[Federal Register Volume 63, Number 164 (Tuesday, August 25, 1998)]
[Rules and Regulations]
[Pages 45183-45186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22447]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Part 594
[Docket No. NHTSA 98-3781; Notice 2]
RIN 2127-AH26
Schedule of Fees Authorized by 49 U.S.C. 30141
AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.
ACTION: Final rule.
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SUMMARY: This document adopts fees for Fiscal Year 1999 and until
further notice, as authorized by 49 U.S.C. 30141, relating to the
registration of importers and the importation of motor vehicles not
certified as conforming to the Federal motor vehicle safety standards
(FMVSS).
NHTSA is reducing the fee for the registration of a new importer
from $501 to $491, and increasing the fee for annual renewal of
registration from $332 to $350. These fees include the costs of
maintaining the registered importer program. The fee required to
reimburse the U.S. Customs Service for bond processing costs is
increased by $0.25, from $5.15 to $5.40 per bond.
The fee payable for a petition seeking a determination that a
nonconforming vehicle is capable of conversion to meet the FMVSS
remains at $199 if the petition claims that the nonconforming vehicle
is substantially similar to conforming vehicles. With respect to
vehicles that have no substantially similar counterpart, the petition
fee remains at $721. In addition, the fee payable by the importer of
each vehicle that benefits from an eligibility determination is reduced
from $134 to $125, regardless of whether the determination is made
pursuant to a petition or by NHTSA on its own initiative (this does not
apply to vehicles imported from Canada admitted under VSA 80-83).
Finally, the new fee adopted in 1997 under which a registered
importer must pay a processing cost of $14 for review of each
conformity package that it submits is increased to $16. However, if the
HS-7 Declaration form for the vehicle is filed electronically with the
U.S. Customs Service though the Automated Broker Interface, and the
Registered Importer has an e-mail address and pays by credit card, the
fee is reduced to $13 per vehicle.
DATES: The effective date of the final rule is October 1, 1998.
FOR FURTHER INFORMATION CONTACT: George Entwistle, Office of Vehicle
Safety Compliance, Office of Safety Assurance, NHTSA (202-366-5306).
SUPPLEMENTARY INFORMATION:
Introduction
This notice is based upon a notice of proposed rulemaking published
on June 5, 1998, and adopts the fees proposed in the notice (63 FR
30700).
On June 24, 1996, at 61 FR 32411, NHTSA published the latest in a
series of notices which discussed in full the rulemaking history of 49
CFR part 594 and the fees authorized by the Imported Vehicle Safety
Compliance Act of 1988, Pub. L. 100-562, since recodified as 49 U.S.C.
30141-47. The reader is referred to that notice and the June 5, 1998,
notice for background information relating to this rulemaking action.
The fees authorized by the statute were initially established to become
effective January 31, 1990, and have been in effect and occasionally
modified since then.
The fees applicable in any fiscal year are to be established before
the beginning of such year. This document adopts fees that will become
effective on October 1, 1998, the beginning of Fiscal Year 1999 (FY99).
The statute authorizes fees to cover the costs of the importer
registration program, to cover the cost of making import eligibility
determinations, and to cover the cost of processing the bonds furnished
to the Customs Service. NHTSA last amended the fee schedule in 1996; it
has applied in FYs97-98.
As a general statement applicable to consideration of all fees,
they are based
[[Page 45184]]
on actual time and costs associated with the task, which reflect the
slight increase in hourly costs in the past two fiscal years
attributable to the approximately 2.3 percent raise in salaries of
employees on the General Schedule that became effective on January 1
each year in the years 1997 and 1998, and the combined locality raises
of 1.232 percent.
Requirements of the Fee Regulation
Section 594.6--Annual Fee for Administration of the Importer
Registration Program
Section 30141(a)(3) of Title 49 U.S.C. provides that registered
importers must pay ``the annual fee the Secretary of Transportation
establishes * * * to pay for the costs of carrying out the registration
program for importers* * *.'' This fee is payable both by new
applicants and by registered importers seeking to renew their
registration.
