99-17806. Importation of Vehicles and Equipment Subject to Federal Safety, Bumper, and Theft Prevention Standards  

  • [Federal Register Volume 64, Number 134 (Wednesday, July 14, 1999)]
    [Rules and Regulations]
    [Pages 37878-37883]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-17806]
    
    
    -----------------------------------------------------------------------
    
    DEPARTMENT OF TRANSPORTATION
    
    National Highway Traffic Safety Administration
    
    49 CFR Part 591
    
    [Docket No. 99-NHTSA-5240; Notice 2]
    RIN 2127-AH45
    
    
    Importation of Vehicles and Equipment Subject to Federal Safety, 
    Bumper, and Theft Prevention Standards
    
    AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This document amends NHTSA's importation regulations to 
    implement a 1998 statutory amendment that adds ``show or display'' to 
    the special limited purposes for which vehicles or equipment items may 
    be imported without having to comply with the Federal motor vehicle 
    safety standards (FMVSS). Under the amendments, a person who wants to 
    import a vehicle or equipment item for ``show or display'' must 
    persuade us that the vehicle or equipment item is of such historical or 
    technological significance that it is worthy of being shown or 
    displayed in this country even though it would be difficult or 
    impossible to be brought into compliance with the FMVSS. We intend this 
    provision to accommodate primarily individuals wishing to import an 
    example of a make or model of a vehicle which its manufacturer never 
    sold in the United States and which therefore has no counterpart that 
    was certified to conform to the FMVSS.
        We will allow limited use on the public roads of vehicles imported 
    for ``show or display.'' Before entry, an importer must describe the 
    intended on-road use of the vehicle and submit a copy of an insurance 
    contract containing the condition that the maximum annual mileage of 
    the vehicle shall not exceed 2,500 miles.
        Pursuant to the 1998 statutory amendment, we are also allowing 
    owners of vehicles already imported into the United States under other 
    exemptions to apply to us for a change in the terms and conditions 
    under which we permitted their vehicles to be imported. The opportunity 
    to apply for such a change is statutorily limited to the period of 6 
    months after the effective date of the final rule.
    
    DATES: Effective date: The final rule is effective August 13, 1999
    
    FOR FURTHER INFORMATION CONTACT: Taylor Vinson, Office of Chief 
    Counsel, NHTSA (202-366-5263).
    
    
    [[Page 37879]]
    
    
    SUPPLEMENTARY INFORMATION: We discussed at some length the background 
    of this rulemaking action in our notice of proposed rulemaking, 
    published on March 22, 1999 (64 FR 13757). Given the fact that we 
    received only one comment by the end of the 45-day comment period, May 
    6, 1999, we are not repeating this discussion, and interested persons 
    may read the earlier document for background information. That comment, 
    from the Special Vehicle Coalition, supported the proposed rule, with a 
    recommended change in the mileage permissible for on-road use. We 
    discuss this at an appropriate place in the notice. Except for the 
    annual mileage and verification statements, we are adopting a final 
    rule as we proposed it.
    
    1. The 1998 Amendment to the Import Regulations
    
        Sec. 7107(a) of Pub. L. 105-178, which was enacted on June 9, 1998, 
    amended 49 U.S.C. 30114 by adding ``show, or display'' to the special 
    purposes set forth in that section. As the Conference Report on the 
    Transportation Equity Act for the 21st Century explained:
    
        Section 7107 reinstates NHTSA's authority to exempt certain 
    motor vehicles imported for the purpose of show or display from 
    certain applicable motor vehicle safety standards. Such authority 
    was unintentionally deleted when title 49, United States Code was 
    recodified in 1988.
    
    (H. Report 105-550, p. 523)
        (We note that the deletion of ``show'' resulted from the 1988 
    amendments to the importation authority, rather than from the 1994 
    recodification, which deleted ``studies'').
    
    2. Amendments to 49 CFR Part 591 That Implement Congress' Amendment 
    of Sec. 30114
    
    A. Sec. 591.5, Declarations Required for Importation
    
        As amended, sec. 30114 now reads:
    
        The Secretary of Transportation may exempt a motor vehicle or 
    item of motor vehicle equipment from section 30112(a) of this title 
    on terms the Secretary decides are necessary for research, 
    investigations, demonstrations, training, competitive racing events, 
    show or display.
    
