[Federal Register Volume 59, Number 117 (Monday, June 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14865]
[[Page Unknown]]
[Federal Register: June 20, 1994]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Parts 591 and 592
[Docket No. 89-5; Notice 13]
RIN 2127-AD00
Importation of Vehicles and Equipment Subject to Federal Safety,
Bumper, and Theft Prevention Standards; Registered Importers of
Vehicles Not Originally Manufactured To Conform to the Federal Motor
Vehicle Safety Standards
AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.
ACTION: Interim final rule, request for comments.
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SUMMARY: This interim final rule amends part 591 to adopt a continuous
entry bond as an alternative to the single entry bond that is required
to accompany each nonconforming vehicle imported into the United
States. Under the alternative, a registered importer of motor vehicles
who imports more than one vehicle can enter vehicles under a continuous
bond that covers an indefinite number of vehicles at a single time up
to the value of the bond. The new bond has a ceiling value of
$1,000,000, and is valid for an indefinite period. Conforming
amendments are also adopted for part 592. The agency has determined
that immediate action is in the public interest since it has been
informed by a Registered Importer that the principal bonding company
that issues single entry bonds has decided to terminate offering them.
The agency is also requesting comments whether NHTSA should make
permanent this alternative.
The interim final rule also deletes the provisions which expired on
October 31, 1992 that allowed importation of a vehicle without the
agency of a registered importer if the importer owned the vehicle
before October 31, 1988.
DATES: Effective Date: The amendments made by this interim final rule
are effective on June 20, 1994.
Comments: Comments must be received on or before August 19, 1994.
ADDRESSES: Comments should refer to Docket No. 89-5; Notice 13, and be
submitted to: Docket Section, room 5109, 400 Seventh Street, SW,
Washington, D.C. 20590 [Docket hours are from 9:30 a.m. to 4 p.m.].
FOR FURTHER INFORMATION CONTACT: Taylor Vinson, Office of Chief
Counsel, NHTSA (202-366-5263).
SUPPLEMENTARY INFORMATION: Under the regulatory scheme in effect for
the importation of motor vehicles subject to the Federal motor vehicle
safety, bumper, and theft prevention standards, a non-conforming
vehicle may be entered under bond in an amount equal to 150 percent of
its dutiable value. The purpose of the bond is to assure that the
vehicle is subsequently brought into conformance, or, alternatively,
delivered to the U.S. Customs Service for export, or abandoned. The
bond covers only one motor vehicle.
A Registered Importer (RI) who is an importer of Canadian vehicles
for resale asked NHTSA recently for permission to use a continuous
surety bond that would cover more than one motor vehicle. The example
given was of a continuous bond of $150,000 which would cover 10
vehicles imported together, each with a value of $10,000 as determined
by the U.S. Customs Service, instead of 10 individual bonds for 10
vehicles of $10,000 value, each bond set at $15,000. NHTSA replied
(letter of June 4, 1993, to Dan Kokal of Champagne Imports) that it was
unable to implement this suggestion without rulemaking, but that it
would consider the feasibility of it.
After review of this matter, NHTSA tentatively concluded that the
amendment of its regulations to permit an importer the choice of a
continuous entry bond could simplify entry procedures for both
government and the private sector, and would therefore be in the public
interest. However, before it could initiate rulemaking, it was informed
on April 28, 1994, by another RI, Lawrence A. Beyer, that ``the only
bonding company which issues these bonds [has] now advised me that they
no longer wish to issue these bonds.'' According to Mr. Beyer, the
effect of this development is that ``[w]ithout these bonds, registered
importers can no longer import. The jobs and livelihood of many people
is (sic) at stake.''
For this reason, NHTSA is amending part 591 to permit a continuous
entry bond, as an alternative to the single entry bond, which has a
ceiling of $1,000,000, to minimize the possibility that a registered
importer might have to obtain more than one continuous entry bond.
Under the present scheme, Customs ensures that the bond is attached to
the HS-7 importation form, and forwards the documents to NHTSA. Under
the alternative, the bond will already be on file at NHTSA. However,
the importer will be required to attach to the HS-7 importation form a
photocopy of the continuous entry bond and a copy of the Customs Entry
Summary (CF 7501) which states the entered value of the vehicle. This
information is necessary to enforce bond forfeiture should that be
necessary. The continuous entry bond is simply that shown in Appendix A
with the reference to ``vehicle'' in the singular changed to the plural
``vehicles'' when appropriate. Because Customs will ensure that a
photocopy of the continuous entry bond is attached to the importation
form, the bond processing fee of $4.75 per importation form will
continue to apply, but the single fee will cover all vehicles
represented by the single importation form.
