RoUs-Royce for 
those model years. This exemption is issued under the 
authority- of section 502(c> of the Motor Vehicle In- 
formation and Cost Sa\'inp Aa. as amended i"the 
Act" 1 1 15 U. S.C .2002i c ' I. Section 502i c I provides that a 
passenger automobile manufacturer which manu- 
factures fewer than 10.000 passenger automobiles 
annually may be exempted from the generally a^roli- 
cable average fuel economy standard for a particular 
model year if that standard is greater than the low 
volume manufacturer's maximum feasible average 
fuel economy and if NHTS.^ esiabhshes an alternative 
standard for the manufaaurer at its maximum feasible 
level. Section 502iei of the Act (15 U.S.C.2002'e" 
requires NHTSA. in determining maxim um feasible 
average fuel economy, to consider 
( 1 > Technolc^cal feasibihty: 

(2 ) Economic practicabilin-; 

(3) The effect of other Federal motor vehicle 
standards on fuel econom\-. and 

4 1 The need of the Nation to consers'e energy. 



This fmi! dec.sion A'as preceded by a proposed 

applicable lEv. ar.c I::'-! passenger aut;— tbile average 
dare cf 12" ntpt s'ntuld 'yt established ::r R:lls-R.;yce 

The agen~.' is aztptmg tne tentative ccnc.tisitns set 

average fuel ectntnty level tor Rtlls-RtyDr m Nltcel 
Years Ib^l and l?vl is 12." ntpc. that tther Federal 

economy bey :nd the extent ttnsiderec m the prtp>osec 
exem-titn. NHTSA hereby exempts Rtlls-Rtyce frtm 



tnegenera..y app.icat.e passe 
fuel ectntmy standard tcr t 
years and establishes an alte 


nger au 
he 1^1 


and 


1?91 mtcel 


miles t?er galltn t:r Rtlls-R:v 


san 






NHTSA has analyzec this': 

that neither Exec-.: tive Order 1 
of Transportati : n s reiiulat : r 
apply, because tints decisitn is 
is d^nec as an agenc:-- stat 
ability and future effect. 


tectsitn 
yp-:hct: 


dprtcedures 


generally applicable, since ; 
Royce. If the Execjt: - - 
policies and proced _ - 




.^^" 


"major" nor "significant, 
this exemption is that Rcdls? 
to pay civil penalties - 
feasible average fue. 
vehicles wiU net ha- 
penalties in :- 
decision sets 






- 1 .. . : : 




- iSCTS (rf Its 

ithTsecivTl 
this 
evd 




determme-t " 












average It 
establisr.'; .. - 














for the public at large -^vill be 


_._._; 







P.\RT 531-PRE 177 



In consideration of the foregoing, 49 CFR Part 531 is 
amended by revising § 531.5(b)(2) to read as follows: 

***** 

(b) The following manufacturers shall comply 
with the standards indicated below for the 
specified model years: 

(2) Rolls-Royce Motors, Inc. 



MODEL YEAR 


AVERAGE FUEL ECONOMY 




STANDARD 




(miles per gallon) 


1978 


10.7 


1979 


10.8 


1980 


11.1 


1981 


10.7 


1982 


10.6 


1983 


9.9 


1984 


10.0 


1985 


10.0 


1986 


11.0 


1987 


11.2 


1988 


11.2 


1989 


11.2 


1990 


12.7 


1991 


12.7 



Issued on October 10, 1989 



Jeffrey R. Miller 
• Acting Administrator 

54 F.R.42303 
October 16, 1989 



PART 531-PRE 178 



PART 531 -AVERAGE FUEL ECONOMY STANDARDS 
FOR PASSENGER AUTOMOBILES 



5531.1 Scope. Average fuel economy 

standard (miles 

This part establishes average fuel economy Model year per gallon) 
standards pursuant to section 502(a) of the Motor 19''8 18.0 

Vehicle Information and Cost Savings Act, as jggQ in'o 

amended, for passenger automobiles. 1981 22!o 

1982 24.0 

1983 26.0 

1984 27.0 

5531.2 Purpose. 1985 27.5 

1986 26.0 

The purpose of this part is to increase the fuel 1987 26.0 

economy of passenger automobiles by establishing J^gg ^^-^ 

minimum levels of average fuel economy for those 1990 and thereafter 27^5 

vehicles. (b) The following manufacturers shall comply 

with the standards indicated below for the 

specified model years: 

5531.3 Applicability. , ^ . 

(1) Avanti Motor Corporation. 
This part applies to manufacturers of passenger . _ . ^ .»_._. 

automobiles. Average Fuel Economy Standard 

Model year Miles per 

gallon 

5531.4 Definitions. 19^8 16.1 

1979 14.5 

(a) Statutory terms. (1) The terms "average JggJ Jll 

fuel economy," "manufacture," "manufacturer," 1982 18!2 

and "model year" are used as defined in section Jgg^ J^-9 

501 of the Act. 1985 .............'.'.'.'.'.'.'...'.'.'.'.'.'.'.'.'.'.'.'.'.'.'. ie.9 

(2) The terms "automobile" and "passenger .„, ri „ „ »* ^ t 

. , ., „ , J £• J • J rn-i i (2) Rolls-Royce Motors, Inc. 

automobile are used as deiined in section 501 of •' 

the Act and in accordance with the determination Average Fuel Economy Standard 

in part 523 of this chapter. TTV, 7^, 

Model year Miles per 

(b) Other terms. As used in this part, unless gallon 

otherwise required by the context— 1978 10.7 

1979 10.8 

(1) "Act" means the Motor Vehicle Informa- 1980 11. 1 

tion and Cost Savings Act, as amended by Pub. L. jggg ^Qg 

94-163. 1983 .'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'. 9.9 

1984 10.0 

1985 10.0 

5531.5 Fuel economy standards. 1987 ! ! ! ! ! l.'.!: 1 ! 1 ! l!!! ! l.'.;: ! 1 !! ! ! ! ll'2 

(a) Except as provided in paragraph (b) of this Jggg ',',',',',','////,',',[[[]]',[]]',',',[[[]]]'/_['_][ W'l 

section each manufacturer of passenger auto- 11991 12.51 

mobiles shall comply with the following standards (54 F.R. 42303-October 16, 1989. Effective: Octo- 

in the model years specified: ber 16, 1989.) 

(Rev. 10/16/89) PART 531-1 



(3) Giecker Motors Corporarion. 

Average Fuel Economy Standard 



(6) Reser\-ed 

(7) Qfficine Alfieri Maserati. S.p.A. 

Average Fuel Economy Standard 



197S 17.6 

1979 16.5 

1980 18.0 

1981 18.3 

1982 18.4 



(4) Aston Martin Lagonda. Inc. 

Average Fuel Economy Standard 



Q-lihr, 



1979 11.5 

1980 12.1 

1981 12.2 

1982 12.2 

1983 11.3 

1984 11.3 

1985 11.4 



Mcdel y^T 


gallon 


1975 


12.5 


197« 


12 5 


19S0 


m F, 





S531.6 Measurement and calculation procedures. 

(a) The average fuel economy of all passenger 
automobiles that are manufactured by a manufac- 
turer in a model year shall be determined in 
accordance with procedures established by the Ad- 
ministrator of the Environmental Protection 
Agencv under section 502(a) (1) of the Act and set 
forth in 40 CFR Part 600. 



(5) Excalibur Automobile Corporation. 
Average Fuel Economy Standard 



'•files pel 
gaUon 



197s 11.5 

1979 11.5 

1980 16.2 

1981 17.9 

1982 17.9 

1983 16.6 

1984 16.6 

1985 16.6 



42 F.R. 33534 
June 30. 1977 



PART 531-2 



PREAMBLE TO AN AMENDMENT TO PART 541 

Final Listing of High Theft Lines for 1990 Model Year 
Motor Vehicle Theft Prevention Standard 
(Docket NO.T84-01; Notice 20) 
RIN:2127-AC96 



ACTION: Final rule; technical amendment. 

SUMMARY: The purpose of this notice is to (1) repon 
the results of this agency's actions for determining 
which car lines are subject to the marking requirements 
of the motor vehicle theft prevention standard for the 
1990 model year, and (2 ) pubHsh a list of those car hnes. 
N'HTSA has previously published a list of the car lines 
that were selected as high theft car lines for prior 
model years, beginning uith the 1987 model year. The 
list in this notice includes all of the car hnes in the 
previous lists, as well as thirteen new lines that were 
introduced for the 1990 model year and that have been 
selected as likely high theft lines. In addition, this 
listing shows the seven new lines that have standard 
equipment anti-theft de\ices and have been granted 
exemptions from complying with the requirements of 
the theft prevention standard beginning with the 1990 
model year. Two more car lines have been exempted in 
part and are required to have only their engines and 
transmissions marked. This final listing for the 1990 
model year is intended to inform the pubUc. particularly 
law enforcement groups, of the car lines that are 
subject to the marking requirements of the theft 
prevention standard for the 1990 model year. 

EFFECTIVE DATE: This listing applies to the 1990 
model year. The amendment made by this notice is 
effective September 20. 1989. 

SUPPLEMENTARY INFORMATION: Federal Motor 
Vehicle Theft Prevention Standard. 49 CFR Part 541. 
sets forth requirements for inscribing or affixing 
identification numbers onto covered original equipment 
major parts, and the replacement parts for those 
original equipment parts, on all vehicles in lines 
selected as high theft Hnes. 

Section 603iaK2t of the Motor Vehicle Information 
and Cost Sa\ings Act (15 U.S. C. 2023(aH 2 >: hereinafter 
"the Cost Savings Act") specifies that NHTSA shall 
select the high theft lines, ■with the agreement of the 
manufacturer, if possible. In accordance uith pro- 
cedures published in 49 CFR Part 542. NHTSA pre- 



viously selected twent>--two of the new 1990 car lines 
as hkely to be high theft lines. The newly seleaed lines 
are set forth in this Hsting, along v^ith all those lines 
that had been seleaed as high theft lines and listed in 
prior model years. 

Section 663<d) of the Cost Savings Act (15 U.S.C. 
2023(dH provides that the theft prevention standard 
must continue to apply to each line that has been 
selected as a high theft line, unless that line is 
exempted under seaion 605 of the Cost Savings Act (15 
U.S.C .2025 1. Seaion 605 provides that a manufaaurer 
may petition to have a high theft line exempted from 
the requirements of Part 541, if the hne is equipped as 
standard equipment with an anti-theft device. The 
exemption is granted if NHTSA determines that the 
anti-theft device is likely to be as effective as compliance 
with Pan 541 in reducing and deterring motor vehicle 
thefts. Pursuant to this statutorv- provision. N'HTSA 
has exempted nine of the twenrv--two high theft car 
hnes from the parts marking requirements of Part 541. 
Seven of these nine car lines are exempted in full from 
Part 541 and two of the nine are exempted in part. 

This notice is intended to inform the public, par- 
ticularly law enforcement groups, of the high-theft car 
lines for the 1990 model year, and of those car lines that 
are exempted from the theft prevention standard for 
the 1990 model year because of standard equipment 
anti-theft devices. 

The car lines listed as being subject to the standard 
have been seleaed as high theft lines in accordance 
v^ith the procedures of 49 CFR Part 542 and seaion 603 
of the Cost Savings Act. Under these procedures, 
manufacturers evaluate new car lines to conclude 
whether those new hnes are Hkely to have high theft 
rates. Manufacturers submit these evaluations and 
conclusions to the agencv". which makes an independent 
evaluation and. on a prehminarv- basis, determines 
whether the new line should be subject to parts 
marking. N'HTSA informs the manufaaurer in writing 
of its evaluations and determinations, together with 
the factual information considered by the agencv^ in 
making them. The manufacturer may request the 
agency to reconsider these prehminarv- determinations. 



P.ART 541-PRE 63 



Within 60 days of the receipt of the request, NHTSA 
makes its final determination. NHTSA informs the 
manufacturer by letter of these determinations and its 
response to the request for reconsideration. If there is 
no request for reconsideration, the agency's determi- 
nation becomes final 45 days after sending the letter 
with the preliminary determination. Each of the new 
car lines on the high theft list is the subject of a final 
determination. 

Similarly, the car lines listed as being exempt from 
the standard have been exempted in accordance with 
the procedures of 49 CFR Part 543 and section 605 of 
the Cost Savings Act. Therefore, since this revised 
listing only informs the public of previous agency 
actions, and does not impose any additional obligations 
on any party, NHTSA finds for good cause that the 
amendment made by this notice should be effective as 
soon as it is published in the Federal Register. 

In consideration of the foregoing, 49 CFR Part 541 is 
amended as follows: 

Appendix A of Part 541 is revised. Appendix A-I is 
revised to read as follows, and Appendix A-II is added 
as follows: 



Appendix A— Lines Subject to the Requirements of this 
Standard 



Manufacturer 


Subject Lines 


Alfa Romeo 


Milano 161 
Fiat 164* 


BMW 


3 - Car line 

5 — Car line 

6 - Car line 



Chrysler 



Chrysler Executive Sedan/Limousine 

Chrysler Fifth Avenue/Newport 

Chrysler Laser 

Chrysler LeBaron/Town & Country 

Chrysler LeBaron GTS 

Chrysler TC 

Chrysler Eagle Talon* 

Chrysler New Yorker Fifth Avenue* 

Dodge Aries 

Dodge Daytona 

Dodge Diplomat 

Dodge Lancer 

Dodge 600 

Plymouth Caravelle 

Plymouth Laser* 

Plymouth Gran Fury 

Plymouth Reliant 



General Motors 



Mercedes-Benz 



Ford Mustang 
Ford Thunderbird 
Ford Probe 
Mercury Capri 
Mercury Cougar 
Lincoln Continental 
Lincoln Mark 
Lincoln Town Car 
Merkur Scorpio 
Merkur XR4Ti 



Buick Electra 
Buick LeSabre 
Buick Reatta 
Buick Regal 
Buick Riviera 
Cadillac DeVille 
Cadillac Eldorado 
Cadillac Seville 
Chevrolet Nova 
Chevrolet Lumina* 
Oldsmobile Cutlass Supreme 
Oldsmobile Delta 88 
Oldsmobile 98 
Oldsmobile Toronado 
Pontiac Bonneville 
Pontiac Fiero 
Pontiac Grand Prix 
Geo Prizm 
Geo Storm* 



Honda 


Acura Legend 
Acura NS-X* 


Isuzu 


90JZ* 


Jaguar 


XI 

XI-6 

XI-40 


Lotus 


MlOO* 


Maserate 


Biturbo 

Quattroporte 

228 



GLC 

626 

MX-6 

MX-5 Miata* 



Ferrari 



Mondial 
308 



190 D/E 

250D-T 

260 E 

300 CE 

300 D/E 

300 SE 

300 SL* 

300 TD 

300 TE 

300 SDL 

300 SEL 

380 SEC/500 SEC 

380 SEL/500 SEL 

380 SL 

420 SEL 

500 SL* 

560 SEL 

560 SEC 

560 SL 



PART 541-PRE 64 



Mitsubishi; 


Cordia 
Tredia 
EcHpse 


Peugeot 


405 


Porsche 


924S 


Rehant 


SSI 


Saab 


900 


Subaru 


XT 



Toyota 



Camry 

Celica 

Corolla/Corolla Sport 

MR2 

Starlet 



Volkswagen 



Audi Quattro 
Volkswagen Cabriolet 
Volkswagen Rabbit 
Volkswagen Scirocco 
Volkswagen Corrado 



*Lines added in Model Year 1990 

Appendix A-I — High-Theft Lines with Antitheft 

Devices that are Exempted from the Requirements of this 

Standard Pursuant to 49 CFR Part 543 



Exempted Lines 



Austin : 


Rover 


Sterling 


BMW 




7 - Car line 


Chrysler 


Chrysler Conquest 
Imperial** 


General 


Motors 


Cadillac Allante 
Chevrolet Corvette 


Isuzu 




Impulse 


Mazda 




929 
RX7 



Galant 
Starion 



Maxima 
300ZX 

Infiniti M30** 
InfinitiQ45** 



911* 
928* 



9000 



Toyota 



Supra 
Cressida 
Lexus LS400** 
Lexus ES250** 



Volkswagen 



Audi 5000S 
Audi 100 
Audi 200 



Volvo 



480ES 



**Lines exempted from the requirements of Part 541 
pursuant to 49 CFR Part 543 in MY 1990. 

Appendix All — High Theft Lines with Antitheft 
Devices that are Exempted in Part from the Parts- 
Marking Requirements of this Standard Pursuant to 49 
CFR Part 543 

Manufacturer Exempted Lines Parts Marked 

General Motors Chevrolet Camaro Engine, Transmission 
Pontiac Firebird Engine, Transmission 

These two car Hnes received partial exemptions from 
the requirements of Part 541 pursuant to 49 CFR Part 
543 in MY 1990. 



Jeffrey R. Miller 
Acting Administrator 

54 F.R.38684 
September 20, 1989 



PART 541-PRE 65-66 



PART541— Appendix A 
Lines subject to the requirements of Part 541 





Subject Lines 


Alfa Romeo 


Milano 161 
IFiat 164*1 


BMW 


3-Carline 
5-Carline 
6-Carline 



Chrysler 



General Motors 



Chrysler Executive Sedan/Limousine 

Chrysler Fifth Avenue/Newport 

Chrysler Laser 

Chrysler LeBaron/Town & Count;-y 

Chrysler LeBaron GTS 

Chrysler TC 

IChrysler Eagle Talon*] 

IChrysler New Yorker Fifth 

Avenue*! 

Dodge Aries 

Dodge Daytona 

Dodge Diplomat 

Dodge Lancer 

Dodge 600 

Plymouth Caravelle 

IPlymouth Laser *1 

Plymouth Gran Fury 

Plymouth Reliant 



Manufacturer 


Subject Lines 


Honda 


Acura Legend 
lAcura NS-X*1 


IIsuzu 


90JZ*1 


Jaguar 


XJ 

XJ-6 

XJ-40 


ILotus 


M100*l 


Maserati 


Biturbo 

Quattroporte 

228 


Mazda 


GLC 

626 

MX-6 

IMX-5 Miata*! 



Mercedes-Benz 



Mondial 8 



328 



Ford Mustang 
Ford Thunderbird 
Ford Probe 
Mercury Capri 
Mercury Cougar 
Lincoln Continental 
Lincoln Mark 
Lincoln Town Car 
Merkur Scorpio 
Merkur XR4Ti 



Buick Electra 
Buick Le Sabre 
Buick Reatta 
Buick Regal 
Buick Riviera 
Cadillac DeVille 
Cadillac Eldorado 
Cadillac Seville 
Chevrolet Nova 
IChevrolet Lumina*! 
Oldsmobile Cutlass Supreme 
Oldsmobile Delta 88 
Oldsmobile S8 
Oldsmobile Toronado 
Pontiac Bonneville 
Pontiac Fiero 
Pontiac Grand Prix 
Geo Prizm 
IGeo Storm**! 



Toyota 



Volkswagen 



190 D/E 

|250D-T*1 

260 E 

300 CE 

300 D/E 

300 SE 

1300 SL*1 

300 TD 

300 TE 

300 SDL 

300 SEL 

380 SEC/500 SEC 

380 SEL/500 SEL 

380 SL 

420 SEL 

1500 SL*1 

560 SEL 

560 SEC 

560 SL 



Mitsubishi 


Cordia 
Tredia 
Eclipse 


Peugeot 


405 


Porsche 


924S 


Reliant 


SSI 


Saab 


900 


Subaru 


XT 



Camry 

Celica 

Corolla/Corolla Sport 

MR2 

Starlet 



Audi Quattro 
Volkswagen Cabriolet 
Volkswagen Rabbit 
Volkswagen Scirocco 
Volkswagen Corrado 



• Lines added in Model Year 1990. 

(54 F.R. 38684-September 20, 1989. Effective: September 20, 



PART 541-A-1-2 



PART 541 - Appendix A-l 

High-Theft Lines With Antitheft Devices That are Exempted from the Requirements of This Standard 
Pursuant to 49 CFR Part 543 



Manuf(wturer 


Exempted Lines 


Austin Rover 


Sterling 


BMW 


7 Car line* 


Chrysler 
Chrysler 


Chrysler Conquest 
llmperial"! 


General Motors 


Cadillac Allante 
Chevrolet Corvette 


Isuzu 


Impulse 


Mazda 


929 
RX7 


Mitsubishi 


Galant 
Starion 



Maxima 
300 ZX 

Ilnfmiti M30**l 
IInfmitiQ45"l 



IPorsche 



911* 



9000 



Toyota 



Supra 
Cressida 

ILexusLS400*'l 
ILexus ES250"1 



Volkswagen 



Audi 500S 
Audi 100 
Audi 200 



Volvo 



480ES 



' Although the BMW 7 car line received and exemption from parts marking, the exemp- 
tion is not being used. This means the BMW 7 car line must be marked as required under 
Part 541. 

'* Lines exempted from the requirements of Part 541 pursuant to 49 CFR Part 543 in 



(54 F.R. 38684— September 20, 
September 20, 1989)1 



1989— Effective: 



PART 541-A-3-4 



[PART 541— Appendix All 

High Theft Lines With Antitheft Devices That are Exempted in Part From the Parts-IMarldng Requirements 
of This Standard Pursuant to 49 CFR Part 543 



Manufacturer Exempted Lines Parts Marked 

General Motors Chevrolet Camaro* Engine, Transmission 

Pontiac Firebird* Engine, Transmission 



* Received partial exemptions from the requirements of PART 541 pur- 
suant to 49 CFR Part 543 in MY 1990. 

(54 F.R. 38684— September 20, 1989— Effective: Septem- 
ber 20, 1989)] 



PART 541-A-5-6 



PREAMBLE TO AN AMENDMENT TO PART 544 

Insurer Reporting Requirements: List of 

Insurers Required to File Reports in 1989 

(Docket No. 186-01; Notice 9) 

RIN:2127-AC32 



ACTION: Final rule. 

SUMMARY: Title M of the Motor Vehicle Information 

and Cost Savings Act requires each passenger motor 
vehicle insurer to file annual reports with XHTSA, 
unless the agency exempts the insurer from filing such 
reports. The law stipulates that NHTSA can exempt 
those insurance companies whose market share is 
below certain percentages in each individual State and 
for the nation as a whole. To carr\- out these statutory- 
provisions, the agency has exempted those insurance 
companies that are lawfully eligible to be exempted 
and is hereby publishing an updated listing of those 
insurance companies subject to the reporting require- 
ments. Those insurance companies included on the hst 
are required to file reports for the 1988 calendar year 
not later than October 25, 1989. Any insurance company 
omitted from this list is not required to file a report for 
the 1988 calendar year. 

EFFECTIVE DATE: The final rule on this subject -will 
be effective December 4. 1989. 

SUPPLEMENTARY INFORMATION: Section 612 of 
the Motor Vehicle Information and Cost Savings Act 
(the Act )<15 U.S.C.2032I requires each insurer to file 
an annual report with XHTSA unless the agency 
exempts the insurer from filing such reports. The 
reports include information about thefts and recoveries 
or motor vehicles, the rating rules used by the insurers 
to establish premiums for comprehensive coverage, 
the actions taken by insurers to reduce such premiums, 
and the actions taken by insurers to reduce or deter 
theft. 

Section 612(aH5) provides that the agenc>- shall 
exempt small insurers from the reporting requirements 
if NHTSA find that such exemptions will not signifi- 
cantly affect the validity or usefulness of the infor- 
mation collected and compiled in the reports, either 
nationally or on a State-by-State basis. The term 
"small insurer" is defined in Section 612(,aK5HC) as an 
insurer whose premiums account for less than 1 
percent of the total premiums for all forms of motor 



vehicle insurance issued by insurers within the United 
States. However, that section also stipulates that if an 
insurance company satisfies this definition of a "smaU 
insurer." but accounts for 10 percent or more of the 
total premiums for all forms of motor vehicle insurance 
issued by insurers uithin a particular State, such as 
insurer must report the required information about its 
operations in that State. 

To implement these statutory- criteria for exempting 
small insurers. NHTSA has used the data voluntarily 
supplied by insurance companies to A.M.Best to 
determine the insurer's market shares nationally and 
in each State. The A.M.Best data base was chosen 
because it is both accurate and timely, and because its 
use imposes no additional burdens on any party. 

After examining the A.M.Best data. NTITSA has 
determined, first, that the report data to be pro\ided by 
the large insurance companies will be sufficient for 
NHTSA to carr\- out its activities and responsibilities 
under Title M of the Act. and second, that exempting 
all those insurance companies that qualify- as small 
insurers will not affect the validity- and usefulness of 
the information coUeaed and compiled under this 
section, either nationally or on a State-by-State basis. 

In the final rule for insurer reports published 
January 2. 1987, (52 FR 59), the agency Usted. as 
Appendix A, the 20 insurance companies that had 
premiums that accounted for 1 percent or more of all 
motor vehicle insurance premiimis paid nationally. 
Those companies were required to repon on their 
operations for every State in which they did business. 
In Appendix B, the agency listed the eleven insurance 
companies with premiums that accounted for 10 
percent or more of the total motor vehicle insurance 
premiums within a particular State or States. Such 
companies were required to report on their operations 
only for those States in which their premiums 
accounted for 10 percent or more of the total premiums. 

The market shares for each of the insurance 
companies listed in the January- 2. 1987, final rule were 
derived from the .A.M.Best data for 1984. the most 
recent year for which the .A.M.Best were available as of 
the date the final rule was pubhshed. In issuing the 



P.ART 544— PRE 33 



rule, NHTSA stated that it would update the ap- 
pendices as revised listings become available. Since 
that time, A.M.Best data for more recent calendar 
years have become available. 

Accordingly, the agency published a Notice of 
Proposed Rulemaking (NPRM) on May 30, 1989 (54 FR 
22921), proposing an updated listing of insurance 
companies that must provide annual insurer reports to 
the agency for the 1988 calendar year. That NPRM 
used the A.M.Best data for 1987 to determine which 
insurance companies are statutorily required to file 
reports by October 25, 1989. The notice proposed that 
all insurance companies that were statutorily eligible 
for an exemption from these reporting requirements 
should be exempted. 

No comments were received on the proposed rule. 
For the reasons set forth above and in the NPRM, this 
final rule adopts the proposed listings for both Appendix 
A and Appendix B. 

This rule is effective 30 days after publication in the 
Federal Register. As noted earlier in this preamble. 
Section 612 of the Cost Savings Act (15 U.S.C. 2032) 
imposes a statutory duty on insurers that were not 
exempted from these reporting requirements to file a 
report for the 1988 calendar year no later than October 
25, 1989. 

Appendix A to Part 544 is revised to read as follows: 

Appendix A — Issuers of Motor Vehicle Insurance 
Policies Subject to the Reporting Requirements in 
Each State in Which They Do Business 



Appendix B to Part 544 is revised to read as follows: 



Appendix B - Issuers of Motor Vehicle Insurance 
Policies Subject to the Reporting Requirements Only 
in Designated States 



Alfa Insurance Group (Alabama) 
Island Insurance Group (Hawaii) 
Kentucky Farm Bureau Group (Kentucky) 
Commercial Union Assurance Group (Maine) 
Auto Club of Michigan Group (Michigan) 
Southern Farm Bureau Group (Mississippi) 
Amica Mutual Insurance Company (Rhode Island) 
Concord Group Insurance Company (Vermont) 

Issue Date: October 27, 1989 



Jeffrey R. Miller 
Acting Administrator 

54 F.R. 46252 
November 2, 1989 



State Farm Group 

Allstate Insurance Group 

Farmers Insurance Group 

Nationwide Group 

Aetna Life & Casualty Group 

Liberty Mutual Group 

Travelers Insurance Group 

Hartford Insurance Group 

USAA Group 

United States F&G Group 

Geico Corporation Group 

American International Group 

CIGNA Group 

Continental Group 

Fireman's Fund Group 

CNA Insurance Companies 

California State Auto Association 

American Family Group 

Progressive Group 

Crum & Forster Companies 



PART 544-PRE 34 



APPENDIX B 

Issuers of Motor Vehicle Insurance Policies Subject to the Reportinq 
Requirements in Each State in Which They do Business 

(Alfa Insurance Group (Alabama)) 
Arnica Mutual Insurance Company (Rhode Island) 
Auto Club of Michigan Group (Michigan) 
Commercial Union Assurance Group (Maine) 
[Concord Group Insurance Company (Vermont)l 
Island Insurance Group (Hawaii) 
Kentucky Farm Bureau Group (Kentucky) 
Southern Farm Bureau Group (Mississippi) 



54 F.R. 46252— November 2, 1989. Effective: December 4, 1989 



PART 544-B-l 



PREAMBLE TO AN AMENDMENT TO PART 565 

Vehicle Identification Number— Content Requirements 
(Docket No. Not issued) 



ACTION: Final rule. 

Summary: This notice amends the applicability section 
of Part 565 to substitute a reference to Part 591 of this 
title for a reference to 19 CFR 12.80. This amendment 
conforms to Part 565 with the requirements of amend- 
ments made to the National Traffic and Motor Vehicle 
Safety Act by P. L. 100-562. 

EFFECTIVE DATE: January 31, 1990 

SUPPLEMENTARY INFORMATION: The National 
Traffic and Motor Vehicle Safety Act was amended by 
the Imported Vehicle Safety Compliance Act of 1988 
(P.L. 100-562). Those amendments were enacted on 
October 31, 1988, and will become effective January 31, 
1990. The amendments revoke the joint authority 
previously provided by 15 U.S.C. 1397(b)(3) under 
which motor vehicles subject to the Federal motor 
vehicle safety standards are admitted into the United 
States pursuant to joint regulations issued by the 
Departments of Treasury and Transportation. Instead, 
the Vehicle Safety Act, as amended, vests fhe primary 
importation regulatory authority in the Department of 
Transportation. 

The existing joint vehicle importation regulation is 
19 CFR 12.80. The forthcoming importation regulation 
of this agency is 49 CFR Part 591. Paragraph S2, 
Applicability of 49 CFR Part 565, Vehicle Identification 
Number— Content Requirements, exempts "Vehicles 
imported into the United States under 19 CFR 



12.80(b)(l)(iii), other than by a corporation which was 
responsible for assembly of that vehicle or a subsidiary 
of such a corporation . . . ." This relates to the 
importation of vehicles not originally manufactured to 
conform to the Federal motor vehicle safety standards. 
The section of the new importation regulation that 
corresponds to 12.80(b)(l)(iii) is 49 CFR 591.5(f). This 
notice amends Part 565 to delete reference to the old 
authority and to add reference to the new one. 

Since the amendment substitutes one authority for 
another and is procedural in nature, it is hereby found 
that notice and public comment thereon is unnecessary. 

In consideration of the foregoing. Part 565 is amended 
to read as follows: 

In paragraph 565.2, the citation "19 CFR 12.80(b) 
(l)(iii)" is changed to read "paragraph 591.5(f) of this 
chapter". 

Issued on October 5, 1989. 



Jeffrey R. Miller 
Acting Administrator 

54 F.R. 41843 
October 12, 1989 



PART 565-PRE 9-10 



PART 565-VEHICLE IDENTIFICATION NUMBER- 
CONTENT REQUIREMENTS 



Sec. 



5.1 



Purpose and scope. 

565.2 Applications. 

565.3 Definitions. 

565.4 General requirements. 

565.5 Reporting requirements. 

§ 565.1 Purpose and scope. 

This regulation specifies the format and content 
for a vehicle identification number (VIN) system to 
simplify vehicle identification information retrieval 
and increase the accuracy and efficiency of vehicle 
defect recall campaigns. 

§565.2 Applicability. 

This regulation applies to passenger cars, multi- 
purpose passenger vehicles, trucks, buses, trailers 
(including trailer kits), incomplete vehicles and 
motorcycles. Vehicles imported into the United 
States under [paragraph 591.5(f) of this chapter), 
other than by a corporation which was responsible 
for the assembly of that vehicle or a subsidiary of 
such a corporation, are exempt from the re- 
quirements of this Part. (54 F.R. 41843. October 12, 
1989. Effective: January 31, 1990) 

§ 565.3 Definitions. 

(a) Statutory Definitions: All terms used in this 
part that are defined in section 102 of the National 
Traffic and Motor Vehicle Safety Act of 1966 (15 
U.S.C. 1391) are used as defined in the Act. 

(b) Motor Vehicle Safety Standard Definitions: 
Unless otherwise indicated, all terms used in this 
part that are defined in 49 CFR 571.115 are used 
as defined therein. 

(c) "Body Type" means the general configura- 
tion or shape of a vehicle distinguished by such 
characteristics as the number of doors or windows, 
cargo-carrying features and the roofline (e.g., 
sedan, fastback, hatchback). 

(d) "Engine Type" means a power source with 
defined characteristics such as fuel utilized, 



number of cylinders, displacement, and net brake 
horsepower. The specific manufacturer and make 
shall be represented if the engine powers a pas- 
senger car or a multipurpose passenger vehicle, or 
truck with a gross vehicle weight rating of 10,000 
pounds or less. 

(e) "Line" means a name which a manufacturer 
applies to a family of vehicles within a make which 
have a degree of commonality in construction, such 
as body, chassis or cab type. 

(f) "Make" means a name which a manufacturer 
applies to a group of vehicles or engines. 

(g) "Model" means a name which a manufac- 
turer applies to a family of vehicles of the same 
type, make, line, series, and body type. 

(h) "Model Year" means the year used to 
designate a discrete vehicle model irrespective of 
the calendar year in which the vehicle was actually 
produced, so long as the actual period is less than 
two calendar years. 

(i) "Plant of manufacture" means the plant 
where the manufacturer affixes the VIN. 

(j) "Series" means a name which a manufac- 
turer appHes to a subdivision of a "line" denoting 
price, size or weight identification, and which is 
utilized by the manufacturer for marketing pur- 



(k) "Type" means a class of vehicle distin- 
guished by common traits, including design and 
purpose. Passenger cars, multipurpose passenger 
vehicles, trucks, buses, trailers, incomplete 
vehicles, and motorcycles are separate types. 

§ 565.4 General requirements. 

The VIN shall consist of four sections of 
characters which shall be grouped accordingly: 

(a) The first section shall consist of three 
characters which occupy positions one through 
three (1-3) in the VIN. This section shall uniquely 
identify the manufacturer, make and type of the 
motor vehicle if its manufacturer produces 500 or 
more motor vehicles of its type annually. If the 



(Rev. 10/12/89) 



PART 565-1 



manufacturer produces less than 500 motor 
vehicles of its type annually, those three characters 
along with the third, fo'orth and fifth characters of 
the fourth section shall uniquely identify the 
manufacturer, make and type of the motor vehicle. 
These characters are assigned in accordance with 
section 565.5(c) of this Part. 

(b) The second section shall consist of five 
characters which occupy positions four through 
eight (4-8) in the VIN. This section shall uniquely 
identify the attributes of the vehicles as specified in 
Table I. For passenger cars, and for multipurpose 
passenger vehicles and trucks with a gross vehicle 
weight rating of 10,000 pounds or less, the first 
and second characters shall be alphabetic and the 
third and fourth characters shall be numeric. The 
fifth character may be either alphabetic or 
numeric. The characters utilized and their place- 
ment within the section may be determined by the 
manufacturer, but the specified attributes must be 
decipherable with information supplied by the 
manufacturer in accordance with § 565.5(d) of this 
Part. In submitting the required information to the 
NHTSA relating to gross vehicle weight rating, 
the designations in Table II shall be utilized. The 
use of these designations within the VIN itself is 
not required. 



Table I. 



-Type of Vehicle and Information 
Decipherable 



Passenger car: Line, series, body type, engine 

type,i and restraint system type. 
Multipurpose passenger vehicle: Line, series, body 

type, engine type.^ gross vehicle weight rating. 
Truck: Model or line, series, chassis, cab type, 

engine type,^ brake system and gross vehicle 

weight rating. 
Bus: Model or line, series, body type, engine type.^ 

and brake system. 
Trailer, including trailer kit land incomplete 

trailer:] Type of trailer, series, body type, 

length, and axle configuration. ' 
Motorcycle: Type of motorcycle, line, engine type,i 

and net brake horsepower. ^ 
Incomplete vehicle [other than trailer:) Model or 

line, series, cab type, engine type,* and brake 

system. (53 F.R. 1032— January 15, 1988. Effective: 

February 16, 1988) 



Table II.— Gross Vehicle Weight Rating Classes 

Class A Not greater than 3,000 pounds. 

Class B 3,001-4,000 pounds. 

Class C 4,001-5,000 pounds. 

Class D 5,001-6,000 pounds. 

Class E 6,001-7,000 pounds. 

Class F 7,001-8,000 pounds. 

Class G 8,001-9,000 pounds. 

Class H 9,001-10,000 pounds. 

Class 3 10,001-14,000 pounds. 

Class 4 14,001-16,000 pounds. 

Class 5 16,001-19,500 pounds. 

Class 6 19,501-26,000 pounds. 

Class 7 26,001-33,000 pounds. 

Class 8 33,001 pounds and over. 

(c) The third section shall consist of one 
character which occupies position nine (9) in type 
VIN. This section shall be the check digit whose 
purpose is to provide a means for verifying the ac- 
curacy of any VIN transcription. After all other 
characters in VIN have been determined by the 
manufacturer, the check digit shall be calculated 
by carrying out the mathematical computation 
specified in paragraphs (c) (1) through (4) of this 
section. 

(1) Assign to each number in the VIN its ac- 
tual mathematical value and assign to each letter 
the value specified for it in Table III. 

Table III.— Assigned Values 



A=l 


J=l 


T=3 


B = 2 


K=2 


U = 4 


C = 3 


L = 3 


V=5 


D = 4 


M=4 


W=6 


E = 5 


N = 5 


X=7 


F = 6 


P = 7 


Y=8 


G = 7 


R = 9 


Z = 9 


H = 8 


S = 2 





(2) Multiply the assigned value for each 
character in the VIN by the position weight fac- 
tor specified in Table IV. 



' Engine net brake horsepower when encoded in the 
VIN shall differ by no more than 10 percent from the 
actual net brake horsepower, shall, in the case of 
motorcycle with an actual net brake horsepower of 2 or 
less, be not more than 2; and shall, in the case of a 
motorcycle with an actual brake horsepower greater 
than 2, be greater than 2. 



(Rev. 1/15/88) 



PART 565-2 



PREAMBLE TO AN AMENDMENT TO PART 567 AND 
FEDERAL MOTOR VEHICLE SAFETY STANDARD NO. 115 



Vehicle Identification Number; Basic Requirements 

(Docket No. 88-08; Notice 2) 

RIN:2127-AC65 



ACTION: Final Rule. 



SUMMARY: In this final rule, NHTSA changes vehicle 
identification number and certification requirements 
for motor vehicles that were not originally man- 
ufactured for sale in this country, do not comply with 
the Federal motor vehicle safety standards, and are 
imported into the United States by businesses un- 
affiliated with the original manufacturer. This final 
rule would make it clear that the importer of such 
vehicles would be required to use one of the unique 
coding identifiers that the original manufacturer as- 
signed to the vehicle, in lieu of using the 17-character 
U.S. vehicle identification number (VIN) required to be 
placed on vehicles originally manufactured for sale in 
this country. The direct importer must place the 
^riginal manufacturer's identifier on a plate that 
^ould appear inside the passenger compartment of the 
Tnotor vehicle, so that the number may be observed 
through the glazing, and adjacent to the left windshield 
pillar. 

EFFECTIVE DATE: December 4, 1989. 

SUPPLEMENTARY INFORMATION: Background. 

Under section 108(b)(3) of the National Traffic and 
Motor Vehicle Safety Act (15 U.S.C. 1397(b)(3)), a 
vehicle that does not conform with applicable safety 
standards may nonetheless enter the United States 
under "such terms and conditions" as the Secretaries 
of Transportation and Treasury prescribe. Title 19 
CFR 12.80 is a joint Transportation/Treasury regula- 
tion setting forth those terms and conditions. Sub- 
paragraph (b)(l)(iii) of that regulation requires that a 
person seeking to bring a nonconforming import (direct 
import vehicle) into the United States file a declaration 
that the vehicle will be modified so as to conform with 
applicable Federal Motor Vehicle Safety Standards. 
Among those Standards is 115, Vehicle Identification 
Number— Basic Requirements. 

In order to comply with Standard 1 15 requirements, 
many direct importers have been applying a "home- 
-made" VIN plate to their imported vehicles. The VINs 
^dded by direct importers are so different in appearance 
from VINs on similar vehicles manufactured for sale in 



the United States that law enforcement officials have 
mistaken them for altered VINs. Other concerns 
presented by these "homemade" VIN plates are 
identification problems that have been created for 
insurance investigators and encoding errors that 
compromise the integrity of the VIN system. 

This rulemaking arose when the agency granted a 
petition submitted by the National Automobile Theft 
Bureau (NATB or petitioner) to amend Standard 1 15 to 
address problems arising when direct importers create 
a VIN and a VIN plate using an identification number 
and plate production process other than the ones 
which the original vehicle manufacturer uses. Among 
problems noted by the NATB were an increased 
prospect of encoding errors in a homemade VIN, law 
enforcement officials mistaking homemade VIN plates 
for altered plates, and the resulting risk that individuals 
lawfully possessing direct import vehicles may be 
subjected to criminal charges. 

The petitioner recommended that NHTSA take 
action to prevent the direct importer from creating its 
own VIN. In place of its own VIN, the importer would 
be required to follow one of two alternative means of 
identifying a vehicle. First, if the original manufacturer 
had placed any kind of identification number plate in 
the passenger compartment where Standard 115 would 
otherwise require a 17-character VIN plate, the 
importer would retain the original manufacturer's 
plate as the vehicle's VIN plate. Among the original 
manufacturer identification numbers that one might 
use in place of the United States VIN are the European 
vehicle identification number (EuroVIN), the World 
Market vehicle identification number (WorldVIN), the 
chassis number, or the vehicle serial number. 

Second, if the original manufacturer had not affixed 
a plate of the type and in the location described at S4.6 
of Standard 115 (49 CFR 571.115), then the importer 
would be required to affix a plate in that location 
stating that the vehicle is "partially exempt" from 
Standard 115. This plate would refer a person to the 
driver's door post, where the importer would be 
required to affix a label with information that cited the 
Joint Transportation/Treasury regulation under which 
a person directly imports a noncomplying vehicle, 
identified the location on the vehicle of the original 



FART 567-PRE 91 



manufacturer's number to be used in lieu of the 17 
character VIN, gave the name and address of those 
bringing the vehicle into comphance with Standard 
1 15, stated the date of importation and of certification, 
and gave the name and address of the person who made 
the certification. 

Notice of Proposed Rulemaking. In the notice of 
proposed rulemaking (NPRM) published May 13, 1988 
(53 Federal Register 17088), the agency acknowledged 
the problems with VINs on direct import vehicles and 
proposed to amend Standard 115 so that a direct 
importer need not create a VIN or VIN plate in order to 
comply with United States vehicle identification 
requirements under Standard 115. NHTSA could not 
agree that any extant original manufacturer identifier 
in the S4.6 location would obviate the need for some 
notice that the vehicle is partially exempt from 
Standard 115. 

The agency believed it would be a relatively simple 
matter to affix a plate informing an interested person 
that a vehicle is partially exempt, and refer the person 
to another label on the door post that would specify the 
unique identifying number for the vehicle. The agency 
therefore proposed to require such a plate on any 
vehicle that did not have the 17-character United 
States VIN. Because of this proposed approach, the 
agency believed it was unnecessary to consider NATB's 
suggestion that a EuroVIN, WorldVIN, chassis, or 
serial number be exempted from the readability and 
location requirements in S4.6. 

A second way in which NHTSA's proposal varied 
from the NATB petition was that the agency did not 
propose to require a lengthy label with a citation to 19 
CFR 12.80, and information about the person per- 
forming work to bring the vehicle into compliance with 
Standard 115. The agency proposed instead to require 
a simplified label that stated where an interested 
person could find the unique manufacturer identifying 
number that would be used in lieu of the United States 
VIN. Further, for consistency, the agency proposed to 
include labeling requirements under Part 567. It was 
proposed that paragraph (k) of section 567.4 be deleted 
and that sections 567.5, 567.6 and 567.7 be redesignated 
as sections 567.6, 567.7, and 567.8, respectively. Under 
a new section 567.5 (for the most part former section 
567. 4(k)), the language regarding labeling requirements 
for high theft lines imported into the United States 
would be retained, with minor changes, as section 
567.5(a). The proposed section 567.5(b) outlined a 
requirement for a label for direct import vehicles that 
would be affixed in one of three locations. This label 
would state: "Original Manufacturer's Identification 
Number Substituting for U.S. VIN is located," and 
direct the reader to the location on the vehicle where 
the original manufacturer's identification number, 
placed by the original manufacturer, could be found. 



NHTSA also sought comment, particularly from law 
enforcement officials, on two issues: 

(1) Whether the proposed changes could, in some 
circumstances, increase the fraudulent use of VINs or I 
impede law enforcement actions. As an example, the 
agency noted that in certain circumstances, vehicles 
with the proposed FMVSS 115 exemption label would 
no longer have a VIN visible through the glazing. 
NHTSA requested comment on whether this situation 
would create a law enforcement problem by precluding 
the inspection of VINs on parked and locked vehicles. 

(2) Whether the proposal could lead to improper use 
of VIN exemption plates (e.g., replacing a legitimate 
VIN\ since, under certain circumstances, it would 
allow an exemption plate where the VIN would be if it 
had been a p.i^scnger car built for the U.S. market. 

The Comments and the Agency Response. The 
agency received eight responses to the NPRM. Four 
commenters addressed the first question presented in 
the NPRM, concerning using an exemption plate in 
lieu of a VIN or other identification number in the S4.6 
location. The Automobile Importers of America, Inc. 
(AIA), Porsche, the International Association of Auto 
Theft Investigators (lAATI), and the National Auto- 
motive Theft Bureau (NATB) recommended that 
NHTSA require each vehicle to have an identification 
number visible from the outside of the vehicle. In 
response to these comments, the agency has adopted a 
requirement for a plate or label containing the original 4 
manufacturer's identification number in the S4.6" 
location, with a reference to Standard 115. 

The agency believes that this solution addresses the 
agency's initial concern about the possibility of 
transcription errors while at the same time main- 
taining an identification number in the place where 
law enforcement officials are accustomed to see it. In 
cases where the original manufacturer's identification 
number is in the S4.6 location and does not conform to 
Part 565, the presence of the identifying notice along- 
side it will serve to inform law enforcement personnel 
that the vehicle is a direct import vehicle that has been 
modified to conform to U.S. safety standards. Any 
transcription errors would be immediately evident, 
since the number on the identifying notice should be 
identical to the original number alongside it. Where 
the original manufacturer's identification is located 
elsewhere, the identifying notice will provide the 
number and also alert an investigating officer that the 
number is a substitute for the number ordinarily 
required by FMVSS 115. 

Further investigation by the agency has not found 
any evidence indicating that direct importers have 
been using a 17-character VIN that they have created 
themselves; conformity bonds are not released if they 
do. However, they do create another plate using the4 
original manufacturer's identification number that^ 



PART 567-PRE 92 



they install behind the windshield, in the S4.6 location. 
In the interest of clarity and to the extent direct 
imports have been a problem to theft investigators and 
other interested parties, the requirement is being 
amended. Also, in the NPRM, the notice in the S4.6 
location was proposed to read: "FMVSS 115 EXEMPT 
VEHICLE. SEE DRIVER'S SIDE DOOR POST." After 
reevaluation, the agency had determined that the 
wording "FMVSS 115 EXEMPT VEHICLE" may 
imply that direct importers are being exempted from 
all aspects of FMVSS 115. It is more accurate to state 
that the original manufacturer's identification number 
is used as a substitute for a VIN, required by FMVSS 
115. 

The following language will therefore be required in 
the final rule: 



SUBSTITUTE FOR U.S. VIN: 
SEE FMVSS 115. 

With this alternative, law enforcement officials would 
also know that the passenger car in question does not 
have a U.S. VIN. 

The second question raised in the NPRM, whether 
the proposal would lead to improper use of VIN 
exemption plates, was addressed by one commenter. 
The NATB expressed a belief that it would be very 
important to prevent any VIN exemption plate from 
being overlaid on the original manufacturer's identifier 
in the S4.6 position. NATB commented: "Unless there 
is a specific anti-overlayment provision included in 
FMVSS 115 it is a virtual certainty that organized 
theft perpetrators will take advantage of the situation 
and affix the VIN exemption notice over the location of 
the legitimate VIN plate." NATB suggested that the 
notice be required to be affixed in a location other than 
the location used by the vehicle's original manufacturer 
for affixing VIN plates in the same or similar vehicle 
lines. The agency agrees, and has accordingly adopted 
the following language in the final rule as Paragraph 
S4.9(c) to ensure the original manufacturer's identi- 
fication number will not be covered, obscured, or 
overlaid: 

(c) The plate or label by (b) shall be permanently 
affixed in a location that conforms to S4.6, in such 
manner as not to cover, obscure, or overlay any part of 
any identification number affixed by the original 
manufacturer, and shall conform to S4.7 and S4.8. 

Two commenters expressed concern about the lack 
of a check digit in the original manufacturer's 
identification number. Besides noting that lack of a 
check digit could be a problem, ALA cited errors in 
transcription which are not caught despite a check 
digit system, resulting in vehicles with incorrect VINs. 
AIA suggested that the solution to this problem is to 
ensure that all entries are transcribed correctly, and 
that all other regulations are complied with. 

PART 567- 



In noting that original manufacturer's identification 
numbers from various makes would not have the 
benefit of a check digit, Porsche asserted that "[t]his 
lack of a check-digit negates another of the prime 
features of the current VIN — the ability to rapidly 
check for transcription mistakes." Although the agency 
believes that a check-digit is useful in preventing 
transcription errors, it regards the risk of error from 
"homemade" VINs as significantly greater. It has 
therefore concluded that the original manufacturer's 
identification number should be retained by the direct 
importer. 

Besides the comments summarized above, AIA 
pointed out to the agency that there is no concept of 
"model year" in Europe. AIA believed that for this 
reason , ' 'gray market importers cannot possibly discern 
a model year to put on the label." NHTSA has accepted 
this comment from AIA. Accordingly, § 567.4(k)(4)(i) 
has been amended to read: "Model year (if applicable) 
or year of manufacture, and line of the vehicle as 
reported by the manufacturer that produced or as- 
sembled the vehicle." Also included is a statement that 
" 'Model year' is used as defined in § 565.3(h) of this 
chapter." 

lAATI also recommended a separate label that 
would provide information on the person who per- 
formed the work bringing the vehicle into compliance 
with Standard 115. The rationale for this recom- 
mendation is that it would give an investigator a 
starting point to trace the vehicle through the person 
performing the compliance work and back to the 
original manufacturer. The agency believes it is already 
requiring enough information, on as many as three 
labels at the door post or alternate positions, without 
requiring this information also. In the few instances 
where law enforcement officers or other investigators 
need this information, they would obtain information 
about who did the compliance work by contacting the 
direct importer or NHTSA. 

In addition to the comments recommending specific 
changes in the final rule, the agency also received 
several comments from Allstate Insurance Company 
and the Highway Loss Data Institute in general 
support of the rulemaking. The National Automobile 
Dealers Association supported the NHTSA proposal 
and urged NHTSA "to consider the need to readily and 
clearly identify these vehicles as beingdirect imports." 
They believed that the proposed amendments to the 
VIN standards would "serve to establish a nationally 
recognized gray market identifier on each vehicle." 

Volkswagen of America, Inc. encouraged NHTSA to 
"promote enforcement of the safety standards for all 
vehicles regardless of who the manufacturer or im- 
porter may be." They noted that although the proposal 
would eliminate encoding errors in "homemade" VINs, 
the same result could be had by enforcement of the 
existing regulation requiring display of the correct 
VIN on all vehicles. 
PRE 93 



The agency is aware that this rule will be more 
effectual for original manufacturer identifiers utilizing 
Roman letters or Arabic numerals than for man- 
ufacturer identifiers which may be used in countries 
with non-Roman letters. If the use of non-Roman 
letters becomes a source of confusion, the agency may 
undertake further remedial action. 
Other Changes In the Final Rule. 
Redesignation of Sections in Part 567. 
The NPRM proposed that Section 557.4(k) be dropped, 
that Sections 567.5, 567.6, and 567.7 be redesignated as 
Sections 567.6, 567.7, and 567.8, respectively, and that 
a new Section 567.5 Special requirements for motor 
vehicles admitted under 19 CFR 12.80 be added. Upon 
reevaluation, the agency has decided that rather than 
redesignating existing provisions in Part 567, and 
adding new sections with whole paragraphs that are 
identical to old paragraphs, the same end would be 
accomplished more simply by adding a new 
567.4(1) (that would require identification on the 
vehicle of the original manufacturer's number) after 
§567.4(k). This new §567.4(1) is the same in sub- 
stance as §567.5(b) in the notice of proposed rule- 
making. 

High Theft Lines. 

49 CFR Part 541 requires that 14 major parts of 
designated passenger motor vehicle lines be marked 
with Vehicle Identification Numbers, even if the vehicle 
was not originally manufactured for the U.S. market. 
FMVSS 115 does not exempt importers of vehicles not 
manufactured for sale in the U.S. from complying with 
the parts-marking requirements of 49 CFR Part 541 for 
the car lines listed in Appendix A to Part 541. As a 
result of the agency's decision to require retention of 
the original manufacturer's VIN, the fourteen desig- 
nated major parts (Section 541.5(a)) must be marked 
with the original VIN assigned to the car by its original 
manufacturer. The subject vehicle must be in com- 
pliance with the theft prevention standard before it is 
imported into the United States. The markings must 
be affixed or inscribed in accordance with the target 
area requirements designated by the manufacturer 
that is the original producer who installs or assembles 
the covered major parts on a line. 

Section 567. 5(k) applies to direct import high theft 
lines. §567.5(1) refers to the direct import vehicles 
without 17-character U.S. VINs. Therefore, if there 
should be high theft lines that are brought to the U.S. 
by direct importers, they would have to have three 
labels in the positions in the passenger car designated 
in §567. 4(c), namely, the certification label required 
by §567. 4(a), the compliance with Federal motor 
vehcile theft prevention standard label required by 
§567. 4(k), and the label designating where the orig- 
inal manufacturer's identification number may be 
found, as required by §567.4(1). 