        Currently, 49 CFR 591.5(j)(1) implements 49 U.S.C. 30114 by 
    specifying requirements for importation of nonconforming vehicles or 
    equipment for purposes of research, investigations, studies, 
    demonstrations or training, and competitive racing events. In view of 
    the intent of Congress at the time of recodification to include the 
    word ``studies'' in the word ``research,'' as previously discussed, we 
    are revising Sec. 591.5(j)(1)(iii) to substitute the term ``show or 
    display'' for ``studies.'' We deem the term ``studies'' covered by the 
    word ``research'' and subject to the same terms and conditions imposed 
    on vehicles imported for purposes of ``research.''
    
    B. Sec. 591.6, Documents Accompanying Declarations
    
        We recognize two types of importers under sec. 591.5(j): one that 
    has received written permission from us to import a vehicle under its 
    provisions (sec. 591.5(j)(2)(i)); and one that is an original 
    manufacturer of motor vehicles (or its wholly-owned subsidiary) and 
    that certifies that its products comply with the Federal motor vehicle 
    safety standards (sec. 591.5(j)(2)(ii)).
        Sec. 591.6(f) specifies the procedure for an importer who wishes to 
    obtain written permission from us to import a vehicle or equipment item 
    under sec. 591.5(j)(2)(i). Sec. 591.6(f)(1) requires all such requests 
    to contain information sufficient to identify the vehicle or equipment 
    and the specific purpose of importation, which must include a 
    discussion of the use to be made of the vehicle or equipment. With 
    respect to any such vehicle to be imported for research, 
    investigations, demonstrations or training (but not for studies), if 
    use on the public roads is to be an integral part of the purpose of 
    importation, the statement must request permission for use on the 
    public roads, describing the purpose that makes such use necessary and 
    stating the estimated period of time during which use of the public 
    roads is necessary. The request must also state the intended means of 
    final disposition (and disposition date) of the vehicle or equipment 
    after completion of the purpose for which it is imported.
        After review, we have decided that it is appropriate to retain this 
    requirement in implementing the new statutory provision but we will 
    amend sec. 591.6(f)(1) to clarify that it pertains to importations 
    other than those for show or display, which will now be covered by sec. 
    591.6(f)(2).
        Currently, if a sec. 591.5(j)(2)(i) importer wishes to import a 
    vehicle or equipment for ``studies,'' the importer's written request:
    
    shall explain why the vehicle or equipment item is of historical or 
    technological interest, and describe the studies for which 
    importation is sought. The importer, if other than the National 
    Museum of History and Technology, Smithsonian Institution, shall 
    also provide a copy of the Determination Letter from the Internal 
    Revenue Service approving the importer's status as a tax-exempt 
    corporation or foundation under section 501(c)(3) or section 509, 
    respectively, of the Internal Revenue Code. The time between the 
    date of the Letter and the date of the importer's written request to 
    the Administrator shall be not less than 5 years. The importer shall 
    also provide a statement that it shall not sell, or transfer 
    possession of, or title to, the vehicle, or license it for use, or 
    operate it on the public roads, until the vehicle is not less than 
    25 years old.
    
        We have concluded that the statutory amendment providing authority 
    to admit vehicles or equipment for show or display, without any 
    qualification on the eligibility of the importer, means that tax-exempt 
    entities as well as individual importers may import vehicles for show 
    or display. For this reason, there is no further need to maintain an 
    exemption for studies. Accordingly, we are amending the regulation to 
    delete the provisions expressly relating to importations for studies. 
    As noted, importations for ``studies'' are essentially those of 
    importations for ``research.''
        One of the terms and conditions of the allowance of importation for 
    ``studies'' was that the vehicle not be licensed for use or operated on 
    the public roads. We have reviewed this restriction in view of our new 
    authority to allow importation for ``show or display,'' and have 
    concluded that limited on-road use should be allowed, pursuant to our 
    permission. We believe that the historical and technological 
    significance of a vehicle may be maintained by its limited use of the 
    public roads on an occasional basis in order to ensure that its engine, 
    braking, lighting, and other dynamic systems remain in good working 
    order, in short, so that it may be preserved. Another appropriate use 
    of such a vehicle on the public roads would be to allow it to travel to 
    and from nearby displays of automobiles of similar significance, so 
    that its significance could be appreciated by a greater number of 
    people than were it restricted to off-road use. We proposed that on-
    road use of these nonconforming vehicles should be limited to a maximum 
    of 500 miles per year. For the reasons discussed below, this proposed 
    restriction has been modified.
        Consistent with the previous exemption for ``studies,'' we have 
    decided that a person who wishes to import a vehicle for show or 
    display ought to establish that the vehicle is one of historical or 
    technological interest. This criterion has existed for many years, 
    beginning with the previous ``show'' exemption, and continuing with the 
    one for ``studies.''
        Our most detailed discussion of the criterion of historical and 
    technical
    