The notice also adopts certain housekeeping amendments. Under
section 591.6(g), nonconforming vehicles whose importers met certain
specified requirements could be imported before October 31, 1992,
without the offices of a registered importer. As this authority has now
expired and will not be renewed, the agency has deleted it, as well as
the bond (Appendix B) which accompanied this type of entry. Conforming
amendments are made elsewhere in part 591 as well.
Finally, a conforming amendment is adopted to the ancillary
importation regulation on registered importers, part 592.
Effective Date
The interim final rule is effective upon publication in the Federal
Register. NHTSA notes that without this amendment to permit a
continuous entry bond, RIs and their customers will be unable to import
nonconforming vehicles pursuant to 49 CFR 591.5(f). Therefore, NHTSA
finds that the issuance of this notice without prior opportunity for
comment is necessary in view of the difficulties that unexpectedly
began to occur recently and would continue to occur were part 591 not
amended. The agency also finds for good cause that it is in the public
interest to establish an immediate effective date for the amendments
made by this notice. In the absence of an immediate effective date, RIs
would be unable to continue importing vehicles from Canada and other
countries. The amendments impose no new requirements but instead
provides an alternative to an existing requirement, whose continued
viability is doubtful.
Rulemaking Analyses
A. Executive Order 12866 (Federal Regulation) and DOT Regulatory
Policies and Procedures
This notice was not reviewed under EO 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. It amends an
existing requirement to afford RIs an alternative method of providing a
bond for imported nonconforming vehicles. The number of RIs affected is
less than 20. The cost impacts of this regulatory action are cost
savings to the RIs in procuring bonds (an estimated $20 per vehicle),
and nonquantifiable cost savings in the paper work involved to obtain
single-entry bonds. 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. I certify that this action
would not have a significant economic impact upon ``a substantial
number of small entities,'' but it will have a significant economic
impact upon RIs, which number less than 20, and which are small
businesses within the meaning of the Regulatory Flexibility Act. This
action appears required to allow them to continue in business.
Governmental jurisdictions will not be affected at all since they are
generally neither importers nor purchasers of nonconforming imported
motor vehicles.
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 promulgation of the rule.
E. Civil Justice Reform
This interim final rule will not have any retroactive effect. Under
section 103(d) of the National Traffic and Motor Vehicle Safety Act (15
U.S.C. 1392(d)), whenever a Federal motor vehicle safety standard is in
effect, a state may not adopt or maintain a safety standard applicable
to the same aspect of performance which is not identical to the Federal
standard. Section 105 of the Act (15 U.S.C. 1394) sets forth a
procedure for judicial review of final rules establishing, amending or
revoking Federal motor vehicle safety standards. That section does not
require submission of a petition for reconsideration or other
administrative proceedings before parties may file suit in court.
Comments
Interested persons are invited to submit comments on the interim
final rule. It is requested but not required that 10 copies be
submitted.
All comments must not exceed 15 pages in length. (49 CFR 553.21).
Necessary attachments may be appended to these submissions without
regard to the 15-page limit. This limitation is intended to encourage
commenters to detail their primary arguments in a concise fashion.
If a commenter wishes to submit certain information under a claim
of confidentiality, three copies of the complete submission, including
purportedly confidential business information, should be submitted to
the Chief Counsel, NHTSA, at the street address given above, and seven
copies from which the purportedly confidential information has been
deleted should be submitted to the Docket Section. A request for
confidentiality should be accompanied by a cover letter setting forth
the information specified in the agency's confidential business
information regulation. 49 CFR Part 512.
All comments received before the close of business on the comment
closing date indicated above will be considered, and will be available
for examination in the docket at the above address both before and
after that date. If no comments are received as of the comment closing
date, no further notice will be published. If comments have been
received as of the closing date, comments received after the closing
date will be considered to the extent practicable. If no comments have
been received as of the closing date, comments received after the
closing date will be considered as suggestions for further rulemaking
action. Comments on the interim final rule will be available for
inspection in the docket. NHTSA will continue to file relevant
information as it becomes available in the docket after the closing
date, and it is recommended that interested persons continue to examine
the docket for new material.
