99-6847. Importation of Vehicles and Equipment Subject to Federal Safety, Bumper, and Theft Prevention Standards  

  • [Federal Register Volume 64, Number 54 (Monday, March 22, 1999)]
    [Proposed Rules]
    [Pages 13757-13762]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-6847]
    
    
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    DEPARTMENT OF TRANSPORTATION
    
    National Highway Traffic Safety Administration
    
    49 CFR Part 591
    
    RIN 2127-AH45
    [Docket No. 99-NHTSA-5240]
    
    
    Importation of Vehicles and Equipment Subject to Federal Safety, 
    Bumper, and Theft Prevention Standards
    
    AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.
    
    ACTION: Notice of proposed rulemaking.
    
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    SUMMARY: This document proposes to amend NHTSA's importation 
    regulations to implement a recent 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 we 
    are proposing, a person who wants to import a vehicle or equipment item 
    for ``show or display'' would have to 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 propose to allow limited use on the public roads of vehicles 
    imported for ``show or display.'' Before entry, an importer would 
    describe the intended on-road use of the vehicle and affirm that the 
    vehicle would not be used on the public roads more than 500 miles in 
    any 12-month period. The importer would be required to provide an 
    annual mileage statement to the agency during the first five years 
    after entry.
        Pursuant to the recent 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: Comment due date: Comments are due on the proposed rule May 6, 
    1999. Effective date: The final rule would be effective 45 days after 
    its publication in the Federal Register.
    
    ADDRESSES: Comments should refer to the docket number indicated above 
    and be submitted to: Docket Management, Room PL-401, 400 Seventh 
    Street, SW, Washington, DC 20590. (Docket hours are from 9 a.m. to 5 
    p.m.)
    
    FOR FURTHER INFORMATION CONTACT: Taylor Vinson, Office of Chief 
    Counsel, NHTSA (202-366-5263).
    
    SUPPLEMENTARY INFORMATION:
    
    1. Background of this Rulemaking Action
    
    A. The 1968 Importation Regulation
    
        Under Sec. 12.80(b)(1)(vii) of the agency's original importation 
    regulation, 19 CFR 12.80, effective January 10, 1968, a person could 
    import motor vehicles or motor vehicle equipment not manufactured to 
    conform to the Federal motor vehicle safety standards (FMVSS) if the 
    person declared that:
    
        The importer or consignee is importing such vehicle or equipment 
    item solely for the purpose of show, test, experiment, competition, 
    repairs, or alterations and that such vehicle or equipment item will 
    not be sold or licensed for use on the public roads.
    
        This regulation allowed importations of nonconforming vehicles or 
    equipment items for ``show'' until it was superseded on January 31, 
    1990.
    
    B. The 1990 Importation Regulation
    
        On October 31, 1988, the Imported Vehicle Safety Compliance Act of 
    1988 (Pub. L. 100-562)(``Safety Compliance
    
    [[Page 13758]]
    
    Act'') was enacted. Its provisions became effective January 31, 1990. 
    The Safety Compliance Act provided that nonconforming vehicles at least 
    25 years old could be imported without having to bring them into 
    conformance with the Federal motor vehicle safety standards. 
    Nonconforming vehicles less than 25 years old could also be imported 
    without the need to conform them ``upon such terms and conditions as 
    (NHTSA) may find necessary solely for the purpose of research, 
    investigations, studies, demonstrations or training, or competitive 
    racing events.''
        The Safety Compliance Act made no mention of several purposes that 
    had been specified in 19 CFR 12.80(b)(2)(vii), i.e., ``show,'' 
    ``repairs,'' and ``alterations.'' This omission ended the ability of 
    persons to import nonconforming vehicles specifically for show 
    purposes. In our proposal to implement the Safety Compliance Act (the 
    final rule was published on September 28, 1989 (54 FR 40069)), we 
    sought to minimize the effect of the omission by noting that:
    
        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.
    
    (54 FR 17772 at 17776, April 25, 1989)
    
    C. The 1993 Importation Regulation
    
        Noting a growing desire to import vehicles less than 25 years old 
    for show purposes, we proposed in 1992 to allow limited further relief. 
    In our proposal published on January 17, 1992 (57 FR 2071, at 2072), we 
    noted that we had
    
    adopted and maintained a conservative attitude towards entities 
    other than original vehicle * * * manufacturers who wish to import 
    nonconforming vehicles for display. In short, under the 1988 
    Amendments, it has refused to allow them.
    
        As a means of affording partial relief for museums, we tentatively 
    decided that we could interpret the word ``studies'' in the Safety 
    Compliance Act to allow a static display
    
    of a vehicle * * * (where display) could form a basis for the 
    acquisition of knowledge if that vehicle or equipment item were of 
    historical or technological significance. Therefore, the agency has 
    tentatively concluded that it may be in the public interest to admit 
    vehicles whose age is less than 25 years if their importation can be 
    demonstrated to enhance the acquisition and application of 
    knowledge, that is to say, they merit admission because they are of 
    historical or technological interest.
    