    [[Page 37880]]
    
    interest was contained in a letter of July 12, 1983, to Richard London, 
    and it is worth repeating here. Mr. London asked about the 
    acceptability of importing a Mercedes-Benz 280SL which would be 
    trailered to various auto meets, and which would not be licensed for 
    use or used on the public roads. We advised Mr. London that:
    
        The agency considers several factors in determining whether to 
    accept a declaration that a vehicle is imported solely for ``show.'' 
    One of these is the nature of the vehicle itself. If it is a unique 
    machine generally considered to be of technological or historical 
    significance, it is more likely to be admitted under the exception 
    than if it were a mass-produced vehicle similar to many that were 
    manufactured to conform to the Federal motor vehicle safety 
    standards. The smaller the production run, the greater the 
    likelihood that it will be considered to be unique. Mechanical 
    components that differ substantially from those commonly in use at 
    the time of manufacturer are evidence of its technological 
    significance. Association with historical personages that would 
    create a desire in the public to see the car is also considered 
    relevant in the agency's interpretation of the word ``show.''
    
        Examples of vehicles that might qualify under this exemption are 
    high technology vehicles such as the McLaren F1, or certain types of 
    Porsches or Ferraris that were never, in the first instance, sold in 
    the United States. We might consider a vehicle owned by the Pope, the 
    Queen of England, or some other important figure to be a vehicle of 
    historical significance.
        We went on to explain to Mr. London that
    
        In interpreting the word ``show'' and thereby exercising its 
    discretion whether to allow importation of nonconforming motor 
    vehicles for this purpose, the agency must balance the harm to the 
    public likely to occur through use of the vehicle on the public 
    roads, with the benefit to the public of importation of 
    nonconforming vehicle for show purposes. * * * [t]he agency believes 
    it is less likely that a rare or unique vehicle, part of a 
    collection available to the public will be sold for use on the 
    public roads than a vehicle such as the 1968-72 Mercedes 280SL that 
    has been imported in numerous quantities as a conforming motor 
    vehicle.
    