Those persons desiring to be notified upon receipt of their
comments in the rules docket should enclose a self-addressed, stamped
postcard in the envelope with their comments. Upon receiving the
comments, the docket supervisor will return the postcard by mail.
List of Subjects in 49 CFR Parts 591 and 592
Imports, Motor vehicle safety, Motor vehicles.
In consideration of the foregoing, 49 CFR parts 591 and 592 are
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 continues to read as
follows:
Authority: Public Law 100-562, 15 U.S.C. 1401, 1407; delegation
of authority at 49 CFR 1.50.
2. Section 591.5 is amended by revising paragraph (f)(1) and
removing and reserving paragraph (g) to read as follows:
Sec. 591.5 Declarations required for importation.
* * * * *
(f) * * *
(1) The importer has furnished a bond in an amount equal to 150% of
the dutiable value of the vehicle, containing the terms and conditions
specified in section 591.8; and
* * * * *
(g) [Reserved]
* * * * *
3. Section 591.6 is amended by revising paragraph (c) to read as
set forth below, by removing paragraph (e), and by redesignating
paragraphs (f) and (g) as paragraphs (e) and (f), respectively:
Sec. 591.6 Documents accompanying declarations.
* * * * *
(c) A declaration made pursuant to paragraph 591.5(f), and under a
single entry bond, shall be accompanied by a bond in the form shown in
Appendix A, in an amount equal to 150% of the dutiable value of the
vehicle, or, if under a continuous entry bond, shall be accompanied by
a photocopy of a bond in the form shown in Appendix A (which may refer
to ``vehicles'' in the plural where appropriate) and by Customs Form CF
7501, for the conformance of the vehicle(s) with all applicable Federal
motor vehicle safety and bumper standards, or, if conformance 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.
* * * * *
Sec. 591.7 [Amended]
4. Paragraph 591.7(c) is amended by revising the reference to
``section 591.6(g)(1)'' to read ``paragraph 591.6(f)(1).''
5. Section 591.8 is amended by amending paragraph (a) to add a
sentence at the end thereof to read as set forth below, by removing
paragraph (d)(2)(ii), and by redesignating paragraph (d)(2)(i) as
paragraph (d)(2):
Sec. 591.8 Conformance bond and conditions.
(a) * * * However, a registered importer may enter vehicles under a
bond of a continuing nature that covers an indefinite number of motor
vehicles 150% of whose total dutiable value at any point in time does
not exceed $1,000,000.
* * * * *
6. Section 591.9 is amended by revising the second sentence of
paragraph (a) to read as follows:
Sec. 591.9 Petitions for remission or mitigation of forfeiture.
(a) * * * A principal and/or surety may petition for mitigation of
forfeiture only if the motor vehicle has been imported pursuant to
paragraph 591.5(f) and the condition not met relates to the compliance
of a passenger motor vehicle with part 581 of this chapter.
* * * * *
Appendix B--[Removed]
7. Appendix B is removed.
PART 592--REGISTERED IMPORTERS OF VEHICLES NOT ORIGINALLY
MANUFACTURED TO CONFORM TO THE FEDERAL MOTOR VEHICLE SAFETY
STANDARDS
8. The authority citation for part 592 continues to read as
follows:
Authority: Public Law 100-562, 15 U.S.C. 1401, 1407; delegation
of authority at 49 CFR 1.50.
9. Section 592.6 is amended by amending paragraph (a) to add a
sentence at the end thereof to read as follows:
Sec. 592.6 Duties of a registered importer.
* * * * *
(a) * * * However, if the Registered Importer has procured a
continuous entry bond, it shall furnish the Administrator with such
bond, and shall furnish the Secretary of the Treasury (acting on behalf
of the Administrator) with a photocopy of such bond and Customs Form CF
7501 at the time of importation of each motor vehicle.
* * * * *
Issued on: June 14, 1994.
Christopher A. Hart,
Deputy Administrator.
[FR Doc. 94-14865 Filed 6-15-94; 11:29 am]
BILLING CODE 4910-59-P