    (Ibid.)
    
        We believed that this purpose could be best achieved by allowing 
    entities, such as museums, that are recognized as tax-exempt entities 
    under 26 U.S.C. 501(c)(3) or 509 by the Internal Revenue Service to 
    import nonconforming vehicles for ``study.'' We did not include 
    individuals in this proposal.
        We amended part 591 on March 8, 1993, to allow tax-exempt entities 
    to import nonconforming vehicles or equipment less than 25 years old 
    upon demonstrating to us that the vehicles or equipment items were of 
    historical or technological significance (58 FR 12905). Consistent with 
    prior regulatory provisions, the amendment prohibited on-road use of 
    these vehicles.
    
    D. The 1994 Recodification of the Importation Authority
    
        On July 5, 1994, the Safety Act and the Safety Compliance Act were 
    repealed and reenacted without substantive change as 49 U.S.C. Chapter 
    301--Motor Vehicle Safety. The importation exemption provisions of 15 
    U.S.C. 1397(j) were recodified as 49 U.S.C. 30114 ``Special 
    Exemptions.'' Sec. 30114 was slightly reworded to permit importation of 
    nonconforming vehicles or equipment items imported for ``research, 
    investigations, demonstrations, training, or competitive racing 
    events.'' The word ``studies'' was omitted as being included in 
    ``research.'' See H.R. Rep. 103-180, 103rd Cong., 1st Sess., at 59. 
    Because the recodification statute indicated that it should not be 
    construed as making any substantive changes, we did not amend part 591 
    to reflect the omission and have continued to authorize importations of 
    noncompliant vehicles for ``studies.''
    
    E. The 1998 Amendment
    
        Section 7107(a) of Pub. L. 105-178, which was enacted on June 9, 
    1998, amended section 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 Proposed to 49 CFR Part 591 that would Implement 
    Congress' Amendment of Section 30114
    
    A. Section 591.5, Declarations required for importation
    
        As amended, Section 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 
    would revise 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. Section 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)).
        Section 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). Section 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
    
    [[Page 13759]]
    
    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 would 
    amend Sec. 591.6(f)(1) to clarify that it pertains to importations 
    other than those for show or display, which would 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 appears to be no further need to 
    maintain an exemption for studies. Accordingly, we would amend 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 
    tentatively 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 
    have tentatively decided that on-road use of these nonconforming 
    vehicles should be limited to a maximum of 500 miles per year. There is 
    no limit, of course, on the distance that such vehicles may be 
    trailered in order to show or display them.
        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 interest was contained in a letter of July 12, 1983, to 
    Richard London. 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. Gordon 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 or the 
    Queen of England 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, we are proposing that the prospective importer, in 
    his or her request letter, describe the purposes for which on-road use 
    is deemed required together 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. The affirmation 
    would 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. In 
    addition, the prospective importer would have to state in his or her 
    letter of request that the vehicle would not be used on the public 
    roads unless it met the requirements of the Environmental Protection 
    Agency.
        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 
    proposes to modify this restriction, and allow sale or transfer of a 
    vehicle imported for ``show or display'' upon approval by the 
    Administrator.
        Accordingly, we propose to revise 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 13760]]
    
    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, an affirmation that the vehicle will not be 
    operated on the public roads for more than 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. Finally, the request shall also 
    include a statement that the importer will provide annually a 
    notarized statement to the Administrator that states the mileage of 
    the vehicle on the first through fifth anniversary dates of the 
    importation of the vehicle, which shall be provided not later than 
    10 days after each such anniversary date. The request 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).
    
    Failure to file a mileage statement will be regarded as a violation of 
    the terms of entry, for which a civil penalty may be imposed.
    
    C. Section 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 would 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 propose to amend 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 would also amend 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.
        Section 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. Retention of 
    this requirement is needed for enforcement purposes. However, the 
    statutory reference in Sec. 591.7(d) to 15 U.S.C. 1397(a)(1)(A) would 
    be changed to 49 U.S.C. 30112(a) to reflect the recodification.
        Section 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 intend to incorporate the ``studies'' exemption 
    into the exemption for ``research'' where this restriction does not 
    exist, this section would be moot. Section 591.7(e), therefore, would 
    be removed. A new subsection (e) would replace it, to implement the 
    statutory directive of section 7107(b) of Pub. L. 105-178 discussed 
    below.
    