        This explanation clearly demonstrated our view that nonconforming 
    analogues of certified vehicles sold in the United States were not very 
    likely to be considered of historical or technological significance.
        In any event, use on the public roads will not be a matter of right 
    for vehicles imported for ``show or display,'' but subject to such 
    terms and conditions as may be established at the time of entry. In 
    some cases where there are safety concerns, we may refuse to authorize 
    on-road use of a particular vehicle. In order to ensure that any on-
    road use is limited, the prospective importer, in his or her request 
    letter, must describe the purposes for which on-road use is deemed 
    required.
        We proposed that the request be accompanied with an affirmation 
    that the vehicle will not be driven on the public roads more than 500 
    miles in any 12-month period beginning as of the date of its 
    importation, and that the affirmation be confirmed by the importer's 
    submittal of an annual notarized mileage statement for the vehicle on 
    the anniversary date of its importation, for the first five years after 
    it is imported. We have been requested by the one commenter on the 
    proposal, the Special Vehicle Coalition (the ``Coalition''), to 
    increase the permissible annual mileage to 2,500 miles. Describing 
    itself as ``a group of vehicle collectors who own limited-production 
    high-performance vehicles,'' the Coalition asserted that ``restricting 
    mileage to 500 miles per year will prohibit participation in many civic 
    and charitable events designed to benefit, entertain, and inspire the 
    American public.'' More persuasively, the Coalition argued that an 
    annual odometer reading might not accurately reflect actual on-road 
    usage, since it would include mileage attributable to any use of the 
    vehicle off the public roads as well. It brings to our attention that 
    ``a 2,500 mile allotment is consistent with current practice for these 
    kind of vehicles, including normal on-road usage of much older 
    collector vehicles that, because of their age, will not meet Federal 
    motor vehicle safety standards.'' This comment was accompanied by a 
    footnote saying that ``Insurance policies for classic cars and vehicles 
    of special interest typically set a maximum mileage allowance of 2,500 
    miles per year.''
        We have reconsidered our proposal in light of the Coalition's 
    comments. In proposing a 500-mile limitation, we had not focused on the 
    fact that other vehicles not subject to the Federal motor vehicle 
    safety standards have been permitted to use the public roads under 
    insurance policies that limit their mileage allowance to 2,500 miles 
    per year. While the Coalition did not discuss the kind of insurance 
    policy that would be obtained by importers for show and display, we 
    assume that all vehicles imported for show and display will, in fact, 
    be insured, and that the policy would not deviate materially from those 
    that cover classic and special interest vehicles. Furthermore, the 
    mileage limitation imposed as a condition of insurance appears to 
    remove the need for the importer to submit an annual mileage statement 
    to us. However, we believe that we ought to be able to inspect the 
    vehicle if we wish to verify that the accumulated mileage of the 
    vehicle is not more than 2,500 miles in any 12-month period. 
    Accordingly, our final rule requires the prospective importer to submit 
    with its request the current mileage of the vehicle and a copy of an 
    insurance contract covering the car, which contains as a condition the 
    restriction of annual mileage to a maximum of 2,500 miles (this 
    limitation refers to all mileage, not merely on-road mileage). In 
    addition, the prospective importer must state that (s)he will allow us 
    to inspect the vehicle upon our request. As proposed, the prospective 
    importer will also have to state that the vehicle will not be used on 
    the public roads unless it complies with the requirements of the 
    Environmental Protection Agency. Moreover, as indicated above, we may 
    impose additional requirements or limitations in particular instances 
    when we find such requirements are appropriate.
        We have substituted the conditions for an insurance policy and its 
    maintenance until the vehicle is 25 years old for the notarized mileage 
    statement submitted for 5 years after importation which we originally 
    proposed. Under 49 U.S.C. 30112(b)(9), a noncomplying motor vehicle may 
    be imported with no Federal legal requirement to conform it if it is at 
    least 25 years old. Our new provision, thus, serves to release the 
    importer or owner from the restrictions imposed on show or display 
    importations when the vehicle reaches 25 years of age. We retain the 
    right to inspect it for mileage verification until that point.
        The current regulation also restricts sale and transfer of 
    possession of a vehicle imported for ``studies'' until it is 25 years 
    old. While this restriction might not be burdensome to a museum, the 
    agency recognizes that there are circumstances such as the death of an 
    importer where a sale or transfer of a vehicle imported for ``show or 
    display'' must occur before it is 25 years old. To fully implement its 
    new authority to allow importation for ``show or display,'' the agency 
    is modifying this restriction, and allow sale or transfer of a vehicle 
    imported for ``show or display'' upon approval by the Administrator.
        Accordingly, we are revising sec. 591.6(f)(2) to require that a 
    prospective importer:
    
    shall explain why the vehicle or equipment item is of historical or 
    technological interest. The importer shall also provide a statement 
    that, until the vehicle is not less than 25
    
    [[Page 37881]]
    
    years old, (s)he shall not sell, or transfer possession of, or title 
    to, the vehicle, and shall not license it for use, or operate it on 
    the public roads, except under such terms and conditions as the 
    Administrator may authorize. If the importer wishes to operate the 
    vehicle on the public roads, the request to the Administrator shall 
    include a description of the purposes for which (s)he wishes to use 
    it on the public roads, a copy of an insurance policy or a contract 
    to acquire an insurance policy, which contains as a condition 
    thereof that the vehicle will not accumulate mileage of more than 
    2,500 miles in any 12-month period and a statement that the importer 
    shall maintain such policy in effect until the vehicle is not less 
    than 25 years old, a statement that the importer will allow the 
    Administrator to inspect the vehicle at any time after its 
    importation to verify that the accumulated mileage of the vehicle is 
    not more than 2,500 miles in any 12-month period, and a statement 
    that the vehicle will not be used on the public roads unless it is 
    in compliance with the regulations of the Environmental Protection 
    Agency.
    
    Failure to allow a mileage inspection or to maintain a policy with an 
    accumulated mileage limitation or the accumulation of more than 2,500 
    miles in any 12-month period will be regarded as a violation of the 
    terms of entry.
    