In accordance with the statutory directive, NHTSA reviewed the
existing fees and their bases in an attempt to establish fees which
would be sufficient to recover the costs of carrying out the
registration program for importers for at least the next fiscal year.
The initial component of the Registration Program Fee is the portion of
the fee attributable to processing and acting upon registration
applications. The agency determined that this portion of the fee should
be decreased from $301 to $290 for new applications, and increased from
$132 to $149 for renewals. The higher cost of $290 over $149 for a new
application is warranted because the average cost of processing a new
application is substantially greater than that of an application for
renewal, and the adjustments proposed reflect the agency's recent
experience in time spent reviewing both new and renewal applications.
These fees have been adopted.
The agency must also recover costs attributable to maintenance of
the registration program which arise from the agency's need to review a
registrant's annual statement and to verify the continuing validity of
information already submitted. These costs also include anticipated
costs attributable to possible revocation or suspension of
registrations.
Based upon the agency's review of the costs associated with this
program, the portion of the fee attributable to the registration
program is approximately $201 per registered importer, an increase of
$1. When this $201 is added to the $290 representing the registration
application component, the cost to an applicant equals $491, which is
the fee proposed by NHTSA. It represents a decrease of $10 from the
existing fee. When the $201 is added to the $149 representing the
renewal component, the cost to a renewing registered importer is $350,
which represents an increase of $18. These fees have been adopted.
Sec. 594.6(h) recounts indirect costs that were previously
estimated at $7.07 per man-hour. These are now estimated to be $12.12,
based on the agency costs discussed above.
Sections 594.7, 594.8--Fees to Cover Agency Costs in Making Importation
Eligibility Determinations
Section 30141(a)(3) also requires registered importers to pay
``other fees the Secretary of Transportation establishes to pay for the
costs of * * * (B) making the decisions under this subchapter.'' This
includes decisions on whether the vehicle sought to be imported is
substantially similar to a motor vehicle originally manufactured for
import into and sale in the United States, and certified as meeting the
FMVSS, and whether it is capable of being readily altered to meet those
standards. Alternatively, where there is no substantially similar U.S.
motor vehicle, the decision is whether the safety features of the
vehicle comply with or are capable of being altered to comply with the
FMVSS. These decisions are made in response to petitions submitted by
registered importers or manufacturers, or pursuant to the
Administrator's initiative.
The fee for a vehicle imported under an eligibility decision made
pursuant to a petition is payable in part by the petitioner and in part
by other importers. The fee to be charged for each vehicle is the
estimated pro rata share of the costs in making all the eligibility
determinations in a fiscal year.
Inflation and the small raises under the General Schedule also must
be taken into count in the computation of costs. However, NHTSA has
been able to reduce its processing costs through combining several
decisions in a single Federal Register notice as well as achieving
efficiencies through improved word processing techniques. Accordingly,
NHTSA did not propose a change in the fee of $199 presently required to
accompany a ``substantially similar'' petition, or the fee of $721 for
petitions for vehicles that are not substantially similar and that have
no certified counterpart. In the event that a petitioner requests an
inspection of a vehicle, the fee remains at $550 for each of those
types of petitions.
The importer of each vehicle determined to be eligible for
importation pursuant to a petition currently must pay $134 upon its
importation, the same fee applicable to those whose vehicles covered by
an eligibility determination on the agency's initiative (other than
vehicles imported from Canada that are covered by code VSA 80-83, for
which no eligibility determination fee is assessed). It is proposed
that this fee be reduced by $9 to $125 per vehicle, based upon a
decrease in administrative costs expended on this aspect of the
registered importer program. This reduction has also been adopted.
Section 594.9--Fee to Recover the Costs of Processing the Bond
Section 30141(a)(3) also requires a registered importer to pay
``any other fees the Secretary of Transportation establishes * * * to
pay for the costs of--(A) processing bonds provided to the Secretary of
the Treasury'' upon the importation of a nonconforming vehicle to
ensure that the vehicle will be brought into compliance within a
reasonable time or if the vehicle is not brought into compliance within
such time, that it is exported, without cost to the United States, or
abandoned to the United States.