    3. Seeking Exemptions Under Section 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 section 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 an importation for show or display, the request 
    shall 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(j)(2). We therefore propose to revise 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), including the failure to provide an annual 
    mileage statement, shall be considered a violation of 49 U.S.C. 
    30112(a) for which a civil penalty may be imposed. With respect to 
    importations under Sec. 591.6(f)(2), if the importer's annual 
    mileage statement shows that the vehicle has been used on the public 
    roads for more than 500 miles in any 12-month period, the 
    Administrator may tentatively conclude that a term of entry has been 
    violated but shall make no final conclusion until the importer 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 [enter date that is six 
    months after publication date of the rule] 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 shall provide the current mileage of the vehicle and include 
    a statement that the owner will provide annually a notarized 
    statement to the Administrator that states the mileage of the 
    vehicle on the first through fifth anniversary dates of the request 
    for the change, which shall be provided not later than 10 days after 
    such anniversary date. 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.
    
    [[Page 13761]]
    
    4. Effective Date
    
        The final rule would be effective 45 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 notice 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 proposed rule would make 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 will 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 would 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 will not have any retroactive effect. Under 49 
    U.S.C. 30103, 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. A procedure is set forth in 49 U.S.C. 30161 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.
    
    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. 3501 et seq.). NHTSA believes that the existing clearance covers 
    a final rule that would be 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.
    
    Request for Comments
    
        Interested persons are invited to submit comments on the proposal. 
    It is requested 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 for the proposal will be considered, and 
    will be available for examination in the docket at the above address 
    both before and after that date. To the extent possible, comments filed 
    after the closing date will also be considered. Comments received too 
    late for consideration in regard to the final rule will be considered 
    as suggestions for further rulemaking action. Comments on the proposal 
    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 Part 591
    
        Imports, Motor vehicle safety, Motor vehicles, Reporting and 
    recordkeeping requirements.
    
        In consideration of the foregoing, 49 CFR part 591 would be amended 
    as follows:
    
    [[Page 13762]]
    
    PART 591--IMPORTATION OF VEHICLES AND EQUIPMENT SUBJECT TO FEDERAL 
    SAFETY, BUMPER, AND THEFT PREVENTION STANDARDS
    
        1. The authority citation for part 591 would be revised to read as 
    follows:
    
        Authority: Pub. L. 100-562, Pub. L. 105-178, 49 U.S.C. 322(a), 
    30117; delegations of authority at 49 CFR 1.50 and 501.8.
    
        2. Section 591.5 would be amended by 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 (2) would be 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), or 
    (iv) and Sec. 591.5(j)(2)(i) shall be accompanied by a letter from the 
    Administrator authorizing importation pursuant to these sections. 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 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 Secs. 591.5(j)(1)(iii) and 
    591.5(j)(2)(i) shall be accompanied by a letter from the Administrator 
    authorizing importation pursuant to these sections. Any person seeking 
    to import a motor vehicle 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 vehicle, its 
    make, model, model year or date of manufacture, and VIN. 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, an affirmation that the vehicle will not be 
    operated on the public roads more than 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. Finally, the request shall also 
    include a statement that the importer will provide annually a notarized 
    statement to the Administrator that states the mileage of the vehicle 
    on the first through fifth anniversary dates of the importation of the 
    vehicle, which shall be provided not later than 10 days after each such 
    anniversary date. The request 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. Section 591.7 would be 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 importation
    
    * * * * *
        (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 or on-road use under 
    Sec. 591.5(j), including the failure to provide an annual mileage 
    statement, shall be considered a violation of 49 U.S.C. 30112(a) for 
    which a civil penalty may be imposed. With respect to importations 
    under Sec. 591.6(f)(2), if the importer's annual mileage statement 
    shows that the vehicle has been used on the public roads for more than 
    500 miles in any 12-month period, the Administrator may tentatively 
    conclude that a term of entry has been violated but shall make no final 
    conclusion until the importer 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 [enter date that is six months after 
    publication date of the rule] 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 shall 
    provide the current mileage of the vehicle and include a statement that 
    the owner will provide annually a notarized statement to the 
    Administrator that states the mileage of the vehicle on the first 
    through fifth anniversary dates of the request for the change, which 
    shall be provided not later than 10 days after such anniversary date. 
    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: March 16, 1999.
    Kenneth N. Weinstein,
    Associate Administrator for Safety Assurance.
    [FR Doc. 99-6847 Filed 3-19-99; 8:45 am]
    BILLING CODE 4910-59-P
    
    
    

Document Information

Published:
03/22/1999
Department:
National Highway Traffic Safety Administration
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking.
Document Number:
99-6847
Pages:
13757-13762 (6 pages)
Docket Numbers:
Docket No. 99-NHTSA-5240
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:
99-6847.pdf
CFR: (8)
49 CFR 591.7(b)
49 CFR 591.6(f)(2)
49 CFR 591.5(j)
49 CFR 591.6(j)(2)
49 CFR 591.5(j)(2)(i)
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