In consideration of the foregoing, Title 49 CFR 567, 
Certification, and 49 CFR 571.115, Vehicle Identification 
Number— Basic Requirements, are amended as follows: 

1. The authority citation for Part 567 is revised to 
read as follows: 

Authority: 15 U.S.C. 1392, 1397, 1401, 1403, and 
1407; 15 U.S.C. 1912 and 1915; 15 U.S C. 2021, 2022, 
and 2026; delegation of authority at 49 CFR 1.50. 
567.4 [Amended] 

2. Subparagraph (k)(4)(i) of 567.4 is revised to 
read as follows: 

***** 

(k) * * * * * 

(4) * 

(i) Model year (if applicable) or year of manufacture 
and line of the vehicle, as reported by the manufacturer 
that produced or assembled the vehicle. "Model year" 
is used as defined in 565.3(h) of this chapter. 

"Line" is used as defined in 541.4 of this chapter. 

3. A new paragraph (1) is added to 567.4 as 
follows: 

(1)(1) In the case of a passenger car imported into the 
United States under 19 CFR 12.80(b)(l)(iii) or 49 CFR 
Part 591 which does not have an identification number 
that complies with paragraph S4.2, S4.3, and S4.7 of 49 
CFR 571.115 at the time of importation, the importer 
shall permanently affix a label to the vehicle in such a 
manner that, unless the label is riveted, it cannot be 
removed without being destroyed or defaced. The label 
shall be in addition to the label required by subsection 
(a) of this section , and shall be affixed to the vehicle in a 
location specified in subsection (c) of this section. 

(2) The label shall contain the following statement, 
in the English language, lettered in block capitals and 
numerals not less than three thirty-seconds of an inch 
high, with the location on the vehicle of the original 
manufacturer's identification number provided in the 
blank: ORIGINAL MANUFACTURER'S IDENTIF- 
ICATION NUMBER SUBSTITUTING FOR U.S. VIN 

IS LOCATED 

PART 571 [AMENDED] 

4. The authority citation for Part 571 would continue 
to read as follows: 

Authority: 15 U.S.C. 1392, 1401, 1403, 1407; delega- 
tion of authority at 49 CFR 1.50. 
571.115 [AMENDED] 

5. S.2 is revised by adding the words "or 49 CFR 
591" after the words "19 CFR 12.80(b)(l)(iii)." 

6. A new paragraph S4.9 is added to 571.115 to 
read as follows: 

S4.9(a) A passenger car imported into the United 
States under 19 CFR 12.80(b)( l)(iii) or 49 CFR Part 591 
shall retain any identification number affixed by the 
original manufacturer. 

(b) A vehicle described in (a) shall have a plate or 
label that contains the following statement in char- 



PART 567-PRE 94 



(c) The plate or label required by (b) shall be per- Barry Felrice 

manently affixed in a location that conforms to S4.6, in Associate Administrator for 

such manner as not to cover, obscure, or overlay any Rulemaking 
part of any identification number affixed by the 
original manufacturer, and shall conform to S4.7 and 

f^-^- ^ 54 F.R. 46253 

Issued on: October 26, 1989 ij«„«„k«, 2, 1989. 



PART 567-PRE 95-% 



(h) Multiple GVWR-GAWR ratings. 

(1) (For passenger cars only) In cases where 
different tire sizes are offered as a customer op- 
tion, a manufacturer may at his option list more 
than one set of values for GVWR and GAWK, in 
response to the requirements of paragraphs 
(g) (3) and (4) of this section. If the label shows 
more than one set of weight rating values, each 

value shall be followed by the phrase "with 

tires," inserting the proper tire size designa- 
tions. A manufacturer may at his option list one 
or more tire sizes where only one set of weight 
ratings is provided. 

Passenger Car Example 
GVWR: 

4400 LB with G78-14B Tires. 4800 LB with 
H78-14B Tires. 

GAWR: 

Front-2000 LB with G78-14B Tires at 24 psi, 
2200 LB with H78-14B Tires at 24 psi. 

Rear-2400 LB with G78-Tires at 28 psi, 2600 
LB with H78-14B Tires at 28 psi. 

(2) (For multipurpose passenger vehicles, 
trucks, buses, trailers, and motorcycles) The 
manufacturer may, at its option, list more than 
one GVWR-GAWR-tire-rim-combination on the 
label, as long as the list conforms in content and 
format to the requirements for tirerim-inflation 
information set forth in Standard No. 120 of this 
chapter (§ 571.120). 

(3) At the option of the manufacturer, addi- 
tional GVWR-GAWR ratings for operation of 
the vehicle at reduced speeds may be listed at the 
bottom of the certification label following any in- 
formation that is required to be listed. 

(i) Reserved 

(j) A manufacturer may, at his option, provide 
information concerning which tables in the docu- 
ment that accompanies the vehicle pursuant to 
§ 575.6(a) of this chapter apply to the vehicle. This 
information may not precede or interrupt the in- 
formation required by paragraph (g). 

(k) In the case of passenger cars admitted to the 
United States under 19 CFR 12.80(b) (1) to which 
the label required by this section has not been 
affixed by the original producer or assembler of the 
passenger car, a label meeting the requirements 



of this paragraph shall be affixed by the improter 
before the vehicle is imported into the United 
States, if the car is from a line listed in Appendix A 
of Part 541 of this chapter. This label shall be in ad- 
dition to, and not in place of, the label required by 
paragraphs (a) through (j), inclusive, of this part. 

(1) The label shall, unless riveted, be per- 
manently affixed in such a manner that it cannot 
be removed without destroying or defacing it. 

(2) The label shall be affixed to either the 
hinge pillar, door-latch post, or the door edge 
that meets the door-latch post, next to the 
driver's seating position, or, if none of these loca- 
tions is practicable, to the left side of the instru- 
ment panel. If that location is also not prac- 
ticalable, the label shall be affixed to the inward- 
facing surface of the door next to the driver's 
seating position. The location of the label shall be 
such that it is easily readable without moving any 
part of the vehicle except an outer door. 

(3) The lettering on the label shall be of a color 
that contrasts with the background of the label. 

(4) The label shall contain the following 
statements, in the English language, lettered in 
block capitals and numerals not less than three 
thirty-seconds of an inch high, in the order shown: 

(i) [Model year (if applicable) or year of 
manufacture and line of the vehicle, as 
reported by the manufacturer that produced 
or assembled the vehicle. "Model year" is used 
as defined in § 565.3(h) of this chapter. "Line" 
is used as defined in § 541.4 of this chapter. 54 
F.R. 46253— November 2, 1989. Effective: 
December 4, 1989)1 

(ii) Name of the importer: The full cor- 
porate or individual name of the importer of 
the vehicle shall be spelled out, except that 
such abbreviations as "Co." or "Inc." and 
their foreign equivalents and the middle initial 
of individuals, may be used. The name of the 
importer shall be preceded by the words "Im- 
ported By". 

(iii) The statement: "This vehicle con- 
forms to the applicable Federal motor vehicle 
theft prevention standard in effect on the date 
of manufacture." 
1(1) (1) In the case of a passenger car imported 
into the United States under 19 CFR 12.80(b)(l)(iii) 
or 49 CFR Part 591 which does not have an Iden- 



(Rev. 11/2/89) 



PART 567-3 



tification number that complies with paragraph 
S4.2, S4.3, and S4.7 of 49 DFR 571.115 at the 
time of importation, the Importer shall per- 
manently affix a label to the vehicle in such a 
manner that, unless the label is riveted, it cannot 
be removed without being destroyed or defaced. 
The label shall be in addition to the label required 
by subsection (a) of this section, and shall be af- 
fixed to the vehicle in a location specified in 
subsection (c) of this section. 

(2) The label shall contain the following state- 
ment, in the English language, lettered in block 
capitals and numerals not less than three thirty- 
seconds of an inch high, with the location on the 
vehicle of the original manufacturer's identifica- 
tion number provided in the blank: ORIGINAL 
MANUFACTURER'S IDENTIFICATION 
NUMBER SUBSTITUTING FOR U.S. VIN. IS 

LOCATED (54 F.R. 

46253— November 2, 1989. Effective: December 4, 
1989)] 



§ 567.5 Requirements for manufacturers of 
vehicles manufactured in two or 
more stages. 

(a) Except as provided in paragraph (e) of this 
section, each manufacturer of a chassis-cab shall 
affix a label to each chassis-cab manufactured on 
or after July 25, 1978, in the location and form 
specified in § 567.4, that contains the following 
statements, to the extent that they are applicable. 

(1) "This chassis-cab conforms to Federal Motor 

Vehicle Safety Standard Nos. ." 

The statement shall be completed by inserting the 
numbers of the safety standards {e.g., 101, 207) to 
which the chassis-cab conforms. 

(2) "This vehicle will conform to Standard Nos. 

if it is completed in accordance 

with the instructions contained in the incomplete 
vehicle document furnished pursuant to 49 CFR 
Part 568." The statement shall be completed by 
inserting the numbers of the safety standards con- 
formity to which is substantially affected by both 
the design of the chassis-cab and the manner in 
which the vehicle is completed (i.e., the standards 
listed under category (ii) in paragraph 568.4(a) (7) 
of this chapter). 

(3) "Conformity to the other safety standards 
applicable to this vehicle when completed is not 



substantially affected by the design of the 
chassis-cab." 

(4) Name of chassis-cab manufacturer pre- 
ceded by the words "CHASSIS-CAB 
MANUFACTURED BY" or "CHASSIS-CAB 
MFD BY". 

(5) Month and year of manufacture of chassis- 
cab. This may be spelled out, as in "June 1970", 
or expressed in numerals, as in "6/70". No 
preface is required. 

(b) Except as provided in paragraphs (e) and (f) 
of this section, each intermediate manufacturer 
of a vehicle manufactured in two or more stages 
shall affix a label, in the location and form 
specified in § 567.4, to each chassis-cab respec- 
ting which he is required by § 568.5 to furnish an 
addendum to the incomplete vehicle document 
described in § 568.4. However, this paragraph 
applies only to chassis-cabs that have been cer- 
tified by a chassis-cab manufacturer in accor- 
dance with paragraph (a) of this section. The 
label shall contain the following statements as 
appropriate: 

(1) (i) "With respect to Standard Nos. 
, the instructions of prior manufac- 
turers have been followed so that the chassis-cab 
now conforms to these standards." The state- 
ment shall be com-pleted by inserting the 
numbers of all or less than all of the standards, 
and only those standards, respecting which the 
latest prior certification statement was in the 
form prescribed in paragraphs (a) (2) or (b) (2) of 
this section. 

(ii) "This chassis-cab conforms to Federal 

Motor Vehicle Safety Standard Nos " 

The statement shall be completed by inserting 
the numbers of the other standards to which the 
chassis-cab conforms, excluding those standards 
respecting which the latest prior certification 
statement was in the form prescribed in 
paragraphs (a) (1), (b) (1) (i), or this paragraph. 

(2) "This vehicle will conform to Standard 

Nos. if it is completed in accordance 

with the instructions contained in the amended 
incomplete vehicle document furnished pursuant 
to 49 CFR Part 568." The statement shall be 
completed by inserting the numbers of the stand- 
ards conformity to which is substantially af- 
fected by both the design of the chassis-cab (as 
modified by the intermediate manufacturer) and 
the manner in which the vehicle is completed. 



(Rev. 11/2/89) 



PART 567-4 



(3) "Conformity to Standard Nos is 

no longer substantially affected by the design of 
this chassis-cab." The statement shall be com- 
pleted by inserting the numbers of all or less 
than all of the standards, and only those stand- 
ards, respecting which the latest prior certifica- 
tion statement was in the form prescribed in 
paragraphs (a) (1), (a) (2), (b) (1) (i), (b) (1) (B), or 

(b) (2) of this section. 

(4) Name of intermediate manufacturer, pre- 
ceded by the words "INTERMEDIATE 
MANUFACTURE BY" or "INTERMEDIATE 
MFR BY". 

(5) Month and year in which the intermediate 
manufacturer performed his last manu facturing 
operation on the chassis-cab. This may be spelled 
out, as "JUNE 1970", or expressed as numerals, 
as "6/70". No preface is required. 

(c) Except as provided in paragraphs (e) and (f) 
of this section, each final-stage manufacturer, as 
defined in § 568.3 of Title 49 of the Code of Federal 
Regulations, of a vehicle manufactured in two or 
more stages shall affix to each vehicle a label, of 
the type and in the manner and form described in 
§ 567.4 of this part, containing the following 
statements: 

(1) Name of final-stage manufacturer, pre- 
ceded by the words "MANUFACTURED BY" 
or "MFD BY". 

(2) Month and year in which final-stage 
manufacture is completed. This may be spelled 
out, as in "JUNE 1970", or expressed in 
numerals, as in "6/70". No preface is required. 

(3) Name of original manufacturer of the in- 
complete vehicle, preceded by the words "IN- 
COMPLETE VEHICLE MANUFACTURED 
BY" or "INC VEH MFD BY". This item and 
item (4) may be omitted in cases where the in- 
complete vehicle was a chassis-cab. 

(4) Month and year in which the original 
manufacturer of the incomplete vehicle per- 
formed his last manufacturing operation on 
the incomplete vehicle, in the same form as (2) 
above. 

(5) "GROSS VEHICLE WEIGHT 
RATING" or "GVWR", followed by the ap- 
propriate value in pounds, which shall not be 
less than the sum of the unloaded vehicle 
weight, rated cargo load, and 150 pounds 



times the vehicle's designated seating capacity. 
However, for school buses the minimum occupant 
weight allowance shall be 120 pounds. 

(6) "GROSS AXLE WEIGHT RATING" or 
"GAWR", followed by the appropriate value in 
pounds for each axle, identified in order from front 
to rear (e.g., front, first intermediate, second in- 
termediate, rear). The ratings for any consecutive 
axles having identical gross axle weight ratings 
when equipped with tires having the same tire size 
designation may be stated as a single value, with the 
label indicating to which axles the ratings apply. 

Examples of Combined Ratings 
GAWR: 

(a) All axles-4080 with 7.00-15 LT(D) tires. 

(b) Front- 12,000 with 10.00-20 (G) tires. 
First intermediate to rear— 15,000 with 

12.00-20 (H) tires. 
(7) [One of the following statements as ap- 
propriate. Statements (i),(ii), and (iii) are alter- 
native certification statements. Statement (i) 
may be used by manufacturers meeting the re- 
quirements described in the instruction portion 
of that paragraph. Statements (ii) and (iii) may 
be used by any final-stage manufacturer. 

(i) "Conformity of the chassis-cab to 
Federal Motor Vehicle Safety Standards, 
which have been previously fully certified by 
the incomplete vehicle manufacturer or in- 
termediate vehicle manufacturer, has not been 
affected by final-stage manufacture. The vehi- 
cle has been completed in accordance with the 
prior manufacturer's instructions, where ap- 
plicable. This vehicle conforms to all other 
applicable Federal Motor Vehicle Safety 
Standards in effect in (month, year)." 

The preceding statement shall be used only 
in cases in which the final-stage manufacturer 
has: (A) not affected conformity to standards 
compliance with which has been fully certified 
by a chassis-cab manufacturer pursuant to 
paragraph (a) (1) of this section or by an in- 
termediate manufacturer pursuant to para- 
graphs (b) (1) (i) or (b) (1) (ii) of this section, 
and (B) has completed the vehicle in accord- 
ance with the prior manufacturer's instruc- 
tions in regard to standards listed, as 
appropriate, in a chassis-cab manufacturer's 
conditional statement under paragraph (a) (2) 



(Rev. 11/ 



PART 567-5 



of this section or in an intermediate 
manufacturer's conditional statement under 
paragraph (b) (2) of this section. The date 
shown in the third sentence of the statement 
shall be not earlier than the manufacturing 
date of the incomplete vehicle, and not later 
than the date of completion of final-stage 
manufacture. 

(ii) "Conformity of the chassis-cab to 
Federal Motor Vehicle Safety Standards 

Nos. has not been affected 

by final stage manufacture. With respect to 

Standards Nos. , the vehicle 

has been completed in accordance with the 
prior manufacturer's instructions. This vehi- 
cle conforms to all other applicable Federal 
Motor Vehicle Safety Standards in effect in 
(month, year)." 

The first sentence of the preceding state- 
ment shall be completed by inserting the 
numbers of all or less than all of the stan- 
dards, and only those standards, respecting 
which the latest prior certification statement 
was made by a chassis-cab manufacturer 
pursuant to paragraph (a) (1) of this section 
or by an intermediate manufacturer pur- 
suant to paragraphs (b) (1) (i) or (b) (1) (ii) of 
this section. The second sentence of the 
statement shall be completed by inserting 
the numbers of all or less than all of the stan- 
dards and only those standards, respecting 
which the latest prior certification statement 
was a chassis-cab manufacturer's condi- 
tional statement under paragraph (a) (2) of 
this section or an intermediate manufac- 
turer's conditional statement under 
paragraph (b)(2) of this section. The date 
shown in the third sentence of the statement 
shall be not earlier than the manufacturing 
date of the incomplete vehicle, and not later 
than the date of completion of final-stage 
manufacture. 

(iii) "This vehicle conforms to all ap- 
plicable Federal Motor Vehicle Safety Stan- 
dards in effect in (month, year)." 

The date shown shall be not earlier than the 
manufacturing date of the incomplete vehicle 
and not later than the date of completion of 
final-stage manufacture. (48 F.R. 51308— 
November 8, 1983. Effective: November 8, 1983)1 



(8) Vehicle identification number. 

(9) The type classification of the vehicle as 
defined in § 571.3 of Title 49 of the Code of 
Federal Regulations {e.g., truck, MPV, bus, 
trailer). 

(d) More than one set of figures for GVW^R and 
GAWK, and one or more tire sizes, may be listed in 
satisfaction of the requirements of paragraphs 
(c) (5) and (6) of this section, as provided in 
§ 567.4(h). 

(e) If an incomplete vehicle manufacturer 
assumes legal responsibility for all duties and 
liabilities imposed by the Act, with respect to the 
vehicle as finally manufactured, the incomplete 
vehicle manufacturer shall ensure that a label is af- 
fixed to the final vehicle in conformity with 
paragraph (c) of this section, except that the name 
of the incomplete vehicle manufacturer shall ap- 
pear instead of the name of the final-stage 
manufacturer after the words "MANUFAC- 
TURED BY" or "MFD BY" required by sub- 
paragraph (c)(1) of this section, the additional 
manufacturer's name required by subparagraph 
(c) (3) of this section shall be omitted, and the date 
required by subparagraph (c) (4) of this section 
shall be preceded by the words "INCOMPLETE 
VEHICLE MANUFACTURED" or "INC VEH 
MFD." 

(f) If an intermediate manufacturer of a vehicle 
assumes legal responsibility for all duties and 
liabilities imposed on manufacturers by the Act, 
with respect to the vehicle as finally manufactured, 
the intermediate manufacturer shall ensure that a 
label is affixed to the final vehicle in conformity 
with paragraph (c) of this section, except that the 
name of the intermediate manufacturer shall ap- 
pear instead of the name of the final-stage 
manufacturer after the words "MANUFAC- 
TURED BY" or "MFD BY" required by sub- 
paragraph (c) (1) of this section. 



§ 567.6 Requirements for persons who do not alter 
certified vehicles or do so with readily at- 
tachable components. 

A person who does not alter a motor vehicle or 
who alters such a vehicle only by the addition, 
substitution, or removal of readily attachable com- 
ponents such as mirrors or tire and rim assemblies. 



(Rev. 3/24/80) 



or minor finishing operations such as painting, in 
such a manner that the vehicle's stated weight 
ratings are still valid, need not affix a label to the 
vehicle, but shall allow a manufacturer's label that 
conforms to the requirements of this part to re- 
main affixed to the vehicle. If such a person is a 
distributor of the motor vehicle, allowing the 
manufacturer's label to remain affixed to the vehi- 
cle shall satisfy the distributor's certification 
requirements under the Act. 

§ 567.7 Requirements for persons who alter certi- 
fied vehicles. 

A person who alters a vehicle that has previously 
been certified in accordance with § 567.4 or 
§ 567.5, other than by the addition, substitution, or 
removal of readily attachable components such as 
mirrors or tire and rim assemblies, or minor 
finishing operations such as painting, or who alters 
The vehicle in such a manner that its stated weight 
ratings are no longer valid, before the first pur- 
chase of the vehicle in good faith for purposes 
other than resale, shall allow the original certifica- 
tion label to remain on the vehicle, and shall affix 
to the vehcile and additional label of the type and in 
the manner and form described in § 567.4, contain- 
ing the following information: 

(a) [The statement: "This vehicle was altered by 
(individual or corporate name) in (month and year 
in which alterations were completed) and as 



altered it conforms to all applicable Federal Motor 
Vehicle Safety Standards affected by the altera- 
tion and in effect in (month, year)."] The second 
date shall be no earlier than the manufacturing 
date of the original vehicle, and no later than the 
date alterations were completed. However, in the 
case of passenger cars, the expression "and 
bumper"-(45 F.R. 18928— March 24, 1980. Effec- 
tive: March 24, 1980) 

(1) May, at the option of the manufacturer, be 
included in the statement following the word 
"safety"; and 

(2) Shall be included in the statement follow- 
ing the word "safety" in the case of passenger 
cars manufactured on or after September 1, 
1978. 

(b) If the gross vehicle weight rating or any of 
the gross axle weight ratings of the vehicle as 
altered are different from those shown on the 
original certification label, the modified values 
shall be provided in the form specified in 
§ 567.4(g) (3) and (4). 

(c) If the vehicle as altered has a different type 
classification from that shown on the original 
certification label, the type as modified shall be 
provided. 



36 F.R. 7054 
April 14, 1971 



PART 567-7-8 



PREAMBLE TO AN AMENDMENT TO PART 575— CONSUMER INFORMATION 

Vehicle Owner's Manual 

(Docket No. 88-13; Notice 2) 

BIN 2127-AC72 

ACTION: Final Rule. 



SUMMARY: This final rule amends the Consumer 
Information Regulations to require vehicle manufac- 
turers to include information in the owner's manual 
for each vehicle about NHTSA's toll-free Auto Safety 
Hotline and its defect investigation and remedy and 
recall authority. This requirement will allow 
NHTSA to obtain more information, more expedi- 
tiously about potential safety-related defects and 
noncompliances with safety standards. 

EFFECTIVE DATE: September 1, 1990. 

SUPPLEMENTARY INFORMATION: 

Background 
On May 26, 1987, Motor Voters, a consumer organ- 
ization interested in motor vehicle safety, petitioned 
the agency to require manufactur3rs of passenger 
vehicles to include information about NHTSA in the 
vehicle owners' manuals. Specifically, the petitioner 
requested that the agency require information ad- 
vising owners about NHTSA's safety defect author- 
ity and urging them to contact the agency about 
potential safety defects in their vehicles. To facilitate 
contacting the agency, the petitioner requested that 
the agency require manufacturers to include the 
toll-free telephone number of the Auto Safety Hot- 
line and the agency's address. The petitioner sug- 
gested that the message explain that while the 
agency has authority to investigate defects and 
order recall and remedy campaigns, it does not 
become directly involved in the dealings of a partic- 
ular consumer with a manufacturer of a motor 
vehicle regarding a defect in that vehicle. 

Notice of Proposed Rulemaking 
In response to the petition, on November 10, 1988, 
NHTSA published a notice of proposed rulemaking 
(NPRM) proposing to amend title 49 CFR Part 575, 
Consumer Information Regulations. (53 PR 45527). 
The NPRM explained that the National Traffic and 
Motor Vehicle Safety Act ("Vehicle Safety Act." 15 
U.S.C. 1381 et seg. ) requires manufacturers of motor 
vehicles and motor vehicle equipment to recall and 
remedy vehicles and equipment that are determined 



by the manufacturer or NHTSA to contain either a 
safety-related defect or a failure to comply with a 
Federal motor vehicle safety standard issued under 
the Vehicle Safety Act. The NPRM further noted 
that the agency's most important source of data used 
to identify defects which relate to motor vehicle 
safety is the consumer complaints made by persons 
calling the agency's toll-free Auto Safety Hotline. In 
1987, the agency received 332,659 calls on the Hot- 
line, of which 75 percent concerned alleged defects or 
recall information. In addition, over 15,092 of these 
Hotline callers followed by up completing and re- 
turning to NHTSA detailed Vehicle Owner Ques- 
tionnaires which were mailed by the agency to 
callers reporting defects and seeking recall informa- 
tion. The NPRM also noted that a longstanding 
agency goal is to enhance publication of the Auto 
Safety Hotline and to improve the process of getting 
information from consumers about potential safety 
defects. The NPRM explained the agency's plans to 
publicize the Hotline through public service an- 
nouncements in the media, through consumer and 
corporate safety offices, in telephone books, and 
through programs with State transportation agencies. 
NHTSA tentatively concluded that the inclusion 
of the requested information in each owner's manual 
would be an important addition to NHTSA's public 
information campaign to increase consumer aware- 
ness of the Hotline and the agency's efforts to 
strengthen its defect investigation activities. The 
agency stated its tentative belief that including the 
Hotline number in owners' manuals would put that 
number in the hands of millions of motor vehicle 
purchasers at virtually no additional cost. Moreover, 
the NPRM noted that since owners typically refer to 
their manuals periodically throughout the owner- 
ship of their vehicles, especially when they are 
experiencing vehicle problems, the Hotline number 
printed in the manuals would be seen many times. 
The agency stated that inclusion of the Hotline 
number in manuals would be particularly important 
for new car owners, since it would produce a higher 
volume of calls about potential safety defects earlier 
in a vehicle's life. The agency believed that this 



PART 575; PRE 155 



would be particularly important to detect defects in 
newly introduced models. 

The NPRM accordingly proposed to amend section 
575.6 of the Consumer Information Regulations to 
require motor vehicle manufacturers to include in- 
formation about NHTSA's recall and remedy author- 
ity and about the Auto Safety Hotline in the owner's 
manual. The agency proposed requiring that all new 
motor vehicles, not just "passenger vehicles," be 
subject to the proposed amendment. The agency 
explained that facilitating owner reporting of poten- 
tial safety defects would be important for all types of 
motor vehicles. The agency also made minor 
changes in the information requirements requested 
in the petition. 

The proposed amendment required a manufac- 
turer to state in each owner's manual that consum- 
ers may contact NHTSA if they believe that their 
vehicle contains a safety defect. The proposed 
amendment also required that the manuals include 
the toll-free Hotline telephone number and agency 
address. Finally, the proposed amendment required 
that manufacturers include in the manuals a state- 
ment about the agency's authority to order a safety 
recall if it finds that a safety defect exists in a group 
of vehicles. 

Comments and The Agency's Response 
NHTSA received 24 comments in response to the 
NPRM. Commenters included 15 automotive manu- 
facturers and automotive affiliates; four academic, 
medical, and insurance groups; and five consumers 
and consumer organizations. The agency considered 
all these comments in developing this final rule. 

General Comments 

American Honda, American Insurance Associa- 
tion (AIA), Cagiva Motorcycle of North America, 
Children's Mercy Hospital, the National Consumers 
League (NCL), the University of Maryland's Center 
for Business and Public Policy, US Public Interest 
Research Group ("US Pirg"), and several citizens 
favored the proposal. US Pirg stated that the pro- 
posal would be a cost-effective and efficient way to 
improve consumer awareness of the Hotline. NCL 
commented that this measure would further the 
agency's need to receive information about safety 
defects so that the agency can protect the consumer. 

On the other hand, Chrysler, Ford, General Motors 
(GM), General Tire, Mercedes, Michelin, the Motor 
Vehicle Manufacturers Association (MVMA), the 
National Automobile Dealers Association (NADA), 
Navistar, Volkswagen and Volvo opposed the pro- 
posal. NADA stated that there was no need for the 
rule and suggested NHTSA reevaluate the proposal. 
MVMA similarly commented that there was no 
safety need for this requirement. Ford, Michelin, 



MVMA, Chrysler, General Tire, GM, and Volkswa- 
gen elaborated that the proposal was unnecessary, 
might adversely affect customer manufacturer rela- 
tions, delay corrective action, and overburden the 
agency's resources to respond to calls. Mercedes 
stated that the proposal would give consumers the 
false impression that they could receive immediate 
action related to their problems and that resolution 
of the problem would be delayed. Volvo commented 
that the rule would not be in the best interests of the 
vehicle owners, who would be better served by con- 
tacting the manufacturer rather than NHTSA. 

Upon considering these comments in light of cur- 
rent trends in consumer awareness, NHTSA con- 
cludes that the benefits of increasing the availability 
of information about consumer remedies support the 
inclusion of information about the agency in the 
owner's manuals. Calls to the Hotline decreased 
from about 332,000 in 1987 to 252,000 in 1988, a 
reduction of about 24 percent. In turn, receipt of 
Vehicle Owner's Questionnaires decreased from 
about 15,000 in 1987 to about 12,000 in 1988. The 
agency believes that this new information will in- 
crease consumer awareness about the Hotline and 
the agency's defect investigation activities, espe- 
cially for newly introduced models, and thus will 
improve the agency's information about potential 
safety defects and noncompliances. The agency is 
accordingly adopting the proposals. The increased 
dissemination of information about NHTSA will 
enable the agency to identify, investigate, and re- 
solve potential problems more rapidly, because the 
agency will have a more extensive and more timely 
data base for analyzing owners' experiences with a 
given problem. 

Chrysler, MVMA, and Volkswagen disagreed with 
the statement in the NPRM that the Hotline was the 
agency's most important source of data used to 
identify safety-related defects. Although the com- 
menters are correct in noting that many recalls are 
initiated by manufacturers based on their own tests 
and field evaluations, the statement referred to 
NHTSA's own investigations, which continue to in- 
fluence a high percentage of the total vehicles re- 
called and which rely heavily on consumer contacts 
through the Hotline. 

Message's Language 
The NPRM proposed to require the following mes- 
sage in the owner's manual: 

If you believe that a vehicle or item of motor 
vehicle equipment (such as tires, lamps, etc.) 
has a potential safety-related defect, you may 
notify the National Highway Traffic Safety Ad- 
ministration (NHTSA). You may either call toll 
free at 800-424-9393 (or 366-0123 in Washing- 
ton, D.C.) or write Administrator, NHTSA, 400 



PART 575; PRE 156 



Seventh Street, S.W., Washington D.C. 20590. 
NHTSA investigates alleged safety-related de- 
fects and may order a recall and remedy cam- 
paign if it finds that a safety defect exists in a 
group of vehicles and the manufacturer does not 
voluntarily conduct a recall and remedy cam- 
paign. However, NHTSA does not become di- 
rectly involved in the dealings between a partic- 
ular consumer and a vehicle manufacturer 
regarding a defect in the consumer's vehicle. 
Mercedes and other manvifacturers commented 
that this proposed language would hinder their 
relationship with their customers by delaying the 
correction of vehicle problems and by providing the 
unrealistic expectation that NHTSA can remedy the 
problem. According to these commenters, a con- 
sumer should contact the manufacturer before con- 
tacting the agency because the manufacturer is in a 
better position to actually remedy a safety related 
defect. 

In response to this comment, NHTSA iterates that 
requiring this message will help to publicize the 
Auto Safety Hotline and NHTSA's related activities. 
The agency believes that NHTSA might lose valu- 
able information from owners if the message did not 
initially focus on the agency's information collection 
responsibilities. For instance, in order for NHTSA to 
react quickly to reports of a defect trend, it is 
necessary for the agency to receive the information 
as soon as possible. The agency believes that this 
invitation for early consumer communication to 
NHTSA will also encourage manufacturers to act 
quickly to address consumer concerns. The agency 
further notes that even if NHTSA is contacted first, 
a manufacturer still will become aware of a problem 
because the agency will notify them about these 
complaints. 

NHTSA nevertheless agrees with the commenters 
that the public should be instructed to also contact 
the manufacturer. Therefore, the agency has revised 
the message to state that a consumer should also 
contact the manufacturer or its designate (e.g., its 
authorized dealer) to resolve safety-related or other 
problems with the vehicle. In addition, the final rule 
explains NHTSA's authority and limitations more 
clearly. NHTSA believes that these modifications 
will increase the effectiveness of the message. 

The agency emphasizes that NHTSA's message is 
mandatory, and thus a manufacturer cannot modify 
or otherwise vary it. Nevertheless, the agency notes 
that a manufacturer may place additional language 
elsewhere in the owner's manual encouraging a 
vehicle owner to contact them, provided that this 
additional information is not included in the mes- 
sage required by NHTSA and does not otherwise 
dilute the content of the required message. 

GM suggested that the message be written in a 



"plain English" style. After reexamining the propos- 
al's wording, NHTSA agrees with GM that to in- 
crease the final rule's effectiveness, the message 
should be written in an easily understood style. 
Accordingly, the final rule adopts more simplified 
wording whenever such wording does not misstate 
the legalities or realities of NHTSA's defect investi- 
gation and recall and remedy program. 

Volkswagen commented that listing examples of 
equipment would result in consumers overreporting 
those items of equipment. In response to this com- 
ment, NHTSA has decided to eliminate these exam- 
ples in the required message. The agency agrees 
with Volkswagen that including examples might 
bias the reporting and thus provide an inaccuiate 
record of overall complaints about equipment. Ac- 
cordingly, the final rule deletes reference to "tires, 
lamps, etc." 

Several commenters noted that the proposed mes- 
sage should include more information than the 
NPRM proposed. The American Insurance Associa- 
tion (ALA) and Gillis and Associates stated that the 
final rule should contain information about other 
NHTSA activities such as drunk driving and odom- 
eter fraud. The NCL commented that NHTSA 
should expand the message to inform consumers 
that they should contact other consumer organiza- 
tions such as the Better Business Bureau. NADA 
suggested that the required message should state 
that consumers should initially refer to the war- 
ranty booklet's section concerning dispute resolu- 
tion and then contact the manufacturer. 

After reviewing these comments, NHTSA has de- 
cided to include a general statement that a con- 
sumer can "get other information about motor vehi- 
cle safety from the Hotline." Nevertheless, the 
agency believes that the final rule should not in- 
clude detailed information about NHTSA's other 
consumer protection matters. The agency notes that 
the principal purpose of this rule is to disseminate 
information about the Auto Safety Hotline and 
NHTSA's defect investigation authority which will 
lead to the increased reporting of potential safety 
defects and noncompliances with safety standards. 
The agency further notes that the rule is not in- 
tended as an all-encompassing source of consumer 
information. NHTSA believes that if the message 
were required to address all the agency's activities 
and consumer protection, then the most important 
information about this rulemaking (the Hotline and 
NHTSA's defect investigation authority) would be 
obscured. 

The agency notes that upon contacting the Auto 
Safety Hotline, the caller will receive information about 
NHTSA's other activities. As for consumer protection 
information (e.g., warranty information), NHTSA notes 



PART 575; PRE 157 



that this type of activity is beyond the agency's statutory 
mandate. 



Applicability of Requirement 
Motor Voter's petition requested that NHTSA re- 
quire "passenger vehicle manufacturers" to include 
information about the Hotline and the agency's 
defect investigation authority. The NPRM expanded 
the applicability of this requirement to "all new 
motor vehicles," reasoning that "facilitating owner 
reporting of potential safety defects is important for 
all types of motor vehicles." 

US Pirg agreed with NHTSA's decision to expand 
the requirement's applicability to all motor vehicles. 
The Truck Trailer Manufacturers Association 
(TTMA) commented that the rule would create prob- 
lems for small truck trailer manufacturers, some of 
which currently do not provide an owner's manual. 
After reviewing these comments, NHTSA con- 
cludes that the final rule should be applicable to all 
motor vehicles, because any vehicle type may expe- 
rience a safety-related defect. However, to accommo- 
date a manufacturer that does not provide an 
"owner's manual," as defined in section 572.2(c) of 
the final rule, the rule provides that the manufac- 
turer may provide the information in a separate 
one-page document to be included with the sales 
documents. In other words, a manufacturer must 
include the required information in the owner's 
manual if it provides one, or in a separate document 
if it provides no manual. 

Placement of Information 

The NADA suggested that a manufacturer be 
given the option of including the required informa- 
tion in the warranty booklet rather than in the 
owner's manual, claiming that consumers would 
more likely look in the warranty booklet for assis- 
tance with defect matters. GM stated that the man- 
ufacturer was in the best position to determine 
placement of the required information, suggesting 
that this information be placed in its "Warranty and 
Owner Assistance Information" booklet. GM stated 
that a manufacturer should not be required to place 
this information in the owner's manual. 

After reviewing these comments, NHTSA has de- 
termined that the manufacturer must include this 
information in the owner's manual. The agency 
believes that requiring the information to be placed 
in the owner's manual will promote uniformity 
among manufacturers. In addition, NHTSA notes 
that placing the information in the warranty book 
would be less effective because the warranty lasts for 
a finite time (often much less than the life of the 
vehicle), after which a vehicle owner would have 
little reason to retain the book. In contrast, many 
manufacturers state in the owner's manual that this 



document should stay with the vehicle for its life, 
even if it is sold. Thus, it is more likely that a vehicle's 
owner or owners will retain the owner's manual for a 
longer time period than the warranty booklet. The 
agency notes that a manufacturer may place this 
information in any additional document provided that 
it includes this information in the owner's manual. 

The agency is aware that manufacturers refer to 
such documents by many terms, including "Owner's 
Guide," "Owner's Handbook," or "Operating In- 
structions." Accordingly, the final rule expressly 
defines an "owner's manual" in section 575.2(c) as 
"the document which contains the manufacturer's 
comprehensive vehicle operating [and maintenance] 
instructions, and which is intended to remain with 
the vehicle for the life of the vehicle." 

Several organizations commented about the place- 
ment of this information within the owner's manual. 
Volvo Truck stated that a manufacturer should have 
discretion about where it places the information. 
Volkswagen stated that this information be placed 
near the information on customer assistance. Gillis 
and the Center for Business and Policy did not 
suggest a specific location in the manual but noted 
that the agency should require that a manufacturer 
refer to it in the table of contents. US Pirg suggested 
that the agency require the information to be placed 
in a prominent location such as the front or back 
cover to prevent a manufacturer from "bury(ing)" it. 
NCL stated that the agency should specify the 
location to reduce reporting discrepancies. It sug- 
gested in order of preference that the information be 
placed opposite the first page of the table of contents, 
on the inside front cover, in the text preceding the 
maintenance schedule, or on the inside back cover 

After reviewing these comments, NHTSA agrees 
with Volvo Truck that a manufacturer should be given 
discretion about where it places the information. The 
agency believes that requiring the table of contents to 
include reference to the Hotline will adequately en- 
sure that vehicle owner's will see this information. 
Accordingly, section 575.6(aX2XB) of the final rule also 
requires that the table of contents in the owner's 
manual specify the location of the information about 
NHTSA. In particular, the heading must be entitled 
"Reporting Safety Defects" and include the corre- 
sponding page number to effectively alert consumers 
and to provide uniformity as to the heading. 

Two commenters offered their views on the type 
size. Volvo GM Heavy Truck requested that the type 
size be left to the manufacturer's discretion. NCL 
commented that the rule should specify a minimum 
point size for the type. It further stated that NHTSA 
should specify a minimum amount of space not less 
than one-half page for this information. 

NHTSA has concluded that to be easily readable 
the required message must be written in letters and 



PART 575; PRE 158 



numbers not smaller than 10 point type, and has 
incorporated that requirement in the final rule. The 
agency notes that the point type size is consistent 
with the labeling requirements in S5.5.2 of Standard 
No. 213. The agency concludes that it is superfluous 
to specify a minimum page length because the final 
rule specifies the type size and the message itself. 

Effective Date 

The NPRM proposed that the rule would become 
effective "180 days after the publication of the final 
rule." Several manufacturers requested that the 
effective date coincide with the start of the model 
year to avoid unnecessary costs that would result in 
reprinting manuals during the middle of a model 
year. American Honda suggested that the effective 
date coincide with the change in model year. Volvo 
GM Heavy Truck requested that the effective date be 
changed to "January 1, or at the option of the 
manufacturer, the time of model year change-over." 
Cagiva, which changes its motorcycle models every 
two to four years, requested an effective date that 
would "allow us adequate lead time to incorporate 
the regulatory language" at the start of its model 
run. Chrysler recommended an effective date of the 
"first day of September occurring 180 days after 
publication of the final rule." Navistar requested an 
effective date of 270 days after the final rule's 
publication. US Pirg noted that the agency should 
"act promptly." 

After reviewing these comments, NHTSA deter- 
mines that the effective date will be September 1, 
1990, which typically is the beginning of a model 
year for most vehicles. The agency believes that this 
effective date will allow the timely inclusion of this 
information at little or no cost to the manufacturers. 

Cagiva requested that the final rule allow it to 
exhaust its supply of already printed manuals, ex- 
plaining that its model runs may extend up to four 
years. A manufacturer whose models run for more 
than one year may comply with the final rule by 
placing an add-on-sticker on its existing manuals, 
until this supply is exhausted. The agency believes 
that this will ensure that consumers receive the 
information while minimizing the costs related to 
this rule for manufacturers like Cagiva. 

Section 575.2(c) is amended by adding the follow- 
ing definition of "Owner's manual" after the defini- 
tion for "Maximum loaded vehicle weight" and 
before the definition for "Skid number": 



operating and maintenance instructions, and which 
is intended to remain with the vehicle for the life of 
the vehicle. 

***** 
Section 575.6(a) is revised by redesignating the 
existing language as Section 575.6(aXl), and adding 
a new Section 575.6(aX2), to read as follows: 

§575.6 Requirements. 
(aXl) * * * 

(2XA) At the time a motor vehicle manufactured 
on or after September 1, 1990 is delivered to the first 
purchaser for purposes other than resale, the man- 
ufacturer shall provide to the purchaser, in writing 
in the English language and not less than 10 point 
type, the following statement in the owner's man- 
ual, or, if there is no owner's manual, on a one-page 
document: 

"If you believe that your vehicle has a defect 
which could cause a crash or could cause injury 
or death, you should immediately inform the 
National Highway Traffic Safety Administra- 
tion (NHTSA) in addition to notifying [INSERT 
NAME OF MANUFACTURER]. 
If NHTSA receives similar complaints, it may 
open an investigation, and if it finds that a 
safety defect exists in a group of vehicles, it may 
order a recall and remedy campaign. However, 
NHTSA cannot become involved in individual 
problems between you, your dealer, or [INSERT 
NAME OF MANUFACTURER.] 
lb contact NHTSA, you may either call the Auto 
Safety Hotline toll-free at 1-800-424-9393 (or 
366-0123 in the Washington D.C. area) or write 
to: NHTSA, U.S. Department of Transportation, 
Washington, D.C. 20590. You can also obtain 
other information about motor vehicle safety 
from the Hotline." 

(2XB) The manufacturer shall specify in the table 
of contents of the owner's manual the location of the 
statement in 575.6(aX2XA). The heading in the table 
of contents shall state "Reporting Safety Defects." 

* * 4: * * 

Issued on: November 21, 1989 



(c) Definitions used in this part 
***** 

"Owner's manual" means the document which 
contains the manufacturer's comprehensive vehicle 



Jeffrey R. Miller 
Acting Administrator 

54 F.R. 48745 
November 27, 1989 



PART 575; PRE 159-160 



PART 575— CONSUMER INFORMATION 



SUBPART A-GENERAL 
§ 575.1 Scope. 

This part contains Federal Motor Vehicle Con- 
sumer Information Regulations established under 
section 112(d) of the National Traffic and Motor 
Vehicle Safety Act of 1966 (15 U.S.C. 1401(d)) 
(hereinafter "the Act"). 

§ 575.2 Definitions. 

(a) Statutory definitions. All terms used in this 
part that are defined in section 102 of the Act are 
used as defined in the Act. 

(b) Motor Vehicle Safety Standard definitions. 
Unless otherwise indicated, all terms used in this 
part that are defined in the Motor Vehicle Safety 
Standards, Part 571 of this subchapter (herein- 
after "The Standards") are used as defined in the 
Standards without regard to the applicability of a 
standard in which a definition is contained. 

(c) Definitions used in this part. 

"Brake power unit" means a device installed in a 
brake system that provides the energy required to 
actuate the brakes, either directly or indirectly 
through an auxiliary device, with the operator 
action consisting only of modulating the energy 
application level. 

"Lightly loaded vehicle weight" means— 

(1) For a passenger car, unloaded vehicle 
weight plus 300 pounds (Including driver and 
instrumentation), with the added weight 
distributed in the front seat area. 

(2) For a motorcycle, unloaded vehicle weight 
plus 200 pounds (including driver and instrumen- 
tation), with added weight distributed on the 
saddle and in saddle bags or other carrier. 

"Maximum loaded vehicle weight" is used as 
defined in Standard No. 110. 

"Maximum sustained vehicle speed" means 
that speed attainable by accelerating at 
maximum rate from a standing start for 1 mile. 



["Owner's manual" means the document which 
contains the manufacturer's comprehensive vehi- 
cle operating and maintenance instructions, 
and which is intended to remain with the vehicle 
for the life of the vehicle. 54 F.R. 48745— November 
27, 1989. Effective: September 1, 1990).) 

"Skid number" means the frictional resistance 
measured in accordance with American Society for 
Testing and Materials Method E-274 at 40 miles 
per hour, omitting water delivery as specified in 
paragraph 7.1 of that Method. 

§ 575.3 Matter Incorporated by reference. 

The incorporation by reference provisions of 
§ 571.5 of this subchapter applies to this part. 

§ 575.4 Application. 

(a) General. Except as provided in paragraphs 
(b) through (d) of this section, each section set forth 
in Subpart B of this part applies according to its 
terms to motor vehicles and tires manufactured 
after the effective date indicated. 

(b) Military vehicles. This part does not apply 
to motor vehicles or tires sold directly to the 
Armed Forces of the United States in conformity 
with contractural specifications. 

(c) Export. This part does not apply to motor 
vehicles or tires intended solely for export and so 
labeled or tagged. 

(d) Import. This part does not apply to motor 
vehicles or tires imported for purposes other than 
resale. 

§ 575.5 Separability. 

If any section established in this part or its ap- 
plication to any person or circumstances is held in- 
valid, the remainder of the part and the application 
of that section to other persons or circumstances is 
not affected thereby. 



PART 575-1 



§ 575.6 Requirements. 

(a)(1) At the time a motor vehicle is dehvered to 
the first purchaser for purposes other than resale, 
the manufacturer of that vehicle shall provide to 
that purchaser, in writing and in the English 
language, the information specified in §§ 575.103 
and 575.104 of this part that is applicable to that 
vehicle and its tires. The document provided with a 
vehicle may contain more than one table, but the 
document must either (1) clearly and uncondi- 
tionally indicate which of the tables apply to the 
vehicle with which it is provided, or (2) contain a 
statement on its cover referring the reader to the 
vehicle certification label for specific information 
concerning which of the tables apply to that vehi- 
cle. If the manufacturer chooses option (2), the 
vehicle certification label shall include such specific 
information. 

Example 1: Manufacairer X furnishes a document 
containing several tables, which apply to various 
groups of vehicles that it produces. The docimient 
contains the following notation on its front page: 
"The information that applies to this vehicle is 
contained in Table 5." The notation satisfies the re- 
quirement. 

Example 2: Manufacturer Y furnishes a document 
containing several tables as in Example 1, with the 
following notation on its front page: 
Information applies as follows: 
Model P. 6-cylinder engine— Table 1. 
Model P. 8-cylinder engine—Table 2. 
Model Q-Table 3. 



This notation does not satisfy the requirement, since 
it is conditioned on the model or tha equipment of the 
vehicle with which the document is furnished, and 
therefore additional information is required to select 
the proper table. 

(b) At the time a motor vehicle tire is delivered 
to the first purchaser for a purpose other than 
resale, the manufacturer of that tire, or in the case 
of a tire marketed under a brand name, the brand 
name owner, shall provide to that purchaser the 
information specified in Subpart B of this part that 
is applicable to that tire. 

(c) Each manufacturer of motor vehicles, each 
brand name owner of tires, and each manufacturer 
of tires for which there is no brand name owner 
shall provide for examination by prospective 
purchasers, at each location where its vehicles or 
tires are offered for sale by a person with whom 
the manufacturer or brand name owner has a con- 
tractual, proprietary, or other legal relationship, 
or by a person who has such a relationship with a 
distributor of the manufacturer or brand name 
owner concerning the vehicle or tire in question, 
the information specified in Subpart B of this part 
that is applicable to each of the vehicles or tires 
offered for sale at that location. The information 
shall be provided without charge and in sufficient 
quantity to be available for retention by prospec- 
tive purchasers or sent by mail to a prospective 
purchaser upon his request. With respect to newly 
introduced vehicles or tires, the information shall 
be provided for examination by prospective 
purchasers not later than the day on which the 



This ligure indicates brakine performance that can be met or exceeded by the vehicles to which it applies 
conditions ol loading and with partial lailures ol the braking system. The information presented represent 
controlled road and vehicle conditions, and the information may not be correct under other conditions. 


. without locking the wheels, under different 
results obtainable by skilled drivers under 


Description of vehicles to which this table applies 


A Fully Operalionat Service Brake Load 

Light 
IVIaximum 

B Emergency Service Brakes (with Par 
tial Service Brake System Failure) 

C Brake Power Unit Failure 

Maximum Load 


































100 200 

Stopping Distance in Feet (r 


300 400 500 
am 60 mph. 



PART 575-2 



manufacturer or brand name owner first 
authorizes those vehicles or tires to be put on 
general public display and sold to consumers. 

(d) (1) (i) Except as provided in paragraph 
(d) (1) (ii) of this section in the case of all sections of 
Subpart B, other than § 575.104, as they apply to 
information submitted prior to new model intro- 
duction, each manufacturer of motor vehicles shall 
submit to the Administrator 10 copies of the infor- 
mation specified in Subpart B of this part that is 
applicable to the vehicles offered for sale, at least 
90 days before it is first provided for examination 
by prospective purchasers pursuant to paragraph 
(c) of this section. (2) In the case of § 575.104, and 
all other sections of Subpart B as they apply to 
post-introduction changes in information sub- 
mitted for the current model year, each manufac- 
turer of motor vehicles, each brand name owner of 
tires, and each manufacturer of tires for which 
there is no brand name owner shall submit to the 
Administrator 10 copies of the information 
specified in Subpart B of this part that is applicable 
to the vehicles or tires offered for sale, at least 30 
days before that information is first provided for 
examination by prospective purchasers pursuant 
to paragraph (c) of this section. 

(ii) Where an unforeseen pre-introduction 
modification in vehicle design or equipment 
results in a change in vehicle performance for a 
characteristic included in Subpart B of this part, 
a manufacturer of motor vehicles may revise in- 
formation previously furnished under (d) (1) (i) 
of this section by submission to the Admin- 
istrator of 10 copies of revised information 
reflecting the performance changes, at least 30 
days before information on the subject vehicles 
is first provided to prospective purchasers pur- 
suant to paragraph (c) of this section. 
(2) In the case of § 575.104, and all other sec- 
tions of Subpart B as they apply to post- 
introduction changes in information submitted 
for the current model year, each manufacturer of 
motor vehicles, each brand name owner of tires, 
and each manufacturer of tires for which there is 
no brand name owner shall submit to the Admin- 
istrator 10 copies of the information specified in 
Subpart B of this part that is applicable to the 
vehicles or tires offered for sale, at least 30 days 
before it is first provided for examination by pro- 
spective purchasers pursuant to paragraph (c) of 
this session. 



[(2)(A) At the time a motor vehicle manufatured 
on or after September 1, 1990 is delivered to the 
first purchaser for purposes other than resale, the 
manufacturer shall provide to the purchaser, in 
writing in the English language and not less than 
10 point type, the following statement in the 
owner's manual, or, if there is no owner's manual, 
on a one-page document: 

"If you believe that your vehicle has a defect 
which could cause a crash or could cause injury or 
death, you should immediately inform the National 
Highway Traffic Safety Administration (NHTSA) 
in addition to notifying [INSERT NAME OF 
MANUFACTURER]. 

If NHTSA receives similar complaints, it may 
open an investigation, and if it finds that a safety 
defect exists in a group of vehicles, it may order a 
recall and remedy campaign. However, NHTSA 
cannot become involved in individual problems be- 
tween you, your dealer, or [INSERT NAME OF 
MANUFACTURER.] 

To contact NHTSA, you may either call the Auto 
Safety Hotline toll-free at 1-800-424-9393 (or 
366-0123 in the Washington D.C. area) or write to: 
NHTSA, U.S. Department of Transportation, 
Washington, D.C. 20590. You can also obtain other 
information about motor vehicle safety from the 
Hotline. 

(2)(B) The manufacturer shall specify in the 
table of contents of the owner's manual the loca- 
tion of the statement in 575.6(a)(2)(A). The heading 
in the table of contents shall state "Reporting 
Safety Defects." 54 F.R. 48745— November 27, 1989. 
Effective: September 1, 1990)] 

§ 575.7 Special vehicles. 

A manufacturer who produces vehicles having a 
configuration not available for purchase by the 
general public need not make available to ineligible 
purchasers, pursuant to § 575.6(c), the information 
for those vehicles specified in Subpart B of this 
part, and shall identify those vehicles when 
furnishing the information required by § 575.6(d). 



SUBPART B— CONSUMER INFORMATION ITEMS 
§ 575.101 Vehicle stopping distance. 

(a) Purpose and scope. This section requires 
manufacturers of passenger cars and motorcycles 
to provide information on vehicle stopping distances 



(Rev. 11/27/89) 



PART 575-3 



under specified speed, brake, loading and pave- 
ment conditions. 

(b) Application. This section applies to 
passenger cars and motorcycles manufactured on 
or after January 1, 1970. 

(c) Required information. Each manufacturer 
shall furnish the information in (1) through (5) 
below, in the form illustrated in Figure 1, except 
that with respect to (2) and (3) below, a manufac- 
turer whose total motor vehicle production does 
not exceed 500 annually is only required to furnish 
performance information for the loaded condition. 
Each motorcycle in the group to which the infor- 
mation applies shall be capable, under the condi- 
tions specified in paragraph (d), and utilizing the 
procedures specified in paragraph (e), of perform- 
ing at least as well as the information indicates. 
Each passenger car in the group to which the infor- 
mation applies shall be capable of performing at 
least as well as the information indicates, under 
the test conditions and procedures specified in S6 
and S7 of Standard No. 105-75 of this chapter (49 
CFR 571.105-75) or, in the case of passenger cars 
manufactured before January 1, 1977, and at the 
option of the manufacturer, under the conditions 
specified in paragraph (d) of this section and the 
procedures specified in Paragraph (e) of this sec- 
tion. 