The statute contemplates that NHTSA will make a reasonable
determination of the cost to the United States Customs Service of
processing the bond. In essence, the cost to Customs is based upon an
estimate of the time that a GS 9, Step 5 employee spends on each entry,
which Customs judged to be 20 minutes.
Because of the modest salary and locality raises in the General
Schedule that were effective at the beginning of 1997 and 1998, NHTSA
proposed that the current processing fee be increased by $0.25, from
$5.15 per bond to $5.40, and has adopted the proposal.
Section 594.10 Fee for Review and Processing of Conformity Certificate
This is a new fee, adopted pursuant to section 30141(a)(3), which
became effective on October 29, 1997. It requires each registered
importer to pay $14 per vehicle to cover the cost of the agency's
review of any certificate of conformity furnished to the Administrator
pursuant to Sec. 591.7(e) (62 FR 50882).
Based upon an analysis of the direct and indirect costs for the
review and processing of these certificates in the months since the fee
was adopted, NHTSA found that the costs averaged $16 per vehicle and it
therefore proposed that the fee be increased by $2, to $16 per
certificate. However, if a
[[Page 45185]]
registered importer enters a vehicle with the U.S. Customs Service
through the Automated Broker Interface, has an e-mail address to
receive communications from NHTSA, and pays the fee by credit card,
NHTSA has estimated that the reduction in cost to the agency would be
approximately $3, and this would be passed on to the Registered
Importer by reducing the fee to $13 per vehicle. These fees have been
adopted.
The one comment that NHTSA received in response to the proposed
notice dealt with the proposed $16 cost per certificate. The North
American Automobile Trade Organization asked ``whether the $16 fee is
based on historical vehicle volumes or current volumes.'' The Trade
Organization believed that ``the current volume of vehicles may warrant
a reduction (or, alternatively, an increase) in the fee from $16 if it
is based on historical importation volumes.'' The increase in fee was
based upon agency experience since adoption of the $14 fee. Thus, it
was based on current volumes rather than ``historical volumes,'' which
the agency interprets as importations since the beginning of the fee
system in 1990.
Effective Date
The fees applicable in any fiscal year are to be established before
the beginning of such year. 49 U.S.C. 30141(e). Therefore, the
effective date of the final rule establishing fees for FY99 and
thereafter is October 1, 1998.
Rulemaking Analyses
A. Executive Order 12866 and DOT Regulatory Policies and Procedures
This rulemaking action was not reviewed under Executive Order
12886. Further, NHTSA has determined that the action is not significant
under Department of Transportation regulatory policies and procedures.
Based on the level of the fees and the volume of affected vehicles,
NHTSA currently anticipates that the costs of the final rule will be so
minimal as not to warrant preparation of a full regulatory evaluation.
The action does not involve any substantial public interest or
controversy. There is no substantial effect upon State and local
governments. There is no substantial impact upon a major transportation
safety program. Both the number of registered importers and
determinations are estimated to be comparatively small. A regulatory
evaluation analyzing the economic impact of the final rule adopted on
September 29, 1989, was prepared, and is available for review in the
docket.
B. Regulatory Flexibility Act
The agency has also considered the effects of this action in
relation to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). I
certify that this action will not have a substantial economic impact
upon a substantial number of small entities.
The following is NHTSA's statement providing the factual basis for
the certification (5 U.S.C. 605(b)). The final rule would primarily
affect entities that currently modify nonconforming vehicles and which
are small businesses within the meaning of the Regulatory Flexibility
Act; however, the agency has no reason to believe that a substantial
number of these companies cannot pay the fees proposed by this action
which are only modestly increased (and in some instances decreased)
from those now being paid by these entities, and which can be recouped
through their customers. The cost to owners or purchasers of altering
nonconforming vehicles to conform with the FMVSS may be expected to
increase (or decrease) to the extent necessary to reimburse the
registered importer for the fees payable to the agency for the cost of
carrying out the registration program and making eligibility decisions,
and to compensate Customs for its bond processing costs.