    C. Sec. 591.7, Restrictions on Importations
    
        Until now, all importations under sec. 591.5(j)(1) have been ``for 
    a temporary period,'' requiring a U.S. Customs Service Temporary 
    Importation Bond (TIB). Under sec. 591.7(a), the TIB requires that 
    vehicles which it covers shall not remain in the United States for a 
    period that exceeds 3 years from the date of entry. However, under sec. 
    591.7(b), if the importer decides to liquidate the bond, it may apply 
    to us for permission to keep the vehicle in the country for an 
    additional period of time not to exceed 5 years from the date of entry, 
    unless further written permission has been obtained from us. Such 
    written permission, after 5 years, can result in an ``importation for a 
    temporary period'' becoming a permanent one. This regulatory scheme has 
    caused uncertainty as to whether we permit permanent importations under 
    sec. 591.5(j).
        Because we do permit permanent importations under sec. 591.5(j), we 
    believe that we should clarify this point and simplify this process to 
    allow a permanent importation ab initio, if an importer chooses to pay 
    duty upon entry of the vehicle, rather than treating the entry as a 
    ``temporary'' one, requiring a TIB and subsequent letters of 
    permission. Amendments of this nature will not affect the existing 
    right under sec. 591.5(j)(1) to import vehicles on a temporary basis 
    with a TIB for those importers who wish to choose this option.
        Another restriction is imposed by sec. 591.7(c). If the importer 
    has brought a vehicle into the United States pursuant to sec. 
    591.5(j)(2)(i), sec. 591.7(c) requires the importer to retain title to 
    and possession of it, forbids its leasing, and allows its use on the 
    public roads only if written permission has been granted by the 
    Administrator pursuant to sec. 591.6(f)(1) (covering importations for 
    research, investigations, demonstrations or training, but not studies 
    or competitive racing events).
        The restriction of sec. 591.7(c) implements the statement that an 
    importer is required to make as part of the request letter. Given the 
    fact that limited on-road use is being permitted for importations for 
    ``show or display,'' we are amending sec. 591.7(c) to allow limited on-
    road use of all vehicles imported under sec. 591.5(j)(2)(i) ``under 
    such terms and conditions as the Administrator may authorize in 
    writing.'' We are also amending the first sentence of sec. 591.7(c) to 
    conform to the statement that an importer gives under sec. 591.6(f)(2), 
    and imposing affirmative obligations not to sell or transfer the 
    vehicle, or license it or operate it on the public roads except upon 
    written approval by the Administrator in place of the presently 
    existing absolute prohibition.
        Sec. 591.7(d) specifically provides that any violation of a term or 
    condition that we impose ``in a letter authorizing importation or on-
    road use under sec. 591.5(j) shall be considered a violation'' of the 
    Safety Act for which a civil penalty may be imposed. We note that this 
    language could possibly be read as suggesting that a civil penalty 
    would be the only consequence of a violation of a condition imposed as 
    part of an exemption from sec. 30112(a). Therefore, we are modifying 
    sec. 591.7(d) to make it clear that such a violation of a term or 
    condition in an exemption authorization will void the authorization and 
    require exportation of the vehicle. In addition, the statutory 
    reference in sec. 591.7(d) to 15 U.S.C. 1397(a)(1)(A) is changed to 49 
    U.S.C. 30112(a) to reflect the recodification of the Safety Act into 
    Chapter 301.
        Sec. 591.7(e) prohibits the importation for ``studies'' by any 
    person not recognized as a tax-exempt entity by the Internal Revenue 
    Service for not less than 5 years before the date of its written 
    request. Because we are incorporating the ``studies'' exemption into 
    the exemption for ``research'' where this restriction does not exist, 
    this section is moot. Sec. 591.7(e), therefore, is being removed. A new 
    subsection (e) will replace it, to implement the statutory directive of 
    section 7107(b) of Pub. L. 105-178 discussed below.
    
    3. Seeking Exemptions Under Sec. 30114 for Vehicles in the United 
    States at the Time the Amendment Was Enacted
    
        Section 7107(b) of Pub. L. 105-178 provides that:
    
        (b) TRANSITION RULE--A person who is the owner of a motor 
    vehicle located in the United States on the date of enactment of 
    this Act may seek an exemption under section 30114 of title 49, 
    United States Code, as amended by subsection (a) of this section, 
    for a period of 6 months after the date regulations of the Secretary 
    of Transportation promulgated in response to such amendment take 
    effect.
    