If a vehicle is unable to reach the speed of 60 
miles per hour (mph), the maximum sustained vehi- 
cle speed shall be substituted for the 60 mph speed 
in the requirements specified below, and in the 
presentation of information as in Figure 1, with an 
asterisked notation in essentially the following 
form at the bottom of the figure: "The maximum 
speed attainable by accelerating at maximum rate 
from a standing start for 1 mile." The weight re- 
quirements indicated in paragraphs (c)(2), (3), and 
(4) of this section are modified for the motorcycles 
(and at the option of the manufacturer, in the case 
of passenger cars manufactured before January 1, 
1977) by the fuel tank condition specified in 
paragraph (d) (4) of this section. 

(1) Vehicle description. The group of vehicles 
to which the table applies, identified in the terms 
by which they are described to the public by the 
manufacturer. 

(2) Minimum stopping distance with fully 
operational service brake system. The minimum 
stopping distance attainable, expressed in feet, 



from 60 mph, using the fully operational service 

brake system— 

(i) In the case of a motorcycle, at lightly 
loaded and maximum loaded vehicle weight; 
and 

(ii) In the case of a passenger car, at lightly 
loaded vehicle weight and at gross vehicle 
weight rating (GVWR), except for a passenger 
car manufactured before January 1, 1977, and 
tested, at the option of the manufacturer, 
under the conditions and procedures of 
paragraphs (d) and (e) of this section, which 
passenger car shall be tested at lightly loaded 
vehicle weight and at maximum loaded vehicle 
weight. 

(3) Minimum stopping distance with partially 
failed service brake system. (Applicable only to 
passenger cars with more than one service brake 
subsystem.) The minimum stopping distance at- 
tainable using the service brake control, ex- 
pressed in feet, from 60 mph, for the most 
adverse combination of GVWR or lightly loaded 
vehicle weight and partial failure as specified in 

55.1.2 of Standard No. 105-75 of this chapter. 
However, a passenger car manufactured before 
January 1, 1977, and tested, at the option of the 
manufactiu-er, under the conditions and pro- 
cediu"es of paragraphs (d) and (e) of this section, 
shall be tested at maximum loaded vehicle 
weight instead of GVWR. 

(4) Minimum stopping distance with in- 
operative brake power assist unit or brake power 
unit. (Applicable only to passenger cars equipped 
with brake power assist unit or brake power 
unit.) The minimum stopping distance, ex- 
pressed in feet, from 60 mph, using the service 
brake system, tested in accordance with the re- 
quirements of S5.1.3 of Standard No. 105-75 of 
this chapter. However, in the case of a passenger 
car manufactured before Janaury 1, 1977, vehi- 
cle loading may, at the option of the manufac- 
turer, be maximum loaded vehicle weight in 
place of the GVWR loading specified under 

55.1.3 of Standard No. 105-75. 

(5) Notice. The following notice: "This figure 
indicates braking performance that can be met 
or exceeded by the vehicles to which it applies, 
without locking the wheels, under different 
conditions of loading and with partial failures of 
the braking system. The information presented 



PART 575-4 



represents results obtainable by skilled drivers 
under controlled road and vehicle conditions, and 
the information may not be correct under other 
conditions." 

(d) Conditions. The data provided in the format 
of Figure 1 shall represent a level of performance 
that can be equalled or exceeded by each vehicle in 
the group to which the table applies, under the 
following conditions, utilizing the procedures set 
forth in (e) below: 

(1) Stops are made without lock-up of any 
wheel, except for momentary lock-up caused by 
an automatic skid control device. 

(2) The tire inflation pressure and other 
relevant component adjustments of the vehicle 
are made according to the manufacturer's 
published recommendations. 

(3) For passenger cars, brake pedal force does 
not exceed 150 pounds for any brake application. 
For motorcycles, hand brake lever force applied 
IV4 inches from the outer end of the lever does 
not exceed 55 pounds, and foot brake pedal force 
does not exceed 90 pounds. 

(4) Fuel tank is filled to any level between 90 
and 100 percent of capacity. 

(5) Transmission is in neutral, or the clutch 
disengaged, during the entire deceleration. 

(6) The vehicle begins the deceleration in the 
center of a straight roadway lane that is 12 feet 
wide, and remains in the lane throughout the 
deceleration. 

(7) The roadway lane has a grade of zero per- 
cent, and the road surface has a skid number of 
81, as measured in accordance with American 
Society for Testing and Materials (ASTM) 
Method E-274-70 (as revised July, 1974) at 40 
mph, omitting the water delivery specified in 
paragraphs 7.1 and 7.2 of that Method. 

(8) All vehicle openings (doors, windows, 
hood, trunk, convertible tops, etc.) are in the 
closed position except as required for instrumen- 
tation purposes. 

(9) Ambient temperature is between 32 °F and 
100°F. 

(10) Wind velocity is zero, 
(e) Procedures. 

(1) Burnish. 

(i) Passenger cars. Burnish brakes once 
prior to first stopping distance test by conduct- 



ing 200 stops from 40 mph (or maximum sus- 
tained vehicle speed if the vehicle is incapable 
of reaching 40 mph) at a deceleration rate of 12 
fpsps in normal driving gear, with a cooling in- 
terval between stops, accomplished by driving 
at 40 mph for a sufficient distance to reduce 
brake temperature to 250°F, or for one mile, 
whichever occurs first. Readjust brakes ac- 
cording to manufacturer's recommendations 
after burnishing. 

(ii) Motorcycles. Adjust and burnish brakes 
in accordance with manufacturer's recommen- 
dations. Where no burnishing procedures 
have been recommended by the manufacturer, 
follow the procedures specified above for 
passenger cars, except substitute 30 mph for 
40 mph and 150° F for 250°F, and maintain 
hand lever force to foot lever force ratio of ap- 
proximately 1 to 2. 

(2) Ensure that the temperature of the hot- 
test service brake is between 130°F and 150°F 
prior to the start of all stops (other than bur- 
nishing stops), as measured by plug-type ther- 
mocouples installed according to SAE Recom- 
mended Practice J843a, June 1966. 

(3) Measure the stopping distance as specified 
in (c) (2), (3), and (4), from the point of applica- 
tion of force to the brake control to the point at 
which the vehicle reaches a full stop. 

§575.102 [Reserved]. 

§ 575.103 Truck-camper loading. 

(a) Scope. This section requires manufacturers 
of trucks that are capable of accommodating slide- 
in campers to provide information on the cargo 
weight rating and the longitudinal limits within 
which the center of gravity for the cargo weight 
rating should be located. 

(b) Purpose. The purpose of this section is to 
provide information that can be used to reduce 
overloading and improper load distribution in 
truck-camper combinations, in order to prevent ac- 
cidents resulting from the adverse effects of these 
conditions on vehicle steering and braking. 

(c) Application. This section applies to trucks 
that are capable of accommodating slide-in 
campers. 

(d) Definitions. "Camper" means a structure 
designed to be mounted in the cargo area of a 



PART 575-5 



truck, or attached to an incomplete vehicle with 
motive power, for the purpose of providing shelter 
for persons. 

"Cargo weight rating" means the value specified 
by the manufacturer as the cargo-carrying capac- 
ity, in pounds, of a vehicle, exclusive of the weight 
of occupants, computed as 150 pounds times the 
number of designated seating positions. 

"SHde-in camper" means a camper having a 
roof, floor and sides, designed to be mounted on 
and removable from the cargo area of a truck by 
the user. 

(e) Requirements. Except as provided in 
paragraph (f) of this section each manufacturer of 
a truck that is capable of accommodating a slide-in 
camper shall furnish the information specified in 
(1) through (5) below: 

(1) A picture showing the manufacturer's 
recommended longitudinal center of gravity 
zone for the cargo weight rating in the form il- 
lustrated in Figure 1. The boundaries of the zone 
shall be such that when a slide-in camper equal in 
weight to the truck's cargo weight rating is in- 
stalled, no gross axle weight rating of the truck 
is exceeded. Until October 1, 1973 the phrase 
"Aft End of Cargo Area" may be used in Figure 
1 instead of "Rear End of Truck Bed". 




ceed the truck's cargo weight rating and the 
camper's center of gravity should fall within the 
truck's recommended center of gravity zone when 
installed." Until October 1, 1973 the phrase "total 
load" may be used instead of "total cargo load". 
(4) A picture showing the proper match of a 
truck and slide-in camper in the form illustrated 
in Figure 2. 




(5) The statements: "Secure loose items to 
prevent weight shifts that could affect the 
balance of your vehicle. When the truck camper 
is loaded, drive to a scale and weigh on the front 
and on the rear wheels separately to determine 
axle loads. Individual axle loads should not ex- 
ceed either of the gross axle weight ratings 
(GAWR). The total of the axle loads should not 
exceed the gross vehicle weight rating (GVWR). 
These ratings are given on the vehicle certifica- 
tion label that is located on the left side of the 
vehicle, normally the dash, hinge pillar, door 
latch post, or door edge next to the driver. If 
weight ratings are exceeded, move or remove 
items to bring all weights below the ratings." 
(f) If a truck would accommodate a slide-in 
camper but the manufacturer of the truck recom- 
mends that the truck not be used for that purpose, 
the information specified in paragraph (e) shall not 
be provided but instead the manufactiu-er shall 
provide a statement that the truck should not be 
used to carry a slide-in camper. 



(2) The truck's cargo weight rating. 

(3) The statements: "When the truck is used 
to carry a slide-in camper, the total cargo load of 
the truck consists of the manufacturer's camper 
weight figure, the weight of installed additional 
camper equipment not included in the manufac- 
turer's camper weight figure, the weight of 
camper cargo, and the weight of passengers in 
the camper. The total cargo load should not ex- 



§ 575.104 Uniform Tire Quality Grading Standards. 

(a) Scope. This section requires motor vehicle 
and tire manufacturers and tire brand name 
owners to provide information indicating the 
relative performance of passenger car tires in the 
areas of treadwear, traction, and temperature 
resistance. 

(b) Purpose. The purpose of this section is to 
aid the consumer in making an informed choice in 
the purchase of passenger car tires. 



PART 575-6 



(c) Application. (1) This section applies to new 
pneumatic tires for use on passenger cars. 
However, this section does not apply to deep tread, 
winter-type snow tires, space-saver or temporary 
use spare tires, tires with nominal rim diameters of 
10 to 12 inches, or to limited production tires as 
defined in paragraph (c)(2) of this section. 

(2) "Limited production tire" means a tire 
meeting all of the following criteria, as applicable: 
(i) The annual domestic production or impor- 
tation into the United States by the tire's 
manufacturer of tires of the same design and 
size as the tire does not exceed 15,000 tires; 

(ii) In the case of a tire marketed under a 
brand name, the annual domestic purchase or 
importation into the United States by a brand 
name owner of tires of the same design and 
size as the tire does not exceed 15,000 tires; 

(iii) The tire's size was not listed as a vehicle 
manufacturer's recommended tire size designa- 
tion for a new motor vehicle produced in or im- 
ported into the United States in quantities 
greater than 10,000 during the calendar year 
preceeding the year of the tire's manufacturer; 
and 

(iv) The total annual domestic production or 
importation into the United States by the tire's 
manufacturer, and in the case of a tire manufac- 
turer, and in case of a tire marketed under a 
brand name, the total annual domestic purchase 
or purchase for importation into the United 
States by the tire's brand name owner, of tires 
meeting the criteria of paragraphs (cX2) (i), (ii), 
and (iii) of this section, does not exceed 35,000 
tires. 
Tire design is the combination of general struc- 
tural characteristics, materials, and tread pat- 
tern, but does include cosmetic, identifying or 
other minor variations among tires, 
(d) Requirements. 
(1) Information. 

(i) Each manufacturer of tires, or in the case 
of tires marketed under a brand name, each 
brand name owner, shall provide grading in- 
formation for each tire of which he is the 
manufacturer or brand name owner in the 
manner set forth in paragraphs (d) (1) (i) (A) 
and (d) (1) (i) (B) of this section. The grades for 
each tire shall be only those specified in 
paragraph (d) (2) of this section. Each tire shall 
be able to achieve the level of performance 
represented by each grade with which it is 



labeled. An individual tire need not, however, 
meet further requirements after having been 
subjected to the test for any one grade. 

(A) Except for a tire line, manufactured 
within the first six months of production of 
the tire line, each tire shall be graded with 
the words, letters, symbols, and figures 
specified in paragraph (d) (2) of this section, 
permanently molded into or onto the tire 
sidewall between the tire's maximum section 
width and shoulder in accordance with one of 
the methods in Figure 1. 

(B) (i) Each tire manufactured before Oc- 
tober 1, 1980, other than a tire sold as original 
equipment on a new vehicle, shall have affixed 
to its tread surface in a manner such that it is 
not easily removable a label containing its 
grades and other information in the form il- 
lustrated in Figure 2, Part II, bearing the 
heading "DOT QUALITY GRADES." The 
treadwear grade attributed to the tire shall be 
either imprinted or indelibly stamped on the 
label adjacent to the description of the 
treadwear grade. The label shall also depict 
all possible grades for traction and temper- 
ature resistance. The traction and temper- 
ature resistance performance grades attri- 
buted to the tire shall be indelibly circled. 
However, each tire labeled in conformity with 
the requirements of paragraph (dXlXiXBX^) 
of this section need not comply with the provi- 
sions of this paragraph. 

(2) Each tire manufactured on or after 
October 1, 1980, other than a tire sold as 
original equipment on a new vehicle, shall 
have affixed to its tread surface so as not 
to be easily removable a label or labels con- 
taining its grades and other information in 
the form illustrated in Figure 2, Parts I 
and II. The treadwear grade attributed to 
the tire shall be either imprinted or in- 
delibly stamped on the label containing the 
material in Part I of Figure 2, directly to 
the right of or below the word "TREAD- 
WEAR". The traction and temperature 
resistance performance grades attributed 
to the tire shall be indelibly circled in an ar- 
ray of the potential grade letters (ABC) 
directly to the right of or below the words 
"TRACTION" and "TEMPERATURE" 
in Part I of Figure 2. The words "TREAD- 
WEAR," "TRACTION," and "TEMPER- 
ATURE," in that order, may be laid out 



PART 575-7 



vertically or horizontally. The text part of 
Part II of Figure 2 may be printed in 
capital letters. The text of Part I and the 
text of Part II of Figure 2 need not appear 
on the same label, but the edges of the two 
texts must be positioned on the tire tread 
so as to be separated by a distance of no 
more than one inch. If the text of Part I 
and the text of Part II are placed on sepa- 
rate labels, the notation "See EXPLAN- 
ATION OF DOT QUALITY GRADES" 
shall be added to the bottom of the Part I 
text, and the words "EXPLANATION OF 
DOT QUALITY GRADES" shall appear at 
the top of the Part II text. The text of 
Figure 2 shall be oriented on the tire tread 
surface with lines of type running perpen- 
dicular to the tread circumference. If a 
label bearing a tire size designation is at- 
tached to the tire tread surface and the tire 
size designation is oriented with lines of 
type running perpendicular to the tread 
circumference, the text of Figure 2 shall 
read in the same direction as the tire size 
designation, 
(ii) In the case of information required in 
accordance with § 575.6(c) to be furnished to 
prospective purchasers of motor vehicles and 
tires, each vehicle manufacturer and each tire 
manufacturer or brand name owner shall as 
part of that information list all possible grades 
for traction and temperature resistance, and 
restate verbatim the explanations for each 
performance area specified in Figure 2. The in- 
formation need not be in the same format as in 
Figure 2. In the case of a tire manufacturer or 
brand name owner, the information must in- 
dicate clearly and unambiguously the grade in 
each performance area for each tire of that 
manufacturer or brand name owner offered for 
sale at the particular location. 

(iii) In the case of information required in 
accordance with § 575.6(a) to be furnished to 
the first purchaser of a new motor vehicle, 
other than a motor vehicle equipped with bias- 
ply tires manufactured prior to October 1, 
1979, and April 1, 1980, and a radial-ply tire 
manufactured prior to October 1, 1980, each 
manufacturer of motor vehicles shall as part of 
the information list all possible grades for trac- 
tion and temperature resistance and restate 
verbatim the explanation for each perform- 
ance area specified in Figure 2. The informa- 



tion need not be in the format of Figure 2, but it 
must contain a statement referring the reader 
to the tire sidewall for the specific tire grades 
for the tires with which the vehicle is equipped. 
(2) Performance. 

(i) Treadwear. Each tire shall be graded for 
treadwear performance with the word 
"TREADWEAR" followed by a number of 
two of three digits representing the tire's 
grade for treadwear, expressed as a percen- 
tage of the NHTSA nominal treadwear value, 
when tested in accordance with the conditions 
and procedures specified in paragraph (e) of 
this section. Treadwear grades shall be 
multiples of 10 (e.g., 80, 150). 

(ii) Traction. Each tire shall be graded for 
traction performance with the word "TRAC- 
TION," followed by the symbols C, B, or A 
(either asterisks or 5-pointed stars) when the 
tire is tested in accordance with the conditions 
and procedures specified in paragraph (f) of 
this section. 

(A) The tire shall be graded C when the 
adjusted traction coefficient is either: 

(i) 0.38 or less when tested in accord- 
ance with paragraph (f) (2) of this section 
on the asphalt surface specified in 
paragraph (t) (1) (i) of this section, or 

{2) 0.26 or less when tested in accord- 
ance with paragraph (f) (2) of this section 
on the concrete surface specified in 
paragraph (f) (1) (i) of this section. 

(B) The tire may be graded B only when 
its adjusted traction coefficient is both: 

(i) More than 0.38 when tested in 
accordance with paragraph (f ) (2) of this 
section on the asphalt surface specified in 
paragraph (f) (1) (i) of this section, and 

(2) More than 0.26 when tested in 
accordance with paragraph (f) (2) of this 
section on the concrete surface specified in 
paragraph (f) (1) (i) of this section. 

(C) The tire may be graded A only when 
its adjusted traction coefficient is both: 

{!) More than 0.47 when tested in accord- 
ance with paragraph (f ) (2) of this section on 
the asphalt surface specified in paragraph 
(f) (1) (i) of this section, and 

(2) More than 0.35 when tested in accord- 
ance with paragraph (f ) (2) of this section on 
the concrete surface specified in paragraph 
(f) (1) (i) of this section. 



PART 575-8 



(iii) Temperature resistance. Each tire shall 
be graded for temperature resistance perform- 
ance with the word "TEMPERATURE" fol- 
lowed by the letter A, B, or C, based on its 
performance when the tire is tested in accord- 
ance with the procedures specified in 
paragraph (g) of this section. A tire shall be 
considered to have successfully completed a 
test stage in accordance with this paragraph if, 
at th end of the test stage, it exhibits no visual 
evidence of tread, sidewall, ply, cord, in- 
nerliner or bead separation, chunking, broken 
cords, cracking or open splices a defined in 
§ 571.109 of this chapter, and the tire pressure 
is not less than the pressure specified in 
paragraph (g) (1) of this section. 

(A) The tire shall be graded C if it fails to 
complete the 500 rpm test stage specified in 
paragraph (g) (9) of this section. 

(B) The tire may be graded B only if it 
successfully completes the 500 rpm test stage 
specified in paragraph (g) (9) of this section. 

(C) The tire may be graded A only if it 
successfully completes the 575 rpm test stage 
specified in paragraph (g) (9) of this section. 

(e) Treadwear grading conditions and proce- 
dures.— (1) Conditions, (i) Tire treadwear per- 
formance is evaluated on a specific roadway course 
approximately 400 miles in length, which is 
established by the NHTSA both for its own com- 
pliance testing and for that of regulated persons. 
The course is designed to produce treadwear rates 
that are generally representative of those en- 
countered in public use for tires of differing con- 
struction types. The course and driving procedures 
are described in Appendix A to this section. 

(ii) Treadwear grades are evaluated by first 
measuring the performance of a candidate tire 
on the government test course, and then 
correcting the projected mileage obtained to 
account for environmental variations on the 
basis of the performance of course monitoring 
tires of the same general construction type 
(bias, bias-belted, or radial) run in the same 
convoy. The three types of course monitoring 
tires are made available by the NHTSA at 
Goodfellow Air Force Base, San Angelo, Tex., 
for purchase by any persons conducting tests 
at the test course. 

(iii) In convoy tests each vehicle in the same 
convoy, except for the lead vehicle, is 
throughout the test within human eye range of 
the vehicle immediately ahead of it. 



(iv) A test convoy consists of no more than 
four passenger cars, each having only rear- 
wheel drive. 

[(v) On each convoy vehicle, all tires are 
mounted on identical rims of design or measur- 
ing rim width specified for tires of that size in 
accordance with 49 CFR 571.109, § 4.4.1(a) or 
(b), or a rim having a width within -0 to -(-0.50 
inches of the width listed. (47 F.R. 25931-June 
15, 1982. Effective: June 15, 1982)1 

(2) Treadwear grading procedure, (i) Equip a 
convoy with course monitoring and candidate tires 
of the same construction type. Place four course 
monitoring tires on one vehicle. On each other 
vehicle, place four candidate tires that are identical 
with respect to with identical size designations. On 
each axle, manufacturer and line. 

(ii) Inflate each candidate and each course 
monitoring tire the applicable pressure in 
Table 1 of this section. 

[(iii) Load each vehicle so that the load on 
each course monitoring and candidate tire is 85 
percent of the test load specified in § 575.104(h). 
(47 F.R. 25931-June 15, 1982. Effective: June 
15, 1982)] 

(iv) Adjust wheel alignment to that specified 
by the vehicle manfuacturer. 

(v) Subject candidate and course monitoring 
tires to "break-in" by running the tires in con- 
voy for two circuits of the test roadway (800 
miles). At the end of the first circuit, rotate 
each vehicle's tires by moving each front tire 
to the same side of the rear axle and each rear 
tire to the opposite side of the front axle. 

(vi) After break-in, allow the tires to cool to 
the inflation pressure specified in paragraph 
(e) (2) (ii) of this section or for 2 hours, 
whichever occurs first. Measure, to the nearest 
0.001 inch, the tread depth of each candidate 
and course monitoring tire, avoiding tread- 
wear indicators, at six equally spaced points in 
each groove. For each tire compute the 
average of the measurements. Do not include 
those shoulder grooves which are not provided 
with treadwear indicators. 

(vii) Adjust wheel alignment to the manufac- 
turer's specifications. 

(viii) Drive the convoy on the test roadway 
for 6,400 miles. After each 800 miles: 

(A) Following the procedure set out in 
paragraph (e) (2) (vi) of this section, allow 



PART 575- 



the tires to cool and measure the average 
tread depth of each tire; 

(B) Rotate each vehicle's tires by moving 
each front tire to the same side of the rear 
axle and each rear tire to the opposite side of 
the front axle. 

(C) Rotate the vehicles in the convoy by 
moving the last vehicle to the lead position. 
Do not rotate driver position within the 
convoy. 

(D) Adjust wheel alignment to the vehicle 
manufacturer's specifications, if necessary. 

(ix) Determine the projected mileage for 
each candidate tire as follows: 

(A) For each course monitoring and can- 
didate tire in the convoy, using the average 
tread depth measurements obtained in 
accordance with paragraphs (e) (2) (vi) of this 
section and the corresponding mileages as 
data points, apply the method of least squares 
as described in Appendix C of this section to 
determine the estimated regression line of y 
on X given by the following formula: 

y = a + bx 
1000 

where: 

y = average tread depth in mils, 

x = miles after break-in, 

a = y intercept of regression line (reference tread 
depth) in mils, calculated using the method of least 
squares; and 

b = the slope of the regression line in mils of tread 
depth per 1,000 miles, calculated using the method 
of least squares. This slope will be negative in 
value. The tire's wear rate is defined as the ab- 
solute value of the slope of the regression line. 

(B) Average the wear rates of the four 
course monitoring tires as determined in ac- 
cordance with paragraph (e) (2) (ix) (A) of 
this section. 

(C) Determine the course severity adjust- 
ment factor by dividing the base wear rate 
for the course monitoring tire (see note 
below) by the average wear rate for the four 
course monitoring tires determined in ac- 
cordance with paragraph (e) (2) (ix) (B) of 
this section. 

Note. -The base wear rates for the course 
monitoring tires will be furnished to the 
purchaser at the time of purchase. 



(D) Determine the adjusted wear rate for 
each candidate tire by multiplying its wear 
rate determined in accordance with para- 
graph (e) (2) (ix) (A) of this section by the 
course severity adjustment factor deter- 
mined in accordance with paragraph 
(e) (2) (ix) (C) of this section. 

(E) Determine the projected mileage for 
each candidate tire using the following 

1°™^;- ., 1000 (a-62) ,,, 

Projected mileage = — !^ — ' -1-800 

b' 

where: 

a = y intercept of regression line (reference tread depth) 
for the candidate tire as determined in accordance 
with paragraph (e) (2) (ix) (A) of this section. 

b' = the adjusted wear rate for the candidate tire as 
determined in accordance with paragraph 
(e) (2) (ix) (D) of this section. 

(F) Compute the percentage of the 
NHTSA nominal treadwear value for each 
candidate tire using the following formula: 

p _ Projected Mileage 

SMOO ^^^^ 

Round off the percentage to the nearest 
lower 10% increment, 
(f) Traction grading conditions and proce- 
dures.— (I) Conditions, (i) Tire traction perform- 
ance is evaluated on skid pads that are established, 
and whose severity is monitored, by the NHTSA 
both for its compliance testing and for that of reg- 
ulated persons. The test pavements are asphalt and 
concrete surfaces constructed in accordance with 
the specifications for pads "C" and "A" in the 
"Manual for the Construction and Maintenance of 
Skid Surfaces," National Technical Information 
Service No. DOT-HS-800-814. The surfaces have 
locked wheel traction coefficients when evaluated in 
accordance with paragraphs (f) (2) (i) through 
(f)(2)(vii) of this section of 0.50 ±0.10 for the 
asphalt and 0.35 ±0.10 for the concrete. The loca- 
tion of the skid pads is described in Appendix B to 
this section. 

(ii) The standard tire is the American Society 
for Testing and Materials (ASTM) E 501 "Stand- 
ard Tire for Pavement Skid Resistance Tests." 
(iii) The pavement surface is wetted in ac- 
cordance with paragraph 3.5, "Pavement Wet- 
ting System," of ATSM Method E 274-79, 
"Skid Resistance of Paved Surfaces Using a 
Full-Scale Tire." 



PART 575-10 



c^ 



^i^^CTIONB T£iv,p^^^ 



'^fOs 



'^e, 



TREADWEAR 160 IpTT 
TRACTION B "^ J32 

TEMPERATURE B ^ i 



¥ 







Figure 2 



[Part 1] DOT Quality Grades 
Treadwear 

The treadwear grade is a comparative rating based on the wear rate of the tire when tested under controlled conditions 
on a specified government test course. For example, a tire graded 150 would wear one and a half (IV2) times as well on 
the government course as a tire graded 100. The relative performance of tires depends upon the actual conditions of 
their use, however, and may depart significantly from the norm due to variations in driving habits, service practices, 
and differences in road characteristics and climate. 

Traction 

The traction grades, from highest to lowest, are A, B, and C, and they represent the tire's ability to stop on wet 
pavements as measured under controlled conditions on specified government test surfaces of asphalt and concrete. A 
tire marked C may have poor traction performance. WARNING: The traction grade assigned to this tire is based on 
braking (straightahead) traction tests and does not included cornering (turning) traction. 

Temperature 

The temperature grades of A (the highest), B, and C, representing the tire's resistance to the generation of heat and its 
ability to dissipate heat when tested under controlled conditions on a specified indoor laboratory test wheel. Sustained 
high temperature can cause the material of the tire to degenerate and reduce tire life, and excessive temperature can 
lead to sudden tire failure. The grade C corresponds to a level of performance which all passenger car tires must meet 
under the Federal Motor Vehicle Safety Standard No. 109. Grades B and A represent higher levels of performance on 
the laboratory test wheel than the minimum required by law. WARNING: The temperature grade for this tire is 
established for a tire that is properly inflated and not overloaded. Excessive speed, under-inflation, or excessive 
loading either separately or in combination, can cause heat buildup and possible tire failure. 
[Part II] All Passenger Car Tires Must Conform to Federal Safety Requirements in Addition to These Grades. 



PART 575-11 



(iv) The test apparatus is a test trailer built 
in conformity with the specifications in 
paragraph 3, "Apparatus," of ASTM Method 
E 274-79, and instrumented in accordance 
with paragraph 3.3.2 of that Method, except 
that "wheel load" in paragraph 3.2.2 and tire 
and rim specifications in paragraph 3.2.3 of 
that Method are as specified in the procedures 
in paragraph (f ) (2) of this section for standard 
and candidate tires. 

(v) The test apparatus is calibrated in ac- 
cordance with ASTM Method F 377-74, 
"Standard Method for Calibration of Braking 
Force for Testing of Pneumatic Tires" with 
the trailer's tires inflated to 24 psi and loaded 
to 1,085 pounds. 

(vi) Consecutive tests on the same surface 
are conducted not less than 30 seconds apart. 

(vii) A standard tire is discarded in accord- 
ance with ASTM Method E 501. 
(2) Procedure, (i) Prepare two standard tires 
as follows: 

(A) Condition the tires by running them 
for 200 miles on a pavement surface. 

(B) Mount each tire on a rim of design or 
measuring rim width specified for tires of its 
size in accordance with 49 CFR 571.109, 
§ 4.4.1(a) or (b), or a rim having a width 
within -0 to -1-0.50 inches of the width 
listed. Then inflate the tire to 24 psi, or, in 
the case of a tire with inflation pressure 
measured in kilopascals, to 180 kPa. 

(C) Statically balance each tire-rim com- 
bination. 

(D) Allow each tire to cool to ambient 
temperature and readjust its inflation pres- 
sure to 24 psi, or, in the case of a tire with in- 
flation pressure measured in kilopascals, to 
180 kPa. 



(ii) Mount the tires on the test apparatus 
described in paragraph (f) (1) (iv) of this sec- 
tion and load each tire to 1,085 pounds. 

(iii) Tow the trailer on the asphalt test sur- 
face specified in paragraph (f) (1) (i) of this sec- 
tion at a speed of 40 mph, lock one trailer wheel, 
and record the locked-wheel traction coefficient 
on the tire associated with that wheel between 
0.5 and 1.5 seconds after lockup. 

(iv) Repeat the test on the concrete surface, 
locking the same wheel. 

(v) Repeat the tests specified in paragraphs 
(f) (2) (iii) and (f) (2) (iv) of this section for a 
total of 10 measurements on each test surface. 

(vi) Repeat the procedures specified in para- 
graphs (f) (2) (iii) through (f) (2) (v) of this sec- 
tion, locking the wheel associated with the 
other tire. 

(vii) Average the 20 measurements taken on 
the asphalt surface to find the standard tire 
traction coefficient for the asphalt surface. 
Average the 20 measurements taken on the 
concrete surface to find the standard tire trac- 
tion coefficient for the concrete surface. The 
standard tire traction coefficient so deter- 
mined may be used in the computation of ad- 
justed traction coefficients for more than one 
candidate tire. 

(viii) Prepare two candidate tires of the 
same construction type, manufacturer, line, 
and size designation in accordance with 
paragraph (f) (2) (i) of this section, mount them 
on the test apparatus, and test one of them 
according to the procedures of paragraph 
(f)(2Xii) through (v) of this section, except load 
each tire to 85% of the test load specified in 
§575.104(h). 



Table 1.— Test Inflation Pressures 



Maximum permissible 
injlaticm. pressure 



ISiO 



Pressure to be used in tests for treadwear 
treadwear and in determination of tire 
load for temperature resistance testing 
Pressure to be used for all aspects of 
aspects of temperature resistance testing 
other than determination of tire load 



24 



28 



180 



220 



180 



220 



220 260] 



[(53 F.R. 17950— May 19, 1988. Effective: June 20, 1988)] 

(Rev. 5/19/88) PART 575-12 



procedures of paragraph (f) (2) (ii) through (v) of 
this section, except load each tire to 85% of the test 
load specified in § 575.104(h). 

(ix) Compute a candidate tire's adjusted traction 
coefficient for asphalt (rria) by the following for- 
mula: 

mj, = Measured candidate tire coefficient for 
asphalt +0.50 

- Measured standard tire coefficient for asphalt 

(x) Compute a candidate tire's adjusted trac- 
tion coefficient for concrete (nric) by the follow- 
ing formula: 

mj = Measured candidate tire coefficient for con- 
crete + 0.35 

- Measured standard tire coefficient for concrete 

(g) Temperature resistance grading. (1) Mount 
the tire on a rim of design or measuring rim width 
specified for tires of its size in accordance with 49 
CFR 571.109, § 4.4.1(a) or (b) CFR 571.109, 
§ 4.4.1(a) or (b) and inflate it to the applicable 
pressure specified in Table 1 of this section. 

(2) Condition the tire-rim assembly to any 
temperature up to 95°F for at least 3 hours. 

(3) Adjust the pressure again to the applicable 
pressure specified in Table 1 of this section. 

(4) Mount the tire-rim assembly on an axle, 
and press the tire tread against the surface of a 
flat-faced steel test wheel that is 67.23 inches in 
diameter and at least as wide as the section 
width of the tire. 

(5) During the test, including the pressure 
measurements specified in paragraphs (g) (1) 
and (g) (3) of this section, maintain the 
temperature of the ambient air, as measured 12 
inches from the edge of the rim flange at any 
point on the circumference on either side of the 
tire at any temperature up to 95°F. Locate the 
temperature sensor so that its readings are not 
affected by heat radiation, drafts, variations in 
the temperature of the surrounding air, or 
guards or other devices. 

(6) Press the tire against the test wheel with a 
load of 88 percent of the tire's maximum load 
ratinsT as marked on the tire sidewall. 

(7) Rotate the test wheel at 250 rpm for 2 
hours. 

(8) Remove the load, allow the tire to cool to 
95°F or for 2 hours, whichever occurs last, and 



readjust the inflation pressure to the applicable 
pressure specified in Table 1 of this section. 

(9) Reapply the load and without interruption 
or readjustment of inflation pressure, rotate the 
test wheel at 375 rpm for 30 minutes, and then at 
successively higher rates in 25 rpm increments, 
each for 30 minutes, until the tire has run at 575 
rpm for 30 minutes, or to failure, whichever oc- 
curs first. 

(h) Determination of test load. [(1) To determine 
test loads for purposes of paragraphs (e) (2) (iii) 
and (f) (2) (viii), follow the procedure set forth in 
paragraphs (h) (2) through (5) of this section. (48 
F.R. 8929— March 9, 1984. Effective: July 1, 1984)] 

(2) Determine the tire's maximum inflation 
pressure and maximum load rating both as 
specified on the tire's sidewall. 

(3) Determine the appropriate multiplier cor- 
responding to the tire's maximum inflation 
pressure, as set forth in Table 2. 

(4) Multiply the tire's maximum load rating by 
the multiplier determined in paragraph (3). This 
is the tire's calculated load. 

(5) Round the product determined in para- 
graph (4) (the calculated load) to the nearest 
multiple of ten pounds or, if metric units are 
used, 5 kilograms. For example, 903 pounds 
would be rounded to 900 and 533 kilograms 
would be rounded to 535. This figure is the test 
load. 

TABLE 2* 



Maximum infla- 
tion pressure 


Multiplier to be 

used for treadwear 

testing 


Multiplier to 

be used for 

traction testing 


32 psi 


.851 


.851 


36 psi 


.870 


.797 


40 psi 


.883 


.753 


240 psi 


.866 


.866 


280 psi 


.887 


.804 


300 psi 


.866 


.866 



• NOTE: Prior to July 1, 1984, the multipliers in the above 
table are not to be used in determining loads for the tire size 
designations listed below in Table 2A. For those designations, 
the load specifications in that table shall be used in UTQG 
testing during that period. These loads are the actual loads at 
which testing shall be conducted and should not be multiplied by 
the 85 percent factors specified for treadwear and traction 
testing. 



PART 575-13 



Table 2A 







Temp Resistance 




Traction 




Treadwear 




Tire Size DesigrMtion 




Max Pressure 






Max Pressure 






32 


36 


•40 


32 


36 


iO 


145/70 R13 


615 


650 


685 


523 


523 


553 


582 


155/70 R13 


705 


740 


780 


599 


599 


629 


663 


165/70 R13 


795 


835 


880 


676 


676 


710 


748 


175/70 R13 


890 


935 


980 


757 


757 


795 


833 


185/70 R13 


990 


1040 


1090 


842 


842 


884 


926 


195/70 R13 


1100 


1155 


1210 


935 


935 


982 


1029 


155/70 R14 


740 


780 


815 


629 


629 


663 


693 


175/70 R14 


925 


975 


1025 


786 


786 


829 


871 


185/70 R14 


1045 


1100 


1155 


888 


888 


935 


982 


195/70 R14 


1155 


1220 


1280 


982 


982 


1037 


1088 


155/70 R15 


770 


810 


850 


655 


655 


689 


723 


175/70 R15 


990 


1040 


1090 


842 


842 


884 


927 


185/70 R15 


1100 


1155 


1210 


935 


935 


982 


1029 


5.60-13 


725 


810 


880 


616 


616 


689 


748 


5.20-14 


695 


785 


855 


591 


591 


667 


727 


165-15 


915 


1015 


1105 


779 


779 


863 


939 


185/60 R13 


845 


915 


980 


719 


719 


778 


833 



[(i) Effective dates for treadwear grading 
requirements for radial tires. 

(1) Treadwear labeling requirements of §575.104 
(d)(l)(i)(B)(2) apply to tires manufactured on or 
after April 1, 1985. 

(2) Requirements for NHTSA review of tread- 
wear information in consumer brochures, as 
specified in paragraph 575.6(d)(2), are effective 
April 1, 1985. 

(3) Treadwear consumer information brochure 
requirements of paragraph 575.6(c) are effective 
May 1, 1985. 

(6) Treadwear sidewall molding requirements of 
§575.104(d)(l)(i)(A) apply to tires manufactured 
on or after September 1, 1985. 

(j) Effective dates for treadwear grading require- 
ments for bias ply tires. 

(1) Treadwear labeling requirements of §575.104 
(d)(l)(i)(B)(2) apply to tires manufactured on or 
after December 15, 1984. 

(2) Requirements for NHTSA review of 
treadwear information in consumer brochures. 



as specified in paragraph 575.6(d)(2), are effec- 
tive December 15, 1984. 

(3) Treadwear consumer information brochure 
requirements of paragraph 575.6(c) are effective 
January 15, 1985. 

(4) Treadwear sidewall molding requirements of 
§575.104(dXlXiXA) apply to tires manufactured 
on or after May 15, 1985. 

(k) Effective dates for treadwear grading re- 
quirements for bias belted tires. 

(1) Treadwear labeling requirements of 
§575.104 (d)(lXiXB)(2) apply to tires manufac- 
tured on or after March 1, 1985. 

(2) Requirements for NHTSA review of 
treadwear information in consumer brochures, 
as specified in paragraph 575.6(dX2), are effec- 
tive March 1, 1985. 

(3) Treadwear consumer information brochure 
requirements of paragraph 575.6(c) are effective 
April 1, 1985. 

(4) Treadwear sidewall molding requirements 
of §575.104(dXlXi)(A) apply to tires manufac- 
tured on or after August 1, 1985. 



PART 575-14 



(1) Effective date for treadwear information re- 
quirements for vehicle manufacturers. 

Vehicle manufacturer treadwear information 
requirements of §§575.6(a) and 575.104(d)(l)(iii) 
are effective September 1, 1985. (49 F.R. 49293- 
December 19, 1984. Effective: see Preamble to Docket 
No. 25; Notice 58)] 

§ 575.105 Utility Vehicles 

(a) Purpose and scope. This section requires 
manufacturers of utility vehicles to alert drivers 
that the particular handling and manuvering 
characteristics of utility vehicles require special 
driving practices when those vehicles are operated 
on paved roads. 

(b) Application. This section applies to 
multipurpose passenger vehicles (other than those 
which are passenger car derivatives) which have a 
wheelbase of 110 inches or less and special features 
for occasional off-road operation ("Utility 
vehicles"). 

(c) Required information. Each manufacturer 
shall prepare and affix a vehicle sticker as specified 
in paragraph 1 of this subsection and shall provide 
in the vehicle Owner's Manual the information 
specified in paragraph 2 of this subsection. 

(1) A sticker shall be permanently affixed to 
the instrument panel, windshield frame, driver's 
side sun visor, or in some other location in each 
vehicle prominent and visible to the driver. The 
sticker shall be printed in a typeface and color 
which are clear and conspicuous. The sticker 
shall have the following or similar language: 

This is a multipurpose passenger vehicle which 
will handle and maneuver differently from an or- 
dinary passenger car, in driving conditions which 
may occur on streets and highways and off road. 
As with other vehicles of this type, if you make 
sharp turns or abrupt maneuvers, the vehicle 
may rollover or may go out of control and crash. 



You should read driving guidelines and instruc- 
tions in the Owner's Manual, and WEAR YOU 
SEATBELTS AT ALL TIMES. 

The language on the sticker required by 
paragraph (1) and in the Owner's Manual, as re- 
quired in paragraph (2), may be modified as is 
desired by the manufacturer to make it appro- 
priate for a specific vehicle design, to ensure that 
consumers are adequately informed concerning 
the unique propensities of a particular vehicle 
model. 

(2) (i) The vehicle Owner's Manual shall in- 
clude the following statement in its introduction. 
As with other vehicles of this type, failure to 
operate this vehicle correctly may result in loss 
of control or an accident. Be sure to read "on- 
pavement" and "off-road" driving guidelines 
which follow. 

(ii) The vehicle Owner's Manual shall include 
the following or similar statement: 

Utility vehicles have higher ground clear- 
ance and a narrower track to make them 
capable of performing in a wide variety of off- 
road applications. Specific design character- 
istics give them a higher center of gravity than 
ordinary cars. An advantage of the higher 
ground clearance is a better view of the road 
allowing you to anticipate problems. They are 
not designed for cornering at the same speeds 
as conventional 2-wheel drive vehicles any 
more than low-slung sports cars are designed 
to perform satisfactorily under off-road condi- 
tions. If at all possible, avoid sharp turns or 
abrupt maneuvers. As with other vehicles of 
this type, failure to operate this vehicle cor- 
rectly may result in loss of control or vehicle 
rollover. 

§ 575.106 Deleted 

34 F.R. 8112 
May 23, 1969 



PART 575-15-16 



APPENDIX A 

Treadwear Test Course and 
Driving Procedures 

INTRODUCTION 

The test course consists of three loops of a 
total of 400 miles in the geographical vicinity 
of Goodfellow AFB, San Angelo, Texas. 

The first loop runs south 143 miles through the 
cities of Eldorado, Sonora, and Juno, Texas, to 
the Camp Hudson Historical Marker, and re- 
turns by the same route. 

The second loop runs east over Farm and 
Ranch Roads (FM) and returns to its starting 
point. 

The third loop runs northwest to Water Val- 
ley, northeast toward Robert Lee and returns via 
Texas 208 to the vicinity of Goodfellow AFB. 

ROUTE 

The route is shown in Figure 3. The table 
identifies key points by number. These numbers 
are encircled in Figure 3 and in parentheses in 
the descriptive material that follows. 

Southern Loop 

The course begins at the intersection (1) of 
Ft. McKavitt Road and Paint Rock Road 
(FM 388) at the northwest corner of Goodfellow 
AFB. 

Drive east via FM 388 to junction with Loop 
Road 306 (2). Turn right onto Loop Road 306 
and proceed south to junction with US 277 (3). 
Turn onto US 277 and proceed south through 
Eldorado and Sonora (4), continuing on US 277 
to junction with FM 189 (5). Turn right onto 
FM 189 and proceed to junction with Texas 163 
(6). Turn left onto Texas 163, proceed south 
to Camp Hudson Historical Marker (7) and onto 
the paved shoulder. Reverse route to junction of 
Loop Road 306 and FM 388 (2). 

Eastern Loop 

From junction of Loop Road 306 and FM 388 
(2) make right turn onto FM 388 and drive east 
to junction with FM 2334 (13). Turn right onto 
FM 2334 and proceed south across FM 765 (14) 
to junction of FM 2334 and US 87 (15). Make 
U-turn and return to junction of FM 388 and 
Loop Road 306 (2) by the same route. 



^®- 




Northwestern Loop 

From junction of Loop Road 306 and FM 388 
(2), make right turn onto Loop Road 306. Pro- 
ceed onto US 277, to junction with FM 2105(8). 
Turn left onto FM 2105 and proceed west to junc- 
tion with US 87 (10). Turn right on US 87 and 
proceed northwest to the junction with FM 2034 
near the town of Water Valley (11). Turn right 



PART 575-17 



onto FM 2034 and proceed north to Texas 208 
(12). Turn right onto Texas 208 and proceed 
south to junction with FM 2105 (9). Turn left 
onto FM 2105 and proceed east to junction with 
US 277 (8). Turn right onto US 277 and proceed 
south onto 306 to junction with 388 (2). Turn 
right onto 388 and proceed to starting point at 
junction of Ft. McKavitt Road and FM 388 (1). 

DRIVING INSTRUCTIONS 

The drivers shall run at posted speed limits 
throughout the course unless an unsafe condition 
arises. If such condition arises, the speed should 
be reduced to the maximum safe operating speed. 

BRAKING PROCEDURES AT STOP SIGNS 

There are a number of intersections at which 
stops are required. At each of these intersections 
a series of signs is placed in a fixed order as 
follows: 

Sign Legend 
Highway Intersection 1000 (or 2000) Feet 
STOP AHEAD 
Junction XXX 
Direction Sign (Mereta— ) 
STOP or YIELD 

PROCEDURES 

1. Approach each intersection at the posted 
hmit. 



KEY POINTS ALONG TREADWEAR 

TEST COURSE, APPROX. MILEAGES, 

AND REMARKS 

Mileages Remarks 



2. When abreast of the S T P AHEAD sign, 
apply the brakes so that the vehicle decelerates 
smoothly to 20 mph when abreast of the direction 
sign. 

3. Come to a complete stop at the STOP sign 
or behind any vehicle already stopped. 



1 Ft. McKavitt Road & 







FM388 






2 FM388& Loop 306. 


3 


STOP 


3 Loop 306 &US277 . 


10 




4 Sonera 


72 




5 US277&FM189 .. 


88 




6 FM 189 & Texas 163 


124 




7 Historical Marker . . 


143 


U-TURN 


(Camp Hudson) 






4 Sonora 


214 




3 Loop 306 & US 277. 


276 




2 FM 388 & Loop 306 


283 




13 FM 388 &FM 2334. 


290 


STOP 


14 FM 2334 & FM 765 . 


292 


STOP 


15 FM2334&US87 .. 


295 


U-TURN 


14 FM 2334 & FM 765 . 


298 


STOP 


13 FM 388 &FM 2334. 


300 


STOP/YIELD/ 
BLINKING RED 
LIGHT 


2 FM 388 & Loop 306 


307 


STOP/YIELD/ 
BLINKING RED 
LIGHT 


8 US 277 &FM 2105 . 


313 




9 FM 2105 & Texas 208 


317 


STOP 


10 FM2105&US87 .. 


320 


STOP 


11 FM2034&US87 .. 


338 




12 FM 2034 & Texas 208 


362 


YIELD 


9 FM 2105 & Texas 208 


387 




8 FM 2105 & US 277 . 


391 


YIELD/STOP 


2 FM 388 & Loop 306 


397 




1 Ft. McKavitt Road & 


400 




FM388 







PART 575-18 



APPENDIX B 
Traction Skid Pads 

Two skid pads have been laid on an un- 
used runway and taxi strip on Goodfellow AFB. 
Their location is shown in Figure 4. 

The asphalt skid pad is 600 ft x 60 ft and is 
shown in black on the runway in Figure 4. The 
pad is approached from either end by a 75 ft 
ramp followed by 100 ft. of level pavement. 
This arrangement permits the skid trailers to 
stabilize before reaching the test area. The ap- 



proaches are shown on the figure by the hash- 
marked area. 

The concrete pad is 600 ft x 48 ft and is on 
the taxi strip. The approaches to the concrete 
pad are of the same design as those for the 
asphalt pads. 

A two lane asphalt road has been built to con- 
nect the nmway and taxi strip. The road is 
parallel to the northeast-southwest runway at a 
distance of 100 ft. The curves have super-eleva- 
tion to permit safe exit from the runway at op- 
erating speeds. 




PART 575-19-20 



APPENDIX C 

Method Of Least Squares 

The method of least squares is a method of 
calculation by which it is possible to obtain a 
reliable estimate of a true physical relationship 
from a set of data which involve random error. 
The method may be used to establish a regres- 
sion line that minimizes the sum of the squares 
of the deviations of the measured data points 
from the line. The regression line is conse- 
quently described as the line of "best fit" to the 



data points. It is described in terms of its slope 
and its "y" intercept. 

The graph in Figure 5 depicts a regression 
line calculated using the least squares method 
from data collected from a hypothetical tread- 
wear test of 6,400 miles, with tread depth meas- 
urements made at every 800 miles. 

In this graph, (xj, yj) [j = 0, 1,...8] are the 
individual data points representing the tread 
depth measurements (the overall average for the 
tire with 6 measurements in each tire groove) 
at the beginning of the test (after break-in and 
at the end of each 800-mile segment of the test. 



(xo.yo> 



(XvVl) 



(xz.Yz) 



(xg.ya) 



(X4.y4) 



• (xg.ve) 



•(xs^Ysl 



800 



1600 



2400 



3200 4000 
MILES 



4800 



5600 



6400 X 



Figure 5 



PART 575-21 



The absolute value of the slope of the regres- The "y" intercept of the regression line (a) 

sion line is an expression of the mils of tread in mils is calculated by the following formula: 
worn per 1,000 miles, and is calculated by the 
following formula: 



b= 1000 



(8 , 8 8 \ 

i=o j=o j=o / 



8 



9 Z* 1 9000 Z* J 



PART 575-22 



PREAMBLE TO PART 591 

ImportaUon of Vehicles and Equipment 

Subject to Federal Motor Vehicle Safety Standards 

(Docket No. 89-5; Notice 2) 

RIN:2127-AD00 



ACTION: Final rule. 

SUMMARY: The purpose of this rule is to adopt 
procedures that will govern the importation of motor 
vehicles and equipment subject to Federal safety 
standards on and after January 31, 1990. This rule 
supersedes the existing joint regulation of the Depart- 
ments of Treasury and Transportation on this subject, 
19 CFR 12.80, which has been in effect since 1968. In 
most instances, the new rules are mandated by the 
Imported Vehicle Safety Compliance Act of 1988, and 
primarily affect importation of motor vehicles not 
manufactured to comply with the Federal motor vehicle 
safety standards. Requirements concerning vehicles 
and equipment that conform to the Federal safety 
standards, and nonconforming equipment, remain 
unchanged. 

The Supplementary Information of this notice 
contains a full discussion of the present regulation, the 
proposal, and the changes made in response to that 
proposal. 

EFFECTIVE DATE: January 31, 1990. 

SUPPLEMENTARY INFORMATION: Although 
NHTSA provided a full discussion of the proposed 
amendments in its prior proposal, it is repeating much 
of that discussion in this notice because of the major 
changes that the rule occasions, and the need that 
interested persons be fully informed as to the changes 
and their effect upon importation procedures that have 
been in effect for over 20 years. 

On October 31, 1988, the President signed P.L. 100- 
562, the Imported Vehicle Safety Compliance Act of 
1988 ("the 1988 Act"). Notice of its enactment was 
published by the agency in the Federal Register on 
December 5, 1988 (53 FR 49003), and a notice of 
proposed rulemaking to establish Part 591 was pub- 
lished on April 25, 1989 (54 FR 17772). As the notice 
stated, the 1988 Act amends those provisions of the 
National Traffic and Motor Vehicle Safety Act of 1966 
("the Vehicle Safety Act") that relate to the importation 
of motor vehicles subject to the Federal motor vehicle 
safety standards (section 108(b), 15 U.S.C. 1397(b)). 



Specifically, the 1988 Act revokes sections 108(b)(3), 
and (b)(4) of the Vehicle Safety Act, effective January 
31, 1990. These sections authorized the issuance of 
regulations jointly by the Secretaries of Transportation 
and Treasury to prohibit the importation of motor 
vehicles and equipment not complying with the Federal 
motor vehicle safety standards, except under such 
terms and conditions as may appear to them appropriate 
to ensure that a noncomplying vehicle or equipment 
item will be brought into conformance or will be 
exported or abandoned to the United States. The 
temporary admission of nonconforming used vehicles 
and equipment items by exempted persons was also 
permitted. Pursuant to this authority, the two Sec- 
retaries issued an implementing regulation, 19 CFR 
12.80, which has governed the importation of merch- 
andise subject to Federal motor vehicle safety standards 
since 1968, and will continue to do so through January 
31, 1990. 

Under the 1988 Act, new sections (c) through (j) are 
added to section 108 to replace revoked sections (b)(3) 
and (b)(4). The authority to issue joint regulations is 
replaced by a rulemaking authority vested alone in the 
Secretary of Transportation (and delegated to NHTSA 
through existing delegation of authority). 

The purpose of this notice is to promulgate a final 
rule to implement the 1988 Act, and to explain how 
importation of motor vehicles and equipment will be 
affected by this new authority. First, the existing 
regulation, 19 CFR 12.80, will continue to be a regula- 
tion under the joint authority of the two Departments 
with respect to the importation provisions of the Motor 
Vehicle Information and Cost Savings Act under 
which the Bumper Standard (49 CFR Part 581) and the 
Theft Prevention Standard (49 CFR Part 541) were 
issued. With respect to the Vehicle Safety Act, however, 
the new NHTSA regulation, 49 CFR Part 591, will 
become the primary importation regulation, and 19 
CFR 12.80 will become the conforming regulation of 
the U.S. Customs Service. In the future, substantive 
changes to importation procedures will be effected by 
NHTSA alone, through amendments to Part 591, and 
Customs will make conforming amendments to 19 
CFR 12.80, as required. 