Governmental jurisdictions will not be affected at all since they
are generally neither importers nor purchasers of nonconforming 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 through registered importers will not vary
significantly from that existing before promulgation of the rule.
E. Civil Justice
This rule will not have any retroactive effect. Under 49 U.S.C.
30103(b), 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 30161 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.
F. 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 a $100
million effect, no Unfunded Mandates assessment has been prepared.
List of Subjects in 49 CFR Part 594
Imports, Motor vehicle safety, Motor vehicles.
In consideration of the foregoing, 49 CFR part 594 is amended as
follows:
PART 594--SCHEDULE OF FEES AUTHORIZED BY 49 U.S.C. 30141
1. The authority citation for part 594 remains as follows:
Authority: 49 U.S.C. 30141, 30166; delegation of authority at 49
CFR 1.50.
2. Section 594.6 is amended by;
(a) Changing the year ``1996'' in paragraph (d) to read ``1998,''
and
(b) Revising the introductory language in paragraph (a),
(c) Revising paragraph (b),
(d) Revising paragraph (f)(6),
(e) Revising the final sentence of paragraph (h); and
(f) Revising paragraph (i)
to read as follows:
Sec. 594.6 Annual fee for administration of the registration program.
(a) Each person filing an application to be granted the status of a
Registered Importer pursuant to part 592 of this chapter on or after
October 1, 1998, shall pay an annual fee of $491, as calculated below,
based upon the direct and indirect costs attributable to: * * *
* * * * *
(b) That portion of the initial annual fee attributable to the
processing of the application for applications filed on and after
October 1, 1998, is $290. The sum of $290, representing this portion,
shall not be refundable if the application is denied or withdrawn.
* * * * *
(f) * * *
(6) Verifying through inspection or otherwise that a Registered
Importer is
[[Page 45186]]
able technically and financially to carry out its responsibilities
pursuant to 49 U.S.C. 30118 et seq.
* * * * *
(h) * * * This cost is $12.12 per man-hour for the period beginning
October 1, 1998.
(i) Based upon the elements, and indirect costs of paragraphs (f),
(g), and (h) of this section, the component of the initial annual fee
attributable to administration of the registration program, covering
the period beginning October 1, 1998, is $201. When added to the costs
of registration of $290, as set forth in paragraph (b) of this section,
the costs per applicant to be recovered through the annual fee are
$491. The annual renewal registration fee for the period beginning
October 1, 1998, is $350.
* * * * *
3. Section 594.8 is amended by revising the first sentence in
paragraph (b) and in paragraph (c) to read as follows:
Sec. 594.8 Fee for importing a vehicle pursuant to a determination by
the Administrator.
* * * * *
(b) If a determination has been made pursuant to a petition, the
fee for each vehicle is $125. * * *
(c) If a determination has been made pursuant to the
Administrator's initiative, the fee for each vehicle is $125. * * *
4. Section 594.9(c) is revised to read as follows:
Sec. 594.9 Fee for reimbursement of bond processing costs.
* * * * *
(c) The bond processing fee for each vehicle imported on and after
October 1, 1998, for which a certificate of conformity is furnished, is
$5.40.
5. Section 594.10(d) is revised to read as follows:
Sec. 594.19 Fee for review and processing of conformity certificate.
* * * * *
(d) The review and processing fee for each certificate of
conformity submitted on and after October 1, 1998, is $16. However, if
the vehicle covered by the certificate has been entered electronically
with the U.S. Customs Service through the Automated Broker Interface
and the registered importer submitting the certificate has an e-mail
address, the fee for the certificate is $13, provided that the fee is
paid by a credit card issued to the registered importer.
Issued on: August 17, 1998.
Kenneth N. Weinstein,
Associate Administrator for Safety Assurance.
[FR Doc. 98-22447 Filed 8-24-98; 8:45 am]
BILLING CODE 4910-59-P