        We interpret sec. 7017(b) as authorizing owners of vehicles 
    imported under sec. 591.5(j) before June 9, 1998, to apply to the 
    Administrator for a change in the terms and conditions under which the 
    vehicle was admitted so that engaging in an act contrary to those 
    original terms and conditions will not be held to be a violation. If 
    the change requested is to reclassify the vehicle as one imported for 
    show or display, we proposed that the request also include a statement 
    that the owner will provide the annual mileage statement required of de 
    novo importers for show or display by sec. 591.6(f)(2). However, the 
    final rule for change-of-status importers is modified to reflect the 
    changes we are adopting in sec. 591.6(f)(2) relating to an increase in 
    maximum mileage subject to insurance limitations, and the right to 
    inspect the vehicle to verify its accumulated mileage. Therefore, we 
    are revising sec. 591.7(d) and (e) to read as follows:
    
        (d) Any violation of a term or condition imposed by the 
    Administrator in a letter authorizing importation or on-road use 
    under Sec. 591.5(j), or a change of status under paragraph (e) of 
    this section, including a failure to allow inspection upon request 
    to verify that the accumulated mileage of the vehicle is not more 
    than 2,500 miles in any 12-month period, shall be considered a 
    violation of 49 U.S.C. 30112(a) for which a civil penalty may be 
    imposed. Such a violation will also act to void the authorization 
    and require the exportation of the vehicle. With respect to 
    importations under Sec. 591.6(f)(2) or a change of status to an 
    importation for show or display as provided under paragraph (e) of 
    this section, if the Administrator has reason to believe that a 
    violation has occurred, the Administrator may tentatively conclude 
    that a term of entry has been violated but shall make no final 
    conclusion until the importer or owner has been afforded an 
    opportunity to present data, views, and arguments as to why there is 
    no
    
    [[Page 37882]]
    
    violation or why a penalty should not be imposed.
        (e) The owner of a vehicle located in the United States on June 
    9, 1998, which the owner had imported pursuant to Sec. 591.5(j), may 
    apply to the Administrator on or before February 14, 2000, for a 
    change in any such term or condition contained in the 
    Administrator's letter. If the owner requests a change to 
    importation for show or display, the request to the Administrator 
    shall contain the information and statements required under 
    Sec. 591.6(f)(2) for a new importation for show or display. All 
    requests for change shall be sent to the Director, Office of Vehicle 
    Safety Compliance (NSA-32), National Highway Traffic Safety 
    Administration, Room 6111, 400 Seventh Street, SW, Washington, DC 
    20590.
    
    4. Effective Date
    
        The final rule is effective 30 days after its publication in the 
    Federal Register.
    
    5. Rulemaking Analyses and Notices
    
    A. Executive Order 12866 (Federal Regulation) and DOT Regulatory 
    Policies and Procedures
    
        This rule has not been reviewed under E.O. 12866. After considering 
    the impacts of this rulemaking action, NHTSA has determined that the 
    action is not significant within the meaning of the Department of 
    Transportation regulatory policies and procedures. The only substantive 
    change that this rule makes is to add an additional justification for 
    importing motor vehicles without the need to comply with the Federal 
    motor vehicle safety standards, and to require their importers to 
    submit substantiating information similar to that already required for 
    similar importations (see discussion below on Paperwork Reduction Act). 
    The impacts are so minimal as not to warrant the preparation of a full 
    regulatory evaluation.
    
    B. Regulatory Flexibility Act
    
        The agency has also considered the effects of this action in 
    relation to the Regulatory Flexibility Act. For the reasons discussed 
    above under E.O. 12866 and the DOT Policies and Procedures, I certify 
    that this action does not have a significant economic impact upon ``a 
    substantial number of small entities.'' The addition of an option to 
    import a vehicle for ``show or display'' without the need to conform it 
    relieves a previously existing restriction. Because the agency has 
    permitted manufacturers of motor vehicles to import vehicles for 
    purposes similar to ``show or display'' in the past, NHTSA believes 
    that virtually all who wish to import a vehicle for ``show or display'' 
    will be individuals. Individuals are not ``small entities.'' 
    Governmental jurisdictions will be affected only to the extent that 
    they must decide whether local laws permit the operation on local 
    public roads of motor vehicles imported for show or display that do not 
    conform to all applicable Federal motor vehicle safety standards, and 
    this decision will not have a significant economic impact.
    
    C. Executive Order 12612 (Federalism)
    
        The agency has analyzed this action in accordance with the 
    principles and criteria contained in Executive Order 12612 
    ``Federalism'' and determined that the action does not have sufficient 
    federalism implications to warrant the preparation of a Federalism 
    Assessment.
    
    D. National Environmental Policy Act
    
        NHTSA has analyzed this action for purposes of the National 
    Environmental Policy Act. The action will not have a significant effect 
    upon the environment because it is anticipated that the annual volume 
    of motor vehicles imported will not vary significantly from that 
    existing before the promulgation of this rule.
    
    E. Civil Justice Reform
    
        This final rule does not have any retroactive effect.
    