PART 591 -PRE 1 



A similar relationship presently exists between 
regulations of the Environmental Protection Agency 
("EPA") and Customs {see, respectively, 40 CFR 85.1501 
et seq. and 19 CFR 12.73). This relationship has 
established a precedent for Customs to amend its 
regulations without notice and opportunity for com- 
ment on the basis that full notice and opportunity had 
been offered by EPA in promulgating its regulations, 
and that the amendments by Customs were merely 
conforming in nature {See 53 FR 26240). 

In establishing Part 591, NHTSA has attempted to 
formulate a program that will ensure that all imported 
motor vehicles conform to the Federal motor vehicle 
safety standards without imposing unnecessary bur- 
dens on importers. Therefore, NHTSA has tried in this 
rule to impose only those requirements that are 
mandated by the 1988 Act, with amplifications only 
where it appeared necessary to implement the safety 
intent of the statute. 

In response to the proposal published on April 25, 
1989, NHTSA received 19 written comments, and, as 
well, several inquiries by telephone. Seven comments 
were received from the following motor vehicle man- 
ufacturers: BMW of North America, Freightliner Corp., 
Austin Rover Cars of North America, General Motors 
Corp., Volkswagen of America, Ford Motor Co., and 
Chrysler Corp. Five comments were received from the 
following manufacturing firms in Canada: Intercon- 
tinental Truck Body Ltd., Barber Industries Ltd., 
Cancade Co., Western-Hydro Air Drilling Ltd., and 
Canterra Equipment Inc. Also commenting from 
Canada was an import/export consulting firm. All 
Alta. Agencies Ltd. Two comments were received from 
importers of vehicles not originally manufactured to 
conform to Federal motor vehicle safety standards: 
U.S. Trade Corp. and Auburn Motors/Superior Auto 
Sales (whose submission was supported by the National 
Federation of Independent Businesses). Two comments 
were received from trade organizations: National 
Automobile Dealers Association and The Dealer Action 
Association. Written comments were submitted by the 
State of Texas, and a private citizen, George Ziolo. 
During the pendency of the rulemaking action, ques- 
tions were raised in telephone conversations, reported 
to the Docket , and these will be addressed in this notice 
where appropriate. 

The principal paragraphs of Part 591 are those 
dealing with the importer's declarations (591.5), doc- 
uments accompanying declarations (591.6), and restric- 
tions upon importation and bond requirements (591.7). 
As paragraphs 591.6 and 591.7 relate directly to 
paragraph 591.5, issues that were raised in connection 
with them will be discussed in the appropriate portions 
of paragraph 591.5. 

IMPORTA TION OF MOTOR VEHICLES 

Under existing 12.80, a motor vehicle offered for 
importation into the United States is admitted pursuant 



to one of nine declarations regarding the status of the 
vehicle in relation to the motor vehicle safety and 
bumper standards (12.80 is in the process of being 
amended to incorporate reference to the theft preven- 
tion standard). The requirements of the 1988 Act affect 
some of these declarations, and establish new excep- 
tions. A discussion of these changes follows. 

1. The vehicle is not a "motor vehicle". 

Under 19 CFR 12.80(b)(l)(viii), a vehicle is not 
required to be brought into compliance if it is not a 
motor vehicle as defined by the Vehicle Safety Act, i.e., 
if it is not "designed primarily for use on the public 
streets, roads, and highways" (15 U.S.C. 1391(3)). 
Because of the uncertainty regarding certain types of 
vehicles {e.g., golf carts, construction equipment) 
NHTSA has required that all importers of self-propelled 
wheeled vehicles execute a declaration, which has 
allowed the agency to review the status of vehicles for 
which an exemption is claimed, and to require re-entry 
as a nonconforming vehicle when it disagrees with the 
importer's assessment that the vehicle is not subject to 
the Federal motor vehicle safety standards. This 
exemption remains (paragraph 591.5(a)(i)) because 
this agency has no jurisdiction regarding non-motor 
vehicles under the Vehicle Safety Act and the 1988 Act 
makes no jurisdictional change. There were no com- 
ments on this issue. 

2. The vehicle conforms and is so certified. 
Under the existing regulation, a motor vehicle is 

allowed immediate entry without the posting of bond 
upon a declaration that it conforms to all applicable 
Federal motor vehicle safety standards and bears a 
certification label to that effect permanently affixed by 
the original manufacturer (12.80(b)(l)(ii)). This same 
paragraph also allows immediate entry if a vehicle is 
only technically noncompliant, i.e., because readily 
attachable equipment items are not attached, but will 
be installed before the vehicle is offered for sale. 

The 1988 Act makes no change affecting this category 
of importation. The agency interprets the new amend- 
ments, however, as imposing new restrictions upon 
the importation of vehicles that may have been con- 
formed prior to entry but bear a certification by a 
person other than the original manufacturer. The 1988 
Act amends 15 U.S.C. 1397(a)(1)(A) to add the words 
"and is covered by a certification issued under section 
114" as an addition to the existing requirement that a 
vehicle may not be imported "unless it is in con- 
formity." A certification issued under section 114 is 
that of the "manufacturer", the entity which is 
responsible for the original assembly of the vehicle, 
and not that of a converter, whose operation consist of 
alterations to a previously assembled vehicle. To 
reflect this amendment, the agency proposed, and is 
now adopting, a definition of the term "original man- 
ufacturer" (paragraph 591.4) which excludes con- 
verters outside the United States who certify and 



PART 591-PRE 2 



conform vehicles to the standards after the vehicles 
have been manufactured in fully assembled form by a 
person other than the converter. The agency believes 
that the 1988 Act justifies this interpretation. The 
definition was specifically supported by The Dealer 
Action Association. An interpretation that would allow 
entry of a vehicle pursuant to a declaration of con- 
formity and a certification by a person other than its 
original manufacturer could well result in the importa- 
tion of vehicles for which the Administrator had made 
no determination of capability of modification to meet 
Federal standards, and defeat the purpose of the 1988 
Act. However, even if the converted vehicle is one that 
the Administrator has deemed eligible for entry and is 
certified as conforming by its converter, under Part 
591 it must enter the country only through a registered 
importer (or through one who has a contract with a 
registered importer), under bond, and its compliance 
must be established after entry in accordance with the 
new procedures. 

One commenter, U.S. Trade Corp., though head- 
quartered in the U.S., apparently owns a conversion 
facility in Germany. Assuming that it will become a 
registered importer, it commented that it ought to be 
able to import its converted vehicles without bond, 
provided that it submitted documentation to NHTSA 
30 days in advance of the arrival of its vehicles. 
NHTSA notes, however, that these are vehicles im- 
ported pursuant to 15 U.S.C. 1397(c)(3), and paragraph 
(c)(2) specifically requires a bond to be furnished "in 
the case of any motor vehicle imported under paragraph 
(3). . ." Though sympathetic to U.S. Trade Corp.'s 
desire for expedited treatment, NHTSA believes that it 
is contrary to the 1988 Act for it to receive certification 
from an importer in advance of the arrival of a vehicle. 
Section 1397(c)(3)(E)(i) allows a registered importer to 
release custody of a vehicle 30 days after certification 
to the Secretary (if the Secretary has not in the interim 
demanded an inspection of the vehicle). Acceding to 
U.S. Trade Corp.'s request for early submission of 
certification could result in the 30-day period expiring 
before arrival of the vehicle in the U.S., and its 
immediate release from custody upon entry. NHTSA 
does not deem it desirable to demand pro forma an 
inspection of each such vehicle to delay its release from 
custody. Accordingly, it is informing U.S. Trade Corp. 
and others who are contemplating becoming registered 
importers that it will not accept certification data in 
advance of the arrival of a vehicle in the United States, 
and that the earliest date on which certification 
documentation may be submitted is the date of the 
importation declaration. Consequently, a motor vehicle 
that has been modified by a registered importer after 
its manufacture and before entry, will be treated as a 
nonconforming motor vehicle, and subject to the same 
entry requirements as a nonconforming vehicle. 



Although the exclusory language in the definition of 
"Original manufacturer" remains as proposed, a mod- 
ification has been made in the preliminary portion 
which defined the term as "the entity responsible for 
the original design, engineering, and manufacturer of 
a motor vehicle. . . ."Volkswagen commented that the 
definition was overly restrictive by its inclusion of 
design and engineering, and recommended a definition 
that would be consistent with the definition of "man- 
ufacturer" in the Vehicle Safety Act (15 U.S.C. 1391(5)). 
NHTSA concurs with this analysis and recommenda- 
tion. The agency is aware that on occasion a vehicle 
manufacturer in one country may contract with a firm 
in another for design and engineering studies for 
future production vehicles. Accordingly, the pre- 
liminary portion of the final definition reads "the 
entity responsible for the original manufacture or 
assembly of a motor vehicle. . . ." VW also recom- 
mended that the definition include motor vehicle 
equipment. The agency has not adopted this recom- 
mendation, as the amendments of the 1988 Act do not 
affect motor vehicle equipment. 

Other issues regarding interpretations of conformity 
were raised by commenters. Canadian companies who 
appeared to be final stage manufacturers, and who 
were concerned that their vehicles would be treated as 
"nonconforming" under the amendments, asked for a 
clarification. The agency wishes to reassure these 
commenters that the new requirements do not affect 
final stage manufacturers outside the United States 
who complete chassis-cabs manufactured and certified 
in the United States, and certify compliance of the 
finished vehicle with those U.S. Federal motor vehicle 
safety standards for which the manufacturer of the 
chassis-cab has not previously furnished certification. 
The final stage manufacturer is and remains the 
"original manufacturer" for purposes of the certi- 
fication that it furnishes, and vehicles certified by 
Canadian final stage manufacturers will be admissible 
as conforming vehicles under new paragraph 591.5(b). 

With respect to vehicles certified as conforming to 
the Canadian motor vehicle safety standards, Auburn 
Motor/Superior Auto Sales, importers of such vehicles, 
commented that NHTSA had not addressed the issue 
of vehicles manufactured to meet the Federal motor 
vehicle safety standards, but which may not be so 
certified. In their view, Canadian vehicles do meet the 
U^S. standards, and special accommodation should be 
provided for them. Auburn/Superior cited .The Free 
Trade Act between Canada and the United States in 
support, as well as a settlement with EPA which was 
published in iht Federal Register or\]\i\y?,, 1988 (53 FR 
25331), which, according to Auburn/Superior re- 
cognized the identicality of standards. After reviewing 
Auburn/Superior's comments, NHTSA cannot concur 
with the conclusion that a special accommodation 



PART 591-PRE 3 



ought to be made. In many respects, the Canadian 
standards may be identical, but they also differ in 
certain other significant respects. For example, the 
Canadian vehicle lighting standard allows the use of 
headlamps meeting ECE standards. Federal Motor 
Vehicle Safety Standard No. 108 does not allow the use 
of European light sources, or of replaceable bulb 
headlamps that do not meet stringent environmental 
standards which are not specified in European reg- 
ulations. Another example: the Canadian standard on 
controls and displays requires the use of metric 
speedometers and odometers; the primary U.S. require- 
ment is that they be in miles per hour, though metric 
markings are permissible. The fact that similarity 
exists between the standards of the two nations today 
does not preclude either the U.S. or Canada from 
adopting significantly different ones in the future, as 
allowed by Article 603 of The Free Trade Act, if the 
demonstrable purpose is to achieve a legitimate do- 
mestic objective, such as enhancement of the public 
safety. The EPA "settlement" cited by Auburn/ 
Superior was, in fact, simply a 3-month conditional 
stay of the applicability of that agency's new importa- 
tion regulation, to expire October 1, 1988, based upon a 
petition for reconsideration of the rule. NHTSA notes 
that only one Federal standard was involved, engine 
emission, and that the Federal safety standards are far 
greater in number. Even if vehicles certified to the 
Canadian safety standards do meet U.S. emission 
requirements, that fact is of no relevance to the 
quantum of compliance with the U.S. safety standards. 
A manufacturer's certification attached to a vehicle 
remains the statutorily approved method of estab- 
lishing a presumption of compliance with the U.S. 
safety standards. 

A telephone call was received from Barry Wood, a 
customs broker, about the treatment of reentry into 
the United States of a used certified vehicle that was 
driven to Canada for modifications involving the 
installation of a different load-carrying structure. An 
associated issue is the treatment of new certified 
vehicles sent to Canada for modification requiring the 
affixation of an alterer's certificate as required by 49 
CFR 567.7. NHTSA replies that the thrust of the 1988 
Act is to regulate vehicles that were not originally 
manufactured to comply with Federal safety standards, 
and not to ensure continuing compliance of those that 
were. Assuming that the original manufacturer's 
certification remains affixed to an altered vehicle, 
whether that vehicle is new or used, the vehicle should 
be readmitted to the United States under paragraph 
591.5(b) as a conforming vehicle. Of course, the U.S. 
owner/importer should ensure with the Canadian 
alterer that its modifications do not result in changes 
(such as installation of tinted glass that may not 
conform with Standard No. 205, or an increase in 
GVWR) that would raise a question of conformity with 



the U.S. Customs Service, so as to delay reentry, or 
require its readmission as a nonconforming vehicle in 
spite of the presence of its certification label. 

Ford Motor Company raised the issue of discovery in 
transit of a noncompliance in vehicles it imports from 
abroad for sale under its nameplate, but which are 
manufactured and certified by a second party. Ford 
stated that Part 591 ought to permit importation for 
modification by Ford as the agent of the foreign 
manufacturer, and asked that the final rule allow such 
modifications to be made in the U.S., or confirmation 
that the rule already allows it. The agency's analysis 
differs from Ford's although its conclusion should 
meet Ford's concern. Where a noncompliance is dis- 
covered in transit, NHTSA believes that only a 
technical violation of the Vehicle Safety Act would 
occur with the importation of a motor vehicle certified 
as conforming to the safety standards, but in fact 
known to the importer to be noncompliant with at least 
one of them. As an importer for resale. Ford becomes 
the "manufacturer" under the Vehicle Safety Act and 
responsible for all notification and remedial respons- 
ibilities imposed by that Act. Thus, it will be required 
to file a Part 573 Noncompliance Report with NHTSA 
not later than 5 days after its determination of the 
existence of the noncompliance. As the Act forbids sale 
of a nonconforming vehicle. Ford will be under a legal 
obligation to remedy the noncompliance before it is 
sold. Provided that the noncompliance is corrected 
before the vehicles are offered for sale, there would 
appear to be no harm to the public safety by allowing 
the importation. 

The agency responds similarly to a comment by 
General Motors. Under the proposal, a technically 
noncompliant vehicle could be admitted pursuant to 
the declaration that "the vehicle will conform when 
readily attachable equipment items carried within it 
are attached." This represents a slight departure from 
the current declaration which does not require the 
equipment items to be carried within the vehicle. GM 
points out that it may well be that components will be 
added from domestic sources prior to sale, or arrive 
from abroad by separate shipments. Because of the 
importer's legal obligation not to offer a vehicle for sale 
in a noncompliant condition, it is irrelevant whether or 
not the equipment items are carried within the vehicle, 
and NHTSA has eliminated the proposed restriction 
from the final rule, adopting language virtually 
identical to that presently existing in 12.80(b)(l)(ii). 
GM also suggested that a manufacturer's "agents" be 
permitted to attached the detached equipment items. 
Given the fact that the vehicle must fully comply when 
offered for sale, NHTSA believes that the answer must 
be a practical one, and that the items may be attached 
by the manufacturer or the dealer, as appears best. 

One further comment regarding paragraph 591.5(b) 
resulted in minor modifications in the final rule. Under 



PART 591-PRE 4 



the proposal, the vehicle or equipment item to be 
imported must bear a certification label or tag affixed 
by the original manufacturer "to the vehicle or to the 
equipment item or its container." NADA commented 
that the language could be construed as allowing 
certification of vehicles on vehicle containers rather 
than on the vehicle itself. To meet this concern, 
NHTSA has placed a comma between the word 
"vehicle" and the disjunctive "or." In agreement with 
NADA's suggestion that the paragraph contain an 
appropriate citation to labeling regulations as is cur- 
rently done in 12.80, NHTSA has added the statutory 
references. This should help clarify that the labeling 
requirement remains the same in spite of the advent of 
a new importation regulation. 

3. The vehicle is intended solely for export. 

A nonconforming vehicle is allowed immediate entry 
without bond upon the declaration that the importation 
is solely for purposes of export, and bears a label to that 
effect (12.80(b)(l)(iv)). This declaration is allowed 
pursuant to a specific statutory exclusion in the 
Vehicle Safety Act, section 108(b)(5). Under the 1988 
Act, the section becomes 108(b)(3), but is otherwise 
unchanged, and the exclusion remains (Paragraph 
591.5(c)). There were no comments on this issue. 

4. Nonresident temporary importations. 

If the importer is a nonresident of the United States 
and is importing the nonconforming vehicle primarily 
for personal use for a period of 1 year or less, the 
current regulations allow entry without bond and 
conformance, but the declaration must also state that 
the importer will not sell the nonconforming vehicle in 
the United States during that period (12.80(b)(l)(v)). 
There is no similar provision in the 1988 Act. 

This provision was intended to benefit two classes of 
importers. The first class is comprised of U.S. citizens 
who are between foreign work assignments, and need 
to use their noncomplying cars while in transit, on 
home leave, or on temporary assignment in the U.S. 
The second class of importer is comprised of non-U. S. 
citizens. They may be Mexican or Canadian residents 
who use the American roads on an infrequent basis, or 
citizens of other countries who bring their campers or 
cars with them to facihtate their vacations in the U.S. 

One authority for the previously existing allowance 
was section 1397(b)(4) which authorized the adoption 
of regulations allowing the "temporary importation" 
of noncomplying vehicles or equipment items. This 
authority has been deleted by the 1988 Act. However, a 
further authority for the nonresident exemption was 
the existence of two international treaties to which the 
United States is a signatory that address the movement 
of vehicles among various countries (I. Customs 
Convention on the Temporary Importation of Private 
Road Vehicles opened for signature June 4, 1954, 8 
U.S.T. 2097, T.I.A.S. No. 3943, entered into force 
December 15, 1957. II. Convention on the Regulation of 



Inter-American Automotive Traffic, opened for sig- 
nature December 15, 1943, 61 Stat. 1129, T.I.A.S. No. 
1567, entered into force October 29, 1946). NHTSA 
believes that elimination of the present allowance may 
be inconsistent with the intent of the treaties, and 
proposed that it be retained in clarified form, allowing 
the temporary importation of any vehicle by a non- 
resident that is registered in a country other than the 
United States, provided it is for personal use, imported 
tor a period not to exceed one year, will not be resold in 
the U.S. during that time, and will be exported at the 
end of that time (Paragraph 591.5(d)). 

No commenter disagreed with the concept of tem- 
porary importation, though concern was expressed as 
to the effect of the requirement. Texas commented 
that the proposal was unclear whether nonconforming 
vehicles of Mexican or Canadian registry will continue 
to be treated as before. This was also the concern of 
Western Hydro- Air Drilling of Canada, a mineral 
drilling specialist operating in both the U.S. and 
Canada using the same units in both countries from 
time to time. The Dealer Action Association was 
concerned with the possible sale of nonconforming 
vehicles by nonresidents, as well as NHTSA's lack of 
substantive proposals to guard against abuse. It sought 
to encourage NHTSA to work with Customs to ensure 
that neither Canada nor Mexico become a "grey 
market export platform." George Ziolo commented 
that the phrase "for personal use" should not be 
adopted as "this includes commercial carriers and may 
confuse Customs". 

The agency believes it must interpret Congressional 
intent in light of the realities of cross-border traffic, 
and the existence of treaties and agreements to which 
the U.S. is a party. Under long-standing NHTSA 
interpretations, cross-border traffic involved in daily 
operation in the United States over an extended period 
of time (as opposed to the casual tourist) is deemed 
subject to the Vehicle Safety Act and to the Federal 
motor vehicle safety standards. However, it must defer 
to the U.S. Customs Service to identify such vehicles, 
to refuse entry as a nonresident, and then to require 
entry as a nonconforming vehicle which must be 
conformed or exported. Because of the substantial 
nature of cross-border traffic, it is obvious that Customs 
cannot require a written declaration of every vehicle of 
Mexican or Candian registry, and NHTSA's legal 
interpretation has not been capable of rigorous en- 
forcement. These practical considerations are not 
changed by the 1988 Act, nor does NHTSA read the 
1988 Act as a mandate from Congress to enhance 
motor vehicle safety by increasing restrictions on the 
use of Canadian or Mexican vehicles operated in the 
U.S. To respond to the comment of The Dealer Action 
Association, the modus vivendi with respect to these 
vehicles has not, as of the present time, resulted in the 
border countries becoming a grey market export plat- 



PART 591-PRE 5 



form to any discernible extent. Given the present low 
volume of grey market cars expected, less than 3000 
per year, it does not appear likely that this is a realistic 
concern for the near future. As for Mr. Ziolo's comment, 
NHTSA seeks to retain as much of the presently 
existing regulatory language as is consistent with the 
1988 Act, and thus has not stricken "for personal use" 
from the final rule. The agency is not aware of any 
confusion that use of this term has caused in the 
existing regulation. 

5. The vehicle does not conform to Federal safety 
standards. 

This is the category of motor vehicle whose im- 
portation is most affected by the 1988 amendments. 
Under 19 CFR 12.80, a nonconforming vehicle is 
imported pursuant to a declaration that it will be 
brought into conformance within 120 days of entry. 
The importer gives a bond for the produc^^^ion of a 
statement, after conformance, certifying that the con- 
formance work has been accomplished. The statement 
describes the conformance work, identifies the con- 
former, and certifies that the vehicle will not be sold 
until NHTSA has issued an approval letter to the 
district director of Customs that the bond may be 
released. The bond is for the dutiable value of the 
vehicle (12.80(b)(l)(iii) and (e)). 

The 1988 amendments impose criteria which motor 
vehicles must meet in order to be imported. Under new 
section 108(c)(3)(A), a vehicle cannot be imported at all 
(with certain exceptions set out below) unless NHTSA 
determines that it is capable of modification to meet 
the Federal safety standards. Determinations may be 
made on NHTSA's own initiative, or upon petition of 
any registered importer (see discussion below) or any 
motor vehicle manufacturer, and will be subject to 
pubHc comment. 

A nonconforming vehicle that is not offered for 
importation under one of the exceptions discussed 
herein may be imported under either of the following 
two scenarios. The first scenario, specified by section 
108(c)(3)(A)(i)(I), will involve the making of two de- 
terminations: (1) that the nonconforming vehicle is 
substantially similar to a motor vehicle of the same 
model year originally manufactured for importation 
into and sold in the U.S., (and thus in compliance with 
the safety standards) and (2) that the vehicle is capable 
of being readily modified to conform. 

The second scenario, specified by section 108(c)(3) 
(A)(i)(II), will arise if the agency does not make a 
determination of substantial similarity regarding a 
vehicle. In that case, it will still be permissible to 
import the vehicle if the agency determines that the 
vehicle's safety features comply with the U.S. 
standards, or are capable of being modified to comply 
with those standards, "based on destructive crash 
data or such other evidence" as NHTSA determines is 
adequate. 



Under either scenario, a positive determination 
regarding a vehicle will permit any registered importer 
to modify vehicles of the same model covered by the 
determination. 

If the agency makes a negative determination re- 
garding a model's ability to be modified, the agency 
will be temporarily prohibited from taking up the issue 
of that model's importability again. If the negative 
determination was made in response to a petition, 
section 108(c)(3)(C)(ii) of the Act prohibits the agency 
from considering a petition regarding the same model 
of vehicle until at least 3 months after that decision. If 
the negative determination was made in a proceeding 
begun at the agency's own initiative, the agency will 
not be able to make another determination regarding 
the same model of motor vehicle until at least 3 months 
after the negative one (section 108(c)(3)(C)(iii)). The 
agency addresses these matters in companion final 
rules published simultaneously with this one, Part 
592, Registered Importers of Vehicles Not Originally 
Manufactured to Conform to Federal Motor Vehicle 
Safety Standards, and Part 593, Determinations That a 
Vehicle Not Originally Manufactured to Conform to 
Federal Motor Vehicle Safety Standards is Eligible for 
Importation. 

Once a vehicle has been determined eligible for 
importation, it may then be imported by a registered 
importer who will undertake to conform it with the 
safety standards (Paragraph 591.5(f)(i)). The importer 
is required by section 108(c)(2) to give a bond to ensure 
conformance or alternatively to ensure that the vehicle 
will be exported or abandoned to the United States. 
The bond is to be not less than the "dutiable value" of 
the vehicle as determined by the Secretary of the 
Treasury, and not more than 150 per cent of the 
"dutiable value." The U.S. Customs Service has 
recommended that the term "entered value" be used, 
as under recent changes to its regulations vehicles 
imported from certain areas may not have duties 
imposed. It views "entered value" as the equivalent of 
the statutory term "dutiable value" for purposes of 
importations of vehicles under Part 591. Both NHTSA 
and Customs view this bond as one that is separate 
from the general importation bond, which will continue 
to be required. Further, the statute is interpreted as 
requiring a separate bond for each vehicle imported. 
This means that the 1988 Act requires an individual 
bond to be given for each vehicle imported. A bond is 
not blanket in nature, covering any vehicle that may be 
imported by a registered importer. In other words, the 
required bond will be of a single entry nature, and not 
of a continuous nature. The bond is acquired by the 
vehicle owner. Thus, a Registered Importer may not 
import a vehicle in which it has no ownership interest. 

The new requirements were set forth in proposed 
591.5(f). NADA expressed its general support. General 
Motors commented that Part 591 as proposed did not 



PART 591-PRE 6 



state the conditions of the bond, nor that the vehicle 
was being imported under bond for conformance 
purposes. It recommended eliminating the ambiguity 
by including a statement of purpose in the declaration 
required in paragraph 591.5(f), specifically that "the 
vehicle is being imported under bond to ensure 
conformance, delivery to the Secretary of the Treasury 
for export at no cost to the United States, or abandon- 
ment to the United States." NHTSA agrees with this 
comment, and an appropriate addition has been made 
to the declaration required by paragraph 591.5(f). 

Because the bond is given to secure performance to 
the requirements of the Vehicle Safety Act, rather 
than to fulfill obligations under Customs' regulations, 
it will be a bond of the Department of Transportation 
No mitigation of the bond is contemplated for vehicles 
that appear to conform only partially, unlike the 
practice today. If full conformance is not achieved, the 
vehicle must be exported, or abandoned to the U.S. If 
none of these occur, the bond is forfeited. NHTSA has 
decided that the bond shall be 150 percent of the 
entered value of the vehicle, as determined by Customs. 
The bond must have been obtained prior to, or at the 
time of, entry of the vehicle, and attached to the 
declaration form. If the bond is not attached, or in an 
improper amount, the vehicle will be refused entry. 
6. The vehicle requires further manufacturing 
operations. 

Under new section 108(e), the prohibitions in subsec- 
tions (a)(1)(A) and (a)(1)(C) shall not apply to any motor 
vehicle if it requires further manufacturing operations 
to perform its intended function (as determined under 
regulations prescribed by the Secretary), and is ac- 
companied at the time of entry by its manufacturer's 
written statement which indicates the applicable 
Federal motor vehicle safety standard with which the 
vehicle does not comply. The corresponding current 
provision is 12.80(b)(l)(ix): a vehicle may be imported if 
it is an "incomplete vehicle" as defined by 49CFR Part 
568 Vehicles Built in Two or More Stages. Under Part 
568, an incomplete vehicle manufacturer must provide 
with an incomplete vehicle a document that contains 
the information specified in paragraph 568.4. With 
respect to the safety standards, the document must list 
the specific vehicle types into which the incomplete 
vehicle may be appropriately manufactured, and, with 
respect to each standard that applies to each such type, 
make one of three statements. These statements are 
(1) that the vehicle when completed will conform to the 
standard if no alterations are made to the specified 
components of the vehicle (2) the specific conditions of 
final manufacture under which the manufacturer 
specifies that the completed vehicle will conform to the 
standard, or (3) that conformity with the standard is 
not substantially affected by the design of the in- 
complete vehicle, and that the incomplete vehicle 
manufacturer makes no representation of conformity 



with the standard. The justification for this exception 
in 12.80 has been that the vehicle must conform, and be 
certified as conforming, upon completion by its final 
stage manufacturer, and that this is an obligation that 
exists independent of the importation process which 
serves to ensure that safety needs are met. 

As NHTSA noted in its proposal, the question of the 
type and extent of manufacturing required for per- 
formance of intended function, will, of course, vary. 
However, the existing requirements for alterers of 
certified vehicles (paragraph 568.8) afforded a basis for 
proposing criteria that distinguish between completed 
vehicles and those that require further manufacturing. 
Accordingly, NHTSA proposed paragraph 591.5(e), the 
declaration that "The vehicle or equipment item 
requires further manufacturing operations to perform 
its intended function, other than the addition of readily 
attachable equipment items, or minor finishing opera- 
tions." By so doing, NHTSA also intended to establish 
a clear dividing line between entry under the technical 
nonconformance conditions of paragraph 591.5(b), ap- 
plicable to completed vehicles, and the greater man- 
ufacturing operations required for entry under para- 
graph 591.5(e). 

Virginia Department of Motor Vehicles asked what 
are vehicles requiring further manufacturing opera- 
tions. In commenting on the proposal. The Dealer 
Action Association found the declaration insufficiently 
comprehensive to limit its application, and recom- 
mended that NHTSA limit this exception to original 
equipment manufacturers, to enable them to man- 
ufacture vehicles in stages, initially outside the United 
States, and completion within. NADA commented that 
the further manufacturing specification should be 
clearly stated as applying to Part 568-type vehicles 
which must ultimately comply with Federal safety 
standards. Freightliner stated that it imports "kits" 
that are "incomplete vehicles" as defined under Part 
568, and asked whether it would have to be registered 
as an importer. 

NHTSA has carefully considered these comments. 
The question raised by Virginia is, of course, funda- 
mental to this provision. The proposal indicated that 
at a minimum the term included vehicles fitting the 
definition of "incomplete vehicle" in Part 568. This 
conclusion is reinforced by reading in pari passu the 
definitions of both "completed vehicle" and "incomplete 
vehicle" established by Part 568, definitions that are 
mutually exclusive. If a vehicle is not incomplete, it is 
complete. Therefore a vehicle requiring further man- 
ufacturing operations to perform its intended function 
is an "incomplete vehicle" as defined by Part 568. 

The issue raised by The Dealer Action Association is 
whether importation under this provision can be 
limited to original equipment manufacturers. No such 
limitation appears upon the face of the statute. The 
thrust of the requirement is towards the vehicle itself: 



PART 591-PRE 7 



it is one requiring further manufacturing, and it is 
accompanied by an appropriate document. While the 
vehicle must ultimately conform, the statute does not 
impose the obligation of conformance upon the im- 
porter. NHTSA is loath to read a restriction of this 
nature into the 1988 Act that does not appear on its 
face. Even were it sympathetic to the comment, it 
believes that such a restriction would have to be 
formally proposed for comment. However, NHTSA 
will monitor importations under this section and if 
remedial action appears required for motor vehicle 
safety, will propose an appropriate restrictive amend- 
ment. 

With respect to NADA's comment, NHTSA has 
decided to clarify that the document accompanying the 
declaration be a statement in the form specified in Part 
568. This document in its essential respects complies 
with the language of section 108(e). If the vehicle is not 
in compliance with an applicable standard, that fact 
will be reflected in the statement made with respect to 
such standard pursuant to paragraph 568.4. As for a 
description of the further manufacturing operations 
required for the vehicle to perform its intended function, 
NHTSA believes that this must be read within the 
safety context of the 1988 Act. An incomplete vehicle 
manufacturer will not in many instances know the 
manner in which a specific vehicle will be completed, 
as for example, whether a chassis-cab will be finished 
with a school bus body, or with a dumping apparatus. 
But he must make statements relevant to the further 
manufacturing operations connected with completion 
of the vehicle in accordance with the Federal safety 
standards. NHTSA therefore has decided that this 
document will satisfy the intent of section 108(e). The 
only new requirement imposed is that the document 
must accompany the declaration. 

Finally, with respect to Freightliner's question 
whether an importer of a vehicle requiring further 
manufacturing operations must be registered, the 
answer is no. There are no safety standards that apply 
to an incomplete vehicle, and the obligation of con- 
formance arises after importation, upon completion of 
manufacture. However, if the incomplete vehicle is a 
chassis-cab and is not certified as required, its importer 
must be a registered importer who undertakes to bring 
it into conformance with applicable standards. Where 
manufacture has been completed before importation 
and the vehicle was not originally manufactured to 
conform to the standards, the importer of that type of 
vehicle is required to be registered. 

Finally, NHTSA wants to make plain that it will 
countenance no importations under paragraph 591 .5(e) 
that appear to be subterfuges to avoid compliance 
responsibility. Instances have arisen in the past in 
which an importer offered for importation a motor 
vehicle without its engine, or other running gear parts, 
claiming that the merchandise was, in fact, equipment 



to which no standard applied, and the importer 
separately imported the engine or parts. The agency 
has treated these cases as de facto importations of ( 
noncomplying motor vehicles, and required them to be 
entered as nonconforming motor vehicles and evidence 
of conformity to be subsequently submitted. The 
agency intends to follow this policy, and will not 
consider such an assemblage to be a vehicle requiring 
further manufacturing operations. 

7. The importer has a contract with a registered 
importer. 

The primary eligibility requirements placed by the 
1988 Act on persons importing nonconforming vehicles 
are that they will have to be, subject to certain 
exceptions, registered as importers, or they will have 
to have contracts with registered importers to conform 
the vehicles. A person importing under contract with a 
registered importer will have to furnish, at the time of 
entry, an appropriate bond (which, under the 1988 
amendments, is not less than 100 percent of the 
dutiable value of the vehicle and not more than 150 
percent), a copy of the contract or other agreement 
with a registered importer, and certification that an 
affirmative decision has been made regarding the 
eligibility of the vehicle for importation. These matters, 
specified in section 108(f), are covered in paragraph 
591.5(f)(ii). Under paragraph 591.6(d), the declaration 
must be accompanied by a copy of the contract or i 
agreement. The purpose of the new requirements is to ' 
increase the likelihood that nonconforming vehicles 
will be properly modified and actually bi ought into 
compliance with the safety standards. 

8. The importer is eligible to import under present 
requirements. 

Nonresidents are affected in another way by the 
1988 Act. Under certain circumstances, and for a 
limited time, section 108(g) of the Vehicle Safety Act 
permits a nonresident (including any member of the 
Armed Forces) to continue to import a vehicle under 
the present regulation, that is, to have it conformed by 
a person other than a registered importer. This 
exception applies to a single vehicle imported, for 
personal use and not for resale, between January 31, 
1990, and October 31, 1992, by an individual whose 
assigned place of employment was outside the United 
States for the total period between October 31, 1988, 
and the date of importation, provided that the vehicle 
was acquired (or was subject to a binding contract to 
acquire) before October 31 , 1988, and that the individual 
has not previously imported a nonconforming motor 
vehicle. This amendment is reflected in paragraph 
591.5(g). There were no comments on this subject. 
However, the Virginia Department of Motor Vehicles 
asked what standard a vehicle purchased or ordered | 
before October 31, 1988, would have to meet when it is 
imported. The answer is, those standards that applied 
to such a vehicle on the day of its manufacture, i.e.. 



PART 591-PRE 1 



assembly. This requirement of the Vehicle Safety Act 

is unchanged by the 1988 Act. 

9. Importation by diplomats and foreign military 

personnel. 

Any person who is a member of the armed forces of a 
foreign country on assignment in the U.S., or any 
person who is a member of the Secretariat of a public 
international organization so designated under the 
International Organization Immunities Act and who is 
within the class of persons for whom free entry of 
motor vehicles has been authorized by the Secretary of 
State may currently import a nonconforming vehicle 
for the duration of their stay pursuant to the declaration 
that the vehicle is for personal use only (12.80(b)(l)(vi)). 
Section 108(h) of the Vehicle Safety Act specifically 
retains this exclusion, but in addition requires NHTSA 
to ensure that any such vehicle will be exported or 
abandoned when the importer ceases to reside in the 
U.S. It also forbids the sale while within the United 
States of any motor vehicle imported under this 
provision. 

The enforcement of this provision would appear to 
rest with the Office of Foreign Missions of the Depart- 
ment of State. NHTSA understands that foreign 
personnel in the exempted categories who import 
nonconforming vehicles into the United States, are 
required to register their vehicles with this Office. 
Under the registration process, the Office takes pos- 
session of the foreign title of the vehicle, and issues 
registration plates to the importer after verifying that 
the vehicle is insured. The importer does not take 
repossession of the title until the registration plates 
are returned to the Office. At that time, the Office asks 
for an explanation. The usual reason is that the 
importer's assignment in the United States has ended, 
and that the importer is leaving the country. Doc- 
umentary proof is required, such as a copy of the 
importer's orders. Heretofore, however, no documen- 
tary proof has been required that the vehicle is being, 
or has been, exported. Thus, it is possible that a 
nonconforming vehicle could be sold between the time 
the importer repossesses the title and actually leaves 
the country, but the Office believes that this is only an 
infrequent occurence. NHTSA has informally ap- 
proached the Office as to the possibility that it could 
require proof of exportation of diplomatic vehicles, and 
has found the Office amenable to that suggestion. This 
approach appears less cumbersome than requiring a 
bond for the exportation of diplomatic vehicles. Ac- 
cordingly, NHTSA is adopting as one of the declarations 
a diplomatic importer must make under paragraph 
595.5(h) that (s)he will provide the Office of Foreign 
Missions, at the conclusion of a tour of duty and before 
departure from the United States, with documentary 
proof that the vehicle is being, or has been, exported. 



Under the existing law and regulations, it has been 
the practice to allow an exempted diplomatic importer 
to sell his or her nonconforming vehicle to another 
person in one of the exempted categories. The just- 
ification for this practice is that the exempted buyer is 
himself eligible to import a nonconforming vehicle. 
The agency does not construe the 1988 Act as forbidding 
this type of sale between exempted importers. 

However, the 1988 Act has another effect. Heretofore, 
the agency had no objection if sale of a nonconforming 
diplomatic vehicle to a nonexempted party occured 
after the vehicle had been brought into conformance 
with applicable Federal safety standards. NHTSA 
commented in the preamble to the April proposal that 
if this practice is to continue, it would have to be 
greatly modified. If an exempted importer wishes to 
sell a nonconforming vehicle in the United States, 
NHTSA indicated that the importer be prohibited from 
doing so unless (1) the vehicle is one which the 
Administrator has determined is modifiable to conform 
to the safety standards, and (2) the vehicle will be 
conformed through a registered importer. In so sug- 
gesting, NHTSA believed that this type of transaction 
was also within the intent of the 1988 Act, and that 
otherwise, a nonconforming vehicle may not be sold if 
imported pursuant to the diplomatic exemption. The 
sole commenter on this declaration. The Dealer Action 
Association, recommended forbiding this type of trans- 
action, and restricting sales to those between diplomatic 
personnel. As an alternative, it suggested establishing 
procedures analogous to those under paragraph 
591 .5(f)(2) by which an individual would contract with 
a registered importer. 

The agency has reviewed this comment, and has 
concluded that sales should be restricted to those 
between diplomatic personnel. After reviewing the 
1988 amendments, NHTSA believes that vehicles 
imported pursuant to the diplomatic exemption should 
be exported at the end of the diplomatic-importer's 
tour of duty, unless the vehicle is sold to a person who 
would have been eligible to have imported it under 
such exemption. If a diplomat wishes to enter a 
nonconforming vehicle with the intent of selling it in 
the United States, he must do so outside the diplomatic 
exception and through either a registered importer, or 
pursuant to a contract with one. As both a practical 
and legal matter, NHTSA would find it difficult to 
enforce a no sale provision against diplomatic per- 
sonnel, and the regulation has not been adopted so as to 
allow this type of sale. 
10. The vehicle is 25 or more years old. 

A motor vehicle is allowed immediate entry under 
12.80(b)(l)(i) if it was manufactured before any ap- 
plicable Federal motor vehicle safety standards were 
in effect. All motor vehicles, other than motorcycles. 



PART 591-PRE 9 



manufactured on or after January 1, 1968, have been 
covered by safety standards. Accordingly, this declara- 
tion has been used only for the entry of vehicles 
manufactured before January 1, 1968. Under section 
108(i), added by the 1988 Act, a motor vehicle may be 
allowed entry without the necessity of conformance if 
it is 25 years old or older. Thus, after January 1, 1993, 
vehicles that were manufactured on or after January 1 , 
1968, will be relieved of the necessity to conform as 
they reach 25 years of age. The existing declaration 
will be retained until January 1, 1993, although clarified 
by specifying the January 1, 1968 date (paragraph 
591. 5(i)). This is necessary to prevent the importers of 
vehicles which are less than 25 years old but man- 
ufactured before January 1, 1968, from being inad- 
vertently required to enter their vehicles pursuant to 
the 1988 amendments. During 1992, the agency will 
amend paragraph 591 .5(i) to implement the 25-year old 
exclusion effective January 1, 1993. There were no 
comments on this aspect of the regulation. 
11. Importation for research, investigations, 
studies, etc. 

Importation of nonconforming vehicles without bond 
is presently allowed if the importation is solely for the 
purpose of show, test, experiment, competition, repair, 
or alteration (12.80(b)(l)(vii)). If the vehicle is imported 
for test or experiment, it may be licensed for use on the 
public roads for a period not to exceed one year, 
extendable for two successive year periods, or a period 
of three years in all . Importation for this class of 
noncomplying motor vehicles has been permitted 
pursuant to the assumption that motor vehicle safety 
would not be affected by the temporary importation of 
noncomplying motor vehicles not generally used on the 
public roads, and whose appearance on them would be 
limited. 

Section 108(j) of the Vehicle Safety Act modifies , 
these categories. It provides NHTSA with authority to 
exempt a vehicle from importation and certification 
violations upon such terms and conditions as may be 
necessary solely for the purpose of research , investiga- 
tions, studies, demonstrations or training, or competi- 
tive racing events. It does not include the terms 
"show" and "repair" currently in use. In the notice of 
proposed rulemaking, NHTSA observed that prospec- 
tive importers ought not to be unduly concerned at 
this. In NHTSA's experience, importation for repair 
has averaged, perhaps, one vehicle every two years. 
Manufacturers who have imported nonconforming 
products for display at auto shows to gauge public 
reaction to new styling or engineering features will not 
be precluded from declaring that such importation is 
for "research" or "demonstrations". And museums 
will be able to bring in nonconforming vehicles under 
the 25-year exception. NHTSA proposed to allow 
importation for the statutory purposes specified, pro- 
vided that the declaration is accompanied by certain 



information and statements. If this information in- 
dicates that on-road use for a period that is greater 
than 1 year is required for these purposes, the importer 
will not be required to petition NHTSA for yearly 
extensions, as is presently the case. At the end of 3 
years, the importer is subject to termination of the 
Customs Temporary Importation Bond under which 
the vehicle entered. At that point, the vehicle must be 
destroyed, exported, or abandoned to the United States. 
Alternatively, if duty is paid at the time of importation 
of the nonconforming vehicle, the vehicle must not 
remain in the United States for a period longer than 5 
years after entry. The proposal also prohibited an 
importer of a vehicle imported for competitive racing 
events from licensing it for use on the public roads. 

NHTSA also stated in the proposal that it envisioned 
that a registered importer who intends to file a petition 
under Part 593 for a determination that a vehicle is 
eligible for importation because it is capable of mod- 
ification could avail itself of the demonstration excep- 
tion to import such vehicles as may be necessary in 
order to develop the documentation needed to demon- 
strate the vehicle's capability for modification. 

Comments to this proposal varied in nature and 
content. A number of commenters pointed out a 
contradiction between the blanket prohibition against 
licensing for on-road use contained in proposed para- 
graph 591. 5G), and the associated provision in para- 
graph 591.6(f) requiring submission of certain informa- 
tion if the vehicle is to be licensed for on-road use 
during its stay in the United States. BMW suggested 
that NHTSA conform its provisions to accord with 
similar ones of EPA contained in 19 CFR 12.73(h) and 
40 CFR 85.1511(b)(2). General Motors, Volkswagen, 
and Ford recommended specifying the exceptions, 
such as allowing on-road use when such use is an 
integral part of the purpose for which it was imported. 
Austin Rover asked NHTSA to clarify that the licensing 
for use prohibition applies only to vehicles imported for 
competitive racing events, and Volkswagen wanted 
the prohibition struck for this type of vehicle. Barry 
Wood noted in a phone call that the proposal did not 
cover vehicles imported from Canada for repair and 
returned to that country. He observed that this was a 
not infrequent practice in his part of the United States. 
Finally, General Motors asked that this exception not 
terminate after 5 years, but be available for an unlimited 
period of time, citing the allowance by EPA of unlimited 
use of vehicles not conforming to Federal emission 
requirements. 

The agency agrees that the proposal appears to 
present a conflict between paragraphs 591.5(j) and 
591 .6(f). The comments have caused NHTSA to review 
closely the new statutory language, and the agency has 
concluded that it provides sufficient flexibility to 
respond favorably to many of the comments. The 
specific language of new section 108(j) is "The Secretary 



PART 591— PRE 10 



may exempt any motor vehicle or item of motor vehicle 
equipment from subsections (a)(1) and (c)(1) upon such 
terms and conditions as the Secretary may find 
necessary solely for the purpose of research, investiga- 
tions, studies, demonstrations or training, or competi- 
tive racing events". Subsection (a)(1) contains the 
statutory prohibition against importation of non- 
complying vehicles, and their introduction into inter- 
state commerce. Subsection (c)(1) contains the require- 
ment of vehicle certification. In other of the 1988 Act 
amendments. Congress has flatly stated that subsec- 
tions (a)(1) and (c)(1) shall not apply provided specified 
steps are taken. Subsection (j), on the other hand, 
implies that subsections (a)(1) and (c)(1) do apply, but 
that NHTSA has the flexibility to determine when 
they do not. For example, if NHTSA has allowed 
importation and on-road use for a period of 4 years, and 
the vehicle is not exported at the end of that time, 
NHTSA may impose a civil penalty. As a further 
example, if NHTSA has determined that indefinite 
on-road use is required to achieve the importer's stated 
purpose, NHTSA could inform the importer that it 
would not find that the Vehicle Safety Act had been 
violated. If licensing for on-road use is an absolute 
requirement of a competitive event, NHTSA could 
allow it for a limited period of time, and under 
circumstances prescribed in its letter of permission. 
Thus, the final rule has been modified to reflect the 
agency's conclusions. Under 591.6(f), any person 
seeking to import a motor vehicle under 591. 5G) must 
write NHTSA in advance of such importation with a 
full and complete statement of the purposes of the 
importation, and whether on-road use is contemplated. 
NHTSA's reply, if affirmative, will impose such terms 
and conditions as may seem required for motor vehicle 
safety. Violations of any of these terms and conditions 
will be considered a violation of section 108(a)(1)(A) of 
the Vehicle Safety Act, for which a civil penalty may be 
imposed. A copy of NHTSA's letter of permission must 
be provided Customs upon entry of the vehicle, attached 
to the declaration form. Under 591.7(f) in its final form, 
vehicles imported pursuant to paragraph 591.5(j) for 
which duties have been paid, must be exported not 
later than 5 years after entry, unless permission has 
been obtained from NHTSA. 

There remains the question raised by Barry Wood, 
whether a nonconforming vehicle may be imported for 
"repair" in the absence of any express statutory 
authority allowing it, or any discussion of it in the 
legislative history of the 1988 Act. Although the joint 
regulations have permitted this practice for over 20 
years, it was omitted from the categories of vehicles 
importable pursuant to paragraph 591. 5(j). There are 
really two issues here, rather than one. The situation 
mentioned by Mr. Wood involves vehicles that are 
returned to Canada after repair. That is to say, they do 
not appear to be vehicles temporarily imported by U.S. 



residents, but vehicles that are temporarily exported 
by their Canadian owners. As such, they appear to be 
vehicles involved in international traffic, imported for 
a limited period of time by nonresidents of the United 
States. In NHTSA's view, Canadian-owned vehicles 
that are repaired in the United States and returned to 
Canada at the completion of repairs are properly 
entered pursuant to paragraph 591.5(d). The other 
issue is importation by U.S. residents of nonconforming 
vehicles for repair. The agency has no knowledge of 
any importation by U.S. residents of nonconforming 
vehicles for repair, followed by their subsequent ex- 
portation. At most, it appears highly infrequent, so 
that the failure of Congress to include it in the 1988 Act 
ought not to work a hardship. 

Importance of Motor Vehicle Equipment 

Under 19 CFR 12.80, the first seven of the nine 
declarations applicable to motor vehicles also apply to 
motor vehicle equipment. The primary focus of the 
1988 Act is upon motor vehicles, however, and some of 
the new exceptions do not apply to motor vehicle 
equipment. An analysis of the equipment provision 
and final rules follows. 

First, the agency has no jurisdiction over an item 
that does not fit the definition of motor vehicle 
equipment, as contained in 15 U.S.C. 1391(4). Thus, 
such an item may be entered pursuant to the declaration 
that it is not a system, part, or component of a motor 
vehicle (paragraph 591.5(a)(2)). 

The 25-year old exception for motor vehicles does 
not extend to motor vehicle equipment. This means 
that equipment covered by an equipment standard 
continues to be importable without the necessity for 
conformance (absent other exceptions) only if manu- 
factured on a date before a standard applied to it 
(paragraph 591. 5(i)(2)). 

An equipment item that is certified as conforming to 
applicable equipment standards continues to be admis- 
sible upon a simple declaration that it conforms 
(paragraph 591.5(b)). 

Because the importation for export exception is 
provided for by the Vehicle Safety Act, and not affected 
substantively by the 1988 Act, nonconforming equip- 
ment may continue to be imported for export, provided 
that it or its container bears a label or tag tof hat effect 
at the time of importation. (See section 108(b)(5) of the 
Vehicle Safety Act, redesignated as 108 (b)(3) by the 
1988 Act and paragraph 591.5(c)). 

Under new section 108(e), an equipment need not 
comply upon importation if it requires further manu- 
facturing operations to perform its intended function. 
In the final rule, the agency has decided to adopt 
terminology from Part 568 to implement this require- 
ment for motor vehicles. Manifestly, Part 568 does not 
apply to "incomplete" equipment, and the agency is 
adopting the exact language of the 1988 Act as the 



PART591-PRE11 



requirement for entry of motor vehicle equipment 
subject to section 108(e). 

The new provisions regarding importation for pur- 
poses of research, investigation, studies, demonstra- 
tions or training, or competitive racing events (section 
108(j)) expressly include motor vehicle equipment as 
well as vehicles, and thus supersede existing require- 
ments which make no provision for them. This change 
is reflected in paragraph 591.5(j). 

Because the 1988 Act is specific about the conditions 
under which nonconforming equipment items may be 
admissible, there appear to be certain areas in which a 
right to import a nonconforming equipment item no 
longer exists. Although 12.80(b)(l)(iii) allows importa- 
tion of a nonconforming equipment item under bond 
for conformance within 120 days of entry, no similar 
provisions appear in the 1988 Act; the bond, registered 
importer, and eligibility determination provisions apply 
only to importation of motor vehicles. Therefore, as of 
January 31, 1990, nonconforming equipment may no 
longer be imported pursuant to a declaration that it 
will be brought into conformance. Although NHTSA 
has incorporated nonresident importation procedures 
for motor vehicles without specific authority in the 
1988 Act, it does not believe that is required to extend 
those procedures to cover nonconforming equipment 
items (other than those attached and in use on a 
vehicle), as is presently provided for under 12.80 
(b)(l)(v). Similarly, the diplomatic/foreign military 
exception will no longer cover nonconforming equip- 
ment items, as it presently does in 12.80(b)(vi). Although 
the agency did not call specific attention to these 
omissions in the preambleto the proposal, the omissions 
are readily apparent in the text of the proposed 
regulation. 

Provision of New Declaration forms 
NADA asked that the agency either revise or publish 
a new HS-7 importation form as part of the final rule, 
or indicate how that form will be revised as part of a 
new Customs Service regulation. 

Development of a new form in its definitive state 
must await receipt and action upon petitions for 
reconsideration, if any, regarding this final rule. How- 
ever, NHTSA believes that it would be in the public 
interest to publish the new form in the Federal Register 
at the earliest practicable time, and will endeavor to do 
so in a further notice under Docket 89-5. 

Impacts 
NHTSA has considered the impacts of this rule- 
making action and has determined that it is not major 
within the meaning of Executive Order 12291 "Federal 
Regulation." It implements P.L. 100-562 under which 
primary authority to establish regulations governing 
the importation of motor vehicles and equipment into 



the United States is shifted to NHTSA, rather than 
being jointly shared with the U.S. Customs Service. As 
such, it establishes the rights and duties of those who i 
may import nonconforming motor vehicles, and the ' 
types of nonconforming motor vehicles that may be 
imported. It is not significant under Department of 
Transportation regulatory policies and procedures. 
Less than 3000 motor vehicles a year are currently 
imported, and it is anticipated that this number will 
not increase. There is no substantial impact upon a 
major transportation safety program, and the action 
does not involve any substantial public interest or 
controversy. There is no substantial effect on state 
and local governments. The impact upon the Federal 
government is that certain present obligations of the 
U.S. Customs Service are transferred to the Depart- 
ment of Transportation. As discussed previously, 
many of the new requirements are specified by the 
1988 Act, and thus do not reflect any exercise of agency 
discretion. These include not only importation through 
or by contract with a registered importer, but also 
importation of vehicles and equipment requiring 
further manufacturing to perform their intended 
function, importation of vehicles by specified foreign 
diplomatic and military personnel, importation of 
vehicles more than 25 years old, and importation of 
vehicles for the purpose of research, investigations, 
studies, demonstrations or training, or competitive - 
racing events, and importation under a separate per- 1 
formance bond. Nevertheless, a regulatory evaluation 
analyzing the economic impacts of this and the related 
final rules required by P.L. 100-562 has been prepared, 
and is available for review in the docket, as part of the 
Regulatory Flexibility Analysis. 

In consideration of the foregoing, a new Part 591, 
Importation of Vehicles and Equipment Subject to Federal 
Motor Vehicle Safety Standards, is added to Title 49, 
Chapter V, to read as follows: 

PART 591, Importation of Vehicles and Equipment 
Subject to Federal Motor Vehicle Safety Standards 

Sec. 