    F. Paperwork Reduction Act
    
        The procedures in this rule to permit importation of motor vehicles 
    and equipment not originally manufactured for the U.S. market include 
    information collection requirements as that term is defined by the 
    Office of Management and Budget (OMB) in 5 CFR Part 1320. The original 
    information collection requirements of Part 591 were approved by the 
    OMB pursuant to the requirements of the Paperwork Reduction Act (44 
    U.S.C. Sec. 3501 et seq.). NHTSA believes that the existing clearance 
    covers a final rule that is based on implementing a statutory 
    amendment, and has not sought a new or expanded clearance. This 
    collection of information has been assigned OMB Control No. 2127-0002 
    (``Motor Vehicle Information'').
    
    G. Unfunded Mandates Reform Act of 1995
    
        The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires 
    agencies to prepare a written assessment of the cost, benefits, and 
    other effects of proposed or final rules that include a Federal mandate 
    likely to result in the expenditure by state, local, or tribal 
    governments, in the aggregate, or by the private sector, of more than 
    $100 million annually. Because this final rule will not have an effect 
    of $100 million, no Unfunded Mandates assessment has been prepared.
    
    List of Subjects in 49 CFR Part 591
    
        Imports, Motor vehicle safety, Motor vehicles, Reporting and 
    recordkeeping requirements.
    
        In consideration of the foregoing, 49 CFR part 591 is amended as 
    follows:
    
    PART 591--IMPORTATION OF VEHICLES AND EQUIPMENT SUBJECT TO FEDERAL 
    SAFETY, BUMPER AND THEFT PREVENTION STANDARDS
    
        1. The authority citation for part 591 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 322(a), 30114; Pub. L. 100-562, 102 Stat. 
    2824; Pub. L. 105-178, 112 Stat. 469; delegations of authority at 49 
    CFR 1.50 and 501.8.
    
        2. Section 591.5 is amended by revising paragraph (j)(1) to read as 
    follows:
    
    
    Sec. 591.5  Declarations required for importation.
    
    * * * * *
        (j)(1) The vehicle or equipment item does not conform with all 
    applicable Federal motor vehicle safety and bumper standards, but is 
    being imported solely for the purpose of:
        (i) Research;
        (ii) Investigations;
        (iii) Show or display;
        (iv) Demonstrations or training; or
        (v) Competitive racing events;
    * * * * *
        3. Section 591.6(f)(1) and (f)(2) are revised to read as follows:
    
    
    Sec. 591.6  Documents accompanying declarations.
    
    * * * * *
        (f) * * *
        (1) A declaration made pursuant to Sec. 591.5(j)(1)(i), (ii), (iv), 
    or (v) and (j)(2)(i) shall be accompanied by a letter from the 
    Administrator authorizing importation pursuant to Sec. 591.5(j)(1)(i), 
    (ii), (iv), or (v) and (j)(2)(i). Any person seeking to import a motor 
    vehicle or motor vehicle equipment pursuant to these sections shall 
    submit, in advance of such importation, a written request to the 
    Administrator containing a full and complete statement identifying the 
    vehicle or equipment, its make, model, model year or date of 
    manufacture, VIN if a motor vehicle, and the specific purpose(s) of 
    importation. The discussion of purpose(s) shall include a description 
    of the use to be made of the vehicle or equipment. If use on the public 
    roads is an integral part of the purpose for which the vehicle or 
    equipment is imported, the statement shall request permission for use 
    on the public roads, describing the purpose which makes such use 
    necessary, and stating the estimated period of time
    
    [[Page 37883]]
    