591.1 Scope. 

591.2 Purpose. 

591.3 Applicability. 

591.4 Definitions. 

591.5 Declaiations required for importation. 

591.6 Documents accompanying declarations. 

591.7 Restrictions on importations. 
Authority: P.L. 100-562, 15 U.S.C. 1401, 1407; dele- 
gations of authority at 49 CFR 1.50 and 501.8. 

591.1 Scope. 

This part establishes procedures governing the 
importation of motor vehicles and motor vehicle equip- i 
ment subject to the Federal motor vehicle safety' 
standards. 



PART 591-PRE 12 



591.2 Purpose. 

The purpose of this part is to ensure that motor 
vehicles and motor vehicle equipment permanently 
imported into the United States conform with, or are 
brought into conformity with, all applicable Federal 
motor vehicle safety standards issued under Part 571 
of this chapter, and to ensure that vehicles and 
equipment items imported on a temporary basis are 
ultimately either exported or abandoned to the United 
States. 

591.3 Applicability 

This part applies to any person offering a motor 
vehicle or item of motor vehicle equipment for im- 
portation into the United States. Regulations pre- 
scribing further procedures for importation of motor 
vehicles and items of motor vehicle equipment into the 
Customs territory of the United States, as defined in 19 
U.S.C. 1202, are set forth in 19 CFR 12.80. 

591.4 Definitions. 

All terms used in this part that are defined in section 
102 of the National Traffic and Motor Vehicle Safety 
Act of 1966 (15 U.S.C. 1391) are used as defined in the 
Act. 

"Administrator" means the Administrator of 
NHTSA. 

"NHTSA" means the National Highway Traffic 
Safety Administration of the Department of Transpor- 
tation. 

"Original manufacturer" means the entity re- 
sponsible for the original manufacture or assembly of a 
motor vehicle, and does not include any person (other 
than such entity) who converts the motor vehicle after 
its manufacture to conformance with the Federal 
motor vehicle safety standards. 

591.5 Declarations required for importation. 
No person shall import a motor vehicle or item of 

motor vehicle equipment into the United States unless, 
at the time it is offered for importation, its importer 
files a declaration, in duplicate, which declares one of 
the following: 

(a)(1) The vehicle was not manufactured primarily 
for use on the public roads and thus is not a motor 
vehicle subject to the Federal motor vehicle safety 
standards; or 

(2) The equipment item is not a system, part, or 
component of a motor vehicle and thus is not an item of 
motor vehicle equipment subject to the Federal motor 
vehicle safety standards. 

(b) The vehicle or equipment item conforms with all 
applicable safety standards (or the vehicles does not 
conform solely because readily attachable equipment 
items which will be attached to it before it is offered for 
sale to the first purchaser for purposes other than 
resale are not attached), and bears a certification label 
or tag to that effect permanently affixed by the original 
manufacturer to the vehicle, or to the equipment item 
or its delivery container, in accordance with, as 



applicable, 49 CFR Parts 555. 567, 568, or 571 (for 
certain equipment items). 

(c) The vehicle or equipment item does not comply 
with all applicable Federal motor vehicle safety stan- 
dards, but is intended solely for export, and the vehicle 
or equipment item, and the outside of the container of 
the equipment items, if any, bears a label or tag to that 
effect. 

(d) The vehicle does not conform with all applicable 
Federal motor vehicle safety standards, but the im- 
porter is eligible to import it because: 

(1) (S)he is a nonresident of the United States and 
the vehicle is registered in a country other than the 
United States, 

(2) (S)he is temporarily importing the vehicle for 
personal use for a period not to exceed one year, and 
will not sell it during that time, 

(3) (S)he will export it not later than the end of one 
year after entry, and 

(4) The declaration contains the importer's passport 
number and country of issue. 

(e) The vehicle or equipment item requires further 
manufacturing operations to perform its intended 
function, other than the addition of readily attachable 
equipment items such as mirrors, wipers, or tire and 
rim assemblies, or minor finishing operations such as 
painting, and upon completion of such further manu- 
facturing operations will comply with all applicable 
Federal motor vehicle safety standards. 

(f) The vehicle does not conform with all applicable 
Federal motor vehicle safety standards, but the im- 
porter is eligible to import it because: 

(1) The importer has furnished a bond, which is 
attached to the declaration, in amount equal to 150 per 
cent of the entered value of the vehicle as determined 
by the Secretary of the Treasury, to ensure that the 
vehicle will be brought into compliance with all 
applicable Federal motor vehicle safety standards, or, 
in the absence of such compliance, that it will be 
delivered to the Secretary of the Treasury for export, 
or abandoned to the United States, and that if the 
Administrator determines that the vehicle has not 
been brought into compliance with all such standards, 
the importer states that (s)he will deliver to the 
Secretary of the Treasury for export, or abandon to the 
United States, such vehicle within the time limit 
imposed by the Administrator; and 

(2)(A) The importer has registered with NHTSA 
pursuant to Part 592 of this chapter, and such registra- 
tion has not been revoked or suspended, and the 
Administrator has determined pursuant to Part 593 of 
this chapter that the model and model year of the 
vehicle to be imported is eligible for importation into 
the United States; or 

(B) The importer has executed a contract or other 
agreement with an importer who has registered with 
NHTSA pursuant to Part 592 of this chapter and 



PART 591-PRE 13 



whose registration has not been suspended or revoked; 
and the Administrator has determined pursuant to 
Part 593 of this chapter that the model and model year 
of the vehicle to be imported is eligible for importation 
into the United States; 

(g) The vehicle does not conform with all applicable 
Federal motor vehicle safety standards, but the im- 
porter is eligible to import it because: 

(1) The importer's assigned place of employment 
has been outside the United States at all times between 
October 31, 1988, and the date the vehicle is entered 
into the United States; 

(2) The importer has not previously imported a 
motor vehicle into the United States that was subject 
to the Federal motor vehicle safety standards; 

(3) The importer has acquired (or entered into a 
binding contract to acquire) the vehicle before October 
31, 1988; and 

(4) The vehicle will be entered into the United States 
not later than October 31, 1992. 

(h) The vehicle does not conform with all applicable 
Federal motor vehicle safety standards, but the im- 
porter is eligible to import it because: 

(1) (S)he is a member of: 

(A) The armed forces of a foreign country on assign- 
ment in the United States; or 

(B) The Secretariat of a public international organi- 
zation so designated under the International Organiza- 
tions Immunities Act (22 U.S.C. 288), as listed in 19 
CFR 148.47, on assignment in the United States; or 

(C ) The personnel of a foreign government for whom 
free entry of vehicles has been authorized by the 
Department of State; and 

(D) The motor vehicle is being imported on a tempor- 
ary basis, and for the personal use of the importer. 

(2) (S)he will not sell the vehicle to any person in the 
United States, other than a person eligible to import a 
vehicle under this subsection; and 

(3) (S)he will provide the Office of Foreign Missions 
of the State Department, before departing the United 
States at the conclusion of a tour of duty, with 
documentary proof that the vehicle is being, or has 
been, exported. 

(i)(l) The vehicle was manfacturedbeforejanuary 1, 
1968, or, if a motorcycle, before January 1, 1969; or 

(2) The equipment item was manufactured on a date 
when no applicable safety standards were in effect. 

(j) The vehicle or equipment item does not conform 
with all applicable Federal motor vehicle safety 
standards, but is being imported solely for the purpose 
of: 

(1) research; 

(2) investigations; 

(3) studies; 

(4) demonstrations or training; or 

(5) competitive racing events; 

and the importer has received written permission from 
NHTSA. 



59 1 .6. Documents accompanying declarations. 

Declarations of eligibility for importation made 
pursuant to paragraph 591.5 must be accompanied by 
the following certification and documents, where ap- 
plicable. 

(a) A declaration made pursuant to paragraph 
591.5(a) shall be accompanied by a statement sub- 
stantiating that the vehicle was not manufactured for 
use of the public roads, or that the equipment item was 
not manufactured for use on a motor vehicle or is not 
an item of motor vehicle equipment. 

(b) A declaration made pursuant to paragraph 
591.5(e) shall be accompanied by: 

(1) (for a motor vehicle) a document meeting the 
requirements of Paragraph 568.4 of Part 568 of this 
chapter. 

(2) (for an item of motor vehicle equipment) a written 
statement issued by the manufacturer of the equipment 
item which states the applicable Federal motor vehicle 
safety standard(s) with which the equipment item is 
not in compliance, and which describes the further 
manufacturing required for the equipment item to 
perform its intended function. 

(c) A declaration made pursuant to paragraph 591.5(f) 
shall be accompanied by a bond in an amount equal to 
150 per cent of the entered value of the vehicle as 
determined by the Secretary of the Treasury for the 
conformance of the vehicle with all applicable Federal 
motor vehicle safety standards, or, if conformance is to 
achieved, for the delivery of such vehicle to the 
Secretary of the Treasury for export at no cost to the 
United States, or for its abandonment. 

(d) A declaration made pursuant to paragraph 591.5(f) 
by an importer who is not a Registered Importer shall 
be accompanied by a copy of the contract or other 
agreement that the importer has with a Registered 
Importer to bring the vehicle into conformance with all 
applicable Federal motor vehicle safety standards. 

(e) A declaration made pursuant to paragraph 
591.5(g) shall be accompanied by certification, including 
appropriate documentary proof that the vehicle for 
which declaration is made had been acquired by the 
importer as of October 31, 1988, or, if not so acquired, 
by a copy of a contract to acquire the vehicle, dated 
before October 31, 1988, which was binding upon the 
importer. 

(f) A declaration made pursuant to paragraph 591.5(h) 
shall be accompanied by a copy of the importer's 
official orders, or, if a qualifying member of the 
personnel of a foreign government on assignment in 
the United States, the name of the embassy to which 
the importer is accredited. A declaration made pursuant 
to paragraph 591. 5(j) shall be accompanied by a letter 
from the Administrator authorizing importation pur- 
suant to that paragraph . Any person seeking to import 
a motor vehicle or item of motor vehicle equipment 
pursuant to paragraph 591. 5(i) shall submit in advance 
of such importation, a written request to the Admin- 



PART 591— PRE 14 



istrator containing a full and complete statement 
identifying the specific purpose(s) of importation, 
which describes the use to be made of the vehicle or 
equipment item. If use on the public roads is an 
integral part of the purpose for which the vehicle or 
equipment item is imported, the statement shall request 
permission to license the vehicle for use (or use the 
equipment item) on the public roads, describing the 
purpose for which such use is necessary, and stating 
the estimated period of time necessary to use the 
vehicle or equipment item on the public roads. The 
statement shall also state the intended disposition to 
be made of the vehicle or equipment item after comple- 
tion of the purpose for which it is imported. Any 
violation of a term or condition imposed by the 
Administrator shall be considered a violation of 15 
U.S.C. 1397(a)(1)(A) for which a civil penalty may be 
imposed. 

591.7 Restrictions on importations. 

(a) A vehicle or equipment item which has entered 
the United States under a declaration made pursuant 
to paragraph 591. 5(j), and for which a temporary 
Importation Bond has been provided to the Secretary 



of the Treasury, shall not remain in the United States 
for a period that exceeds 3 years from its date of entry. 

(b) A vehicle or equipment item which has entered 
the United States under a declaration made pursuant 
to paragraph 591.5(j), and for which duty has been 
paid, shall not remain in the United States for a period 
that exceeds 5 years from its date of entry, unless 
written permission has been obtained from the Admin- 
istrator, NHTSA. 

(c) An importer of a vehicle which has entered the 
United States under a declaration made pursuant to 
paragraph 591.5(j) may license it for use on the public 
road only if written permission has been granted by 
the Administrator, NHTSA, pursuant to paragraph 
591.5(f). 



Issued on: September 26, 1989 



Jeffrey R. Miller 
Acting Administrator 

54 F.R. 40069 
September 29, 1989 



PART 591-PRE 15-16 



PART 591 -IMPORTATION OF VEHICLES AND EQUIPMENT SUBJECT TO 
FEDERAL MOTOR VEHICLE SAFETY STANDARDS 



591.1 Scope. 

This part establishes procedures governing the im- 
portation of motor vehicles and motor vehicle equip- 
ment subject to the Federal motor vehicle safety 
standards. 

591.2 Purpose. 

The purpose of this part is to ensure that motor 
vehicles and motor vehicle equipment permanently 
imported into the United States conform with, or 
are brought into conformity with, all applicable 
Federal motor vehicle safety standards issued under 
Part 571 of this chapter, and to ensure that vehicles 
and equipment items imported on a temporary basis 
are ultimately either exported or abandoned to the 
United States. 

591.3 Applicability. 

This part applies to any person offering a motor 
vehicle or item of motor vehicle equipment for im- 
portation into the United States. Regulations 
prescribing further procedures for importation of 
motor vehicles and items of motor vehicle equipment 
into the Customs territory of the United States, as 
defined in 19 U.S.C. 15^02, are set forth in 19 CFR 
12.80. 

591.4 Definitions. 

All terms used in this part that are defined in sec- 
tion 102 of the National Traffic and Motor Vehicle 
Safety Act of 1966 (15 U S C 1391) are used as 
defined in the Act 

"Administrator" means the Administrator of 
NHTSA. 

"NHTSA" means the National Highway Traffic 
Safety Administration of the Department of 
Transportation. 

"Original manufacturer" means the entity respon- 
sible for the original manufacture or assembly of a 
motor vehicle, and does not include any person 



(other than such entity) who converts the motor vehi- 
cle after its manufacture to conformance with the 
Federal motor vehicle safety standards. 

591.5 Declarations required for importation. 

No person shall import a motor vehicle or item of 
motor vehicle equipment into the United States 
unless, at the time it is offered for importation, its 
importer files a declaration, in duplicate, which 
declares one of the following: 
(a)(1) The vehicle was not manufactured primar- 
ily for use on the public roads and thus is not a 
motor vehicle subject to the Federal motor vehi- 
cle safety standards; or 

(2) The equipment item is not a system, part, 
or component of a motor vehicle and thus is not 
an item of motor vehicle equipment subject to the 
Federal motor vehicle safety standards. 

(b) The vehicle or equipment item conforms vnth 
all applicable safety standards (or the vehicle does 
not conform solely because readily attachable equip- 
ment items which will be attached to it before it is 
offered for sale to the first purchaser for purposes 
other than resale are not attached), and bears a cer- 
tification label or tag to that effect permanently af- 
fixed by the original manufacturer to the vehicle or 
to the equipment item or its delivery container, in 
accordance with, as applicable 49 CFR Parts 555 
567, 568, or 571 (for certain equipment items). 

(c) The vehicle or equipment item does not comply 
with all applicable Federal motor vehicle safety 
standards, but is intended solely for export and the 
vehicle or equipment item, and the outside of the 
container of the equipment item, if any, bears a label 
or tag to that effect. 

(d) The vehicle does not conform with all ap- 
plicable Federal motor vehicle safety standards, but 
the importer is eligible to import it because: 

(1) (S)he is a nonresident of the United States 
and the vehicle is registered in a country other 
than the United States, 



PART 591-1 



(2) (S)he is temporarily importing the vehicle for 
personal use for a period not to exceed one year, 
and will not sell it during that time, 

(3) (S)he will export it not later than the end of 
one year after entry, and 

(4) The declaration contains the importer's 
passport number and country of issue. 

(e) The vehicle or equipment item requires further 
manufacturing operations to perform its intended 
function, other than the addition of readily at- 
tachable equipment items such as mirrors, wipers, 
or tire and rim assemblies, or minor finishing opera- 
tions such as painting, and upon completion of such 
further manufacturing operations will comply with 
all applicable Federal motor vehicle safety 
standards. 

(f) The vehicle does not conform with all ap- 
plicable Federal motor vehicle safety standards, but 
the importer is eligible to import it because: 

(1) The importer has furnished a bond, which 
is attached to the declaration, in amount equal to 
150% of the entered value of the vehicle as deter- 
mined by the Secretary of the Treasury, to ensure 
that the vehicle will be brought into compliance 
with all applicable Federal motor vehicle safety 
standards, or, in the absence of such compliance, 
that it will be delivered to the Secretary of the 
Treasury for export, or abandoned to the United 
States, and that if the Administrator determines 
that the vehicle has not been brought into com- 
pliance with all such standards, the importer states 
that (s)he will deliver to the Secretary of the 
Treasury for export or abandon to the United 
States, such vehicle within the time limit imposed 
by the Administrator, and 

(2)(A) The importer has registered with 
NHTSA pursuant to Part 592 of this chapter and 
such registration has not been revoked or sus- 
pended, and the Administrator has determined 
pursuant to Part 593 of this chapter that the model 
and model year of the vehicle to be imported is 
eligible for importation into the United States, or 
(B) The importer has executed a contract or 
other agreement with an importer who has 
registered with NHTSA pursuant to Part 592 of 
this chapter and whose registration has not been 
suspended or revoked, and the Administrator has 
determined pursuant to Part 593 of this chapter 
that the model and model year of the vehicle to 
be imported is eligible for importation into the 
United States; 



(g) The vehicle does not conform with all ap- 
phcable Federal motor vehicle safety standards, but 
the importer is eligible to import it because: 

(1) The importer's assigned place of employ- 
ment has been outside the United States at all 
times between October 31, 1988, and the date the 
vehicle is entered into the United States; 

(2) The importer has not previously imported a 
motor vehicle into the United States that was 
subject to the Federal motor vehicle safety 
standards; 

(3) The importer had acquired (or entered into 
a binding contract to acquire) the vehicle before 
October 31, 1988, and 

(4) The vehicle will be entered into the United 
States not later than October 31, 1992. 

(h) The vehicle does not conform with all 
applicable Federal motor vehicle safety standards, 
but the importer is eligible to import it because: 

(1) (S)he is a member of: 

(A) The armed forces of a foreign country on 
assignment in the United States; or 

(B) The Secretariat of a public international 
organization so designated under the International 
Organizations Immunities Act (22 U.S.C. 288), as 
listed in 19 CFR 148.47, on assignment in the 
United States; or 

(C) The personnel of a foreign government for 
whom free entry of vehicles has been authorized 
by the Department of State; and 

(D) The motor vehicle is being imported on a 
temporary basis, and for the personal use of the 
importer. 

(2) (S)he will not sell the vehicle to any person 
in the United States, other than a person eligible 
to import a vehicle under this subsection; and 

(3) (S)he will provide the Office of Foreign Mis- 
sions of the State Department, before departing 
the United States at the conclusion of a tour of 
duty, with documentary proof that the vehicle is 
being, or has been, exported. 

(i)(l) The vehicle was manufactured before 
January 1, 1968; or if a motorcycle, before January 
1, 1969; or 

(2) The equipment item was manufactured on a 
date when no applicable safety standards were in 
effect. 

(j) The vehicle or equipment item does not con- 
form with all applicable Federal motor vehicle safety 



PART 591-2 



standards, but is being imported solely for the pur- 
pose of: 

(1) research; 

(2) investigations; 

(3) studies; 

(4) demonstrations or training; or (5) com- 
petitive racing events; and the importer has 
received written permission from NHTSA. 

591.6 Documents accompanying declarations. 

Declarations of eligibility for importation made 
pursuant to paragraph 591.5 must be accompanied 
by the following certification and documents, where 
applicable. 

(a) A declaration made pursuant to paragraph 
591.5(a) shall be accompanied by a statement 
substantiating that the vehicle was not manufac- 
tured for use on the public roads, or that the equip- 
ment item was not manufactured for use on a motor 
vehicle or is not an item of motor vehicle equipment. 

(b) A declaration made pursuant to paragraph 
591.5(e) shall be accompanied by: 

(1) (for a motor vehicle) a document meeting the 
requirements of Paragraph 568.4 of Part 568 of 
this chapter. 

(2) (for an item of motor vehicle equipment) a 
written statement issued by the manufacturer of 
the equipment item which states the applicable 
Federal motor vehicle safety standard(s) with 
which the equipment item is not in compliance, and 
which describes the further manufacturing re- 
quired for the equipment item to perform its in- 
tended function. 

(c) A declaration made pursuant to paragraph 
591.5(f) shall be accompanied by a bond in an amount 
equal to 150% of the entered value of the vehicle 
as determined by the Secretary of the Treasury for 
the conformance of the vehicle with all applicable 
Federal motor vehicle safety standards, or, if con- 
formance is not achieved, for the delivery of such 
vehicle to the Secretary of the Treasury for export 
at no cost to the United States, or for its 
abandonment. 

(d) A declaration made pursuant to paragraph 
591.5(f) by an importer who is not a Registered 
Importer shall be accompanied by a copy of the con- 
tract or other agreement that the importer has with 
a Registered Importer to bring the vehicle into con- 
formance with all applicable Federal motor vehicle 
safety standards. 

(e) A declaration made pursuant to paragraph 
591.5(g) shall be accompanied by certification, in- 



cluding appropriate documentary proof that the 
vehicle for which declaration is made had been ac- 
quired by the importer as of October 31, 1988, or, 
if not so acquired, by a copy of a contract to acquire 
the vehicle dated before October 31, 1988, which was 
binding upon the importer. 

(f) A declaration made pursuant to paragraph 591 
5(h) shall be accompanied by a copy of the importer's 
official orders or, if a qualifying member of the per- 
sonnel of a foreign government on assignment in the 
United States, the name of the embassy to which 
the importer is accredited. A declaration made pur- 
suant to paragraph 591.5(j) shall be accompanied by 
a letter from the Administrator authorizing impor- 
tation pursuant to that paragraph. Any person seek- 
ing to import a motor vehicle or item of motor vehi- 
cle equipment pursuant to paragraph 591. 5(j) shall 
submit in advance of such importation, a wrritten re- 
quest to the Administrator containing a full and com- 
plete statement identifying the specific purpose(s) 
of importation which describes the use to be made 
of the vehicle or equipment item. If use on the public 
roads is an integral part of the purpose for which 
the vehicle or equipment item is imported the state- 
ment shall request permission to license the vehicle 
for use (or use the equipment item) on the public 
roads, describing the purpose for which such use is 
necessary, and stating the estimated period of time 
necessary to use the vehicle or equipment item on 
the public roads. The statement shall also state the 
intended disposition to be made of the vehicle or 
equipment item after completion of the purpose for 
which it is imported. Any violation of a term or con- 
dition imposed by the Administrator shall be con- 
sidered a violation of 15 U.S.C. 1397(aXlXA) for 
which a civil penalty may be imposed. 

591.7 Restrictions on importations. 

(a) A vehicle or equipment item which has entered 
the United States under a declaration made pur- 
suant to paragraph 591.5(J), and for which a Tem- 
porary Importation Bond has been provided to the 
Secretary of the Treasury, shall not remain in the 
United States for a period that exceeds 3 years from 
its date of entry. 

(b) A vehicle or equipment item which has entered 
the United States under a declaration made pur- 
suant to paragraph 591. 5(j), and for which duty has 
been paid, shall not remain in the United States for 
a period that exceeds 5 years from its date of entry 
unless written permission has been obtained from 
the Administrator, NHTSA. 



PART 591-3 



(c) An importer of a vehicle which has entered the 
United States under a declaration made pursuant 
to paragraph 591.5(j) may license it for use on the 
public roads only if written permission has been 
granted by the Administrator, NHTSA, pursuant to 
paragraph 591.6(f). 



Issued on Sept. 20, 1989. 



54 F.R. 40069 
September 29, 1989 



PART 591-4 



PREAMBLE TO AN AMENDMENT TO PART 592 

Registered Importers of V'ehicles Not Originally 

Manufactured to Conform to Federal Motor Vehicle 

Safety Standards 

(Docket No. 89-6; Notice 2) 

RIN: 2127-AC97 Safety 



ACTION: Final Rule 

SUMMARY: With certain exceptions, the National 
Traffic and Motor Vehicle Safety Act, as amended by 
the Imported Vehicle Safety Compliance Act of 1988, 
will permit a motor vehicle not originally manufactured 
to conform to Federal motor vehicle safety standards 
to be imported only by a person who has registered 
with this agency, or by an individual who has a 
contract with a registered importer for making the 
modifications necessary for bringing the vehicle into 
conformance with applicable safety standards. 

In partial implementation of the 1988 amendments, 
this rule adopts procedures and requirements regard- 
ing the registration of importers and the duties and 
obligations of registered importers. In most instances, 
the particular provisions of these procedures and 
requirements are mandated by the 1988 amendments. 

Part 592 establishes eligibility requirements for 
persons wishing to acquire and maintain registration. 
Among the requirements are ones regarding record- 
keeping, allowance of inspection of records and facili- 
ties relating to the motor vehicles which the importer 
has imported and/or modified, certification to the 
Administrator that the vehicles have been brought 
into compliance,and insurance to ensure that the 
importer will be able technically and financially to 
carry out noncompliance and defect notification and 
remedy responsibilities should they arise. Part 592 
also adopts procedures for revocation or suspension of 
importer registration (and reinstatement) for failures 
to pay required fees or comply with regulations, or for 
filing a misleading or false certification. The rule also 
adopts post-modification vehicle inspection and bond 
release procedures. 

EFFECTIVE DATE: October 30, 1989. 

SUPPLEMENTARY INFORMATION: On October 31, 
1988, the President signed P.L. 100-562, the Imported 
Vehicle Safety Compliance Act of 1988 ("the 1988 
Act"). Notice of its enactment was published in the 
Federal Register on December 5, 1988 (53 FR 49003), 



and a notice of proposed rulemaking with respect to 
Part 592 was published on April 25, 1989 (54 FR 17780). 
As the notice stated, the 1988 Act amends those 
provisions of the National Traffic and Motor Vehicle 
Safety Act of 1966 ("the Vehicle Safety Act") (15U.S.C. 
1381, at 1397) that relate to the importation of motor 
vehicles subject to the Federal motor vehicle safety 
standards. Specifically, the amendments strike para- 
graphs (b)(3) and (b)(4) of 15 U.S.C. 1397, (Section 1397 
may also be cited as Section 108 of the Vehicle Safety 
Act), redesignates paragraph (b)(5) as paragraph (b)(3), 
redesignated paragraph (c) of 15 U.S.C. 1397 as para- 
graph (k), and adds new paragraphs (c) through (j). 

As the agency explained in its proposal, and now 
repeats so that readers will have an overview of Part 
592, the category of importer primarily affected by the 
1988 Act is the importer of a motor vehicle that was not 
originally manufactured to conform to the Federal 
motor vehicle safety standards that applied to vehicles 
of its type at the time of its original manufacture. 
Under the current regulation, 19C.F.R. 12.80(b)(l)(iii), 
a nonconforming vehicle may be imported by any 
person. Under the 1988 Act, an importer will have to 
be, subject to certain exceptions, a "registered im- 
porter" (one who meets the statutory criteria and has 
registered with the agency pursuant to the terms and 
conditions of the regulation that this notice adopts), or 
an individual who has contracted with a registered 
importer. The principal obligations of the Registered 
Importer with respect to the vehicles it imports are (1) 
to bring those vehicles into compliance, or to demon- 
strate that they have been brought into compliance 
before importation, (2) to provide the Administrator 
with certification that the vehicles conform, and (3) in 
the event that noncompliances of safety related defects 
occur in vehicles it certifies, to notify owners, and 
provide a remedy. With respect to those vehicles it 
imports for resale, a Registered Importer falls within 
the long-standing definition of "manufacturer" under 
the Vehicle Safety Act and is responsible for notification 
of purchasers and remedy of noncompliances and 
safety related defects determined to exist in those 
vehicles. The 1988 Act adds a further responsibility; it 



PART 592-PRE 1 



makes the Registered Importer responsible for notifi- 
cation and remedy covering any veliicle covered by its 
certificate of conformity to the standards, including 
vehicles imported by individuals who have contracted 
with the Register Importer, if a noncompliance or 
defect is determined to exist in substantially similar 
vehicles originally manufactured and certified for sale 
in the United States. However, the manufacturer or 
Registered Importer would be afforded an opportunity 
to demonstrate to NHTSA that the vehicles covered by 
the certification do not contain the noncompliance or 
defect. 

NHTSA is attempting in this rulemaking action to 
formulate a program that will ensure that all imported 
motor vehicles conform to the Federal motor vehicle 
safety standards without imposing unnecessary 
burdens on importers. Therefore, NHTSA has tried in 
Part 592 to impose only those requirements that are 
mandated by the 1988 Act, with amplifications only 
where it appeared necessary to implement the safety 
intent of the statute. 

There were 10 substantive comments on the proposed 
rule, including questions raised by telephone or letter. 
Four were received from manufacturers or authorized 
importers (General Motors Corporation, Volkswagen 
of America, Mercedes-Benz of North America, and 
IVECO), and on each from a foreign converter (Gerhard 
Feldevert), authorized import dealer association (The 
Dealer Action Association), an importer of Canadian 
vehicles (Auburn Motors, Inc.), a dealer association 
(National Automotive Dealer Association), a truck 
importer (LaPine Truck Sales and Equipment Co.), 
and a member of the public (George Ziolo). General 
comments and questions to other dockets by the States 
of Texas and Virginia, and U.S. Trade Corp. appeared 
relevant, and will be discussed. 

Requirements for Registration as Importer 
The requirements for registration as an importer 
and maintenance of registration are established by 
paragraph 592.5. Under the regulation adopted by this 
notice, any person who wishes to become a Registered 
Importer, and who has not previously has a registration 
revoked, may file an application with the Administrator 
(new section 108(c)(3)(D)(i)). Comments to the docket 
raised basic questions as to who is permitted to 
register, and under what circumstances registration is 
required. IVECO, a manufacturer, asked whether it is 
required to register when its activities include import- 
ing nonconforming vehicles for test purposes, or ve- 
hicles requiring further manufacturing operations. 
Volkswagen raised the possibility that it might import 
nonconforming cars, and conform then before sale in 
the United States. While seemingly recognizing that it 
would have to acquire registered status, it nevertheless 
argues that insurance and recordkeeping requirements 



that NHTSA proposed for Registered Importers would 
be unnecessary, and it recommended that the final rule 
exempt original manufacturers from insurance and 
recordkeeping requirements. A letter froml a foreign 
national, Gerhard Felevert, expressing a wish to 
become a Registered Importer, raises the question 
whether the 1988Act permits a Registered Importer to 
be located outside the United States. 

The principal obligation of a Registered Importer is 
to certify that a vehicle not originally manufactured in 
conformance with the Federal motor vehicle safety 
standards has been brought into conformity with them 
before it is licensed for use on the public roads. Since a 
vehicle requiring further manufacturing operations is 
a vehicle whose original manufacture is incomplete, its 
importer need not be a Registered Importer. This type 
of importation is governed exclusively by the special 
provision for it in section 108(e), thus excluding it from 
vehicles subject to Registered importer provisions of 
section 108(f). Similarly, vehicles imported for test 
purposes are governed by section 108(j), at section 
108(f), and IVECO need not be a Registered Importer 
for these types of importations. On the other hand, 
Volkswagen correctly surmises that its hypothetical 
importation of nonconforming vehicles which it intends 
to conform before sale subjects it to the Registered 
Importer requirements. The 1988 Act does not dis- 
tinguish between U.S. subsidiaries of major foreign 
automotive corporations and corner garages; any 
person wishing to import a nonconforming motor 
vehicle for sale in the United States must be a 
Registered Importer, or have a contract with a Register- 
ed Importer. Furthermore, the vehicle itself is subject 
to a determination by NHTSA of its eligibility for 
importation, and Volkswagen is required to petition 
for an agency decision under Part 593. To be sure, the 
sheer size of a company such as Volkswagen may 
justify a different treatment of the issue of financial 
capability, although NHTSA cannot adopt a different 
requirement in this final rule, it will study the matter 
with a view towards proposing, at an early date, an 
alternative method for factory-authorized importers, 
or corporations of a certain size, to demonstrate their 
financial capability to fulfill notification and remedy 
responsibilities. 

Finally, it seems clear from the obligations imposed 
by statute upon Registered Importers that they must 
be a resident in the United Siates. The ability of 
NHTSA to inspect vehicles, records,, and facilities to 
verify conformance and the capabilities of Registered 
Importers would be severely hampered if those entitles 
were located beyond the direct jurisdiction of the 
Department of Transportation and subject to the laws 
of another country. Accordingly, NHTSA will consider 
and grant applications only from Registered Importers 
who are residents of, and whose facilities are located in 



PART 592-PRE 2 



a^"State" as defined by 15 U.S.C. 1391(8): the 50 States, 
the District of Columbia, the Commonwealth of Puerto 
Rico, Guam, American Samoa, and the Commonwealth 
of the Northern Marianas. 

Because section 108(c)(3)(D)(i) also provides that 
registration may be denied "to any person who is or 
was, directly or indirectly, owned or controlled by, or 
under common ownership or control with, a person 
who has had a registration revoked. . . . ", as part of 
its application, an applicant will be required to disclose 
the names of its owners, shareholders, or partners 
(paragraph 592.5(a)(4)). In the opinion of Mercedes- 
Benz, the agency should define "common ownership" 
to include any ownership interest, no matter how 
small, in order to identify an importer whose registra- 
tion has been revoked and who may hold a minority 
interest. The agency believes that its requirements 
will accomplish this, and that a definition is not 
required. If any of the owners are corporations, a 
requirement to provide the names of all shareholders 
might be unduly burdensome, and the regulation 
requires only that the names of shareholders whose 
ownership interest is 10 percent or more be supplied 
(paragraph 592.5(a)(5)). If the agency discovers that a 
revoked registrant has an ownership position in a 
Registered Importer or applicant, and may profit by 
the actions of the Importer (such as providing the 
facilities where the conversion work will occur), the 
agency will take this fact into consideration when it is 
reviewing applications or their renewals. 

Chief among the registration requirements stated in 
section 108(c)(3)(D)(ii) is proof of financial ability to 
carry out notification and remedy responsibilities 
should a noncompliance or safety related defect be 
found in any vehicle the Registered Importer has 
imported and/or for whom it has furnished a certificate 
of conformity. In developing a provision addressing the 
financial ability of a Registered Importer to carry out 
its notification and remedial obligation, the agency 
was guided by the experience of the Environmental 
Protection Agency ("EPA") in developing and promul- 
gating regulatory provisions addressing the financial 
ability of Independent Commercial Importers ("ICIs") 
to honor emissions warranties. (40 CFR 85. 1510(b)(2)(i), 
52 FR 36136). ICIs are importers of motor vehicles and 
engines, and have registered with the EPA. Some of 
them may register with NHTSA. Thus, a NHTSA 
requirement that parallels the EPA one is not likely to 
add significantly to the regulatory burden of those who 
import nonconforming vehicles subject to Federal 
regulations. 

Commenters on EPA's regulations at the proposal 
stage, principally original equipment vehicle and engine 
manufacturers, and the State of California, suggested 
that ICIs acquire prepaid insurance and/or bonds to 
cover ICI warranty and recall liability for the useful 
life of each vehicle. There was no opposition form ICIs 



regarding this concept. Based on its experiences under 
the California emissions standards for motor vehicles, 
the California Air Resources Board (CARB) noted that 
the modification industry is composed of small busi- 
nesses, and argued that it is likely that a number of 
firms will fail over time. Without a requirement for an 
insurance policy or bond to cover warranty and recall 
repairs, owners of vehicles obtained from firms that 
are no longer in business would have to bear the 
warranty costs. CARB offers modifiers a choice be- 
tween obtaining insurance or a bond. 

EPA decided to require a prepaid mandatory service 
insurance policy that, in effect, assures effective 
warranty coverage. That agency reasoned that it was 
necessary to require a bond to assure an effective recall 
and warranty program. Because the prepaid mandatory 
service insurance policy seemed acceptable to modifiers 
as a means of assuring their performance regarding 
recalls and warranties, NHTSA proposed in paragraph 
592.5(a)(8) that the application contain "a copy of a 
contract to acquire, effective upon its registration as 
an importer, a prepaid mandatory insurance policy 
underwritten by an independent insurance company, 
in an amount sufficient to ensure that the applicant 
will be able financially to remedy any noncompliance 
or safety related defect determined to exist in any 
vehicle for which it has furnished a certificate of 
conformity to the Administrator. ..." However, 
NHTSA has no knowledge of the burden the insurance 
requirement might impose upon an applicant, and 
requested comments on this point. NHTSA also re- 
quested comments upon alternate appropriate means 
of assuring financial abihty to carry out notification 
and remedial activities. Finally, NHTSA requested 
comments on the amount of insurance that would be 
necessary to demonstrate "sufficient financial re- 
sponsibility," (section 108(d)(2)). The premium paid 
for such a policy would appear to encompass the 
relatively low costs of notification (i.e., discerning, 
through records or R.L. Polk, the names and addresses 
of vehicle owners), and the somewhat higher costs of 
remedy (through repair, repurchase, or replacement), 
as affected by the yearly number of vehicles for which 
the registered importer estimates it will submit certi- 
fication. NHTSA understands that one company is 
currently insuring ICI's under EPA's program, but 
given the difference between Federal safety and emis- 
sion standards the cost experience is not directly 
comparable. 

Substantive comments were received on this issue 
from Mercedes-Benz, the Dealer Action Association, 
National Automotive Dealers Association, and U.S. 
Trade Corp. Mercedes stated that its remedial ex- 
perience indicated that a prepaid insurance policy in 
an amount equal to $2,000 per vehicle should be 
sufficient (adj usted annually for inflation), or 5% of the 
dutiable value of the vehicle), whichever is the lessor. 



PART 592-PRE 3 



A similar comment was forthcoming from the Dealer 
Action Association, which suggested a surety bond as 
an alternative to the prepaid insurance policy, but for 
5% of the dutiable value of the vehicle. It also com- 
mented that $2,000, self-adjusting for inflation, seemed 
a fair estimate of remedial costs. U.S. Trade Corp., a 
potential applicant to become a Registered Importer, 
commented that a financial ability requirement parallel 
to that of EPA would probably not add much to the 
Registered Importer's burden, but would add to the 
costs to the consumer. It argued that possession of 
standard liability insurance that covers the work of 
each Registered Importer should be sufficient to cover 
the vehicle owner. 

The agency has reviewed these comments. Given 
the historical fact that a large portion of nonconforming 
vehicles have been originally manufactured by Mer- 
cedes-Benz, NHTSA has carefully considered the 
comments of Mercedes-Benz of North America. The 
figure of $2,000 per vehicle was supported by the 
Dealer Action Association, and, to NHTSA, appears a 
reasonable estimate of the costs to repair or replace a 
major component of a motor vehicle. The agency will 
review campaigns involving Registered Importers to 
determine whether this figure requires adjustment for 
inflation or other factors, but is not requiring a self- 
adjusting feature. Although a Registered Importer 
would be required, when repair is impossible, to 
replace the vehicle with an equivalent one, or repur- 
chase the vehicle, at a cost that might well exceed 
$2,000, such a contingency has occured so infrequently 
in NHTSA's history that, for the present, the agency 
has concluded that it need not be a part of a Registered 
Importer's showing of financial capability. With respect 
to the alternative suggestion that the policy amount be 
5% of the entered value of the vehicle, the agency 
observes that repair costs for older vehicles of low 
value could be as expensive as for newer models. 
Further, percentage calculations would appear to add 
variables into the process whereas a flat figure of 
$2,000 per vehicle treats all vehicles on an equal basis. 

Additional comments were offered. The Dealer Action 
Association recommended that the policy be sufficient 
to compensate authorized dealers when Registered 
Importers are unable to perform recall work. NADA 
suggested that NHTSA consider EPA's approach 
toward vehicle repair in the final rule, to ensure that 
repairs are adequately performed and paid for, if not 
performed by, the Registered Importer. It recommended 
that the vehicle owner be provided with a transferable 
copy of the service insurance contract to facilitate 
repairs at facilities other than those of the Registered 
Importer. Although oriented towards compensation of 
authorized dealers, these comments are directed 
towards situations where it may not be practicable for 
the owner of a vehicle to return the vehicle to the 
facilities of the Registered Importer, such as when the 



Registered Importer is located at a great distance from 
the vehicle owner. 

This possibility is a likely one, and of concern to 
NHTSA. In the agency's opinion, the Registered Im- 
porter's obligation to remedy without charge is an ( 
absolute one, and cannot be contingent upon the 
Importer itself performing the repairs, even for defects 
or noncompliances it has introduced in the conversion 
process. Thus the questions is, how may NHTSA best 
ensure that repairs without charge be furnished a 
vehicle owner when repairs are performed by persons 
other than the Registered Importer. It was suggested 
that NHTSA consider EPA's approach, but the agency 
does not find this exactly on point. Under the provisions 
of the Clean Air Act, converters are required to supply 
owners with engine performance warranties. The 
warranties are required to be insured, transferable, 
and provide that warranty work may be performed 
anywhere if the converter's facility is not reasonably 
available (i.e., within 50 miles) 40 CFR 85.1510(b)(2). 
The regulation thus does not touch upon the mechanics 
of compensation for warranty work performed else- 
where. In the absence of regulatory guidance, NHTSA 
assumes that an owner pays for the repairs at the 
non-converter service facility, and presents the bill to 
the converter for reimbursement. If such a course were 
followed by owners of vehicles converted to meet the 
safety standards, it would meet the statutory re- 
quirement of remedy without charge, although the 
owner would be temporarily out of pocket for the repair , 
expenses. However, a Registered Importer should have 
the right to impose reasonable restrictions upon the 
type of facility to which a vehicle for which it has 
remedial responsibility may be taken. A reasonable 
restriction would be that the vehicle must be repaired 
at a factory-authorized dealership for its make (e.g., a 
gray market Jaguar must be repaired by the service 
facilities of a Jaguar new-car dealership). Because the 
remedial obligation exists with respect to the vehicle 
and not the owner, no specific requirement for transfer- 
ability of insurance is required. Some of the comments 
indicate that a form of insurance may be available 
under which a claim for compensation may be made by 
a non-converter repair facility directly to an insurance 
company. Remedy without charge through this 
mechanism would also fulfill the statutory require- 
ment. The agency believes that the method of ensuring 
remedy without charge should be the choice of the 
person who is required to provide it. The requirement 
it is adopting in response to these comments is one that 
follows the EPA specification for allowance of repairs 
at alternate locations when the Registered Importer's 
facility is not reasonably available, and one which 
requires an explanation of how remedy without charge 
will be ensured. The agency notes that the Registered 
Importer must provide NHTSA with copies of its | 
communications to vehicle owners, and must supply 



PART 592-PRE 4 



the owner with NHTSA's address for complaints in 
the event remedy without charge is not provided. 
NHTSA therefore anticipates that no serious problems 
will arise. Further, it expects that authorized dealers, 
or others performing campaign repairs, will be ade- 
quately compensated. 

In developing Part 592, the agency proposed that the 
application contain a statement whether the Registered 
Importer would modify the vehicles for which it will 
furnish certificates of conformity, and if not, to provide 
the names and address of all agents who would be the 
actual modifiers. 

The concept that a Registered Importer could delegate 
actual conformance work was opposed by Mercedes- 
Benz and The Dealer Action Association. Both com- 
menters argued that this did not fulfill the statutory 
purpose of increased accountability for conversions, 
and cited statements from the Congressional Record in 
support. In Mercedes' opinion, NHTSA would open an 
area of potential dispute when the object of the 1988 
Act was to clarify NHTSA's j urisdiction. Conformance 
operations must be carried out by Registered Importers, 
their employees, or subsidiaries. The legal line between 
and "agent" and an "independent contractor" is not 
always clear, raising the possibility that a Registered 
Importer might structure a relationship to avoid acts 
of a modifier, including fraud. 

NHTSA has carefully considered these comments. It 
believes that the provisions of the 1988 Act are 
complex enough that regulations should not be adopted 
that open additional avenues of potential dispute or 
complications with Registered Importers that might 
dilute the responsibility imposed by the 1988 Act, and 
which might result in less than full achievement of the 
intent of Congress when these approaches have not 
been specifically directed by Congress. Therefore, it 
agrees with the comments of Mercedes and The Dealer 
Action Association, and has not adopted those aspects 
of the proposal that countenanced delegation of con- 
formance responsibilities to an agent. 

The 1988 Act also requires that the regulation 
contain "provision for ensuring that the importer (or 
any successor in interest) will be able ... to carry out 
the importer's responsibilities. . . relating to discovery, 
notification, and remedy of defects." Paragraph 
592.5(a)(9) requires that the applicant show that it will 
maintain a system of VINs, and names and addresses 
of owners of vehicles for which it provides certifica- 
tions. Although the 1988 Act contemplates that a 
Registered Importer could have a "successor in in- 
terest", NHTSA proposed that registrations not be 
transferable. Such a prohibition appears the most 
feasible way to ensure that notification responsibilities 
are met, as well as ensuring that transfers do not occur 
to Importers whose registration may have been revoked 
or suspended. There was no comment on this point, 
and, accordingly, the agency has adopted paragraph 



592.5(g) which states that registrations are not trans- 
ferable. If there is a change in ownership interest, such 
as a transfer resulting in a new person acquiring more 
than 10% of ownership, a Registered Importer must 
notify NHTSA (paragraph 592.5(f)). This paragraph 
requires notification of changes in any of the informa- 
tion supplied with the application. A registration will 
continue indefinitely until revoked or suspended. 
However, a Registered Importer, in order to maintain 
its registration, will be required to affirm annually 
that there has been no change in previously provided 
information (paragraph 592..5(e)). This should ensure 
that the financial ability of a Registered Importer can 
be monitored, and that fees are received in a timely 
manner. 

Duties of a Registered Importer 
Paragraph 592.6 sets forth the duties of a Registered 
Importer. The first duty specified is to provide a bond 
for each vehicle that it imports to ensure that it will 
bring the vehicle into conformance, or that it will be 
exported or abandoned to the United States (paragraph 
592.6(a)). 

The second duty required for a Registered Importer 
is that it establish, maintain, and retain for 8 years 
from the date of entry of a vehicle for which it 
furnishes a certificate of conformity the records speci- 
fied in paragraph 592.6(b)(1) through (5), generally 
relating to substantiation of conformance work and 
vehicle ownership. Eight years was proposed because 
it is the period specified in the National Traffic and 
Motor Vehicle Safety Act for which a manufacturer is 
obligated to remedy a noncompliance or safety related 
defect at no cost to the vehicle owner (15 U.S.C. 
1414(a)(l)(4)). For a fuller interpretation as to how the 
8-year limit affects the obligations of a Registered 
Importer, the reader should consult the section of this 
notice discussing paragraph 592.6(f). 

Comments on record-keeping were submitted by 
NADA and Mercedes-Benz. NADA commented that 
the final rule should emphasize the continuing duty of 
Registered Importers towards the vehicle, by requiring 
that they continually update their owner lists since 
notification obligations extend beyond first purchasers. 
It is true that there is a continuing obligation towards 
the vehicle, but NHTSA believes that existing notifi- 
cation procedures, which will be applicable to Register- 
ed Importers, sufficiently meet the need for safety. To 
require an updated list of owners would create an 
obligation that does not exist with respect to original 
manufacturers, and would be of questionable success 
should an owner fail to respond to a Registered 
Importer's query. Such a requirement would impose 
an unnecessary burden upon a Registered Importer. 
The vehicle is identifiable through its VIN and in the 
event of notification, the Registered Importer is re- 
quired by 15 U.S.C. 1413(c)(1) to notify owners "whose 



PART 592-PRE 5 



name and address is reasonably ascertainable by the 
manufacturer through State records or other sources 
available to him." Mercedes-Benz commented that 
based upon past experience it is not likely that many 
gray market importers will remain in business for the 
normal useful life of the vehicles they certify. It 
recommended that the final rule address the issue of 
retention of records on dissolution of a business, and 
that Registered Importers be required to deliver all 
vehicle conformance records to NHTSA in this event 
in order to assure the ability to reach gray market 
owners. NHTSA believes that one effect of the 1988 
Act will be that the number of gray market importers 
will be substantially reduced, and that those which 
remain will be relatively stable financially. Mercedes' 
comment appears based upon the assumption that, in 
the absence of a Registered Importer qua manufacturer, 
NHTSA must make its own determination or non- 
compUance or safety related defect, and that its ability 
to notify owners in the aftermath of such determina- 
tions will be impaired without such records. This 
assumption is based upon an erroneous understanding 
of NHTSA's procedures. The statutory purpose of 
NHTSA's determinations is to order the manufacturer 
to notify and remedy when the manufacturer fails to 
make its own determination. If there is no viable 
manufacturer (or Registered Importer), NHTSA will 
not proceed to such a determination. Should safety 
considerations warrant, NHTSA may issue a press 
release advising owners of the conditions giving rise to 
concern and advise precautions to be taken. Thus, 
NHTSA has not adopted this suggestion. 

The third major responsibility of a Registered Im- 
porter is to affix a certification label to each vehicle it 
conforms in the manner required of original vehicle 
manufacturers, which identifies the Registered Im- 
porter (paragraph 592.6(c)). NADA recommended that 
the certification label specifically designate the vehicle 
as "Nonconforming Import", consistent with labels 
required for incomplete or intermediate vehicle manu- 
facturers, that it include specific reference to con- 
formance with Theft Prevention Act requirements, as 
well as language consistent with certification by 
alterers pursuant to 49 CFR 567.7(a). The agency 
declines to adopt the suggestions. The imported vehicle 
will presumably no longer be "Nonconforming" after 
its modification. Under existing regulations, certifica- 
tion to Theft Prevention requirements must be provided 
separately from certification to other standards (para- 
graph 567.4(k)), and no good reason has been advanced 
to require otherwise. Unlike the alterer, who supple- 
ments an existing certification, a Registered Importer 
certifies de novo, and thus must certify according to 49 
CFR 567.4. As the person affixing the label to the 
vehicle under that regulation, the Registered Importer 
will be clearly identified, as will the original manu- 
facturer or assembler of the vehicle. 



The fourth duty of a Registered Importer is to 
provide NHTSA with certification upon completion of 
modifications that the vehicle conforms and that it is 
the party responsible for conformity (paragraph (I 
592.6(d)). NHTSA proposed that substantiation of " 
certification through photographic and documentary 
evidence be submitted for the initial certification 
provided for a specific model and model year only, and 
with subsequent certifications of that model and 
model year only if requested by NHTSA. The proposal 
has been adopted as written (paragraph 592.6(e)), 
although the Dealer Action Association argued that 
NHTSA should require full documentary evidence for 
each vehicle. In essence, NHTSA does: paragraph 
592.6(b)(4) requires the Registered Importer to keep 
records both photographic and documentary reflecting 
the modifications made and submitted to NHTSA 
pursuant to paragraph 592.6(e), which must be made 
available to NHTSA to inspect (paragraph 592.6(g)). 
NHTSA does not wish to create unnecessary burdens 
upon either a Registered Importer or itself by requiring 
excessive documentation. If a Registered Importer 
fails in its obligations to conform the vehicle (not 
always apparent through photographic evidence), its 
registration may be suspended or revoked, and civil 
penalties imposed. 

A Registered Importer also has notification and 
remedial obligations imposed by the 1988 Act. These 
obligations have been incumbent upon manufacturers . 
of motor vehicles since enactment of the Vehicle Safety \ 
Act. Although a "manufacturer" includes any person 
importing motor vehicles for resale, these obligations 
have not always been understood or followed by 
importers for resale of nonconforming vehicles, nor 
have they always been enforced by NHTSA. However, 
Congress has specifically indicated its intent that 
these importers fulfill this sometimes dormant re- 
sponsibility (section 103(d)), and broadened its applic- 
ability. For purposes of notification and remedy, the 
Registered Importer shall be treated as the manu- 
facturer with respect to any motor vehicle that it 
imports (regardless of whether or not it imports the 
vehicle for resale), or brings into conformity on behalf 
of an individual importer who has a contract with it. 
Furthermore, if the vehicle is one that is substantially 
similar (as determined under Part 593) to one certified 
for sale in the United States by its original manu- 
facturer, and a noncompliance or safety related defect 
is determined to exist in the substantially similar 
vehicle, the 1988 Act deems it to exist in the conformed 
vehicle as well, unless the manufacturer or Registered 
Importer can show otherwise. These obligations are 
reflected in paragraphs 592.6(f). NADA commented 
that the final rule should emphasize that this respons- 
ibility encompasses conditions created by the modifica- 
tion process, as well as incorporated into the vehicle by ' 
its original manufacturer. NHTSA regards this sug- 



PART 592-PRE 6 



gestion as well made, and paragraph 592.6(f)(2) in- 
corporates it. 

In reviewing the relationship of the notification/ 
remedial requirements of the 1988 Act to those already 
existing in the Vehicle Safety Act, NHTSA has identi- 
fied an ambiguity as to the length of time for which 
remedy without cost must be provided. According to 15 
U.S.C. 1414(a)(4), the requirement shall not apply "if 
the motor vehicle. . . was purchased by its first pur- 
chaser more than 8 years. . . before. . . notification is 
furnished. ..." The general intent of Congress ap- 
pears to be that manufacturers should not be required 
to provide free remedy for vehicles whose age exceeds 8 
years, even if no corresponding limitation is imposed 
upon notification. If the date of first purchase is known 
for used imported nonconforming vehicles (such as 
through title documents accompanying it), there will 
be no difficulty determining when the 8-year period 
begins. However, if the date of first purchase is not 
known, NHTSA believes that any vehicle manufactur- 
ed within 8 years of the date of notification should be 
eligible for remedy without charge. However, non- 
compliances or safety related defects could be created 
by a Registered Importer in the conformance process, 
and they may be introduced in an imported vehicle 
approaching or beyond an age of 8 model years. It 
seems fairest in this instance to regard conformance 
operations as a "manufacturing" process, and to 
commence the 8-year with the sale of the vehicle to its 
first purchaser, regardless of its age. Disagreements 
may arise as to whether a safety related defect is 
attributable to the manufacturer or the Registered 
Importer, but these will simply have to be handled on a 
ad hoc basis. 

The agency also notes that one duty of a Registered 
Importer arises under the bond given upon importation 
of each vehicle: the fulfillment of the condition that if 
vehicle conformance is not achieved, the vehicle will be 
exported at no cost to the United States by the 
Secretary of the Treasury, or abandoned to the United 
States (section 108(c)(2)(B)). If this duty, set forth in 
paragraph 592.6(f), is not fulfilled, and the vehicle is 
sold without full conformance, not only will the bond 
be forfeit but grounds will then exist to suspend or 
revoke the Importer's registration. 

A final question relating to the duties of a Registered 
Importer was asked by LaPine: who establishes the 
amount of charges to be made by the Registered 
Importer for conformance work? These charges are a 
matter of contract between the Registered Importer 
and the person for whom the work is done, and are not 
established by Federal regulations. 



Revocation, suspension, and reinstatement of registration. 
Paragraph 592.7 establishes the requirements for 
revocation, suspension, and reinstatement of the regi- 
stration of Registered Importers. 



Section 108(c)(3)(D)(iii) requires the Secretary to 
establish procedures for revoking or suspending the 
registration of any Registered Importer for failure to 
comply with any requirement of section 108 of the 
Vehicle Safety Act or of any regulation issued under 
that section. Those procedures are also required to 
provide for automatically suspending the registration 
of a Registered Importer which knowingly files a false 
or misleading certification, or fails to pay a required fee 
in a timely manner. To cover the expenses of the 
registration program and certain other activities, the 
statute provides that each Registered Importer will 
have to pay an annual fee; this fee will be established 
on a fiscal year basis. A Registered Importer under 
suspension may be reinstated when the cause giving 
rise to the suspension ceases to exist. In determining 
revocation or suspension, other than automatic sus- 
pension as provided by section 108(c)(3)(D)(iii) for non 
payment of fees or for knowingly filing a false or 
misleading certification, the Administrator will provide 
notice in writing to the Registered Importer, affording 
it an opportunity to present data, views, and argue- 
ments as to why its registration should not be sus- 
pended or revoked. Other than its provision for auto- 
matic suspension, the 1988 Act does not distinguish 
suspension for revocation; either may be invoked for 
failure to comply with any requirement of section 108 
or the regulations issued under section 108. The 
agency interprets the 1988 Act as leaving the decision 
whether to suspend or to revoke to the discretion of the 
Administrator, with the exception of the automatic 
suspension provisions discussed above. 

No comments were received on this aspect of the 
rulemaking, and it is adopted as proposed. 

Inspection; release of vehicles and bond. 
Paragraph 592.8 establishes the requirements for 
inspection of modified vehicles, and their release for 
registration, as well as release of the performance bond 
under which they entered. As is currently required, an 
importer of record, whether a Registered Importer or 
one who has a conformance contract with a Registered 
Importer, will have to furnish the Secretary of the 
Treasury (the U.S. Customs Service, acting for 
NHTSA), a bond for each vehicle it imports to ensure 
that the vehicle is brought into compliance with the 
safety standards, or that it is exported at no cost to the 
United States, or abandoned to the United States. 
When the modifications of an imported vehicle are 
completed , the Registered Importer will have to attach 
its label to the vehicle stating that it complies with the 
safety standards, and to certify that conformance to 
NHTSA. If the vehicle is one that the Administrator 
has determined to be substantially similar to one 
certified by its original manufacturer for sale in the 
U.S., the Registered Importer may rely in making its 
certification on the original manufacturer's certifi- 
cation with respect to identical safety features if it 



PART 592— PRE 7 



certifies to the Administrator that its modifications 
did not affect compliance of the vehicle's safety features. 
Under the 1988 Act, the Registered Importer will be 
able to license the vehicle, or release the vehicle from 
its custody for licensing, 30 days after its submission 
of the certification to NHTSA. NHTSA, however, can 
demand an inspection of the vehicle within the 30-days 
period, or ask for certification verification. In that 
event, the vehicle can be released only upon the 
agency's written notice of its acceptance of the certifi- 
cation or written notice of its completion of an inspec- 
tion that does not show any failure to comply. The 
vehicle and the performance bond can be released 
immediately upon issuance of either notification. Sec- 
tion 108(c)(3)(E)(v), added by the 1988 Act, provides 
that any release of bond, however, does not constitute 
a determination under section 152 of the Vehicle 
Safety Act that the vehicle conforms with all applicable 
standards. 

Section 108(c)(3)(E)(i) requires NHTSA and the 
Secretary of the Treasury to establish procedures to 
ensure the release of a motor vehicle and bond at the 
expiration of the 30-day period, and this was proposed 
as paragraph 592.8(f). At the time of the proposal, it 
had not been determined whether the bond would be 
one of the U.S. Customs Service, or of NHTSA. The 
determination has been made that the bond will be 
NHTSA's, and therefore no such provision is required 
in the final rule. NHTSA will continue to inform 
Customs when requirements subject to the general 
importation bond (bumper and theft prevention 
standards) have been met, and will make these deter- 
minations contemporaneously with those regarding 
compliance with the safety standards. 

These requirements were the subject of little com- 
ment. In paragraph 592.8(b), NHTSA had proposed 
that each submission shall be provided either by 
certified mail (return receipt requested), or electron- 
ically in a manner specified by NHTSA. George Ziolo 
found this too restrictive, and recommended allowing 
submission through private concerns and in person as 
well. This comment is well taken. It is important that a 
Registered Importer know when its submission has 
been received, and, hence, when the 30-day period has 
begun. Given the agency's own experience with failure 
to receive certified mail return receipts, it believes that 
a Registered Importer must be able to submit its 
certification in the manner it believes will best inform 
it of the date of receipt. The final rule is adopted as 
suggested. Further, NHTSA has specified in the final 
rule the electronic means it prefers, and has provided 
the FAX number of the agency. 

Auburn Motors, an importer of cars from Canada, 
thought that Registered Importers of such cars should 
not have to wait 30 calendar days after submission of 
certification to be informed by NHTSA of their release. 
It should be noted that 30 days is the maximum period, 



and it may well be that in practice bonds may be 
released more expeditiously. 

The State of Texas asked for clarification of the i 
events that would transpire in the event the bond was ' 
forfeited. In the event that NHTSA determines that 
the primary condition of the performance bond, the 
conformance of the vehicle, has not been met, the 
agency will demand fulfillment of one of the remaining 
two alternative conditions: the export of the vehicle at 
no cost to the United States, or its abandonment to the 
United States. NHTSA shall specify a time in which 
this is to be accomplished. Because the 1988 Act 
requires strict adherence to these provisions, it does 
not appear to allow the agency to consider petitions for 
mitigaton on such grounds as hardship, or the achieve- 
ment of partial compliance. If the bond is forfeited 
through failure to fulfill any of the three conditions of 
performance, NHTSA will review the circumstances 
of the case and, when appropriate, inform Customs 
that the importer appears to have made a false 
declaration under the conforming regulation, 19 CFR 
12.80. Customs has appropriate sanctions, including 
the seizure of the vehicle, when violations of its 
regulations occur. Civil penalty sanctions may be also 
imposed by NHTSA. As discussed previously, if a 
Registered Importer forfeits a performance bond, its 
registration will be subject to suspension or revocation. 

Commenting that in some jurisdictions a DOT bond 
release letter is required before registration of vehicles | 
is allowed, Texas also asked what would occur if a 
vehicle is automatically released at the end of 30 days 
without a bond release letter having been issued. If a 
vehicle is automatically released from custody of the 
Registered Importer at the end of 30 days without a 
bond release letter having been issued, there are two 
possible scenarios. The first is that such a letter will be 
forthcoming if the certification is found acceptable. If 
the certification is unacceptable, no such letter will be 
forthcoming, and conformance problems will have to 
be resolved between NHTSA, the Registered Importer, 
and the owner of the car who presumably will have 
taken possession of it, but may have found himself 
unable to license it. 

Virginia Department of Motor Vehicles wondered if 
NHTSA and EPA could issue a single release notice. 
NHTSA has previously considered the feasibility of 
parallel action with EPA such as a common declaration 
form. This does not appear practicable. Two different 
Federal agencies are involved, proceeding under two 
different legislative authorities, with their own distinc- 
tive requirements. Although the regulated persons are 
of the same class (importers of motor vehicles) there is 
not a sufficient identity of regulatory action to allow 
common forms or time frames. In fact, the motor 
vehicle standards administered by NHTSA itself that 
must be met by imported vehicles originate in three 
distinctly different regulatory authorities: Title I of 



PART 592-PRE 



the National Traffic and Motor Vehicle Safety Act 
(safety standards), and Titles I (bumper standard) and 
VI (theft prevention) of the Motor Vehicle Information 
and Cost Savings Act. 

In consideration of the foregoing, a new Part 592, 
Registered Importers of Vehicles not Originally Manu- 
factured to Conform to the Federal Motor Vehicle Safety 
Standards, is added to Title 49, Chapter V, to read as 
follows: 

Part 592 Registered Importers of Vehicles not Origi- 
nally Manufactured to Conform to the Federal Motor 
Vehicle Safety Standards 

Sec. 

592.1 Scope. 

592.2 Purpose. 

592.3 Applicability. 

592.4 Definitions. 

592.5 Requirements for registration and its 
maintenance. 

592.6 Duties of a Registered Importer. 

592.7 Revocation, suspension and reinstate- 
ment of registration. 

592.7 Inspection; release of vehicle and bond. 

Authority. Pub. L. 100-562, 15 U.S.C. 1401, 1407; 
delegation of authority at 49 CFR 1.50. 

592.1 Scope. This part establishes procedures 
under section 108(c)(3)(D) of the National Traffic and 
Motor Vehicle Safety Act, as amended (15 U.S.C. 
1397(c)(3)(D)), for the registration of importers of 
motor vehicles that were not originally manufactured 
to comply with all applicable Federal motor vehicle 
safety standards. This part also establishes the duties 
of Registered Importers. 

592.2 Purpose. The purpose of this part is to 
provide content and format requirements for person 
who wish to register with the Administrator as im- 
porters of motor vehicles not originally manufactured 
to conform to all applicable Federal motor vehicle 
safety standards, to provide procedures for the regis- 
tration of importers and for the susp)ension, revocation 
and reinstatement of registration, and to set forth the 
duties required of Registered Importers. 

592.3 Applicability. This part applies to any 
person who wishes to register with the Administrator 
as an importer of nonconforming vehicles, and to any 
person who is registered as an importer. 

592.4 Definitions. All terms in this part that are 
defined in section 102 of the National Traffic and 
Motor Vehicle Safety Act (15 U.S.C. 1391) are used as 
defined therein. 

"Administrator" means the Administrator, National 
Highway Traffic Safety Administration. 

"NHTSA" means the National Highway Traffic 
Safety Administration. 



"Registered Importer" means any person that the 
Administrator has registered as an importer pursuant 
to paragraph 592.5(b). 

592.5 Requirements for registration and its 
maintenance. 

(a) Any person wishing to register as an importer of 
motor vehicles not originally manufactured to conform 
to all applicable Federal motor vehicle safety standards 
must file an application which: 

(1) Is headed with the words "Application for Regis- 
tration as Importer", and submitted in three copies to: 
Administrator, National Highway Traffic Safety 
Administration, Washington, D.C. 20590, Attn: Im- 
porter Registration. 

(2) Is written in the English language. 

(3) Sets forth the full name, address, and title of the 
person preparing the application, and the name, ad- 
dress, and telephone number of the person for whom 
application is made. 

(4) Sets forth, as applicable, the names of all owners, 
including shareholders, partners, or sole proprietors, 
of the person for whom application is made. 

(5) If any of the owners listed in (4) above are 
corporations, sets forth the names of all shareholders 
of such corporation whose ownership interest is 10 per 
cent or greater. 

(6) Contains a statement that the applicant has 
never had a registration revoked pursuant to paragraph 
592.7, nor is it or was it, directly or indirectly, owned or 
controlled by, or under common ownership or control 
with, a person who has had a registration revoked 
pursuant to paragraph 592.7. 

(7) Contains a certified check payable to the Trea- 
surer of the United States , for the amount of the initial 
annual fee established pursuant to Part 594 of this 
chapter. 

(8) Contains a copy of a contract to acquire, effective 
upon its registration as an importer, a prepaid man- 
datory service insurance policy underwritten by an 
independent insurance company, or a copy of such 
policy, in an amount that equals $2,000 for each motor 
vehicle for which the applicant will furnish a certificate 
of conformity to the Administrator, for the purpose of 
ensuring that the applicant will be able financially to 
remedy any noncompliance or safety related defect 
determined to exist in any such motor vehicle in 
accordance with Part 573 and Part 577 of this chapter. 
If the application is accompanied by a copy of a 
contract to acquire such a policy, the applicant shall 
provide NHTSA with a copy of the policy within 10 
days after it has been issued to the applicant. 

' (9) Sets forth in full data, views, and arguements of 
the applicant sufficient to establish that the applicant 
will be able, through a records system of acquiring and 
maintaining names and addresses of owners of vehicles 
for which it furnishes a certificate of conformity, and 



PART 592-PRE 9 



Vehicle Identification Numbers (VINs) of such vehicles, 
to notify such owners that a noncompliance or safety 
related defect exists in such vehicles, and that it will be 
financially able to remedy a noncompliance or safety 
related defect through repurchase or replacement of 
such vehicles, or technically able through repair of 
such vehicles, in accordance with Part 573 and Part 
577 of this chapter. 

(10) Segregates and specifies any part of the infor- 
mation and data submitted under this part that the 
applicant wishes to have withheld from public dis- 
closure in accordance with Part 512 of this chapter. 

(11) Contains a statement that the applicant will 
fully comply with all duties of a registered importer as 
set forth in paragraph 592.6. 

(12) Has the applicant's signature acknowledged by 
a notary public. 

(b) If the information submitted is incomplete, the 
Administrator notifies the applicant of the areas of 
insufficiency, and that the application is in abeyance. 

(c) If the Administrator deems it necessary for a 
determination upon the application, NHTSA conducts 
an inspection of the applicant and/or its agents. 
Subsequent to the inspection, NHTSA calculates the 
costs attributable to such inspection, and notifies the 
applicant in writing that such costs comprise a com- 
ponent of the initial annual fee and must be paid before 
a determination is made upon its application. 

(d) When the application is complete (and, if applic- 
able, when a sum representing the inspection com- 
ponent of the initial annual fee is paid), it is reviewed 
and a determination made whether the applicant 
should be granted the status of Registered Importer. 
Such determination may be based, in part, upon an 
inspection by NHTSA of the conformance, storage, 
and recordkeeping facilities of the applicant and agents, 
if any. If the Administrator determines that the 
application is acceptable, (s)he informs the applicant in 
writing that its application is approved, and issues it a 
Registered Importer Number. If the information is not 
acceptable, the Administrator informs the applicant in 
writing that its application is not approved. No refund 
is made of those components of the initial annual fee 
representing the remaining costs of administration of 
the registration program. 

(e) In order to maintain its registration, a Registered 
Importer shall provide an annual statement that 
affirms that all information provided under paragraph 
(a)(4), (a)(5), (a)(6), (a)(9), and (a)(ll) remains correct, 
and that includes a current copy of its insurance policy 
procured pursuant to paragraph (a)(8). Such statement 
shall be titled "Yearly Statement of Registered Im- 
porter", and shall be filed not later than October 31 of 
each year. A Registered Importer shall also pay such 
annual fee or fees as the Administrator may from time 
to time establish under Part 594 of this chapter. An 



annual fee shall be paid not later than October 31 of 
any calendar year, and shall be the annual fee for the 
fiscal year than began on October 1 of that calendar 
year. Any other fee shall be payable not later than 30 
calendar days after the date that the Administrator 
has notified the Registered Importer of it in writing. 

(f) A Registered Importer shall notify the Admini- 
strator in writing of any change that occurs in the 
information which it submitted in its application, not 
later than the end of the 30th calendar day after such 
change. 

(g) A registration granted under this part is not 
transferable. 

592.6 Duties of a Registered Importer. Each 
Registered Jm porter shall: 

(a) With respect to each motor vehicle that it imports 
into the United States, furnish to the Secretary of the 
Treasury (acting on behalf of the Administrator) a 
bond in an amount not less than the entered value of 
the vehicle, as determined by the Secretary of the 
Treasury, nor more than 150 per cent of such value, to 
ensure that such vehicle either will be brought into 
conformity with all applicable Federal motor vehicle 
safety standards prescribed under Part 571 of this 
chapter within 120 calendar days after such importa- 
tion , or will be exported (at no cost to the United States) 
by the importer or the Secretary of the Treasury, or 
abandoned to the United States. 

(b) Establish, maintain, and retain for 8 years from 
the date of entry of any nonconforming vehicle for 
which it furnishes a certificate of conformity pursuant 
to paragraph (e), organized records, correspondence 
and other documents relating to the importation, 
modification, and substantiation of certification of 
conformity to the Administrator, including but not 
limited to: 

(1) The declaration required by paragraph 591.5 of 
this chapter, and 19 CFR 12.80. 

(2) All vehicle or equipment purchase or sales orders 
or agreements, conformance agreements with im- 
porters other than Registered Importers, and cor- 
respondence between the Registered Importer and the 
owner or purchaser of each vehicle for which it has 
furnished a certificate of conformity. 

(3) The last known name and address of the owner 
or purchaser of each motor vehicle for which it has 
furnished a certificate of conformity, and the VIN 
number of such vehicle. 

(4) Records, both photographic and documentary, 
reflecting the modifications made and submitted to the 
Administrator pursuant to paragraph (e). 

(5) Records, both photographic and documentary, 
sufficient to substantiate each subsequent certificate 
furnished to the Administrator for a vehicle of the 
same model and model year for which documentation 



PART 592-PRE 10 



has been furnished NHTSA in support of the initial 
certificate. 

(c) Permanently affix to each motor vehicle, upon 
completion of modifications, a label that meets the 
requirements of paragraph 567.4 of this chapter, 
which identifies the Registered Importer, and provide 
to the Administrator a photocopy of the label attesting 
that such vehicle has been brought into conformity 
with all applicable Federal motor vehicle safety and 
bumper standards. 

(d) Certify to the Administrator, upon completion of 
modifications, that the vehicle has been brought into 
conformity with all applicable Federal motor vehicle 
safety and bumper standards, and that it is the person 
legally responsible for bringing the vehicle into con- 
formity. 

(e) In substantiation of the initial certification pro- 
vided for a specific model and model year, submit to the 
Administrator photographic and documentary evidence 
of conformance with each applicable Federal motor 
vehicle safety and bumper standard, and with respect 
to subsequent certifications of such model and model 
year, such information, if any, as the Administrator 
may request. 

(f ) With respect to any motor vehicle for which it has 
furnished a certificate of conformity to the Admini- 
strator, provide notification and remedy according to 
Part 573 and Part 577 of this chapter, upon any 
determination: 

(1) that a vehicle to which it is substantially similar, 
as determined under Part 593 of this chapter, in- 
corporates a safety related defect or fails to conform 
with an applicable Federal motor vehicle safety stan- 
dard. However, this obligation does not exist if the 
manufacturer of the vehicle or Registered Importer 
demonstrates to the Administrator that the defect or 
noncompliance is not present in such vehicle. 

(2) that the vehicle incorporates a safety related 
defect or fails to conform with an applicable Federal 
motor vehicle safety standard, without reference to 
whether such may exist in a vehicle to which it is 
substantially similar, or whether such exists because 
it was created by the original manufacturer or by the 
Registered Importer. 

The requirement of 15 U.S.C. 1414(a)(2)(B) that 
remedy shall be provided without charge shall not 
apply if the noncompliance or safety related defect 
exists in a motor vehicle whose first sale after importa- 
tion occurred more than 8 calendar years before 
notification respecting the failure to comply is fur- 
nished pursuant to Part 577 of this chapter, except 
that if a safety related defect exists and is attributable 
to the original manufacturer and not the Registered 
Importer, the requirements of 15 U.S.C. 1414(a)(2)(B) 
shall not apply to a motor vehicle whose date of 
manufacture, as determined by the Administrator, is 



more than 8 years from the date on which notification 
is furnished pursuant to Part 577 of this chapter. 

Notification furnished pursuant to this paragraph 
and Part 577 of this chapter shall include the statement 
that in the absence of the Registered Importer's facility 
being within 50 miles of the owner's maiUng address 
for performance of repairs, such repairs may be 
performed at v specific facility designated by the 
Registered Importer within 50 miles, or, if no such 
facility is designated, anywhere^and shall also include 
an explanation of how repair is to be accomplished 
without charge to the vehicle owner. 

(g) In order to allow the Administrator to determine 
whether a Registered Importer is meeting its statutory 
responsibilities, admit representatives of NHTSA 
during operating hours, upon demand, and upon 
presentation of credentials, to copy documents, or to 
inspect, monitor, or photograph any of the following: 

(1) Any facility where any vehicle, for which a 
Registered Importer has the responsibility of providing 
a certificate of conformity to applicable safety stan- 
dards, is being modified, tested, or stored; 

(2) Any facility where any record or other document 
relating to modification, testing, or storage of vehicles 
being conformed, is filed; 

(3) Any part or aspect of activities relating to the 
modification , testing, and/or storage of vehicles by the 
Registered Importer. 

(4) Any motor vehicle for which it has provided a 
certification of conformity to the Administrator, and 
which remains in its custody or under its control. 

(h) Maintain in effect a prepaid mandatory service 
insurance policy underwritten by an independent 
insurance company as a guarantor of its performance 
under paragraph (f). 

(i) With respect to any motor vehicle it has imported 
and for which it has furnished a performance bond, to 
deliver such vehicle to the Secretary of the Treasury 
for export, or to abandon it to the United States, upon 
demand by the Administrator if such vehicle has not 
been brought into conformity with all applicable 
Federal motor vehicle safety standards. 

592.7 Revocation, suspension and rein- 
statement of registration. 

(a) If the Administrator has not received any fee 
assessed and owing by the end of the 30th calendar day 
after such fee is due and payable, a registration is 
automatically suspended at the beginning of the 31st 
calendar day, and the Registered Importer is immedi- 
ately notified in writing of the suspension at the 
address contained in its most recent annual statement 
or amendment thereof. 

(b) If the Administrator has reason to believe that a 
Registered Importer has knowingly filed a false or 
misleading certification, and that its registration should 
be automatically suspended or revoked, (s)he notifies 



PART592-PRE11 



the Registered Importer in writing of the facts giving 
rise to such reason to beheve, affording an opportunity 
to present data, views, and arguments, either in 
writing or in person, within 30 calendar days after 
receipt of the Administrator's letter, as to whether it 
has submitted false or misleading certification, and as 
to why the registration ought not to be revoked or 
suspended. The Administrator then makes a decision 
after the 30-day period on the basis of all information 
then available. If, after consideration of all the data 
available, the Administrator determines that the Regis- 
tered Importer has knowingly filed a false of misleading 
certification, the registration is automatically sus- 
pended or revoked, and the Registered Importer notified 
in writing. Any suspension or revocation is effective as 
of the date of the Administrator's determination. The 
Administrator shall state the period of any suspension 
in the notice to the Registered Importer. 

(c) The Administrator may suspend a registration if 
a Registered Importer fails to comply with any require- 
ment set forth in 15 U.S.C. 1397(c)(3)(D), paragraph 
592.5(c), or paragraph 592.6, or if (s)he denies an 
application filed under paragraph 592.5(d). The Ad- 
ministrator may revoke a registration after any failure 
to comply with any such requirement , or if (s)he denies 
an application filed under paragraph 592.5(d). If the 
Administrator has reason to believe that there has 
been such a failure to comply and that the Registered 
Importer's registration should be revoked or suspended, 
(s)he notifies the Registered Importer in writing, 
affording an opportunity to present data, views, and 
arguments, either in writing or in person, within 30 
calendar days after receipt of the Administrator's 
letter, as to whether there has been a failure to comply 
and as to why the registration ought not to be revoked 
or suspended. The Administrator then makes a decision 
after the 30-day period on the basis of all information 
then available. If the Administrator determines that a 
registration should be revoked or suspended, (s)he 
notifies the Registered Importer in writing. A revoca- 
tion is effective immediately. A suspension is effective 
beginning with a date specified in the written notifica- 
tion. 

(d) A Registered Importer whose registration has 
been revoked or suspended may request reconsideration 
of the revocation or suspension if the request is 
supported by factual matter which was not available 
to the Administrator at the time the registration was 
suspended or revoked. 

(e) If its registration has been revoked, a Registered 
Importer is ineligible to apply for reregistration under 
this part. No refund is provided of any annual or other 
fees the Registered Importer has paid for the fiscal year 
in which its registration is revoked. If its registration 
has been suspended it may file an application for 
reinstatement of its registration. 

(f) The Administrator shall reinstate a suspended 
registration if the cause that led to the suspension no 



longer exists, as determined by the Administrator, 
either upon the Administrator's motion, or upon the 
submission of further information or fees by the 
Registered Importer. 
592.8 Inspection; release of vehicle and bond. 

(a) With respect to any motor vehicle for which it is 
obligated to provide a certificate of conformity to the 
Administrator as required by paragraph 592.6(d), a 
Registered Importer shall not obtain licensing or 
registration of the motor vehicle for use on the public 
roads, or release custody of it for such licensing and 
registration, except in accordance with the provisions 
of this section. 

(b) When conformance modifications to a motor 
vehicle have been completed, a Registered Importer 
shall submit the certification required by paragraph 
592.6(d) to the Administrator. In certifying a vehicle 
that the Administrator has determined to be substan- 
tially similar to one that has been certified by its 
original manufacturer for sale in the United States, 
the Registered Importer may rely on any certification 
by the original manufacturer with respect to identical 
safety features if it also certifies that any modification 
that it undertook did not affect the compliance of such 
safety features. Each submission shall be mailed by 
certified mail, return receipt requested, or by private 
carriers such as Federal Express, to: Administrator, 
National Highway Traffic Safety Administration, 
Washington D.C. 20590 ATTN: NEF-32, or be sub- 
mitted electronically by FAX (202-366-2536), or in 
person. Each submission shall identify the location 
where the vehicle will be stored and is available for 
inspection, pending NHTSA action upon the submis- 
sion. 

(c) Before the end of the 30th calendar day after 
receipt of certification of a motor vehicle pursuant to 
paragraph 592.6(d), the Administrator may inform the 
Registered Importer in writing that an inspection of 
the vehicle is required to ascertain the veracity of the 
certification. Written notice includes a proposed in- 
spection date, which is as soon as practicable. If 
inspection of the vehicle indicates that the vehicle has 
been properly certified, at the conclusion of the in- 
spection the Registered Importer is provided an instru- 
ment of release. If inspection of the vehicle shows that 
the vehicle has not been properly certified , the Register- 
ed Importer shall either make the modifications neces- 
sary to substantiate its certification, and provide a 
new certification for the standard(s) in the manner 
provided for in paragraph (b), or deliver the vehicle to 
the Secretary of the Treasury for export , or abandon it 
to the United States. Before the end of the 30th 
calendar day after receipt of new certification, the 
Administrator may require a further inspection in 
accordance with the provisions of this subsection. 

(d) The Administrator may by written notice request 
certification verification by the Registered Importer 
before the end of the 30th calendar day after the date 



PART 592— PRE 12 



the certification was received by the Administrator. If 
the basis for such request is that the certification is 
false or contains a misrepresentation, the Registered 
Importer shall be afforded an opportunity to present 
written data, views, and arguments as to why the 
certification is not false or misleading or does not 
contain a misrepresentation. The Administrator may 
require an inspection pursuant to paragraph (c). The 
motor vehicle and performance bond involved shall not 
be released unless the Administrator is satisfied with 
the certification. 

(e) If a Registered Importer has received no written 
notice from the Administrator by the end of the 30th 
calendar day after it has furnished a certification to 
the Administrator, the Registered Importer may release 
from custody the vehicle that is covered by the 
certification, or have it licensed or registered for use on 
the public roads. 

(f) If the Administrator accepts a certification with- 
out requiring an inspection, (s)he notifies the Registered 
Importer in writing, and provides a copy to the 
importer of record. Such notification shall be provided 



not later than the 25th calendar day after the Admini- 
strator has received such certification. 

(g) Release of the performance bond shall constitute 
acceptance of certification or completion of inspection 
of the vehicle concerned, but shall not preclude a 
subsequent determination by the Administrator pur- 
suant to section 152 of the Act (15 U.S.C. 1451) that the 
vehicle fails to conform to any applicable Federal 
motor vehicle safety standard. 

Issued on: September 26, 1989 



Jeffrey R. Miller 
Acting Administrator 

54 F.R. 40083 
September 29, 1989 



PART 592-PRE 13-14 



PREAMBLE TO AN AMENDMENT TO PART 592 

Registered Importers of Vehicles Not Originally 

Manufactured to Conform to Federal Motor Vehicle 

Safety Standards 

(Docket No. 86-6; Notice 3) 

RIN:2127 AC97 



ACTION: Technical amendments; final rule 

SUMMARY: This notice contains technical amend- 
ments of the final rule published on September 29, 
1989, which established requirements for the registra- 
tion of importers of motor vehicles not originally 
manufactured to conform to the Federal motor vehicle 
safety standards. References to agents of the registered 
importer in section 592.5(c) and (d) are deleted. The 
amount of the bond referred to in section 592.6(a) is 
corrected to accord with that prescribed in Part 591. A 
redundancy in paragraphing in that section is corrected 
by redesignating certain paragraphs. A word inadver- 
tently omitted in section 592.8(g) is inserted. 

EFFECTIVE DATE: November 19, 1989. 

SUPPLEMENTARY INFORMATION: On September 
29, 1989, the agency established 49 CFR Part 592 
Registered Importers of Vehicles Not Originally Manu- 
factured to Conform to Federal Motor Vehicle Safety 
Standards (54 PR 40083). This action was in partial 
implementation of P.L. 100-562 The Imported Vehicle 
Safety Compliance Act of 1988. Under section 592.8(a), 
one of the duties of a registered importer is to furnish a 
bond "in an amount not less than the entered value of 
the vehicle, as determined by the Secretary of the 
Treasury, nor more than 150% of such value", to 
ensure that the vehicle is brought into compliance 
with the Federal safety standards. This was the bond 
amount specified by the 1988 Act, and proposed by 
NHTSA. However, in developing the final rules 
implementing the 1988 Act, NHTSA decided to require 
that the performance bond be the higher value, 150% of 
the entered value of the vehicle. This decision was 
reflected in the final rule on importation of motor 
vehicles, 49 CFR Part 591 Importation of Vehicles and 
Equipment Subject to Federal Motor Vehicle Safety 
Standards (54 FR 40069). In this rule, an importer of a 
nonconforming vehicle declares, in pertinent part that 
he has furnished a bond equal to 150% of the entered 
value of the vehicle (section 591.5(f)(1)), and the 
importer's declaration must be accompanied by a bond 



in an amount equal to 150% of the entered value of the 
vehicle (section 591.6(c)). Accordingly, NHTSA is 
amending section 592.8(a) to specify the amount of the 
bond required by Part 591. 

When Part 592 was proposed, it was contemplated 
that a registered importer could have agents to perform 
the actual compliance modifications on vehicles for 
which it was obliged to provide a certification of 
conformity to the Administrator. Because of comments 
to the docket, the agency decided that the purpose of 
the legislation would be better accomplished if register- 
ed importers had direct responsibility for conformance 
work, and the final rule sought to delete all references 
to agents. However, the agency overlooked two refer- 
ences to agents, and sections 592.5(b) and (c) are 
amended to remove these references. 

As published, section 592.6(b) is followed by another 
paragraph, also designated (b). This error is corrected 
by redesignating the second paragraph (b) as paragraph 
(c), and redesignating succeeding paragraphs as ap- 
propriate. There do not appear to be any cross- 
references in part 592 or any other regulation requiring 
correction. 

Finally, in section 592.8(g), the word "bond" was 
inadvertently omitted after the word "performance", 
and has been reinstated. 

In consideration of the foregoing Part 592 of 49 CFR 
is amended as follows: 

The first sentence of section 592.5(c) is amended by 
deleting the phrase "and/or its agents" so that the 
sentence ends with the word "applicant." 

The second sentence of section 592.5(d) is amended 
by deleting the phrase "and agents, if any" so that the 
sentence ends with the word "applicant." 

Section 592.6(a) is amended by deleting the phrase 
"a bond in an amount not less than the entered value of 
the vehicle, as determined by the Secretary of the 
Treasury, nor more than 150 per cent of such value," 
and replacing it with the phrase "a bond in an amount 
equal to 150 per cent of the entered value of the vehicle, 
as determined by the Secretary of the Treasury,". 

In section 592.6, the second paragraph (b) is redesig- 
nated paragraph (c). Paragraphs (c), (d), (e), (f), (g), (h). 



PART 592-PRE 15 



and (i) of that section are redesignated respectively 
paragraphs (d), (e). (f), (g), (h), (i), and (j). 

Section 592.8(g) is amended by adding the word 
"bond" between the words "performance" and "shall." 



Issued on: November 3, 1989 



George L. Parker 
Associate Administrator 
for Enforcement 

54 F.R. 47087 
Novembers, 1989 



PART 592-PRE 16 



PART 592-REGISTERED IMPORTERS OF VEHICLES NOT ORIGINALLY 

MANUFACTURED TO CONFORM TO THE FEDERAL MOTOR VEHICLE 

SAFETY STANDARDS 



592.1 Scope. 

This part establishes procedures under section 
108(cX3XD) of the National Traffic and Motor Vehi- 
cle Safety Act, as amended (15 U.S.C. 1397(cX3XD)), 
for the registration of importers of motor vehicles 
that were not originally manufactiu-ed to comply 
with all applicable Federal motor vehicle safety stan- 
dards. This part also establishes the duties of 
Registered Importers. 

592.2 Purpose. 

The purpose of this part is to provide content and 
format requirements for persons who wish to 
register with the Administrator as importers of 
motor vehicles not originally manufactured to con- 
form to all applicable Federal motor vehicle safety 
standards, to provide procedures for the registra- 
tion of importers and for the suspension, revocation 
and reinstatement of registration, and to set forth 
the duties required of Registered Importers. 

592.3 Applicability. 

This part applies to any person who wishes to 
register with the Administrator as an importer of 
nonconforming vehicles, and to any person who is 
registered as an importer. 

592.4 Definitions. 

All terms in this part that are defined in section 
102 of the National Traffic and Motor Vehicle Safe- 
ty Act (15 U.S.C. 1391) are used as defined therein. 

"Administrator" means the Administrator 
National Highway Traffic Safety Administration. 

"NHTSA" means the National Highway Traffic 
Safety Administration. 

"Registered Importer" means any person that the 
Administrator has registered as an importer pur- 
suant to paragraph 592.5(b). 



592.5 Requirements for reqistration and its 
maintenance. 

(a) Any person wishing to register as an importer 
of motor vehicles not originally manufactured to con- 
form to all applicable Federal motor vehicle safety 
standards must file an application which: 

(1) Is headed with the words "Application for 
Registration as Importer", and submitted in three 
copies to: Administrator, National Highway Traf- 
fic Safety Administration, Washington, D.C. 
20590, Attn: Importer Registration. 

(2) Is written in the English language. 

(3) Sets forth the full name, address, and title 
of the person preparing the application, and the 
name, address, and telephone number of the per- 
son for whom application is made. 

(4) Sets forth, as applicable, the names of all 
owners, including shareholders, partners, or sole 
proprietors, of the person for whom application 
is made. 

(5) If any of the owners listed in (4) above are 
corporations, sets forth the names of all 
shareholders of such corporation whose ownership 
interest is 10 per cent or greater. 

(6) Contains a statement that the applicant has 
never had a registration revoked pursuant to 
paragraph 592.7, nor is it or was it, directly or in- 
directly, owned or controlled by, or under common 
ownership or control with, a person who has had 
a registration revoked pursuant to paragraph 
592.7. 

(7) Contains a certified check payable to the 
Treasurer of the United States, for the amount of 
the initial annual fee established pursuant to Part 
594 of this chapter. 

(8) Contains a copy of a contract to acquire, ef- 
fective upon its registration as an importer, a 
prepaid mandatory service insurance policy under- 
written by an independent insurance company, or 
a copy of such policy, in an amount that equals 



PART 592-1 



$2,000 for each motor vehicle for which the apph- 
cant will furnish a certificate of conformity to the 
Administrator, for the purpose of ensuring that the 
applicant will be able financially to remedy any non- 
compliance or safety related defect determined to 
exist in any such motor vehicle in accordance with 
Part 573 and Part 577 of this chapter. If the applica- 
tion is accompanied by a copy of a contract to ac- 
quire such a policy, the applicant shall provide 
NHTSA with a copy of the policy within 10 days 
after it has been issued to the applicant. 

(9) Sets forth in full data, views, and arguments 
of the applicant sufficient to establish that the ap- 
plicant will be able, through a records system of ac- 
quiring and maintaining names and addresses of 
owners of vehicles for which it furnishes a certificate 
of conformity, and Vehicle Identification Numbers 
(VINs) of such vehicles, to notify such owners that 
a noncompliance or safety related defect exists in 
such vehicles, and that it will be financially able to 
remedy a noncompliance or safety related defect 
through repurchase or replacement of such vehicles, 
or technically able through repair of such vehicles 
in accordance with Part 573 and Part 577 of this 
chapter. 

(10) Segregates and specifies any part of the in- 
formation and data submitted under this part that 
the applicant wishes to have withheld from public 
disclosure in accordance with Part 512 of this 
chapter. 

(11) Contains a statement that the applicant will 
fully comply with all duties of a registered importer 
as set forth in paragraph 592.6. 

(12) Has the applicant's signature acknowledged 
by a notary public. 

(b) If the information submitted is incomplete, the 
Administrator notifies the applicant of the areas of 
insufficiency, and that the application is in abeyance. 

(c) If the Administrator deems it necessary for a 
determination upon the application. NHTSA con- 
ducts an inspection of the applicant. Subsequent to 
the inspection, NHTSA calculates the costs at- 
tributable to such inspection, and notifies the appli- 
cant in writing that such costs comprise a compo- 
nent of the initial annual fee and must be paid before 
a determination is made upon its application. 

(d) When the application is complete (and, if ap- 
plicable, when a sum representing the inspection 
component of the initial annual fee is paid), it is 
reviewed and a determination made whether the ap- 
plicant should be granted the status of Registered 
Importer. Such determination may be based, in part, 
upon an inspection by NHTSA of the conformance, 
storage, and recordkeeping facilities of the 



applicant. If the Administrator determines that the 
application is acceptable, (s)he informs the applicant 
in writing that its application is approved and issues 
it a Registered Importer Number. If the informa- 
tion is not acceptable, the Administrator informs the 
applicant in writing that its application is not 
approved. No refund is made of those components 
of the initial annual fee representing the costs of 
processing the application, and conducting an inspec- 
tion. Refund is made of that component of the initial 
annual fee representing the remaining costs of 
administration of the registration program, 
(e) In order to maintain its registration, a Registered 
Importer shall provide an annual statement that 
affirms that all information provided under 
paragraphs (aX4), (aX5), (a)(6), (a)(9), and (a)(ll) 
remains correct, and that includes a current copy 
of its insurance policy procured pursuant to 
paragraph (a)(8). Such statement shall be titled 
"Yearly Statement of Registered Importer", and 
shall be filed not later than October 31 of each year. 
A Registered Importer shall also pay such annual 
fee or fees as the Administrator may from time to 
time establish under Part 594 of this chapter. An 
annual fee shall be paid not later than October 31 
of any calendar year, and shall be the annual fee for 
the fiscal year that began on October 1 of that 
calendar year. Any other fee shall be payable not 
later than 30 calendar days after the date that the 
Administrator has notified the Registered Importer 
of it in writing. 

(f) A Registered Importer shall notify the Admin- 
istrator in WTiting of any change that occurs in the 
information which it submitted in its application, not 
later than the end of the 30th calendar day after such 
change. 

(g) A registration granted imder this part is not 
transferable. 



592.6 Duties of a Registered Importer. 

Each Registered Importer shall: 

(a) With respect to each motor vehicle that it im- 
ports into the United States, furnish to the 
Secretary of the Treasury (acting on behalf of the 
Administrator) [a bond in an amount equal to 150 
percent of the entered value of the vehicle, as deter- 
mined by the Secretary of the Treasury, ] to ensure 
that such vehicle either v«ll be brought into confor- 
mity with all applicable Federal motor vehicle safe- 
ty standards prescribed under Part 571 of this 
chapter within 120 calendar days after such impor- 
tation, or will be exported (at no cost to the United 
States) by the importer or the Secretary of the 
Treasury, or abandoned to the United States. 



PART 592-2 



I(c)l Establish, maintain, and retain for 8 years 
from the date of entry of any nonconforming vehi- 
cle for which it furnishes a certificate of conformity 
pursuant to paragraph (e), organized records, cor- 
respondence and other docimients relating to the 
importation, modification, and substantiation of cer- 
tification of conformity to the Administrator, 
including but not limited to: 

(1) The declaration required by paragraph 591.5 
of this chapter, and 19 CFR 12.80. 

(2) All vehicle or equipment purchase or sales 
orders or agreements, conformance agreements 
with importers other than Registered Importers, 
and correspondence between the Registered Im- 
porter and the owner or purchaser of each vehi- 
cle for which it has furnished a certificate of 
conformity. 

(3) The last known name and address of the 
owner or purchaser of each motor vehicle for 
which it has furnished a certificate of conformity, 
and the VIN number of such vehicle. 

(4) Records, both photographic and documen- 
tary, reflecting the modifications made and sub- 
mitted to the Administrator pursuant to 
paragraph (e). 

(5) Records, both photographic and documen- 
tary, sufficient to substantiate each subsequent 
certificate furnished to the Administrator for a 
vehicle of the same model and model year for 
which documentation has been furnished NHTSA 
in support of the initial certificate. 

I(d)l Permanently affix to each motor vehicle, 
upon completion of modifications, a label that meets 
the requirements of paragraph 567.4 of this chapter, 
which identifies the Registered Importer, and pro- 
vide to the Administrator a photocopy of the label 
attesting that such vehicle has been brought into 
conformity with all applicable Federal motor vehi- 
cle safety and bumper standards. 

[(e)l Certify to the Administrator, upon comple- 
tion of modifications that the vehicle has been 
brought into conformity with all applicable Federal 
motor vehicle safety and bumper standards, and that 
it is the person legally responsible for bringing the 
vehicle into conformity. 

|(f)l In substantiation of the initial certification 
provided for a specific model and model year, sub- 
mit to the Administrator photographic and 
documentary evidence of conformance with each ap- 
plicable Federal motor vehicle safety and bumper 
standard, and with respect to subsequent 



certifications of such model and model year, such 
information, if any, as the Administrator may 
request. 

I(g)l With respect to any motor vehicle for which 
it has furnished a certificate of conformity to the 
Administrator, provide notification and remedy ac- 
cording to Part 573 and Part 577 of this chapter 
upon any determination: 

(1) that a vehicle to which it is substantially 
similar, as determined under Part 593 of this 
chapter, incorporates a safety related defect or 
fails to conform with an applicable Federal motor 
vehicle safety standard. However, this obligation 
does not exist if the manufacturer of the vehicle 
or Registered Importer demonstrates to the Ad- 
ministrator that the defect or noncompliance is not 
present in such vehicle. 

(2) that the vehicle incorporates a safety related 
defect or fails to conform with an applicable 
Federal motor vehicle safety standard, without 
reference to whether such may exist in a vehicle 
to which it is substantially similar, or whether such 
exists because it was created by the original 
manufacturer or by the Registered Importer. 
The requirement of 15 U.S.C. 1414(aX2XB) that 

remedy shall be provided without charge shall not 
apply if the noncompliance or safety related defect 
exists in a motor vehicle whose first sale after im- 
portation occurred more than 3 calendar years 
before notification respecting the failure to comply 
is furnished pursuant to Part 577 of this chapter, 
except that if a safety related defect exists and is 
attributable to the original manufacturer and not the 
Registered Importer, the requirements of 15 U.S.C. 
1414(aX2XB) shall not apply to a motor vehicle whose 
date of first purchase, if known, or, if not known, 
whose date of manufacture as determined by the Ad- 
ministrator, is more than 8 years from the date on 
which notification is furnished pursuant to Part 577 
of this chapter. 

Notification furnished pursuant to this paragraph 
and Part 577 of this chapter shall include the state- 
ment that in the absence of the Registered Im- 
porter's facility being within 50 miles of the owner's 
mailing address for performance of repairs, such 
repairs may be performed at a specific facility 
designated by the Registered Importer within 50 
miles, or, if no such facility is designated, anywhere, 
and shall also include an explanation how repair is 
to be accomplished without charge to the vehicle 



(Rev. 11/9/89) 



PART 592-3 



[(h)l In order to allow the Administrator to deter- 
mine whether a Registered Importer is meeting its 
statutory responsibilities, admit representatives of 
NHTSA during operating hours, upon demand, and 
upon presentation of credentials, to copy documents, 
or to inspect, monitor, or photograph any of the 
following: 

(1) Any facility where any vehicle, for which a 
Registered Importer has the responsibility of pro- 
viding a certificate of conformity to applicable 
safety standards, is being modified, tested, or 
stored; 

(2) Any facility where any record or other docu- 
ment relating to modification, testing, or storage 
of vehicles being conformed, is filed; 

(3) Any part or aspect of activities relating to 
the modification, testing, and/or storage of 
vehicles by the Registered Importer. 

(4) Any motor vehicle for which it has provided 
a certification of conformity to the Administrator, 
and which remains in its custody or under its control. 
((i)l Maintain in effect a prepaid mandatory serv- 
ice insurance policy undenvritten by an independent 
insurance company as a guarantor of its perfor- 
mance under paragraph (f). 

[(j)I With respect to any motor vehicle it has im- 
ported and for which it has furnished a performance 
bond, to deliver such vehicle to the Secretary of the 
Treasury for export, or to abandon it to the United 
States, upon demand by the Administrator if such 
vehicle has not been brought into conformity with 
all applicable Federal motor vehicle safety stan- 
dards. (54 F.R. 40083— November 9, 1989. Effective: 
November 9, 1989) 

592.7 Revocation, suspension and reinstatement of 
registration. 

(a) If the Administrator has not received any fee 
assessed and owing by the end of the 30th calendar 
day after such fee is due and payable, a registration 
is automatically suspended at the beginning of the 
31st calendar day, and the Registered Importer is 
immediately notified in writing of the suspension at 
the address contained in its most recent annual 
statement or amendment thereof. 

(b) If the Administrator has reason to believe that 
a Registered Importer has knowingly filed a false 
or misleading certification and that its registration 
should be automatically suspended or revoked, (s)he 
notifies the Registered Importer in writing of the 
facts giving rise to such reason to believe, affording 



an opportunity to present data, views, and 
arguments, either in writing or in person, within 30 
calendar days after receipt of the Administrator's 
letter, as to whether it has submitted false or 
misleading certification, and as to why the registra- 
tion ought not to be revoked or suspended. The Ad- 
ministrator then makes a decision after the 30-day 
period on the basis of all information then available. 
If, after consideration of all the data available, the 
Administrator determines that the Registered Im- 
porter has knowingly filed a false of misleading cer- 
tification, the registration is automatically sus- 
pended or revoked, and the Registered Importer 
notified in writing. Any suspension or revocation is 
effective as of the date of the Administrator's deter- 
mination. The Administrator shall state the period 
of any suspension in the notice to the Registered 
Importer. 

(c) The Administrator may suspend a registration 
if a Registered Importer fails to comply with any re- 
quirement set forth in 15 U.S.C. 1397(cX3XD), 
paragraph 592.5(c), or paragraph 592.6, or if s(he) 
denies an application filed imder paragraph 592.5(d). 
The Administrator may revoke a registration after 
any failure to comply with any such requirement, or 
if (s)he denies an application filed under paragraph 
592.5(d). If the Administrator has reason to believe 
that there has been such a failure to comply and that 
the Registered Importer's registration should be 
revoked or suspended, (s)he notifies the Registered 
Importer in writing, affording an opportunity to pre- 
sent data, views, and arguments, either in writing 
or in person, wathin 30 calendar days after receipt 
of the Administrator s letter, as to whether there 
has been a failure to comply and as to why the 
registration ought not to be revoked or suspended. 
The Administrator then makes a decision after the 
30-day period on the basis of all information then 
available. If the Administrator determines that a 
registration should be revoked or suspended, (s)he 
notifies the Registered Importer in writing. A 
revocation is effective immediately. A suspension is 
effective beginning with a date specified in the writ- 
ten notification. 

(d) A Registered Importer whose registration has 
been revoked or suspended may request reconsidera- 
tion of the revocation or suspension if the request 
is supported by factual matter which was not 
available to the Administrator at the time the 
registration was suspended or revoked. 

(e) If its registration has been revoked, a 
Registered Importer is ineligible to apply for 



(Rev. 



PART 592-4 



reregistration under this part. No refund is provid- 
ed of any annual or other fees the Registered Im- 
porter has paid for the fiscal year in which its 
registration is revoked. If its registration has been 
suspended it may file an application for reinstate- 
ment of its registration. 

(f) The Administrator shall reinstate a suspended 
registration if the cause that led to the suspension 
no longer exists, as determined by the Ad- 
ministrator, either upon the Administrator's motion, 
or upon the submission of further information or fees 
by the Registered Importer. 

592.8 Inspection; release of vehicle and bond. 

(a) With respect to any motor vehicle for which 
it is obligated to provide a certificate of conformity 
to the Administrator as required by paragraph 592 
6(d), a Registered Importer shall not obtain licens- 
ing or registration of the motor vehicle for use on 
the public roads, or release custody of it for such 
licensing and registration, except in accordance with 
the provisions of this section. 

(b) When conformance modifications to a motor 
vehicle have been completed, a Registered Importer 
shall submit the certification required by paragraph 
592.6(d) to the Administrator. In certifying a vehi- 
cle that the Administrator has determined to be 
substantially similar to one that has been certified 
by its original manufacturer for sale in the United 
States, the Registered Importer may rely on any cer- 
tification by the original manufacturer with respect 
to identical safety features if it also certifies that any 
modification that it undertook did not affect the com- 
pliance of such safety features. Each submission 
shall be mailed by certified mail, return receipt re- 
quested, or by private carriers such as Federal 
Express, to: Administrator, National Highway Traf- 
fic Safety Administration, Washington, D.C., 20590 
ATTN: NEF-32, or be submitted electronically by 
FAX (202-366-2536), or in person. Each submission 
shall identify the location where the vehicle will be 
stored and is available for inspection, pending 
NHTSA action upon the submission. 

(c) Before the end of the 30th calendar day after 
receipt of certification of a motor vehicle pursuant 
to paragraph 592.6(d), the Administrator may in- 
form the Registered Importer in writing that an in- 
spection of the vehicle is required to ascertain the 
veracity of the certification. Written notice includes 
a proposed inspection date, which is as soon as prac- 
ticable. If inspection of the vehicle indicates that the 
vehicle has been properly certified, at the conclusion 



of the inspection the Registered Importer is 
provided an instrument of release. If inspection of 
the vehicle shows that the vehicle has not been pro- 
perly certified, the Registered Importer shall either 
make the modifications necessary to substantiate its 
certification, and provide a new certification for the 
standard(s) in the manner provided for in paragraph 
(b), or deliver the vehicle to the Secretary of the 
Treasury for export, or abandon it to the United 
States. Before the end of the 30th calendar day after 
receipt of new certification, the Administrator may 
require a further inspection in accordance with the 
provisions of this subsection. 

(d) The Administrator may by written notice re- 
quest certification verification by the Registered 
Importer before the end of the 30th calendar day 
after the date the certification was received by the 
Administrator. If the basis for such request is that 
the certification is false or contains a misrepresen- 
tation, the Registered Importer shall be afforded an 
opportunity to present written data, views, and 
arguments as to why the certification is not false or 
misleading or does not contain a misrepresentation. 
The Administrator may require an inspection pur- 
suant to paragraph (c). The motor vehicle and per- 
formance bond involved shall not be released unless 
the Administrator is satisfied with the certification, 
(e) If a Registered Importer has received no 
written notice from the Administrator by the end 
of the 30th calendar day after it has furnished a cer- 
tification to the Administrator, the Registered 
Importer may release from custody the vehicle that 
is covered by the certification, or have it licensed 
or registered for use on the public roads. 

(f) If the Administrator accepts a certification 
without requiring an inspection, (s)he notifies the 
Registered Importer in writing, and provides a copy 
to the importer of record. Such notification shall be 
provided not later than the 25th calendar day after 
the Administrator has received such certification. 

(g) Release of the performance bond shall con- 
stitute acceptance of certification or completion of 
inspection of the vehicle concerned, but shall not 
preclude a subsequent determination by the Admin- 
istrator pursuant to section 152 of the Act (15 U.S.C. 
1451) that the vehicle fails to conform to any ap- 
plicable Federal motor vehicle safety standard. 



Issued on September 26, 



54 F.R. 40083 
September 29, 1989 



PART 592-5 



PREAMBLE TO AN AMENDMENT TO PART 593 

Determinations That a Vehicle Not Originally 

Manufactured to Conform to Federal Motor Vehicle 

Safety Standards is Eligible for Importation) 

(Docket No. 89-7; Notice 2) 

RIN:2127-AC99 



ACTION: Final rule 

SUMMARY: Effective January 31, 1990, the National 
Traffic and Motor Vehicle Safety Act, as amended by 
the Imported Vehicle Safety Compliance Act of 1988, 
will place new limits on the importation of foreign 
motor vehicles not originally manufactured to meet 
Federal motor vehicle safety standards. The 1988 
amendments prohibit, with certain exceptions, the 
importation of such a vehicle unless it is a model that 
meets specified eligibility criteria. The criteria are that 
the model is determined by this agency to be sub- 
stantially similar to one that was originally man- 
ufactured for importation and sale into the United 
States, and that it is capable of being readily modified 
to conform to the Federal safety standards. Alterna- 
tively, for a model for which there is not a substantially 
similar vehicle, the agency must determine that the 
safety features of the model comply or are capable of 
being modified to comply with the safety standards. 
This rule adopts procedural regulations for petitions 
and for determinations regarding the meeting of these 
criteria. Most details of the rule are dictated by the 
1988 amendments. 