    during which use of the vehicle or equipment on the public roads is 
    necessary. The request shall also state the intended means of final 
    disposition, and disposition date, of the vehicle or equipment after 
    completion of the purposes for which it is imported. The request shall 
    be addressed to Director, Office of Vehicle Safety Compliance (NSA-32), 
    National Highway Traffic Safety Administration, Room 6111, 400 Seventh 
    Street, SW, Washington, DC 20590.
        (2) A declaration made pursuant to Sec. 591.5(j)(1)(iii) and 
    (j)(2)(i) shall be accompanied by a letter from the Administrator 
    authorizing importation pursuant to Sec. 591.5(j)(1)(iii) and 
    (j)(2)(i). Any person seeking to import a motor vehicle or motor 
    vehicle equipment pursuant to those sections shall submit, in advance 
    of such importation, a written request to the Administrator containing 
    a full and complete statement identifying the equipment item or the 
    vehicle and its make, model, model year or date of manufacture, VIN, 
    and mileage at the time the request is made. The importer's written 
    request to the Administrator shall explain why the vehicle or equipment 
    item is of historical or technological interest. The importer shall 
    also provide a statement that, until the vehicle is not less than 25 
    years old, (s)he shall not sell, or transfer possession of, or title 
    to, the vehicle, and shall not license it for use, or operate it on the 
    public roads, except under such terms and conditions as the 
    Administrator may authorize. If the importer wishes to operate the 
    vehicle on the public roads, the request to the Administrator shall 
    include a description of the purposes for which (s)he wishes to use it 
    on the public roads, a copy of an insurance policy or a contract to 
    acquire an insurance policy, which contains as a condition thereof that 
    the vehicle will not accumulate mileage of more than 2,500 miles in any 
    12-month period and a statement that the importer shall maintain such 
    policy in effect until the vehicle is not less than 25 years old, a 
    statement that the importer will allow the Administrator to inspect the 
    vehicle at any time after its importation to verify that the 
    accumulated mileage of the vehicle is not more than 2,500 miles in any 
    12-month period, and a statement that the vehicle will not be used on 
    the public roads unless it is in compliance with the regulations of the 
    Environmental Protection Agency.
    * * * * *
        4. Section 591.7 is amended by revising the first sentence of 
    paragraph (c) and by revising paragraphs (d) and (e) to read as 
    follows:
    
    
    Sec. 591.7  Restrictions on importations.
    
    * * * * *
        (c) An importer of a vehicle which has entered the United States 
    under a declaration made pursuant to Sec. 591.5(j)(2)(i) shall not 
    sell, or transfer possession of, or title to, the vehicle, and shall 
    not license it for use, or operate it on the public roads, except under 
    such terms and conditions as the Administrator may authorize in 
    writing. * * *
        (d) Any violation of a term or condition imposed by the 
    Administrator in a letter authorizing importation for on-road use under 
    Sec. 591.5(j), or a change of status under paragraph (e) of this 
    section, including a failure to allow inspection upon request to verify 
    that the accumulated mileage of the vehicle is not more than 2,500 
    miles in any 12-month period, shall be considered a violation of 49 
    U.S.C. 30112(a) for which a civil penalty may be imposed. Such a 
    violation will also act to void the authorization and require the 
    exportation of the vehicle. With respect to importations under 
    Sec. 591.6(f)(2) or a change of status to an importation for show or 
    display as provided under paragraph (e) of this section, if the 
    Administrator has reason to believe that a violation has occurred, the 
    Administrator may tentatively conclude that a term of entry has been 
    violated, but shall make no final conclusion until the importer or 
    owner has been afforded an opportunity to present data, views, and 
    arguments as to why there is no violation or why a penalty should not 
    be imposed.
        (e) The owner of a vehicle located in the United States on June 9, 
    1998, which the owner had imported pursuant to Sec. 591.5(j), may apply 
    to the Administrator on or before February 14, 2000 for a change in any 
    such term or condition contained in the Administrator's letter. If the 
    owner requests a change to importation for show or display, the request 
    to the Administrator shall contain the information and statements 
    required under Sec. 591.6(f)(2) for a new importation for show or 
    display. All requests for change shall be sent to the Director, Office 
    of Vehicle Safety Compliance (NSA-32), National Highway Traffic Safety 
    Administration, Room 6111, 400 Seventh Street, SW, Washington, DC 
    20590.
    
        Issued on: July 8, 1999.
    Kathleen C. DeMeter,
    Acting Associate Administrator for Safety Assurance.
    [FR Doc. 99-17806 Filed 7-13-99; 8:45 am]
    BILLING CODE 4910-59-P
    
    
    

Document Information

Published:
07/14/1999
Department:
National Highway Traffic Safety Administration
Entry Type:
Rule
Action:
Final rule.
Document Number:
99-17806
Pages:
37878-37883 (6 pages)
Docket Numbers:
Docket No. 99-NHTSA-5240, Notice 2
RINs:
2127-AH45: Importation of Vehicles and Equipment Suppliers--Technical Amendment
RIN Links:
https://www.federalregister.gov/regulations/2127-AH45/importation-of-vehicles-and-equipment-suppliers-technical-amendment
PDF File:
99-17806.pdf
CFR: (9)
49 CFR 7107(a)
49 CFR 591.7(d)
49 CFR 591.7(e)
49 CFR 591.6(f)(2)
49 CFR 591.6(f)
More ...