EFFECTIVE DATE: October 30, 1989 

SUPPLEMENTARY INFORMATION: On October 
31, 1988, the President signed into law the Imported 
Vehicle Safety Compliance Act of 1988, P.L. 100-562 
("the 1988 Act"). The Act amends those provisions of 
the National Traffic and Motor Vehicle Safety Act of 
1966 ("the Vehicle Safety Act") that relate to the 
importation of motor vehicles subject to the Federal 
motor vehicle safety standards (Section 108(b), 15 
U.S.C. 1397(b)). The 1988 Act imposes restrictions 
upon the eligibility of motor vehicles for importation. 
The principal restriction upon a motor vehicle is that it 
cannot be imported at all unless NHTSA determines 
that the motor vehicle model is capable of modification 
to meet the Federal safety standards. Determinations 
will be made on NHTSA's own initiative, or upon 



petition of any registered importer (see discussion 
below) or any motor vehicle manufacturer, and will be 
subject to public comment. A notice of proposed 
rulemaking on this subject was published on April 25, 
1989 (54 FR 17786). 

As the agency explained in the notice, and repeats 
here so that readers may have an overview of the 
determination process, a nonconforming vehicle may 
be imported under either of the following two scenarios. 
The first scenario will involve the making of two 
determinations by the agency: that the nonconforming 
model is substantially similar to a model of the same 
"model year" which was originally manufactured for 
importation into and sale in the U.S. and was certified 
as conforming to the Federal safety standards, and 
that a vehicle belonging to the model is capable of being 
readily modified to conform fully with the applicable 
standards. 

The second scenario will arise if the agency has not 
made a substantial similarity determination regarding 
a model. In that case, it will still be permissible to 
import a vehicle of that model if the agency determines 
that its safety features comply with the U.S. standards, 
or are capable of being modified to comply with those 
standards, "based on destructive crash data or such 
other evidence" as NHTSA determines is adequate. 

Under either scenario, a positive determination 
regarding a model will permit any registered importer 
to import vehicles of the same model that are covered 
by that determination. 

If the agency makes a negative determination 
regarding a model's ability to be modified, the agency 
will be temporarily prohibited from taking up the issue 
again. If the decision was made in response to a 
petition, the 1988 Act prohibits the agency from 
considering a petition regarding the same model of 
vehicle until at least 3 months after that decision. If 
the negative determination was made in a proceeding 
begun at the agency's own initiative, the agency will 
not be able to make another determination regarding 
the same model of motor vehicle until at least 3 months 
after the negative one. 



PART 593-PRE 1 



NHTSA is attempting in this rulemaiting action to 
formulate a program that will ensure that all imported 
motor vehicles conform to the Federal motor vehicle 
safety standards without imposing unnecessary bur- 
dens on importers. Therefore, NHTSA has tried in this 
rule to impose only those requirements that are 
mandated by the 1988 Act, with amplifications only 
where it appeared necessary to implement the safety 
intent of the statute. 

There were four substantive comments submitted 
on the proposal, by Mercedes-Benz of North America, 
Auburn Motors, Europa International, Inc., and George 
Ziolo. 

593.5 Petitions for eligibility determinations. 

Paragraph 593.5 establishes the requirements for 
submissions of petitions for determinations that a 
motor vehicle not originally manufactured to conform 
with the Federal motor vehicle safety standards is 
eligible for importation into the United State. New 
section 108(c)(3)(C)(i)(I) of the Vehicle Safety Act 
requires the Administrator to make eligibility deter- 
minations "on the petition of any registered importer 
or any manufacturer". Under this Act, a "man- 
ufacturer" is defined to include any person who 
imports vehicles for resale. Thus, "manufacturer" 
excludes the individual who imports a vehicle, through 
a registered importer, for his or her own use. It also 
excludes the general public and trade associations. 

The basic procedural requirements for a petition are 
similar to those the agency specifies for other petitions: 
that they be in the English language, state the full 
name and address of the petitioner, be submitted in 3 
copies to the Administrator, state the basis upon 
which petition is made, and specify any part of the 
submission for which confidential treatment is re- 
quested. The petition must be accompanied by a 
certified check for the amount of the vehicle eligibility 
petition fee established in accordance with Part 594. 

Europa International asked that documentation sub- 
stantiating vehicle alterations be withheld from public 
dockets for proprietary reasons, as its release would 
enable others to modify without compensation to the 
original registered importer. This is a request that 
must be made by a petitioner when petitioning. In the 
absence of such a request, confidential treatment will 
not be afforded by NHTSA. When a request for 
confidentiality is made, the request is referred to the 
Office of Chief Counsel for a determination, and the 
petitioner informed of such a determination. The 
agency proposed (and is adopting) paragraph 593.10(b) 
under which information made available for public 
inspection does not include information for which 
confidentiality has been requested and granted. With 
specific reference to Europa's comment, NHTSA notes 
that paragraph (b) provides that "to the extent that a 
petition contains material relating to the methodology 
by which the petitioner intends to achieve conformance 



with a specific standard, the petitioner may request 
confidential treatment of such material on the grounds 
that it contains a trade secret or confidential infor- 
mation". 

Those who wish to request confidential treatment 
should be advised that consideration of the merits of 
the petition will be in abeyance until resolution of 
confidentiality requests, and that this delay should be 
taken into consideration in the petitioner's plans. 
Therefore, petitioners are encouraged to make argu- 
ments relating to a vehicle's capability of conformance 
that minimize discussion of specific design solutions of 
a possibly proprietary nature (which are entirely 
appropriate as support for certificates of conformity). 
593.6 Basis for petition. 

Paragraph 593.6 details the information to be pro- 
vided in support of the petition. In accordance with the 
proposal, the agency has not specified the number and 
types of components that must be identified as capable 
of modification in order to demonstrate compliance 
with each applicable standard (the petitioner must, of 
course, show that a vehicle is readily modifiable, or 
capable of modification, as the case may be, so that it 
will comply with all applicable safety standards). 
Since the Federal motor vehicle safety standards are 
performance standards, NHTSA believes that reg- 
istered importers, like original manufacturers, should 
be free to reach individual design solutions. Whether a 
petitioner's arguments are persuasive will be reflected 
in the agency's eventual determination. NHTSA's 
conclusions will be explained in a notice of determina- 
tion published in the Federal Register 
593.6(a) petitions on the basis of substantial similarity. 

If the basis of the petition is that the model for which 
a determination is sought is substantially similar to 
one that was originally manufactured for importation 
into and sale in the United States, and which bore a 
certification of compliance affixed by its original 
manufacturer, the petitioner must identify the original 
manufacturer of the certified vehicle, and the model 
and model year of the vehicle to be compared (paragraph 
593.6(a)(1) and (2)), and substantiate that the certified 
vehicle was in fact certified (paragraph 593.6(a)(3)). It 
must also submit data, views, and arguments, with 
respect to each applicable Federal motor vehicle safety 
standard, that the vehicle is capable of being readily 
modified to meet that standard (paragraph 593.6(a)(4) 
and (5)). 

The phrases "substantially similar" and "capable of 
being readily modified" are not defined by the 1988 
Act. However, NHTSA begins with the assumption 
that a vehicle that is "substantially similar" to one 
that was originally manufactured for importation and 
sale in the United States which bore its original 
manufacturer's certification is one whose visual ap- 
pearance and structural details are "substantially 
similar" to the certified model. For example, a Renault 



PART 593-PRE 2 



21 manufactured in France could be viewed as "sub- 
stantially similar" to the Renault/Eagle Medallion, 
manufactured in France and certified by Renault for 
sale in the United States because its exterior sheet- 
metal appears virtually identical. On the other hand, a 
Renault 25 manufactured in France would not be 
viewed as substantially similar to the Eagle Premier 
manufactured in Canada and certified by Chrysler for 
sale in the United States, even though Chrysler 
purchases the platform and drive train of the Premier 
from Renault. Both its exterior and interior appearance 
and components differ from that of the Premier. There 
is no common exterior sheetmetal, different dash 
panels and seats are provided, and there is no inter- 
changeability between doors and glazing. Comments 
were requested on the degree of interior and exterior 
similarity of appearance and structural details, and on 
the extent of parts interchangeability necessary to 
support a determination of substantial similarity. 
Comments were also requested as to what parts are 
most critically related to compliance with the stand- 
ards, particularly those standards which specify 
dynamic vehicle crash testing or other types of 
destructive testing. 

Obviously, if a vehicle already conforms to a safety 
standard, the question of modification capability is not 
reached. To substantiate that no modifications are 
required with respect to that standard, a petition may 
be supported by a letter from the vehicle's original 
manufacturer confirming that the vehicle model under 
consideration was manufactured to comply with the 
standard. This method of substantiation would be 
appropriate for petitions based on substantial similarity 
as well as for petitions which are not so based. 

Auburn Motors commented that recognition should 
be given that vehicles certified as meeting Canadian 
standardb are virtually identical to U.S. ones, and that 
they should be exempted from the final rule. It 
submitted a letter from American Honda stating that 
in model years 1988 and 1989, cars manufactured for 
both markets were identical. The agency notes that, at 
the present time, there is a notable similarity between 
the U.S. and Canadian motor vehicle safety standards. 
However, since they are not in all respects similar, it 
cannot grant Auburn's request. NHTSA does believe 
that there is a strong basis on which a petitioner could 
argue that there is a "substantial similarity" of 
Canadian vehicles compared with U.S. ones. Further, 
if the Canadian-manufactured Hondas are not certified 
as meeting U.S. standards, the manufacturer's letter 
attesting to identicality could serve as the basis for the 
certificate of conformity that the Registered Importer 
of such vehicle must provide the Administrator. In 
summary, the agency recognizes that importers of 
vehicles certified as meeting the Canadian Standards 
but not the U.S. ones will have a less difficult time of 
meeting the criteria of the 1988 Act than importers of 



vehicles manufactured to conform to European or 
Asian standards. 

As for whether a vehicle is "capable of being readily 
modified", NHTSA's proposal suggested, as the first 
level of decision, that many components that are 
visible when the vehicle is fully assembled may be 
considered capable of being readily modified when they 
may be easily replaced with parts intended as re- 
placement for conforming parts on substantially similar 
certified vehicles. For passenger cars, these components 
would include, but are not limited to, tires (Standard 
No. 109), rims (Standard No. 110), and wheel cover 
(Standard No. 211), glazing marking (Standard No. 
205), reflecting surfaces (Standard No. 107), controls 
and displays (Standard No. 101), and lighting devices 
(Standard No. 108). Other components, not readily 
visible, are also easily replaced with conforming parts. 
These include brake hoses (Standard No. 106), and 
brake fluid (Standard No. 116). In this event, the 
petitioner could provide in its petition the part numbers 
of the components that would be substituted to achieve 
conformance. In its comment, Mercedes-Benz observed 
that these components could be those with the same 
part numbers utilized by the original manufacturer 
during the same model year and on the same model. 

However, this first level of decision, based upon 
replacement of parts, could not determine conformance 
with vehicle rather than equipment standards. Visual 
inspection would not indicate whether the steering 
column would need to be replaced so that the vehicle 
would comply with Standard No. 204, or whether the 
interior fabrics (other than leather) would meet the 
flammability resistance required by Standard No. 302, 
because these tests incorporate destructive demon- 
stration procedures 

The second level of decision then rests upon the 
question of whether the modifications necessary for 
conformance are "readily" achievable. In this instance, 
a petitioner would be expected to submit data showing 
that conformance can be achieved without extensive 
modifications, i.e., information demonstrating that 
compliance can be achieved without major structural 
modifications or destructive component testing. A 
major structural modification could mean , for example, 
strengthening of the rear frame bars in order to 
achieve conformance with Standard No. 301. An 
example of a non-major structural modification could 
be installation of windshield retaining clips for con- 
formance with Standard No. 212. On the assumption 
that a "substantially similar" vehicle may be more 
likely to incorporate structural features of vehicles 
certified by their original manufacturer for sale in the 
U.S., than vehicles for which there is no U.S. certified 
model, the Administrator may be more willing to 
accept data other than crash data to indicate that a 
vehicle is readily modifiable to achieve conformance. 
On the other hand, a vehicle would not appear to be 



PART 593-PRE 3 



capable of being readily modified of major structural 
modifications are required for compliance. Although 
each petition for substantial similarity determinations 
will be decided on the merits of the arguments pre- 
sented, it does not appear that a vehicle without the 
following conforming components can be readily 
modified to achieve conformance with the applicable 
standards: automatic restraints (Standard No. 208), 
seat belt anchorages (Standard No. 210), roof structure 
(Standard No. 216), windshield intrusion (Standard 
No. 219), and fuel system components (Standard No. 
301). 

NHTSA requested comments on its assumptions 
and tentative interpretations of "substantially similar" 
and "capable of being readily modified". In addition, 
NHTSA was concerned about the possibility that 
vehicles which appear "substantially similar" to the 
eye are much less so under the exterior sheetmetal. 
Therefore, NHTSA also requested comments on the 
similarity of structural components in such vehicles, 
such as similarity of dimensions behind the dashboard, 
roof rails, engine compartment, trunk space, and other 
structural areas for vehicles that are visually similar. 
Further, it requested comments on the degree of 
similarity in the dynamic crush and crush pulse 
signature of the imported vehicles in front and rear end 
impacts. At the present time, the agency is not fully 
sure about the degree of the under-skin similarity of 
vehicles, and these factors may have to be taken into 
account in petitions and determinations. The agency is 
particularly concerned with these issues as they relate 
to passenger cars manufactured by Mercedes-Benz, 
BMW, and Jaguar during the past 10 years. On the 
basis of past experience, NHTSA anticipates that well 
over 90 percent of vehicles to be imported under the 
new requirements will be products of these manu- 
facturers. 

There was little response to this request. The sole 
substantive commenter on these points was Mercedes- 
Benz of North America. Mercedes concurred that 
NHTSA had correctly identified the standards for 
which a substantial similarity/readily modifiable test 
cannot be met. It cautioned against making a deter- 
mination on arguments alone, citing the fact that a 
Mercedes with a European airbag does not meet the 
requirements of Standard No. 208. Further, it viewed 
as totally inappropriate NHTSA's request for an 
analysis of parts by an original equipment manu- 
facturer. It commented that this would amount to a 
checklist for modification, and an admission that all 
other factors comply. The agency does not agree with 
the conclusion reached by Mercedes. In the present 
absence of any experience with making any deter- 
minations under the 1988 Act, it does not intend to be 
restricted as to the sources it may consult in making 
these determinations. Resort to OEM data in this 
instance assists only in a determination that a vehicle 



is readily capable of being modified to conform, and not 
an admission by the manufacturer that the vehicle 
does in fact conform. t 

593. 6(b) Petitions on basis of modification capability. \ 

Similar considerations apply if a vehicle is not 
substantially similar to any vehicles that have been or 
are being certified as complying with the U.S. Stand- 
ards and imported into the United States. For such a 
vehicle, the basis of a petition would be that its safety 
features comply with, or are capable of being modified 
to comply with the safety standards to which it would 
have been subject at the time of its manufacture had it 
been originally intended for importation into the 
United States (paragraph 593.6(b)). Because there is no 
substantially similar model certified for sale in the 
United States, the statute does not specify that de- 
terminations be made with reference to model years. 
Cognizant of the fact that foreign vehicles may be 
produced for a number of years without major changes, 
the Administrator could make a determination ap- 
plicable to vehicles produced within a model year, or 
manufactured during a stated inclusive period. Tenta- 
tively choosing a conservative approach, the agency 
proposed that "capability of modification" determina- 
tions also be petitioned for on a model year basis 
(paragraph 593.6(b)(1)). With vehicles whose features 
relevant to conformance capability have not changed 
with a model year, the agency wishes to state that a 
petition may request a determination for more than f 
one model year if it is accompanied by substantiation. 

With respect to the alternative basis of petitions, as 
with "substantially similar" vehicles, a determination 
"that the vehicle's safety features comply" could be 
made on the basis of a letter of confirmation from the 
vehicle's original manufacturer, or through visual 
inspection where appropriate. However, the 1988 Act 
assumes that full conformance with the safety stand- 
ards may be more difficult to achieve for a non-similar 
vehicle than for a vehicle that is "substantially similar" 
to a certified one, as it states that NHTSA's determina- 
tion shall be "based on destructive test data or such 
other evidence as the [Administrator] determines to be 
adequate". In this instance, it would appear that far 
more detailed information might be required to demon- 
strate capability of modification with those standards 
listed at the end of the prior discussion on sub- 
stantially similar vehicles. Crash test data may be 
preferable to demonstrate that vehicles are capable of 
being modified to conform with those standards that 
incorporate barrier impact demonstration procedures 
(Standards Nos. 201, 204, 208, 212, 219 and 301). 
NHTSA contemplates that a registered importer, or a 
group of registered importers, planning to import a 
large number of a particular model might crash test . 
one or more such vehicles in order to generate data to f 
file with a petition. If a petitioner did not wish to 
conduct a crash test, then the question would arise as 



PART 593— PRE 4 



to the "adequacy" of alternate means of demonstration 
that the vehicle is capable of being modified to achieve 
conformance. NHTSA therefore requested specific 
comments as to the adequacy of computer simulations, 
engineering analyses, and mathematical calculations 
as alternative bases of demonstrating compliance with 
the six safety standards listed above, as well as others, 
such as Standard No. 105 Hydraulic Brake Systems. It 
called attention to the fact that, in the final rule, with 
respect to these standards, it may be satisfied with 
nothing less than crash data, or a letter from the 
vehicle's original manufacturer confirming compliance. 

The agency also requested comments with respect 
to alternate types of evidence of compliance, and their 
suitability with respect to each of the other standards 
with complex laboratory demonstration procedures. 
For example, it asked whether computer simulations 
or mathematical calculations are acceptable indicators 
of the performance of components such as door latches 
and hinges (Standard No. 206) or seat anchorages 
(Standard No. 207) to withstand certain specified 
minimum forces. Neither method would appear to be 
acceptable as a demonstration of the lack of flam- 
mability of interior materials (Standard No. 302). For 
demonstrations of compliance with Standard No. 302, 
it might be necessary to submit an analysis or the 
fabric, or to test fabric actually from the vehicle, for 
example. The Administrator would determine the 
adequacy of the alternative types of evidence. 

Mercedes-Benz concurred with NHTSA's statements 
on decisions based on destructive test data. It advised 
that computer simulations should be used only in 
infrequent circumstances, and recommended that a 
showing be made by the petitioner that the intended 
simulation is considered reliable by the vehicle testing 
industry, such as recognition through a standard of 
the SAE or ASTM. Once that test has been met, 
Mercedes further recommended that the petitioner 
should show that the variables it intends to use in the 
simulation are derived from actual data on the specific 
vehicle that is the subject of the petition. Otherwise, a 
petitioner should not be allowed to make assumptions 
about data in the absence of backup documentation. If 
there is no such data, NHTSA should require full scale 
dynamic crash testing. As the submission by each 
petitioner will differ, NHTSA does not deem it advisable 
to adopt Mercedes' comments as a regulation, but it 
will consider them in evaluations of relevant petitions. 
The reasons for NHTSA's decisions, of course, will be 
published in the Federal Register. 

George Ziolo commented that NHTSA should allow 
submission of evidence of compliance with foreign 
standards such as those of the ECE and ISO, many of 
which may use U.S. -based standards for their rules. In 
his view, "the effect" may be the same, even if the 
wording differs. Submission of foreign standards, he 
argues, is especially relevant if NHTSA intends to 



allow "engineering calculations" in lieu of crash tests. 
In response, NHTSA wishes to make it clear that there 
are no restrictions on the type of data that a petitioner 
may submit. A petitioner may support its arguments 
by showing similarities between foreign and U.S. 
standards. 

NHTSA noted in the proposal that the proposed 
petition requirements were drafted in somewhat gen- 
eral terms, so as to afford petitioners flexibility in 
presenting arguments and solutions of a performance, 
rather than of a design nature. This was in keeping 
with the performance orientation of the Federal motor 
vehicle safety standards. It further noted the possibility 
that, on the basis of comments, the final rule might be 
more detailed as to the types of data required to 
substantiate compliance with each of the safety 
standards. After considering these comments, NHTSA 
has adopted a non-detailed requirement in paragraph 
593.6(b), which is virtually identical to the one proposed. 

As a general comment, Mercedes-Benz objected to 
the use of the term "views and arguments" as a 
t hrowback to the old gray market program , and viewed 
it as an invitation for disputes. This term appears as 
"data, views and arguments" in paragraphs 593.6(a)(4) 
and (b)(2). "Views and arguments" is a necessary 
complement to "data", which invariably will need 
interpretation and explanation. Because the agency is 
not requiring a demonstration of actual conformance, 
it has concluded that a petitioner's "views and argu- 
ments" are necessary to support its petition for a 
determination of conformance capability. 

The procedural requirements for both types of 
petitions require identification of "models" and "model 
years". The agency did not find it necessary to propose 
a definition of "model". It believes that a petitioner will 
identify with sufficient clarity the vehicles that it 
wishes to import, and that comparable U.S. models 
will have comparable designations. For example. 
Mercedes and BMW use the same series designations 
for both U.S. and European models, though secondary 
nomenclature may differ in minor respects, reflecting 
variations in the type of engines. No comments were 
received on this point. 

Section 108(c)(3)(A)(i)(I) allows NHTSA to define 
"model year" by regulation. NHTSA has not heretofore 
done so with respect to compliance with the Federal 
motor vehicle safety standards, because the standards 
have never applied by model year, but are effective on a 
date certain. In recent years, NHTSA has, with respect 
to major standards, designated September 1 as the 
effective date of new requirements, although in earlier 
years, the effective date was frequently January 1. As 
an example, the center high-mounted stop lamp pro- 
visions of Standard No. 108 were effective for passenger 
cars manufactured on or after September 1, 1985. 
While this substantially correlates to the 1986-model 
year, there was no legal requirement that a 1986 model 



PART 593-PRE 5 



manufactured before September 1, 1985, be equipped 
with tliis feature. Thus, with respect to certain "model 
years", different standards may be in effect. NHTSA 
does not view this as an especially complicating factor. 
However, from time to time, it may have to make 
determinations with respect to different periods within 
a model year. 

NHTSA proposed that "model year" be defined as 
either the model year designated by the manufacturer 
irrespective of the calendar year in which the vehicle 
was actually produced, or, in the absence of the 
manufacturer's designation, the calendar year that 
begins on September 1 and ends on August 31 of the 
next calendar year. Mercedes-Benz commented that 
the model year should be that of the original man- 
ufacturer which in Europe is often determined by 
regulations of individual countries. It suggested that 
the definition state that the designation by the country 
of origin should control. Otherwise, it said, the agency 
should use the definition of the California Air Resources 
Board. After reviewing these comments, the agency 
has adopted its proposed definition, but added a 
designation by country of origin as an alternative to 
the manufacturer's designation to be considered before 
consideration of the final alternative of designation by 
the September 1-August 31 calendar year. 



593. 7 Processing of petitions. 

If a petition is filed on the basis that the vehicle is 
"substantially similar" to a certified one, and the 
Administrator cannot make such a determination, 
that does not mean that the petition is automatically 
denied. In that event, the Agency will inform the 
petitioner that it cannot make a determination on the 
basis petitioned for, but is willing to proceed to a 
consideration on the alternative basis, and make a 
determination on conformance, or capability of confor- 
mance, of the vehicle's safety features, on the basis of 
such further supporting information as the petitioner 
may care to submit (paragraph 593.7(d)). 

The procedural aspects of eligibility determinations 
are similar to other agency regulations regarding 
petitions and their dispositions (see, e.g., 49 CFR 555.7 
on temporary exemptions from safety standards). 
Notice of a petition (or agency initiative) will be 
published in the Federal Register and an opportunity 
afforded for comment (paragraph 593.7(b)). No public 
hearing, argument, or other formal proceeding will be 
held directly on the matter before a determination is 
made (paragraph 593.7(c)). After a decision, the agency 
will publish a second notice in the Federal Register 
constituting the determination whether the vehicle is 
eligible or ineligible for importation. If the vehicle is 
ineligible for importation, the notice wil contain the 
earliest data on which the Administrator is statutorily 
able to consider the matter anew (paragraph 593.7(e)). 



If the vehicle is eligible for importation, the notice 
contains the reasons for the grant (paragraph 593.7(f)). 

Mercedes-Benz recommended that the burden on the 
petitioner should be to "clearly establish" conformance 
capability under either basis. That company said that 
this approach would increase the accuracy of NHTSA's 
determinations, and reduce the potential for disagree- 
ment over the quality of data needed to establish com- 
pliance. This recommendation appears to be based 
upon the requirement of Section 108(c)(3)(C)(ii) which 
says that "The Secretary shall establish by regulation 
(I) the information required to be provided by the 
petitioner to clearly show that the vehicle is capable of 
being brought into compliance. . . ." NHTSA agrees 
with Mercedes that this is a burden to be met by the 
petitioner. In the final rule, the agency is adding the 
word "clearly" as a modifier of the word "demonstrate" 
relevant to the finding that the Administrator must 
make (paragraphs 596.7(e) and (f)). 

Finally, in order to demonstrate that a vehicle is 
capable of conformance, the agency is willing to permit 
a registered importer to import a nonconforming 
vehicle for modification and demonstration purposes 
under the appropriate provision of Part 591, paragraph 
591.5(j). 



593.8 Determinations on the agency's initiative. 

Section 108(c)(3)(C)(i)(I) of the Vehicle Safety Act 
also provides that the agency may make determinations 
on its own initiative. NHTSA will proceed with such 
determinations in a manner similar to those made by 
petition. A notice requesting public comment will 
appear in the Federal Register, specifying the basis 
upon which the Administrator is considering a determina- 
tion (paragraph 593.8(a)). No formal proceeding will be 
held (paragraph 593.8(b)). A second notice containing 
the decision will be published in the Federal Register. 
There is no administrative reconsideration available 
for a decision of ineligibility (paragraph 593.8(c)). 

Europa International commented that NHTSA should 
not make determinations on its own initiative, as it 
would discourage Registered Importers from develop- 
ing their own compliance method. This comment 
assumes that NHTSA will prescribe how each safety 
standard will be met if it makes determinations of 
eligibility on its own initiative. NHTSA has no inten- 
tion of dictating conformance methodology. Its de- 
terminations, if any , are likely to be general conclusions 
based upon information available to it (which may 
include confidential information from the originial 
manufacturer), or technical comments regarding in- 
dividual components. 



593.9 Effect of affirmative determinations; lists. 
A notice of grant is sufficient authority for the 



PART 593-PRE 6 



importation by persons other than the petitioner of any 
vehicle of the same model specified in the grant 
(paragraph 563.9(a)). The reason NHTSA proposed 
and has adopted this requirement is that its de- 
terminations cover "models" and "model years". If a 
vehicle of a certain model and model year is "capable" 
of conformance, the determination will cover all ve- 
hicles of that model and model year, and not just a 
single specific motor vehicle. Europa International 
commented that this would eliminate the incentive a 
petitioner has to spend money developing conformance 
information. This argument confuses a petitioner's 
demonstration of conformance capability with a 
Registered Importer's demonstration of conformance 
achieved. There is no requirement that a petitioner 
submit its conformance methodology in support of a 
petition for a "capability" determination on either of 
the two bases. To the extent that a petitioner does, it 
may request confidentiality, and to the extent that it 
may be granted, the conformance information is 
protected. 

The agency will publish annually in the Federal 
Register a list of vehicles for which determinations 
have been made (paragraph 593.9(b)). This will appear 
as an Appendix to Part 593, so that it may also appear 
in the Code of Federal Regulations. The agency intends 
to publish the first list before September 30, 1990, 
because the CFR publishes NHTSA regulations in 
revised form as of October 1 of each year. 



593.10 Availability for public inspection. 

The agency will make available for public inspection 
in the agency docket room all publicly available 
information relevant to a determination, regardless of 
whether that determination is made pursuant to a 
petition or on the Administrator's initiative (paragraph 
593.10(a)). However, as discussed previously, the 
agency realizes that a petition by a registered importer 
may contain arguments as to capability of modification 
that reflect the methodology by which that petitioner 
intends to achieve conformance, and which may qualify 
as a trade secret or confidential information for which 
confidential treatment may be requested (paragraph 
593.10(b)). In that instance, the agency may conclude 
that considerations of confidentiaUty outweigh the 
interests of full disclosure. 

In consideration of the foregoing, a new Part 593, 
Determinations That a Vehicle not Originally Man- 
ufactured to Conform to the Federal Motor Vehicle Safety 
Standards is Eligible for Importation, is added to Title 
49, Chapter V, to read as follows: 

PART 593 Determinations That a Vehicle not Orig- 
inally Manufactured to Conform to the Federal Motor 
Vehicle Safety Standards is Eligible for Importation 



Sec. 

593.1 Scope. 

593.2 Purpose. 

593.3 Applicability. 

593.4 Definitions. 

593.5 Petitions for eligibility determinations. 

593.6 Basis for petition. 

593.7 Processing of petitions. 

593.8 Determinations on the agency's initia- 
tive. 

593.9 Effect of affirmative determinations; 
lists. 

593.10 Availability for public inspection. 
Authority: P.L. 100-562, 15 U.S.C. 1401, 1407; 

delegation of authority at CFR 1.50. 

593.1 Scope. This part establishes procedures 
under section 108(c) of the National Traffic and Motor 
Vehicle Safety Act, as amended (15 U.S.C. 1397(c)), for 
making determinations whether a vehicle that was not 
originally manufactured to conform with all applicable 
Federal motor vehicle safety standards, and is not 
otherwise eligible for importation under Part 591 of 
this chapter, may be imported into the United States 
because it can be modified to meet the Federal stand- 
ards. 

593.2 Purpose. The purpose of this part is to 
provide content and format requirements for any 
Registered Importer and manufacturer who wishes to 
petition the Administrator for a determination that a 
vehicle not originally manufactured to conform to all 
applicable Federal motor vehicle safety standards is 
eligible to be imported into the United States because it 
can be modified to meet the standards. 

The purpose of this part is also to specify procedures 
under which the Administrator makes eligibility de- 
terminations pursuant to those petitions as well as 
eligibility determinations on the agency's initiative. 

593.3 Applicability. This part applies to a motor 
vehicle that was not originally manufactured and 
certified by its original manufacturer to conform with 
all applicable Federal motor vehicle safety standards 
and that is offered for importation into the United 
States. 

593.4 Definitions All terms in this part that are 
defined in section 102 of the National Traffic and 
Motor Vehicle Safety Act (15 U.S.C. 1391) are used as 
defined therein. 

"Administrator" means the Administrator of the 
National Highway Traffic Safety Administration. 

"Model year" means the year used by a manufacturer 
to designate a discrete vehicle model irrespective of the 
calendar year in which the vehicle was actually 
produced, or the model year as designated by the 
vehicle's country of origin, or, if neither the man- 
ufacturer not the country of origin has made such a 



PART 593-PRE 7 



designation, the calendar year that begins on September 
1 and ends on August 31 of the next calendar year. 

"NHTSA" means the National Highway Traffic 
Safety Administration. 

"Registered Importer" means any person who has 
been granted registered importer status by the Ad- 
ministrator pursuant to paragraph 592.5(b) of this 
chapter, and whose registration has not been revoked. 

593.5 Petitions for eligibility determinations 

(a) A manufacturer or Registered Importer may 
petition the Administrator for a determination that a 
vehicle that does not comply with all applicable Federal 
motor vehicle safety standards is eligible for importa- 
tion, either 

(1) On the basis that the vehicle 

(A) is substantially similar to a vehicle which was 
originally manufactured for importation into and sale 
in the United States and which bore a certification 
affixed by its manufacturer pursuant to Part 567 of 
this chapter, and 

(B) is capable of being readily modified to conform to 
all applicable Federal motor vehicle safety standards; 
or 

(2) On the basis that the vehicle has safety features 
that comply with or are capable of being modified to 
comply with all applicable Federal motor vehicle safety 
standards. 

(b) Each petition filed under this part must- 

(1) Be written in the English language; 

(2) Be headed with the words "Petition for Import 
Eligibility Determination" and submitted in three 
copies to: Administrator, National Highway Traffic 
Safety Administration, Washington, D.C. 20590, Attn: 
Import Eligibility Determinations; 

(3) State the full name and address of the petitioner. 

(4) If the petitioner is a Registered Importer, include 
the Registered Importer Number assigned by NHTSA 
pursuant to Part 592 of this chapter. 

(5) Set forth the basis for the petition and the 
information required by paragraph 593.6(a) or (b), as 
appropriate; 

(6) Specify any part of the information and data 
submitted which petitioner requests be withheld from 
public disclosure in accordance with Part 512 of this 
chapter; and 

(7) Submit a certified check payable to the Treasurer 
of the United States, for the amount of the vehicle 
eligibility petition fee established pursuant to Part 594 
of this chapter. 

(c) The knowing and willful submission of false, 
fictitious or fraudulent information may subject the 
petitioner to the criminal penalties of 18 U.S.C. 1001. 

593.6 Basis for petition. 

(a) If the basis for the petition is that the vehicle is 
substantially similar to a vehicle which was originally 
manufactured for importation into and sale in the 
United States, and which was certified by its man- 

PART 593- 



ufacturer pursuant to Part 567 of this chapter, and 
that it is capable of being readily modified to conform 
to all applicable Federal motor vehicle safety standards, 
the petitioner shall provide the following information: ( 

(1) Identification of the original manufacturer, model, 
and model year of the vehicle for which a determination 
is sought. 

(2) Identification of the original manufacturer, model, 
and model year of the vehicle which the petitioner 
believes to be substantially similar to that for which a 
determination is sought. 

(3) Substantiation that the manufacturer of the 
vehicle identified by the petitioner under paragraph 
(a)(2) above originally manufactured it for importation 
into and sale in the United States, and affixed a label to 
it certifying that it complied with all applicable Federal 
motor vehicle safety standards. 

(4) Data, views and arguments demonstrating that 
the vehicle identified by the petitioner under paragraph 
(a)(1) above is substantially similar to the vehicle 
identified by the petitioner under paragraph (a)(2) 
above. 

(5) With respect to each Federal motor vehicle safety 
standard that applied to the vehicle identified by the 
petitioner under paragraph (a)(2) above, data, views, 
and arguments demonstrating that the vehicle iden- 
tified by the petitioner under paragraph (a)(1) above 
either was originally manufactured to conform to such 
standard, or is capable of being readily modified to j 
conform to such standard. 

(b) If the basis of the petition is that the vehicle's 
safety features comply with or are capable of being 
modified to comply with all applicable Federal motor 
vehicle safety standards, the petitioner shall provide 
the following information: 

(1) Identification of the model and model year of the 
vehicle for which a determination is sought. 

(2) With respect to each Federal motor vehicle safety 
standard that would have applied to such vehicle had it 
been originally manufactured for importation into and 
sale in the United States, data, views, and arguments 
demonstrating that the vehicle has safety features 
that comply with or are capable of being modified to 
conform with such standard. The latter demonstration 
shall include a showing that after such modifications, 
the features will conform with such standard. 

593.7 Processing of petitions. 
(a) NHTSA will review each petition for sufficiency 
under paragraphs 593.5 and 593.6. If the petition does 
not contain all the information required by this part, 
NHTSA notifies the petitioner, pointing out the areas 
of insufficiency, and stating that the petition will not 
receive further consideration until the required in- 
formation is provided. If the additional information is 
not provided within the time specified by NHTSA in its 
notification, NHTSA may dismiss the petition as 
incomplete, and so notify the petitioner. When the 
petition is complete, its processing continues. 
-PRE 8 



(b) NHTSA publishes in the Federal Register, af- 
fording opportunity for comment, a notice of each 
petition containing the information required by this 
part. 

(c) No pubhc hearing, argument, or other formal 
proceeding is held on a petition filed under this part. 

(d) If the Administrator is unable to determine that 
the vehicle in a petition submitted under paragraph 
593.6(a) is one that is substantially similar, or (if it is 
substantially similar) is capable of being readily 
modified to meet the standards, (s)he notifies the 
petitioner, and offers the petitioner the opportunity to 
supplement the petition by providing the information 
required for a petition submitted under paragraph 
593.6(b). 

(e) If the Administrator determines that the petition 
does not clearly demonstrate that the vehicle model is 
eligible for importation, (s)he denies it and notifies the 
petitioner in writing. (S)he also publishes in the 
Federal Register & notice of denial and the reasons for it. 
A notice of denial also states that the Administrator 
will not consider a new petition covering the model 
that is the subject of the denial until at least 3 months 
from the date of the notice of denial. There is no 
administrative reconsideration available for petition 
denials. 

(g) If the Administrator determines that the petition 
clearly demonstrates that the vehicle model is eligible 
for importation, (s)he grants it and notifies the 
petitioner. (S)he also publishes in the Federal Registers 
notice of grant and the reasons for it. 

593.8 Determinations on theagency's initiative. 

(a) The Administrator may make a determination of 
eligibility on his or her own initiative. The agency 
publishes in the Federal Register aiiordrng opportunity 
for comment, a notice containing the information 
available to the agency (other than confidential in- 
formation) relevant to the basis upon which eligibility 
may be determined. 

(b) No public hearing, argument, or other formal 
proceeding is held upon a notice published under this 
section. 

(c) The Administrator publishes a second notice in 
the Federal Register in which (s)he announces his or 
her determination whether the vehicle is eligible or 



ineligible for importation, and states the reasons for 
the determination. A notice of ineligibility also an- 
nounces that no further determination for the same 
model of motor vehicle will be made for at least 3 
months following the date of publication of the notice. 
There is no administrative reconsideration available 
for a decision of ineligibility. 

593.9 Effect of affirmative determinations; 
lists, 

(a) A notice of grant is sufficient authority for the 
importation by persons other than the petitioner of any 
vehicle of the same model specified in the grant. 

(b) The Administrator publishes annually in the 
Federal Register a list of determinations made under 
Sec. 593.7, and Sec. 593.8. 

593.10 Availability for public inspection, 

(a) Except as specified in paragraph (b) of this 
section, information relevant to a determination under 
this part, including a petition and supporting data, and 
the grant or denial of the petition or the making of a 
determination on the Administrator's initiative, is 
available for public inspection in the Docket Section, 
Room 5109, National Highway Traffic Safety Admin- 
istration, 400 Seventh St., S.W. Washington, D.C. 
20590. Copies of available information may be obtained, 
as provided in Part 7 of this chapter. 

(b) Except for release of confidential information 
authorized under Part 512 of this chapter, information 
made available for inspection under paragraph (a) does 
not include information for which confidentiality has 
been requested and granted in accordance with Part 
512, and 5 U.S.C. 552(b). To the extent that a petition 
contains material relating to the methodology by 
which the petitioner intends to achieve conformance 
with a specific standard, the petitioner may request 
confidential treatment of such material on the grounds 
that it contains a trade secret or confidential infor- 
mation in accordance with Part 512 of this chapter. 
Issued on:September 26, 1989. 

Jeffrey R. Miller 
Acting Administrator 
54 F.R. 40093 
September 29, 1989 



PART 593-PRE 9-10 



PART 593-DETERMINIATIONS THAT A VEHICLE NOT ORIGINALLY 

MANUFACTURED TO CONFORM TO THE FEDERAL MOTOR VEHICLE 

SAFETY STANDARDS IS ELIGIBLE FOR IMPORTATION 



593.1 Scope. 

This part establishes procedures under section 
108(c) of the National Traffic and Motor Vehicle 
Safety Act, as amended (15 U.S.C. 1397(c)), for mak- 
ing determinations whether a vehicle that was not 
originally manufactured to conform with all ap- 
plicable Federal motor vehicle safety standards, and 
is not otherwise eligible for importation under Part 
591 of this chapter, may be imported into the United 
States because it can be modified to meet the 
Federal standards. 

593.2 Purpose. 

The purpose of this part is to provide content and 
format requirements for any Registered Importer 
and manufacturer who wishes to petition the Ad- 
ministrator for a determination that a vehicle not 
originally manufactured to conform to all applicable 
Federal motor vehicle safety standards is eligible to 
be imported into the United States because it can 
be modified to meet the standards. 

The purpose of this part is also to specify pro- 
cedures under which the Administrator makes 
eligibility determinations pursuant to those petitions 
as well as eligibility determinations on the agency's 
initiative. 

593.3 Applicability. 

This part applies to a motor vehicle that was not 
originally manufactured and certified by its original 
manufacturer to conform with all applicable Federal 
motor vehicle safety standards and that is offered 
for importation into the United States. 

593.4 Definitions. 

All terms in this part that are defined in section 
102 of the National Traffic and Motor Vehicle Safety 
Act (15 U.S.C. 1391) are used as defined therein. 

"Administrator" means the Administrator of the 
National Highway Traffic Safety Administration. 



"Model year" means the year used by a manufac- 
turer to designate a discrete vehicle model irrespec- 
tive of the calendar year in which the vehicle was 
actually produced, or the model year as designated 
by the vehicle's country of origin, or, if neither the 
manufacturer nor the country of origin has made 
such a designation, the calendar year that begins on 
September 1 and ends on August 31 of the next 
calendar year. 

"'NHTSA" means the National Highway Traffic 
Safety Administration. 

"Registered Importer" means any person who has 
been granted registered importer status by the Ad- 
ministrator pursuant to paragraph 592.5(b) of this 
chapter, and whose registration has not been 
revoked. 

593.5 Petitions for eligibility determinations 

(a) A manufacturer or Registered Importer may 
petition the Administrator for a determination that 
a vehicle that does not comply with all applicable 
Federal motor vehicle safety standards is eligible for 
importation, either 

(1) On the basis that the vehicle 

(A) is substantially similar to a vehicle which 
was originally manufactured for importation into 
and sale in the United States and which bore a cer- 
tification affixed by its manufacturer pursuant to 
Part 567 of this chapter, and 

(B) is capable of being readily modified to con- 
form to all applicable Federal motor vehicle safety 
standards; or 

(2) On the basis that the vehicle has safety 
features that comply wdth or are capable of being 
modified to comply with all applicable Federal 
motor vehicle safety standards. 

(b) Each petition filed under this part must— 
(1) Be written in the English language; 



PART 593-1 



(2) Be headed with the words "Petition for Im- 
port Eligibility Determination" and submitted in 
three copies to: Administrator, National Highway 
Traffic Safety Administration, Washington, D.C. 
20590, Attn: Import Eligibility Determinations; 

(3) State the full name and address of the 
petitioner. 

(4) If the petitioner is a Registered Importer, 
include the Registered Importer Number assigned 
by NHTSA pursuant to Part 592 of this chapter. 

(5) Set forth the basis for the petition and the 
information required by paragraph 593.6(a) or (b), 
as appropriate; 

(6) Specify any part of the information and data 
submitted which petitioner requests be withheld 
from public disclosure in accordance with Part 512 
of this chapter; and 

(7) Submit a certified check payable to the 
Treasurer of the United States, for the amount of 
the vehicle eligibility petition fee established pur- 
suant to Part 594 of this chapter. 

(c) The knowing and willful submission of false, 
fictitious or fraudulent information may subject the 
petitioner to the crimina; penalties of 18 U.S.C. 
1001. 



593.6 Basis for petition. 

(a) If the basis for the petition is that the vehicle 
is substantially similar to a vehicle which was 
originally manufactured for importation into and 
sale in the United States, and which was certified 
by its manufacturer pursuant to Part 567 of this 
chapter, and that it is capable of being readily 
modified to conform to all applicable Federal motor 
vehicle safety standards, the petitioner shall provide 
the following information: 

(1) Identification of the original manufacturer, 
model, and model year of the vehicle for which a 
determination is sought. 

(2) Identification of the original manufacturer, 
model, and model year of the vehicle which the 
petitioner believes to be substantially similar to 
that for which a determination is sought. 

(3) Substantiation that the manufacturer of the 
vehicle identified by the petitioner under 
paragraph (a)(2) above originally manufactured it 
for importation into and sale in the United States, 
and affixed a label to it certifying that it complied 
with all applicable Federal motor vehicle safety 
standards. 



(4) Data, views and arguments demonstrating 
that the vehicle identified by the petitioner under 
paragraph (a)(1) above is substantially similar to 
the vehicle identified by the petitioner under 
paragraph (a)(2) above. 

(5) With respect to each Federal motor vehicle 
safety standard that applied to the vehicle iden- 
tified by the petitioner under paragraph (a)(2) 
above, data, views, and arguments demonstrating 
that the vehicle identified by the petitioner under 
paragraph (a)(1) above either was originally 
manufactured to conform to such standard, or is 
capable of being readily modified to conform to 
such standard. 

(b) If the basis of the petition is that the vehicle 
a safety features comply with or are capable of being 
modified to comply with all applicable Federal motor 
vehicle safety standards, the petitioner shall provide 
the following information: 

(1) Identification of the model and model year 
of the vehicle for which a determination is sought. 

(2) With respect to each Federal motor vehicle 
safety standard that would have applied to such 
vehicle had it been originally manufactured for im- 
portation into and sale in the United States, data, 
views, and arguments demonstrating that the 
vehicle has safety features that comply with or are 
capable of being modified to conform with such 
standard. The latter demonstration shall include 
a showing that after such modifications, the 
features will conform with such standard. 

593.7 Processing of petitions. 

(a) NHTSA will review each petition for suffi- 
ciency under paragraphs 593.5 and 593.6. If the peti- 
tion does not contain all the information required 
by this part, NHTSA notifies the petitioner, poin- 
ting out the areas of insufficiency, and stating that 
the petition will not receive furthar consideration 
until the required information is provided. If the ad- 
ditional information is not provided within the time 
specified by NHTSA in its notification. NHTSA may 
dismiss the petition as incomplete, and so notify the 
petitioner. When the petition is complete, its pro- 
cessing continues. 

(b) NHTSA publishes in the Federal Register, af- 
fording opportunity for comment, a notice of each 
petition containing the information required by this 
part. 

(c) No public hearing argument, or other formal 
proceeding is held on a petition filed under this part. 



PART 593-2 



(d) If the Administrator is unable to determine 
that the vehicle in a petition submitted under 
paragraph 593.6(a) is one that is substantially 
similar, or (if it is substantially similar) is capable 
of being readily modified to meet the standards, (s)he 
notifies the petitioner, and offers the petitioner the 
opportimity to supplement the petition by providing 
the information required for a petition submitted 
under paragraph 593.6(b). 

(e) If the Administrator determines that the peti- 
tion does not clearly demonstrate that the vehicle 
model is eligible for importation, (s)he denies it and 
notifies the petitioner in writing, (S)he also publishes 
in the Federal Register a notice of denial and the 
reasons for it. A notice of denial also states that the 
Administrator will not consider a new petition cover- 
ing the model that is the subject of the denial until 
at least 3 months from the date of the notice of 
denial. There is no administrative reconsideration 
available for petition denials. 

(g) If the Administrator determines that the peti- 
tion clearly demonstrates that the vehicle model is 
eligible for importation, (s)he grants it and notifies 
the petitioner. (S)he also publishes in the Federal 
Register a notice of grant and the reasons for it. 

593.8 Determinations on the agency's initiative. 

(a) The Administrator may make a determination 
of eligibility on his or her own initiative. The agency 
publishes in the Federal Register, affording oppor- 
tunity for comment, a notice containing the informa- 
tion available to the agency (other than confidential 
information) relevant to the basis upon which 
eligibility may be determined. 

(b) No public hearing, argument, or other formal 
proceeding is held upon a notice published under this 
section. 

(c) The Administrator publishes a second notice 
in the Federal Register in which (s)he announces his 
or her determination whether the vehicle is eligible 
or ineligible for importation, and states the reasons 
for the determination. A notice of ineligibility also 
announces that no further determination for the 
same model of motor vehicle will be made for at least 



3 months following the date of publication of the 
notice. There is no administrative reconsideration 
available for a decision of ineligibility. 

593.9 Effect of affirmative determinations; lists. 

(a) A notice of grant is sufficient authority for the 
importation by persons other than the petitioner of 
any vehicle of the same model specifie-d in the grant. 

(b) The Administrator publishes annually in the 
Federal Register a list of determinations made 
under Sec. 593.7, and Sec. 593.8. 

593.10 Availability for public inspection. 

(a) Except as specified in paragraph (b) of this sec- 
tion, information relevant to a determination under 
this part, including a petition and supporting data, 
and the grant or denial of the petition or the mak- 
ing of a determination on the Administrator's in- 
itiative, is available for public inspection in the 
Docket Section, Room 5109, National Highway Traf- 
fic Safety Administration, 400 Seventh St., S.W. 
Washington, D C 20590. Copies of available infor- 
mation may be obtained, as provided in Part 7 of this 
chapter. 

(b) Except for release of confidential information 
authorized under Part 512 of this chapter, informa- 
tion made available for inspection under paragraph 
(a) does not include information for which confiden- 
tiality has been requested and granted in accordance 
with Part 512, and 5 U.S.C. 552(b). To the extent 
that a petition contains material relating to the 
methodology by which the petitioner intends to 
achieve conformance with a specific standard, the 
petitioner may request confidential treatment of 
such material on the grounds that it contains a trade 
secret or confidential information in accordance with 
Part-512 of this chapter. 



Issued on Sept. 26, 1989. 



54 F.R. 40093 
September 29, 1989 



PART 593-3-4 



PREAMBLE TO PART 594 

Schedule of Fees Authorized by the 

National Traffic and IVIotor Vehicle Safety Act 

(Docket No. 89-8; Notice 2) 

RIN:2127-AC98 



ACTION: Final Rule 

SUMMARY: The National Traffic and Motor Vehicle 
Safety Act, as revised by the Imported Vehicle Safety 
Compliance Act of 1988 (P.L. 100-562), provides that 
motor vehicles not originally manufactured to conform 
to Federal motor vehicle safety standards may never- 
theless be imported into the United States under 
certain circumstances. In general, such a vehicle may 
be imported under bond for certification of its con- 
formance, or exportation in the event it is not con- 
formed, by those who have registered with NHTSA as 
importers, provided that NHTSA has determined that 
the nonconforming vehicle is capable of being con- 
formed to meet the safety standards. 

The Safety Act authorizes NHTSA to establish fees 
to cover its cost of administering the registration 
program, and of making conformance capability de- 
terminations, and to reimburse the U.S. Customs 
Service its costs in processing the importation bond. 
The purpose of this rule is to adopt the fee schedules 
that will implement the statutory authorization. The 
agency has concluded that the initial annual fee for the 
registration program is $255. The fee to accompany a 
petition for a determination that a vehicle is eligible for 
importation is either $1560 or $2150, depending upon 
the basis of the petition. These fees are identical to 
those proposed. The fee required to reimburse the U.S. 
Customs Service for bond processing costs is $4.35 per 
bond. This is less than the proposed fee of $125. 

EFFECTIVE DATE: September 30, 1989. 

SUPPLEMENTARY INFORMATION: On December 
5, 1988, the National Highway Traffic Safety Admin- 
istration published a notice of the amendment of 
section 108 of the National Traffic and Motor Vehicle 
Safety Act by P.L. 100-562, the Imported Vehicle 
Safety Compliance Act of 1988 (53 FR 49003). The 
effective date of the amendments is January 31, 1990. 
On and after that date, with the exceptions specified in 
the notice, motor vehicles that have not been originally 
manufactured to conform to the Federal motor vehicle 
safety standards may be imported only by persons who 
have registered with NHTSA as undertaking to bring 
the vehicle into conformance, or by persons who have 
contracts with registered importers to perform con- 



formance work. In addition, such a vehicle may not be 
imported unless NHTSA has determined that it is 
capable of being conformed to the standards. The 
agency may make such a determination in a response 
to a petition by a registered importer, or on its own 
initiative. Each vehicle permitted entry must be ac- 
companied by a bond given to secure performance of 
the conformance work, or, to ensure its exportation or 
abandonment to the United States in the event that the 
vehicle is not brought into full conformance. 

Rules have been issued to implement the other 
provisions of the Vehicle Safety Act described above, 
and are being published simultaneously with this 
notice. They are 49 CFR Part 591, Importation of 
Vehicles and Equipment Subject to Federal Motor Vehicle 
Safety Standards; Part 592, Registered Importers of 
Vehicles not Originally Manufactured to Conform to the 
Federal Motor Vehicle Safety Standards; and Part 593, 
Determinations That a Vehicle not Originally Man- 
ufactured to Conform to the Federal Motor Vehicle Safety 
Standards is Eligible for Importation. A proposed 
schedule of fees (Part 594) was published on April 25, 
1989 (54 FR 17792). 

The new provisions also specifically authorize 
NHTSA to impose fees to cover certain administrative 
costs incurred in implementation of the new importa- 
tion procedures. There are two or more types of fees to 
cover three types of costs for which fees may be 
charged: an annual fee to cover the costs of admini- 
stration of the importer registration program, an 
annual fee or fees to cover the costs of processing the 
bond furnished to the Customs Service, and an annual 
fee or fees to cover the costs of making import 
eligibility determinations. 

The purpose of this rule is to adopt a fee schedule 
that appears appropriate for recovery of each cost , and 
to explain the rationale behind each of these fees. In 
identifying those agency activities that may form the 
cost basis of a fee authorized by the new import 
provisions, the agency has considered the experience 
of other agencies in establishing users fees under the 
Independent Offices Authorization Act (31 U.S.C. 
9701), and the Consolidated Omnibus Budget Recon- 
ciliation Act (P.L. 99-272). Thus, as proposed, and as 
repeated in this notice, the agency will: identify each 
service it provides, explain why it is entitled to recover 
the cost of providing that service, identify each type of 



PART 594-PRE 1 



expenditure incurred in providing that service, explain 
the criteria used to include or exclude a particular 
expenditure, and calculate the amount of each such 
expenditure. 

There were three substantive responses to the 
proposal, submitted by Auburn Motors, Inc., The 
Dealer Action Association, and Mercedes-Benz of North 
America. 

1. Requirements of the Fee Regulation. 
594.6 Annual fee for administration of the importer 
registration program. Section 108(c)(3)(A)(iii) of the 
Vehicle Safety Act provides that registered importers 
must pay "such annual fee as the Secretary establishes 
to cover the cost of administering the registration 
program. . . ." 

The first issue addressed by the agency in its 
proposal was whether the term "registration program" 
is inclusive of all activities under section 108(c) (except 
for the other activities for which a fee may be imposed), 
or whether it is restricted to activities relating directly 
to the registration process, such as reviewing registra- 
tion applications and acting upon them. The agency 
interpreted "registration program" conservatively, and 
concluded that it refers only to activities connected 
with the development and maintenance of the reg- 
istration process, including monitoring, and enforce- 
ment activities resulting in suspension or revocation 
of a registration. Although it could be argued that 
NHTSA's verification of the certification submitted by 
a registered importer is relevant to the maintenance by 
that registered importer of its status, this agency 
believes that Congress did not intend to include such 
an activity in the registration program. Specifically, 
section 109(c)(3)(B)(i) prohibits the application of fees 
collected under the Vehicle Safety Act to NHTSA's 
inspection of vehicles for which certifications have 
been filed. Thus, NHTSA proposed to exclude, from 
the fee structure of the registration program, activities 
connected with processing of certificates and com- 
pliance documentation of motor vehicles. 

Mercedes-Benz and The Dealer Action Association 
disagreed with NHTSA's conclusions, and argued that 
all costs except those specifically exempted in the 
statue ought to be included. Each believes that the 
costs associated with processing certificates of con- 
formity and monitoring compliance should also be 
included. They argued that Congress intended that the 
costs be borne in full by those who would benefit from 
the new legislation, and that the presence of specific 
exclusions in the legislation argues for an inclusive 
approach. Specifically, the commenters believe that 
two separate provisions must be read together to 
understand the scope of the fee structure Congress 
meant to establish. Section 108(c)(3)(A)(iii) requires 
collection from each Registered Importer of its pro rata 
share of administering the registration program. 
Section 108(c)(3)(B) then defines the scope of agency 



activities covered. It states in relevant part "All fees 
collected shall be available until expended. . . solely 
for use. . . in the administration of all of the require- 
ments of this subsection. . . ", other than NHTSA's 
periodic inspection of motor vehicles for which certif- 
icates have been furnished, and regulations governing 
the Registered Importer's financial ability to notify 
and remedy. 

The commenters further argue that the legislative 
history also evidences Congressional intent to establish 
comprehensive fees. Remarks by Senator Inouye are 
cited in support: 

"This new program will be financed through fees 
paid by registered importers upon registration, 
and annually thereafter, as calculated by the 
Secretary to cover the additional costs of ad- 
ministering the program. We felt it was ap- 
propriate in this limited instance to require the 
payment of such fees because this new program 
is being established solely for the benefit of 
registered importers and will continue to permit 
them to stay in business". 

Cong. Rec. S14734, daily ed. October 5, 1988. 
The commenters believe that NHTSA should re- 
calculate the costs it will incur and make appropriate 
adjustments in the fees it will require Registered 
Importers to pay annually. 

The agency has carefully considered these comments. 
NHTSA notes the comment by Senator Rudman 
(S14375) that the fees cover the costs of administering 
only "certain provisions", and that "the user fees 
would not apply to the testing of these vehicles. . . . 
This is a responsibility normally assumed by the 
Department." NHTSA believes that it was not the 
intent of Congress to assess fees for activities that 
represent "a responsibility normally assumed by the 
Department", i.e. , a responsibility that was part of the 
agency's enforcement program before enactment of 
the 1988 Act. The registration requirements (section 
108(c)(3)(D)) constitute an entirely new program, but 
the requirements for submission and evaluation of 
certification and documentation (section 108(c)(3)(E)) 
have a direct counterpart in the agency's present 
enforcement program under which a statement of 
conformance supplemented by documentary evidence 
must be provided before action is taken upon the bond. 
Therefore the agency has not broadened its inter- 
pretation of the elements of the registration program 
in section 108(c)(3)(D) to cover activities in section 
108(c)(3)(E). 

The second issue addressed by NHTSA, and relevant 
to the other authorized fees as well, was whether the 
agency can recover both direct and indirect costs 
associated with its activities. It noted that there is no 
modifier of the word "costs", and concluded that both 
direct and indirect costs may be recovered. Such costs 
include all costs of administering the program, in- 



PART 594— PRE 2 



eluding salaries and other personnel costs (retirement, 
insurance and leave), travel, postage, maintenance and 
depreciation of equipment, supplies, and a propor- 
tionate share of agency management and supervisory 
costs as well as accrued liabilities, which include 
severance pay, unemployment compensation, workers 
compensation, and unused leave costs. The commenters 
did not address this issue. 

The initial annual fee attributable to the registration 
program contains three components. The first com- 
ponent is one that would cover the cost of processing 
an application by a person seeking to become a 
registered importer. It would not be refundable in the 
event of a denial. The second component represents 
the costs attributable to such inspection of an ap- 
plicant's facilities as the agency may deem necessary 
to conduct prior to a decision on an application. The 
third component is intended to cover the remaining 
costs. The first and third component of the initial 
annual fee will be paid at the time that an applicant 
seeks to become a registered importer. The second 
component will be paid only if an inspection is actually 
conducted, and would be payable by the end of the 
tenth calendar day after notification by the agency. If 
the application is denied, the amount of the fee 
representing the third component will be refunded to 
the applicant. 

Annual fees after the initial annual fee will also have 
three components. Instead of a component attributable 
to processing an application, the first component of a 
regular annual fee will cover the costs of processing 
the registered importer's annual statement (or mid- 
year changes) attesting that there is no material 
change in its condition and that it is maintaining its 
financial and technical ability to meet its statutory 
obligations. The second component will cover the cost, 
if any, of such inspections the agency might have 
conducted with respect to the registered importer 
during the year. The third component is again intended 
to cover remaining costs. 

With respect to the first component of the initial 
annual fee, the relatively simple, discrete activities 
involved in processing and acting upon registration 
applications permit a uniform first component sum to 
be developed, payable by all who seek to become 
registered importers. Similarly, the agency tasks in- 
volved in processing and reviewing annual statements 
appear to permit a uniform first component sum to be 
developed. The direct costs that the agency will 
consider in this regard are the amount of time spent in 
reviewing applications or annual statements for form 
and content, analysis, and drafting of documents 
relating to the analysis and disposition of the ap- 
plication or annual statement, including direct super- 
visory time. Other direct costs associated, such as 
postage, computer time, and meetings to discuss the 
merits of an application or annual statement, will be 



included in the fee structure. However, while the 
application is pending, NHTSa may wish to inspect 
the premises of the applicant. The costs of this 
inspection would form the basis of the second com- 
ponent of the fee that must be paid before a deter- 
mination is made on the merits of the application. 
Inspections conducted after registration (the second 
component of the regular annual fee) would be reflected 
in the next annual fee payable by the registered 
importer concerned. 

The agency will include indirect costs as well. For 
example, if one-third of a staffer's time at a word 
processing terminal is spent in drafting documents 
relative to an application determination, then a third of 
the cost of maintaining the space and the terminal will 
be factored into a registration fee. Indirect general and 
administrative costs can be included in the fee structure 
as a pro rata share of the costs attributable to running 
the program. 

Once a registration has been granted, section 
108(d)(2) imposes an obligation on a registered importer 
to maintain evidence satisfactory to NHTSA that it 
continues to be financially able to meet its statutory 
responsibilities "relating to discovery, notification, 
and remedy of motor vehicle defects." Further, section 
108(c)(3)(D)(ii) directs the agency to set requirements 
for registered importers, including at a minimum (1) 
requirements for record-keeping; and (2) requirements 
for records and facilities inspection for registered 
importers. Activities of the agency associated with 
satisfying it of financial ability and meeting other 
specified responsibilities may be included in the cost 
basis of the registration program annual fee. The 
initial annual fee adopted by this notice is based upon 
NHTSA's estimates of costs for the first fiscal year 
that the registration program is in effect. If the amount 
of the annual fee for a succeeding year is adjusted, the 
adjustment will take into account NHTSA's actual 
experience in the year preceding. 

Under paragraph 592.6(a)(7) of the regulation on 
Registered Importers, the agency may inspect a facility 
or the records which the Registered Importer must 
keep to fulfill its program responsibilities. There are 
two purposes for which such inspections may be 
conducted. The first is to verify that the regulatory 
criteria for obtaining or maintaining the status of 
registered importer are met. These inspections are 
directly related to administration of the registration 
program. The agency will include direct and indirect 
costs associated with these inspection activities in the 
fee structure for the program. The agency will include 
direct and indirect costs associated with these in- 
spection activities in the fee structure for the program. 
The second purpose for which an inspection may be 
conducted is to verify that a certification filed by a 
registered importer is supported by the conformance 
work performed. This activity is specifically excluded 



PART 594-PRE 3 



as a cost towards which fees may not be applied. 
Consequently, if inspecting a facility for compliance 
with registration requirements also involves vehicle 
inspection, agency staff will segregate costs to exclude 
those attributable to the inspection of vehicles. Only 
those costs directly attributable to the registration 
program will be included in the second component of 
the next regular annual fee. 

As with the costs of processing an initial application 
or annual statement, all direct and indirect costs 
associated with the suspension and reinstatement of 
Registered Importer status are recoverable by the 
agency. These include costs associated with notifying 
a registrant that the agency is considering suspension, 
plus the costs of allowing it to present its opposition to 
suspension under paragraph 592.7(b) of the Registered 
Importer regulation, and costs associated with pro- 
cessing a registrant's request that NHTSA reconsider 
a suspension under paragraph 592.7(e). The final 
associated cost is that of notifying the registrant of the 
determination regarding its suspension. 

Similarly, the costs associated with revoking a 
registration are recoverable. These include notifying a 
Registered Importer in writing that NHTSA intends to 
revoke registration under paragraph 592.7(b), or that 
the agency has revoked a registration under paragraph 
592, 7(c) because the registrant knowingly filed a false 
or misleading certification. Further recoverable costs 
are those associated with reviewing, analyzing and 
responding to the registrant's written opposition to a 
preliminary decision to revoke its registration. 

The agency will include whatever activities are 
associated with making a determination under para- 
graph 592.7(d) that the basis for a suspension no longer 
exists. The nature of the reinstatement process will 
vary depending on the reason for the suspension. For 
example, the process will be comparatively simple if 
the suspension was for failure to pay a fee. 

594.7 Fee for vehicle importation eligibility petitions. 
Section 108(c)(3)(A)(iii)(II) also requires Registered 
Importers to pay "such other annual fee or fees as the 
Secretary reasonably establishes to cover the cost 
of. . . making the determinations under this section." 
Pursuant to Part 593, these determinations are whether 
the vehicle sought to be imported is substantially 
similar to a motor vehicle originally manufactured for 
importation into and sale in the United States, and 
certified as meeting the Federal standards, and whether 
it is capable of being readily modified to meet those 
standards, or, alternatively, where there is no sub- 
stantially similar U.S. motor vehicle, whether the 
safety features of the vehicles comply with or are 
capable of being modified to comply with the U.S. 
standards. These determinations are made pursuant 
to petitions submitted by Registered Importers or 
manufacturers, or pursuant to determinations made 
upon the Administrator's initiative. 



In developing this regulation, the agency considered 
the type and frequency of fees that would best imple- 
ment the purpose of the 1988 Act. With respect to 
making eligibility determinations, it considered an 
"annual fee", in which total costs attributable to 
eligibility determinations would be divided equally 
among all Registered Importers. Such a fee would be 
payable at the time of the next regular annual fee for 
administration of the registration program. This type 
of fee appeared equitable in the sense that more than 
one Registered Importer may benefit from an eligibility 
determination, and that the costs would not be borne 
by the petitioner alone. However, NHTSA proposed 
and adopted a requirement that a fee be charged for 
individual petitions for determinations of eligibility. 
The benefit of this approach is that it permits "pay-as- 
you-go", under which costs are more quickly recovered. 
This fee would be payable by a petitioner for a 
determination, or by the importer who first benefits 
from a determination made on the agency's initiative 
(see further discussion below). 

The agency requested comments on each approach, 
but it proposed the second approach. Under this, a 
petition by a manufacturer or Registered Importer for 
a determination would be accompanied by the fee 
specified in paragraph 594.7. The payment of this fee 
by the petitioner is premised upon the likelihood that 
the petitioner would be the immediate beneficiary of 
any favorable determination, and therefore ought to 
pay the costs authorized by statute for consideration of 
its petition. The immediate beneficiary of a favorable 
determination made upon the Administrator's initiative 
would be the first Registered importer, or other person, 
who imports a vehicle that is covered by the deter- 
mination. Therefore, NHTSA proposed to establish a 
fee that would be payable by the Registered Importer 
who furnishes a certificate of conformity covering the 
first vehicle imported under a declaration filed after 
notice of the Administrator's initiative determination 
has appeared in the Federal Register. The notice would 
include a discussion of the fee to be paid and the basis 
for it. Subsequently, upon receipt of the first declaration 
covering the vehicle, NHTSA would notify the Reg- 
istered Importer concerned that the stated fee is due at 
the time the certification of conformity covering the 
vehicle is received. However, NHTSA is aware that 
such costs would remain unrecoverable until such 
time as (and unless) a declaration is filed on such a 
vehicle. 

The three commenters on the proposal recommended 
that it would be more equitable to divide the petition 
fee among all Registered Importers. NHTSA gave close 
attention to these comments and examined various 
ways that this could be accomplished. Because of the 
requirement of section 108(c)(3)(B) that the fee ap- 
plicable in any fiscal year be established before the 
beginning of such year, NHTSA concluded that it 
could not implement the suggestion it had discussed in 



PART 594-PRE 4 



the proposal, to establish a pro rata fee applicable to all 
Registered Importers at the. end of a fiscal year to cover 
all petition determinations of that year. Collection of 
such a sum appeared difficult also; the agency did not 
appear to have leverage over manufacturers who had 
filed petitions without a fee, and as for Registered 
Importers, to defer renewal of registration until the 
annual petition fee was paid seemed irrelevant to 
maintenance of the qualifications of Registered Im- 
porters. 

The agency concluded that payment by the petitioner 
at the time of the petition represented the most 
effective way to recover the costs of eligibility deter- 
minations, but within that framework it explored 
ways of equalizing the burden by an allocation at the 
end of the fiscal year. As an alternative to dividing total 
petition fees by the number of Registered Importers, 
the fee for a petition for a specific make/model could be 
divided by the number of only those Registered 
Importers who had furnished certificates of conformity 
for that make/model during the year. A variation of 
this alternative would be a formula with weights given 
Registered Importers according to the specific number 
of that specific make/model each had imported. At the 
end of the fiscal year, there would be a reconciliation of 
sums, under which certain Registered Importers could 
be given cash refunds or credits toward future peti- 
tions, or, if the reconciliation showed otherwise, an 
assessment imposed on a Registered Importer. No 
approach appeared to be without problems, and each, 
other than payment at the time of the petition, would 
add costs to the general fee structure. Nevertheless, 
NHTSA remains interested in the concept of equalizing 
the burden, and on the basis of its experience in the 
first year of the petition program, will consider ad- 
ditional ways that this might be accomplished. It 
would be interested in having constructive comments 
during this period. 

As NHTSA observed in the notice, the activities that 
may form the cost basis for petitions appear to include 
logging-in, notifying the petitioner of receipt, and 
evaluating the petition. If the agency grants a written 
request by the petitioner to appear to discuss a petition 
under paragraph 593.7(c), it will recover the cost of 
processing the written request and discussing the 
petition. Although the 1988 Act does not require an 
actual demonstration of conformance, only that a 
vehicle is capable of conformance, a petitioner may 
wish to substantiate its arguments with presentation 
of a modified vehicle. In that event , it may be necessary 
for NHTSA to inspect the modified vehicle as part of its 
role in determining whether the vehicle is eligible for 
importation. The cost of that inspection would be 
properly recoverable. The new import provisions re- 
quire publication of a notice in the Federal Register, 
thus the agency will also recover costs associated with 
preparing and processing Federal Register documents 



generated in connection with the petition, processing 
and analyzing comments submitted in connection 
with a Federal Register document; and notifying a 
petitioner of the agency's decision. 

When NHTSA makes a determination on its own 
initiative, it will also publish a notice in the Federal 
Register and receive and evaluate comments on it. 

The new import provisions do not require the agency 
to publish a second Federal Register no\.\ct immediately 
after a decision is made. Section 108(c)(3)(C)(iv), 
however, does require NHTSA to publish annually in 
the Federal Register a list of all vehicles determined to 
be eligible for import under the Act. Compiling and 
publishing this list is connected with making and 
announcing eligibility determinations, and the costs 
will be included in the fee structure. 

594.8 Fee payable for Administrator's determination. 
Costs to be recovered through payment of a fee also 

cover those attributable to determinations of import 
eligibility made on NHTSA's initiative. The principal 
issue here is how such costs are to be recovered in the 
absence of a petitioner. The method proposed was that 
it be paid by the first Registered Importer who furnishes 
a certificate of conformity covering such vehicle after 
NHTSA's determination on its own initiative. There 
were no specific comments on this method, though it 
was clearly implied by the three commenters that such 
costs should be shared equally by all Registered 
Importers. For the reasons set forth above in the 
discussion on allocation of fees among Registered 
Importers , it is impracticable to do so, and NHTSA has 
adopted the method proposed. 

594.9 Fee to recover the costs of processing the bond. 
Section 108 (c)(3)(A)(iii)(II) also requires a registered 

importer to pay "such annual fee or fees as the 
Secretary reasonably establishes to cover the cost of 
processing the bond furnished to the Secretary of the 
Treasury" upon the importation of a nonconforming 
vehicle to ensure that the vehicle will be brought into 
compliance within a reasonable time, or if the vehicle 
is not brought into compliance within such time, that 
it is exported without cost to the United States, or 
abandoned to the United States. 

The statute contemplates that NHTSA make a 
reasonable determination of the cost to the United 
States Custom Service of processing the bond. The 
agency has met representatives of the Customs Service 
to obtain such information as would allow it to include 
the cost basis of processing the bond in the fee 
structure. The analysis that Customs has provided 
NHTSA indicates that it has followed the same guide- 
lines as the agency does to determine whether each 
activity associated with processing the bond gives rise 
to a recoverable cost. The 1988 Act requires the bond to 
be furnished the Secretary of the Treasury acting on 
behalf of NHTSA. However, NHTSA has decided, and 
Customs concurs, that the bond in question is not the 



PART 594-PRE 5 



general importation bond which covert; duties and 
other obHgations relevant to merchandise. It is a bond 
given to secure performance of obligations under the 
Vehicle Safety Act, and will therefore be a bond of the 
Department of Transportation and not of the Treasury. 
The two Federal agencies have determined that this 
bond will accompany the declaration at the time of 
entry, and be submitted with it to NHTSA. Thus the 
role of Customs in "processing" the bond will be 
limited to two activities. At the time of importation, it 
will ensure that the bond is attached to the entry form 
(or reject the entry for lack of the bond). After bond 
verification, it will forward the bond and entry form to 
NHTSA. A third activity will be required in the event 
that a vehicle must be exported for failing to meet 
NHTSA's requirements: the supervision of export. 

The first two activities will form the basis for the 
processing cost payable by the registered importer. 
The cost of the third activity will be part of the bond, so 
that if the vehicle must be redelivered for export, a sum 
covering the third activity would be payable to NHTSA 
on behalf of Customs. Although NHTSA will advance 
Customs its costs in accordance with statutory re- 
quirements, it will recover these costs on an ad hoc 
basis, requiring a registered importer to submit a bond 
processing fee at the time it submits conformance 
verification on each vehicle. 

2. Calculations of the Agency's Costs in Setting 
Fees 

To the extent possible, the agency's costs in setting 
fees are based upon an accounting of each discrete 
activity involved in the process. Thus, the fees imposed 
by Part 594 include the agency's best direct and 
indirect cost estimates of the man-hours involved in 
each activity, on both the staff and supervisory levels, 
the costs of computer and word processor usage, 
postage costs, costs attributable to travel, salary and 
benefits, and maintenance of work space, to name the 
ones set forth in the proposed regulation. 

Specifically, each fee is calculated on the basis of the 
direct and indirect costs associated with the activity 
for which the fee is paid. The direct costs include the 
average cost per professional staff-hour, computer and 
word processor time, stationery and postage, and 
transportation. 

The average cost per professional staff-hour is 
calculated based upon the full costs for time spent (to 
the nearest quarter-hour) using the following applicable 
professional staff rates: 

(A) Office of Vehicle Safety Compliance — 
Clerical Staff — $13 per hour 
Computer contract staff — $25 per hour. 
Review staff — $26 per hour. 
Supervisors — $41 per hour. 

(B) Office of Chief Counsel — $41 per hour. 
The average cost per computer-hour is calculated at 

the rate of $100 per hour. 



The average cost for postage is calculated to be 
$3.00. 

The indirect costs include a pro rata allocation of the 
average salary and benefits of persons employed in 
processing the applications and recommending deci- 
sions on them, and a pro rata allocation of the costs 
attributable to maintaining the office space, and the 
computer or word processor. The staff rates above 
include benefits; the costs associated with office space, 
equipment maintenance, communications and other 
overhead amount to an additional $6.71 per hour. 

The cost for determining the salary and benefits of 
persons employed is calculated based upon the time 
spent multiplied by the employee's hourly wage. 

The cost of maintaining the computer or word 
processor is calculated based upon maintenance, time 
sharing, and staff operations. 

The cost of maintaining the office space is calculated 
based upon standard government regulations based 
upon grade levels. 

The cost of travel is based upon an estimated round 
trip air fare of $250, and a 3-day per diem of $100 a day, 
for a total trip cost of $550. 

A. Registration Program Fee 

The Registration Program Annual Fee has two and 
in some instances three components: a portion at- 
tributable to the registration process, a portion 
attributable to any inspection of an applicant that the 
agency deems needed to verify information submitted 
in an application for registration, and a portion 
attributable to other activities occurring in the reg- 
istration program. Exclusive of the inspection portion, 
the agency has decided that the initial Annual 
Registration Program fee shall be $255. 

The initial component of the Registration Program 
Fee is the portion of the fee attributable to processing 
and acting upon registration applications. The agency 
estimates this portion of the fee as $85,99. 

In calculating the direct costs of processing registra- 
tion applications, NHTSA estimates that one staff 
member and one supervisor will spend a total of one 
man-hour in processing, reviewing, and acting upon 
applications, that a quarter hour of computer, and 
computer-operator time will be required to verify that 
the applicant has not had a registration revoked, that a 
half hour of clerical time will be required, and that a 
postal charge will be incurred. These costs are 
estimated at $74.25. 

In calculating tiie indirect costs of processing reg- 
istration applications, NHTSA has estimated that 
these will average $6.71 per hour spent. Processing 
will require a total of 1.75 hours per application, thus 
NHTSA estimates that indirect costs will total $11.74. 
Thus the total direct and indirect costs of this com- 
ponent are $85.99. 

With respect to other costs attributable to main- 
tenance of the registration program, these consist 



PART 594-PRE i 



principally of reviewing a registrant's annual state- 
ment verifying the continuing validity of information 
already submitted, and processing annual fees. These 
costs also include costs attributable to revocation or 
suspension of a registration. 

In calculating the direct costs of administering the 
registration program other than costs connected with 
the initial application, NHTSA estimates that one staff 
member and one supervisor will spend a total of 1.5 
man-hours in administration activities, that one half- 
hour of computer time, and computer operator time 
will be required, that 1.5 hours of clerical and record- 
keeping time will be needed, and a postal charge will be 
incurred. The total direct charges for administering 
the registration program are estimated at $131.o0. The 
total overhead costs of the 3.5 hours involved are 
$23.49, or a total of $154.99. These costs, of course, are 
exclusive of costs associated with revocation or sus- 
pension. 

At this point, it appears fairest that a suspended 
registrant bear the costs associated with suspension 
and reinstatement, to be included in its next annual 
fee. However, it will not be feasible to recover costs 
from an importer whose registration has been revoked. 
Those costs appear best borne by each registered 
importer paying a pro rata share in its annual fee. 
Obviously, before the effective date of the 1988 Act, 
NHTSA has no knowledge of how many registered 
importers there will be or how many suspensions or 
revocations may occur in the first year of the program. 
However, for purposes of determining this portion of 
the registration fee, NHTSA estimates that there will 
be 20 registered importers during the fiscal year 
beginning October 1, 1989, and ending September 30, 
1990, and that there will be one revocation. Under Part 
592, the procedures that the agency will follow in 
determining whether a registration should be revoked 
or suspended are identical. This means that the direct 
and indirect costs should also be identical, up to the 
point of an agency determination. Because a suspended 
registration may be reinstated, either upon expiration 
of the term stated in the agency's letter of suspension, 
or upon cure of the cause giving rise to the suspension, 
there will be a slight additional cost commensurate 
with the clerical aspects of ending the suspension. 

NHTSA contemplates that its Enforcement Office 
will recommend suspensions or revocations to the 
Office of Chief Counsel, and that 1 hour of staff time, 
and .25 hour computer operator time will be involved 
in recommendations. In addition, .25 hour of computer 
time will be used. The Office of Chief Counsel will 
require 1.75 hours to review the recommendation and 
draft a letter to the registrant, and an additional 1.75 
hours to review the registrant's reply and to draft a 
letter of suspension, or revocation, or declining to take 
further action. Postal charges will total $6.00. The 
total direct costs associated with this procedure are 



$206.75, and the overhead costs for 4.75 hours of 
agency time, $34.87. The sum of $238.62 divided by the 
20 estimated Registered Importers gives a figure of 
$11.93 to be added to the portion of the annual fee 
representing maintenance of the registration program 
(For reinstatement, to be borne by the registrant, 
NHTSA estimates that the total direct and indirect 
costs will be $40.36, representing .25 hour of clerical 
time, .25 hour of computer time, and .25 hour of 
computer operator time). 

Thus, the total portion attributable to maintenance 
of the registration program, as estimated by NHTSA, 
is approximately $166.92. When added to the $85.99 
representing the registration application component, 
the cost per applicant equals $252.91. Therefore, 
NHTSA has determined that the initial annual reg- 
istration fee, for the period October 1, 1989 through 
September 30, 1990, is $255. In the event that an 
application is denied or withdrawn, NHTSA will 
refund all but $86 of this amount, or $169. 

B. Fee for Vehicle Eligibility Petitions. 

In calculating the direct costs of processing and 
acting upon a petition for a determination of eligibility, 
NHTSA estimates that the costs involved for deter- 
minations involving substantially similar vehicles will 
require substantially less agency time than those for 
non-similar vehicles. For purposes of this determina- 
tion, NHTSA has chosen passenger cars and multi- 
purpose passenger vehicles, the most frequently im- 
ported types of motor vehicles. The agency estimates 
the total direct and indirect costs for a determination 
involving a substantially similar vehicle at $1558.68 
and for a non-similar vehicle at $2151.61. In this light, 
a fee of $1560 for substantially similar vehicle deter- 
minations, and one of $2150 for those that are not 
substantially similar, appear to fulfill the statutory 
directive. 

More specifically, the following cost breakdown has 
been estimated for substantially similar (and non- 
similar) vehicles. The process will result in personnel 
costs related to 2 (5) supervisory hours, 24 (35) staff 
hours, .25 (.25) hour computer time, .25 (2) hour(s) data 
entry time, .50 (2) hour(s) clerical time, and .25 (.50) 
hour recordkeeping time. In addition, .25 hour of 
computer time would be used for each. However, costs 
associated with preparing and publishing the two 
Federal Register notices, and evaluating comments to 
the first notice, should be identical. Each notice may 
require two columns of space ($125 per column), for a 
cost of $250 per notice, and total publication costs of 
$500. Following agency practice with other petitions, 
the notices will be prepared by the Office of Chief 
Counsel. It is estimated that each notice will require 1 
hour of preparation time, and .50 hour of clerical time, 
or a total of 3 hours for both notices. The estimated 
total direct charges for determinations of eligibility 
will be $1342 ($1817.50). In calculating the indirect 



PART 594-PRE 7 



costs of processing and acting upon eligibility petitions, 
NHTSA estimates that the process, including the 
Federal Register preparation time, will take 30 (47.50) 
man hours, for a cost of $201.30 ($318.73), or a total 
cost of $1543.30 ($2136.23). These totals include .25 
hour of computer time. To this must be added the pro 
rata cost of the yearly Federal Register notice. It is 
estimated that this will require 1 hour of Office of 
Chief Counsel time, .50 hour clerical time, and two 
columns in the Federal Register. The total direct costs 
to fulfill this statutory requirement would be $297.50. 
The overhead costs, $10.07. The total of $307.57 
divided among the estimated 20 registered importers 
adds $15.38 to each petition cost, or a total of $1558.68 
($2151.61). Therefore, a petition fee of $1560 ($2150) is 
being adopted. At this point, costs appear similar for 
those determinations made upon the agency's own 
initiative, and the same fee will be used in recovery of 
costs. 

C. Bond Processing Costs. 

With respect to the costs attributable to processing 
the bond furnished the Secretary of the Treasury, the 
agency estimated and proposed $125 per bond. However, 
after the proposal, NHTSA determined that the role of 
Customs in "processing" the bond under the 1988 Act 
would be limited to ensuring that the bond was 
completed and attached to the entry form, and that 
both would be forwarded to NHTSA. Customs then 
provided NHTSA with a detailed estimate of the costs 
involved in its processing of the bond. These tasks 
would be performed by a GS 9 Step 5 employee (hourly 
rate $12.94). Eighteen minutes would be required to 
verify the content of the bond information, amount, 
and completeness, and to enter the information into 
Customs' data processing system. These tasks would 
cover all nonconforming vehicles imported. It is 
Customs practice to conduct verification inspections 
on approximately 15% of vehicles, verifying VINs to 
bonds, and this inspection would occupy 13 minutes. 
Finally, Customs estimates that 1% of the vehicles 
entered would not be brought into satisfactory con- 
formity, requiring fulfillment of the bond condition of 
export. The associated tasks of supervising lading, 
reviewing documents , and verifying vehicle identifica- 
tion would require 20 minutes. Using the estimate of 
2100 vehicles entered per year (the importation rate for 
1989 to date). Customs' total bond processing costs are 
$9,140.04, or $4,352 per vehicle. NHTSA has adopted 
$4.35 as the bond processing fee per vehicle. 
Effective Date 

Section 108(c)(3)(B) requires that the fee applicable 
in any fiscal year shall be established by NHTSA 
before the beginning of each such year. Therefore, 
pursuant to 5 U.S.C. 553(d)(3), it is found that good 
cause is shown for an effective date that is earlier than 
30 days after publication of the final rule. Therefore, 
this final rule is effective September 30, 1989, so that 



the fees it establishes will be applicable in Fiscal Year 
1990, which begins October 1, 1989. 

In consideration of the foregoing, a new Part 594, 
Schedule of Fees Authorized by the Imported Vehicle 
Safety Compliance Act, is added to Title 49, Chapter V, 
to read as follows: 

Part 594 Schedule of Fees Authorized by the National 
Traffic and Motor Vehicle Safety Act, 

Sec, 

594.1 Scope. 

594.2 Purpose. 

594.3 Applicability. 

594.4 Definitions. 

594.5 Establishment and payment of fees. 

594.6 Annual fee for administration of reg- 
istration program. 

594.7 Fee for filing petition for a determina- 
tion whether a vehicle is eligible for importation. 

594.8 Fee for importing a vehicle pursuant to 
a determination made on the Administrator's 
initiative. 

594.9 Fee for reimbursement of bond pro- 
cessing costs. 

Authority. Pub. L. 100-562, 15 U.S.C. 1401, 1407; 
delegation of authority at 49 CFR 1.50. 

594.1 Scope. 

This part establishes the fees authorized by the 
National Traffic and Motor Vehicle Safety Act. 

594.2 Purpose. 

The purposes of this part is to ensure that NHTSA is 
reimbursed for costs incurred in administering the 
importer registration program, in making determina- 
tions whether a nonconforming vehicle is eligible for 
importation into the United States, and in processing 
the bond furnished to the Secretary of the Treasury 
given to ensure that an imported vehicle not originally 
manufactured to conform to all applicable Federal 
motor vehicle safety standards is brought into com- 
pliance with the safety standards, or will be exported, 
or abandoned to the United States. 

594.3 Applicability. 

This part applies to any person who applies to 
NHTSA to be granted the status of a Registered 
Importer, to any person who has been granted such 
status, and to manufacturers who are not Registered 
Importers who petition the Administrator for a de- 
termination pursuant to Part 593 of this chapter. 

594.4 Definitions 

All terms used in this part that are defined in section 
102 of the National Traffic and Motor Vehicle Safety 
Act of 1966 (15 U.S.C. 1391) are used as defined in the 
Act. 

"Administrator" means the Administrator of the 
National Highway Traffic Safety Administration. 

"NHTSA" means the National Highway Traffic 
Safety Administration. 



PART 594-PRE I 



"Registered Importer" means any person who has 
been granted the status of registered importer under 
Part 592 of this Chapter, and whose registration has 
not been revoked. 

594.5 Establishment and payment of fees 

(a) The fees estabHshed by this part continue in 
effect until adjusted by the Administrator. The Ad- 
ministrator reviews the amount or rate of fees 
estabhshed under this part and, if appropriate, adjusts 
them by rule at least every 2 years. 

(b) The fees applicable in any fiscal year are 
established before the beginning of such year. Each fee 
is calculated in accordance with this part, and is 
published in the Federal Register not later than 
September 30 of each year. 

(c) An applicant for status as Registered Importer 
shall submit an initial annual fee with the application. 
A fee for a determination that a vehicle is eligible for 
importation shall be submitted with the petition for a 
determination. No application or petition will be 
accepted for filing or processed before payment of the 
full amount specified. Except as provided in paragraph 
594.6(d), a fee shall be paid irrespective of NHTSA's 
disposition of the application or petition, or of a 
withdrawal of an application or petition. 

(d) A Registered Importer annual fee, other than the 
initial annual fee, is payable not later than October 31 
of each year. 

(e) A fee attributable to a determination of eligibility 
made on the Administrator's initiative shall be paid by 
a Registered Importer in accordance with paragraph 
594.8(b). 

(f) A fee for reimbursement for bond processing 
costs shall be filed with each certificate of conformity 
furnished the Administrator. 

(g) Any other annual fee is payable not later than 
October 31 of each year. Any other fee is payable not 
later than 30 calendar days after the date of written 
notification by the Administrator. 

(h) Fee payments shall be by check, draft, money 
order, or Electronic Funds Transfer System made 
payable to the Treasurer of the United States. 

594.6 Annual fee for administration of the 
registration program. 

(a) Each person filing an application to be 
granted the status of a Registered Importer pursuant 
to part 592 of this chapter during the period October 1, 
1989 through September 30, 1990, shall pay an initial 
annual fee of $255, as calculated below, based upon the 
direct and indirect costs attributable to: 

(1) processing and acting upon such application; 

(2) any inspection deemed required for a determina- 
tion upon such application; 

(3) the estimated remaining activities of admin- 
istering the registration program in the fiscal year in 
which such application is intended to become effective. 

(b) That portion of the initial annual fee attributable 
to the processing of the application for applications 

PART 594- 



filed from October 1, 1989, through September 30, 
1990, is $86. The sum of $86, representing this portion, 
shall not be refundable if the application is denied or 
withdrawn. 

(c) If, in order to make a determination upon an 
application, NHTSA must make an inspection of the 
applicant's facilities, NHTSA notifies the applicant in 
writing after the conclusion of any such inspection, 
that a supplement to the initial annual fee in a stated 
amount is due upon receipt of such notice to recover 
the direct and indirect costs associated with such 
inspection and notification, and that no determination 
will be made upon the application until such sum is 
received. Such sum is not refundable if the application 
is denied or withdrawn. 

(d) That portion of the initial annual fee attributable 
to the remaining activities of administering the reg- 
istration program from October 1, 1989, through 
September 30, 1990, is set forth in subsection (i) of this 
section. This portion shall be refundable if the ap- 
plication is denied, or withdrawn before final action 
upon it. 

(e) Each Registered Importer who wishes to maintain 
the status of Registered Importer shall pay a regular 
annual fee based upon the direct and indirect costs of 
administering the registration program, including the 
suspension and reinstatement, and revocation of such 
registration. 

(f) The elements of administering the registration 
program that are included in the regular annual fee 
are: 

(1) Calculating, revising, and publishing the fees to 
apply in the next fiscal year, including such co- 
ordination as may be required with the U.S. Customs 
Service. 

(2) Processing and reviewing the annual statement 
attesting to the fact that no material change has 
occured in the Registered Importer's status since filing 
its original application. 

(3) Processing the annual fee. 

(4) Processing and reviewing any amendments to an 
annual statement received in the course of a fiscal 
year. 

(5) Verifying through inspection or otherwise that a 
Registered Importer is complying with the require- 
ments of Sec. 592.6(b)(3) of this chapter for record- 
keeping. 

(6) Verifying through inspection or otherwise that a 
Registered Importer is able technically and financially 
to carry out its responsibilities pursuant to 15 U.S.C. 
1411 etseq. 

(7) Invoking procedures for suspension of registration 
and its reinstatement, and for revocation of registration 
pursuant to Sec. 592.7 of this chapter. 

(g) The direct costs included in establishing the 
annual fee for maintaining registered importer status 
are the estimated costs of professional and clerical 
staff time, computer and computer operator time, and 

PRE 9 



postage, per Registered Importer. The direct costs 
included in establishing the annual fee for a specific 
Registered Importer are costs of transportation and per 
diem attributable to inspections conducted with respect 
to that Registered Importer in administering the 
registration program, which have not been included in 
a previous annual fee. 

(h) The indirect costs included in establishing the 
annual fee for maintaining Registered Importer status 
are a pro rata allocation of the average salary and 
benefits of persons employed in processing annual 
statements, or changes thereto, in recommending 
continuation of Registered Importer status, and a pro 
rata allocation of the costs attributable to maintaining 
the office space, and the computer or word processor. 
This cost is $6.71 per man-hour for the period October 
1, 1989. through September 30, 1990. 

(i) Based upon the elements, and indirect costs of 
paragraphs (f), (g), and (h) of this section, the com- 
jxjnents of the initial annual fee attributable to ad- 
ministration of the registration program covering the 
period from October 1, 1989, through September 30, 
1990, is $166.92. When added to the component repre- 
senting the costs of registration of $85.99, as set forth 
in paragraph (b) of this section, the costs per applicant 
to be recovered through the annual fee is $252.91. The 
annual registration fee for the period October 1, 1989, 
through September 30, 1990, is $255. 

Sec. 594.7 Fee for filing petition for a deter- 
mination whether a vehicle is eligible for im- 
portation. 

(a) Each manufacturer or registered importer who 
petitions NHTSA for a determination that— 

(1) a nonconforming vehicle is substantially similar 
to a vehicle originally manufactured for importation 
into and sale in the United States and of the same 
model year as the model for which petition is made, 
and is capable of being readily modified to conform to 
all applicable Federal motor vehicle safety standards, 
or 

(2) a nonconforming vehicle has safety features that 
comply with or are capable of being modified to comply 
with all applicable Federal motor vehicle safety 
standards, shall pay a fee based upon the direct and 
indirect costs of processing and acting upon such 
petition. 

(b) The direct costs attributable to processing a 
petition filed pursuant to paragraph (a) of this section 
include the average cost per professional staff-hour, 
computer and computer operator time, and postage. 
The direct costs also include those attributable to any 
inspection of a vehicle requested by a petitioner in 
substantiation of its petition. 

(c) The indirect costs attributable to processing and 
acting upon a petition filed pursuant to paragraph (a) 
of this section include a pro rata allocation of the 
average salary and benefits of persons employed in 



processing the petitions and recommending decisions 
on them, and a pro rata allocation of the costs 
attributable to maintaining the office space, and the 
computer or word processor. 

(d) The direct costs attributable to acting upon a 
petition filed pursuant to paragraph (a) of this section, 
also include the cost of publishing a notice in the 
Federal Register seeking public comment, the cost of 
publishing a second notice with the agency's deter- 
mination, and a pro rata share of the cost of publishing 
an annual list of nonconforming vehicles determined 
to be eligible for importation. 

(e) The fee payable for a petition for a determination 
that a nonconforming vehicle is eligible for importation 
into the United States for petitions filed from October 
1, 1989, through September 30, 1990, is $1560 if a 
petition is filed under paragraph (a)(1) above, and 
$2150 if filed under paragraph (a)(2) above, when the 
petitioner does not request inspection of a vehicle. 
When the petitioner requests an inspection of a vehicle, 
the sum of $550 shall be added to such fee. No portion of 
this fee is refundable if the petition is withdrawn or 
denied. 

Sec. 594.8 Fee for importing a vehicle pursuant 
to a determination made on the Administrator's 
initiative. 

(a) A fee shall be paid to cover the direct and indirect 
costs incurred by NHTSA in determinations made 
under paragraph 593.8(a) of this chapter, pursuant to 
its own initiative, that a vehicle is eligible for importa- 
tion into the United States. The basis of such fee is that 
set forth in paragraphs 594.7(b), (c), and (d). If this 
basis of the determination is that a vehicle meets the 
criteria of paragraph 594.7(a)(1), the fee is $1560. If the 
basis of the determination is that a vehicle meets the 
criteria of paragraph 594.7(a)(2), the fee is $2150. 
These fees are applicable to each determination made 
from October 1, 1989, through September 30, 1990. 

(b) After NHTSA has made a determination on its 
own initiative, the notice published in the Federal 
Register announcing the determination includes a fee 
attributable to NHTSA's direct and indirect costs 
incurred pursuant to such determination, and an 
advisory that such fee shall be payable by the Registered 
Importer who furnishes a certificate of conformity 
pursuant to paragraph 592.6(a)(3)(vi) of this chapter, 
on behalf of the first person who files a declaration 
pursuant to paragraph 591 .5(f) of this chapter that the 
vehicle is eligible for importation. 

(c) After receipt of the first declaration covering a 
vehicle eligible for importation because of a deter- 
mination made pursuant to the Administrator's in- 
itiative, NHTSA informs the appropriate Registered 
Importer that a fee in the stated amount shall ac- 
company the certificate of conformity that the reg- 
istered importer must furnish for the vehicle. No 
certificate shall be accepted for filing or processing 



PART 594— PRE 10 



unless and until such fee has been paid. A certificate (c) Based upon information from the U.S. Customs 

for which no remittance is received may be returned to Service, the bond processing fee for each vehicle for 
the registered importer. which a certificate of conformity is furnished from 

Sec. 594.9 Fee for reimbursement of bond pro- October 1, 1989, through September 30, 1990, is $4.35. 
cessing costs. 

(a) Each registered importer shall pay a fee based Issued on September 26, 1989. 
upon the direct and indirect costs of processing each 

bond furnished to the Secretary of the Treasury with 

respect to each vehicle for which it furnishes a Jeffrey R. Miller 

certificate of conformity to the Administrator pursuant Acting Administrator 

to paragraph 591.7(e) of this chapter. 

(b) The direct and indirect costs attributable to 

processingabondareprovided toNHTSAby theU.S. 54 F.R. 40100 

Customs Service. September 29. 1989 



PART 594-PRE 11-12 



PART 594-SCHEDULE OF FEES AUTHORIZED BY THE NATIONAL TRAFFIC 
AND MOTOR VEHICLE SAFETY ACT 



594.1 Scope. 

This part establishes the fees authorized by the 
National Traffic and Motor Vehicle Safety Act. 

594.2 Purpose. 

The purposes of this part is to ensure that NHTSA 
is reimbursed for costs incurred in administering the 
importer registration program, in making deter- 
minations whether a nonconforming vehicle is eligi- 
ble for importation into the United States, and in 
processing the bond furnished to the Secretary of 
the Treasury given to ensure that an imported vehi- 
cle not originally manufactured to conform to all ap- 
plicable Federal motor vehicle safety standards is 
brought into compliance with the safety standards, 
or will be exported, or abandoned to the United 
States. 

594.3 Applicability. 

This part applies to any person who applies to 
NHTSA to be granted the status of a Registered Im- 
porter, to any person who has been granted such 
status, and to manufacturers who are not Registered 
Importers who petition the Administrator for a 
determination pursuant to Part 593 of this chapter. 

594. Definitions. 

All terms used in this part that are defined in sec- 
tion 102 of the National Traffic and Motor Vehicle 
Safety Act of 1966 (15 U.S.C. 1391) are used as 
defined in the Act. 

"Administrator" means the Administrator of the 
National Highway Traffic Safety Administration. 

"NHTSA" means the National Highway Traffic 
Safety Administration. 

"Registered Importer" means any person who has 
been granted the status of registered importer under 
Part 592 of this Chapter, and whose registration has 
not been revoked. 



594.5 Establishment and payment of fees. 

(a) The fees established by this part continue in 
effect until adjusted by the Administrator. The Ad- 
ministrator reviews the amount or rate of fees 
established under this part and, if appropriate, 
adjusts them by rule at least every 2 years. 

(b) The fees applicable in any fiscal year are 
established before the beginning of such year. Each 
fee is calculated in accordance with this part, and 
is published in the Federal Register not later than 
September 30 of each year. 

(c) An applicant for status as Registered Importer 
shall submit an initial annual fee with the applica- 
tion. A fee for a determination that a vehicle is 
eligible for importation shall be submitted with the 
petition for a determination. No application or peti- 
tion will be accepted for filing or processed before 
payment of the full amount specified. Except as pro- 
vided in paragraph 594.6(d), a fee shall be paid 
irrespective of NHTSA's disposition of the applica- 
tion or petition, or of a withdrawal of an application 
or petition. 

(d) A Registered Importer annual fee, other than 
the initial annual fee, is payable not later than 
October 31 of each year. 

(e) A fee attributable to a determination of 
eligibility made on the Administrator's initiative 
shall be paid by a Registered Importer in accordance 
with paragraph 594.8(b). 

(f) A fee for reimbursement for bond processing 
costs shall be filed with each certificate of confor- 
mity furnished the Administrator. 

(g) Any other annual fee is payable not later than 
October 31 of each year. Any other fee is payable 
not later than 30 calendar days after the date of 
viT-itten notification by the Administrator. 

(h) Fee payments shall be by check, draft, money 
order, or Electronic Funds Transfer System made 
payable to the Treasurer of the United States. 



PART 594-1 



594.6 Annual fee for administration of tfie registration 
program. 

(a) Each person filing an application to be granted 
the status of a Registered Importer pursuant to part 
592 of this chapter during the period October 1, 1989 
through September 30, 1990, shall pay an initial an- 
nual fee of $255, as calculated below, based upon the 
direct and indirect costs attributable to: 

(1) processing and acting upon such application. 

(2) any inspection deemed required for a deter- 
mination upon such application; 

(3) the estimated remaining activities of ad- 
ministering the registration program in the fiscal 
year in which such application is intended to 
become effective. 

(b) That portion of the initial annual fee at- 
tributable to the processing of the application for ap- 
plications filed from October 1, 1989, through 
September 30, 1990, is $86. The sum of $86, 
representing this portion, shall not be refundable if 
the application is denied or withdrawn. 

(c) If, in order to make a determination upon an 
appHcation, NHTSA must make an inspection of the 
apphcant's facilities, NHTSA notifies the applicant 
in writing after the conclusion of any such inspec- 
tion, that a supplement to the initial annual fee in 
a stated amount is due upon receipt of such notice 
to recover the direct and indirect costs associated 
with such inspection and notification, and that no 
determination will be made upon the application un- 
til such sum is received. Such sum is not refundable 
if the application is denied or withdrawn. 

(d) That portion of the initial annual fee at- 
tributable to the remaining activities of administer- 
ing the registration program from October 1, 1989, 
through September 30, 1990, is set forth in subsec- 
tion (i) of this section. This portion shall be refun- 
dable if the application is denied, or withdrawn 
before final action upon it. 

(e) Each Registered Importer who wishes to main- 
tain the status of Registered Importer shall pay a 
regular annual fee based upon the direct and indirect 
costs of administering the registration program, in- 
cluding the suspension and reinstatement, and 
revocation of such registration. 

(f) The elements of administering the registration 
program that are mcluded in the regular annual fee 
are: 

(1) Calculating, revising, and publishing the fees 
to apply in the next fiscal year, including such 
coordination as may be required with the U.S. 
Customs Service. 



(2) Processing and reviewing the annual state- 
ment attesting to the fact that no material change 
has occurred in the Registered Importer's status 
since filing its original application. 

(3) Processing the annual fee. 

(4) Processing and reviewing any amendments 
to an annual statement received in the course of 
a fiscal year. 

(5) Verifying through inspection or otherwise 
that a Registered Importer is complying with the 
requirements of Sec. 592.6(bX3) of this chapter for 
recordkeeping. 

(6) Verifying through inspection or otherwise 
that a Registered Importer is able technically and 
financially to carry out its responsibihties pursuant 
to 15 U.S.C. 1411 et seq. 

(7) Invoking procedures for suspension of 
registration and its reinstatement, and for revoca- 
tion of registration pursuant to Sec. 592.7 of this 
chapter. 

(g) The direct costs included in estabhshing the an- 
nual fee for maintaining registered importer status 
are the estimated costs of professional and clerical 
staff time, computer and computer operator time, 
and postage, per Registered Importer. The direct 
costs included in establishing the annual fee for a 
specific Registered Importer are costs of transpor- 
tation and per diem attributable to inspections con- 
ducted with respect to that Registered Importer in 
administering the registration program, which have 
not been included in a previous annual fee. 

(h) The indirect costs included in establishing the 
annual fee for maintaining Registered Importer 
status are a pro rata allocation of the average salary 
and benefits of persons employed in processing an- 
nual statements, or changes thereto, in recommen- 
ding continuation of Registered Importer status, and 
a pro rata allocation of the costs attributable to main- 
taining the office space, and the computer or word 
processor. This cost is $6.71 per man-hour for the 
period October 1, 1989, through September 30, 
1990. 

(i) Based upon the elements, and indirect costs of 
paragraphs (f), (9), and (h) of this section, the com- 
ponent of the initial annual fee attributable to ad- 
ministration of the registration program, covering 
the period from October 1, 1989, through September 
30, 1990, is $166.92. When added to the component 
representing the costs of registration of $85.99, as 
set forth in paragraph (b) of this section, the costs 
per applicant to be recovered through the annual fee 



PART 594-2 



is $252 91. The annual registration fee for the period 
October 1, 1989, through September 30, 1990, is 
$255. 

Sec. 594.7 Fee for filing petition for a determination 
whether a vehicle Is eligible for importation. 

(a) Each manufacturer or registered importer 
who petitions NHTSA for a determination that— 

(1) a nonconforming vehicle is substantially 
similar to a vehicle originally manufactured for im- 
portation into and sale in the United States and 
of the same model year as the model for which 
petition is made and is capable of being readily 
modified to conform to all applicable Federal 
motor vehicle safety standards, or 

(2) a nonconforming vehicle which has safety 
features that comply with or are capable of being 
modified to comply with all applicable Federal 
motor vehicle safetj' standards, shall pay a fee bas- 
ed upon the direct and indirect costs of process- 
ing and acting upon such petition. 

(b) The direct costs attributable to processing a 
petition filed pursuant to paragraph (a) of this sec- 
tion include the average cost per professional staff- 
hour, computer and computer operator time, and 
postage. The direct costs also include those at- 
tributable to any inspection of a vehicle requested 
by a petitioner in substantiation of its petition. 

(c) The indirect costs attributable to processing 
and acting upon a petition filed pursuant to 
paragraph (a) of this section include a pro rata alloca- 
tion of the average salarj' and benefits of persons 
employed in processing the petitions and recommen- 
ding decisions on them, and a pro rata allocation of 
the costs attributable to maintaining the office 
space, and the computer or word processor. 

(d) The direct costs attributable to acting upon a 
petition filed pursuant to paragraph (a) of this sec- 
tion, also include the cost of publishing a notice in 
the Federal Register seeking public comment, the 
cost of publishing a second notice with the agency's 
determination, and a pro rata share of the cost of 
publishing an annual list of nonconforming vehicles 
determined to be eligible for importation. 

(e) The fee payable for a petition for a determina- 
tion that a nonconforming vehicle is eligible for im- 
portation into the United States for petitions filed 
from October 1, 1989, through September 30, 1990, 
is $1560 if a petition is filed under paragraph (aXl) 
above, and $2150 if filed under paragraph (aX2) 

PART 



above, when the petitioner does not request inspec- 
tion of a vehicle. When the petitioner requests an 
inspection of a vehicle, the sum of $550 shall be 
added to such fee. No portion of this fee is refun- 
dable if the petition is withdrawm or denied. 

Sec. 594.8 Fee for importing a vehicle pursuant to 
a determination made on the Administrator's initiative. 

(a) A fee shall be paid to cover the direct and in- 
direct costs incurred by NHTSA in determinations 
made imder paragraph 593.8(a) of this chapter, pur- 
suant to its own initiative, that a vehicle is eligible 
for importation into the United States. The basis of 
such fee is that set forth in paragraphs 594.7(b), (c), 
and (d). If the basis of the determination is that a 
vehicle meets the criteria of paragraph 594.7(aXl), 
the fee is $1560. If the basis of the determination 
is that a vehicle meets the criteria of paragraph 
594.7(aX2), the fee is $2150. These fees are ap- 
plicable to each determination made from October 
1, 1989, through September 30, 1990. 

(b) After NHTSA has made a determination on 
its own initiative, the notice published in the Federal 
Register announcing the determination includes a 
fee attributable to NHTSA' s direct and indirect 
costs incurred pursuant to such determination, and 
an advisory that such fee shaU be payable by the 
Registered Importer who furnishes a certificate of 
conformit\' pursuant to paragraph 592.6(aX3Xvi) of 
this chapter, on behalf of the first person who files 
a declaration pursuant to paragraph 591.5(f) of this 
chapter that the vehicle is eligible for importation. 

(c) After receipt of the first declaration covering 
a vehicle eligible for importation because of a deter- 
mination made pursuant to the Administrator's in- 
itiative, NHTSA informs the appropriate Registered 
Importer that a fee in the stated amount shall ac- 
company the certificate of conformitj' that the 
registered importer must furnish for the vehicle. No 
certificate shall be accepted for filing or processing 
unless and until such fee has been paid. A certificate 
for which no remittance is received may be returned 
to the registered importer. 

Sec. 594.9 Fee for reimbursement of bond process- 
ing costs. 

(a) Each registered importer shall pay a fee based 
upon the direct and indirect costs of processing each 
bond furnished to the Secretan' of the Treasury' with 
respect to each vehicle for which it furnishes a 

594-3 



BOSTON PUBLIC LIBRARY 



3 9999 06313 260 7 



certificate of conformity to the Administrator pur- 
suant to paragraph 591.7(e) of this chapter. 

(b) The direct and indirect costs attributable to 
processing a bond are provided to NHTSA by the 
U.S. Customs Service. 

(c) Based upon information from the U.S. 
Customs Service, the bond processing fee for each 
vehicle for which a certificate of conformity is fur- 



nished from October 1, 1989, through September 30, 
1990, is $4.35. 

Issued on Sept. 26, 1989. 



54 F.R. 40100 
September 29, 1989 



PART 594-4