Schedule of Fees Authorized by 49 U.S.C. 30141; Fee for Review and Processing of Conformity Certificates for Nonconforming Vehicles

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 594

[Docket No. 97-046; Notice 1]

RIN 2127-AG73

Schedule of Fees Authorized by 49 U.S.C. 30141; Fee for Review

and Processing of Conformity Certificates for Nonconforming Vehicles

AGENCY: National Highway Traffic Safety Administration (NHTSA),

Department of Transportation.

[[Page 37848]]

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This document proposes to amend NHTSA's regulations that

prescribe a schedule of fees authorized by 49 U.S.C. Sec. 30141 for

various functions performed by the agency with respect to the

importation of motor vehicles. The amendment would establish a fee for

the agency's review and processing of statements that registered

importers submit to certify that vehicles that were not originally

manufactured to conform to all applicable Federal motor vehicle safety

standards have been brought into conformity with those standards. The

fee would apply to all vehicles for which conformity certificates are

submitted to NHTSA, including vehicles imported from Canada, which

currently account for over 98 percent of the nonconforming vehicles

that are processed by NHTSA.

DATES: Comments. Comments must be received on or before August 14,

1997.

ADDRESSES: Comments should refer to the docket and notice numbers above

and be submitted to: Docket Section, National Highway Traffic Safety

Administration, 400 Seventh Street, S.W., Washington, D.C. 20590.

Docket hours are 9:30 a.m. to 4 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: For non-legal issues: Clive Van Orden,

Office of Vehicle Safety Compliance, National Highway Traffic Safety

Administration, 400 Seventh Street, S.W., Washington, D.C. 20590 (202-

366-2830). For legal issues: Coleman Sachs, Office of Chief Counsel,

National Highway Traffic Safety Administration, 400 Seventh Street,

S.W., Washington, D.C. 20590 (202-366-5238).

SUPPLEMENTARY INFORMATION:

A. Background

Laws relating to motor vehicle safety are found in Chapter 301 of

Title 49, U.S. Code. NHTSA is authorized under 49 U.S.C. Sec. 30111 to

issue Federal motor vehicle safety standards (FMVSS). Subject to

certain exceptions, 49 U.S.C. Sec. 30112(a) prohibits any person from

importing into the United States a motor vehicle manufactured on or

after the date an applicable FMVSS takes effect unless the vehicle

complies with the standard and is so certified pursuant to 49 U.S.C.

Sec. 30115. One of the exceptions to this prohibition is found in 49

U.S.C. Sec. 30141. That section permits an importer who is registered

with NHTSA (a ``registered importer'') to import a motor vehicle that

was not originally manufactured to conform to all applicable FMVSS,

provided that NHTSA has decided that the vehicle is eligible for

importation. Under the criteria that are specified in 49 U.S.C.

Sec. 30141 for these decisions, a motor vehicle is not eligible for

importation unless, among other things, it is capable of being altered

to comply with all applicable FMVSS. See 49 U.S.C. Sec. 30141(a)(1)

(A)(iv) and (B).

B. Requirements for Bonding and Review of Conformity Packages

Once a motor vehicle has been declared eligible for importation, it

is imported under bond by a registered importer or by an individual who

has executed a contract or other agreement with a registered importer

to bring the vehicle into compliance with applicable FMVSS. The

registered importer has the obligation to bring the bonded vehicle into

conformity with the FMVSS within 120 days of the vehicle's entry. When

the registered importer has done so, it must certify to NHTSA that the

vehicle meets the FMVSS. See 49 U.S.C. Sec. 30146(b) and 49 CFR

592.6(e). An agency regulation at 49 CFR 592.6(f) requires registered

importers to submit to NHTSA ``[i]n substantiation of the initial

certification provided for a specific model and model year * * *

photographic and documentary evidence of conformance with each

applicable Federal motor vehicle safety and bumper standard, and with

respect to subsequent certifications of such model and model year, such

information, if any, as the Administrator may request.''

NHTSA's Office of Vehicle Safety Compliance (OVSC) administers the

agency's programs concerning the importation of noncomplying vehicles.

OVSC has issued guidance to registered importers, in the form of

newsletters and other communications, that specify the contents and

form of the packages that must be submitted to the agency to certify

that each noncomplying vehicle for which a performance bond has been

given has been brought into compliance with all applicable FMVSSs. Upon

receipt, the OVSC staff reviews each package to verify the accuracy of

the information it contains. If NHTSA questions the registered

importer's certification of compliance, the registered importer is

notified pursuant to 49 CFR 592.8(c) to hold the vehicle for

inspection. Acceptance of the certification ends the agency's

involvement with the vehicle.

Thus, NHTSA staff expends much time reviewing and evaluating

routine compliance packages, and even more time if a package does not

indicate conformance with the FMVSS, necessitating follow-up action.

NHTSA reviewed some 16,000 compliance packages in calendar year 1996.

C. Fees Authorized by 49 U.S.C. Sec. 30141

NHTSA is authorized under 49 U.S.C. Sec. 30141(a)(3) to establish

an annual fee requiring registered importers to pay for the costs of

carrying out the registered importer program. The agency is also

authorized under this section to establish fees to pay for the costs of

processing the conformance bonds that registered importers provide, and

fees to pay for the costs of making agency decisions relating to the

importation of noncomplying motor vehicles and equipment.

The agency has, to date, established four separate fees under the

authority of 49 U.S.C. Sec. 30141. These are set forth in 49 CFR Part

594. The first is the annual fee that is collected from registered

importers to cover the agency's costs for administering the registered

importer program. This fee, which is covered by section 594.6, is

currently set at $501.00 for persons applying for registered importer

status and at $332 for those seeking the renewal of that status. As

described in section 594.6, the fee is based on the direct and indirect

costs incurred by the agency in processing and acting upon initial

applications for registered importer status and annual statements

seeking the renewal of that status, as well as other actions performed

by the agency in administering the registered importer program.

The second fee is collected from each motor vehicle manufacturer or

registered importer who petitions NHTSA to decide that a nonconforming

vehicle is eligible for importation. This fee, which is covered by 49

CFR 594.7, is currently set at $199 for a petition seeking an

eligibility decision on the basis that a nonconforming vehicle is

substantially similar to a U.S. certified counterpart, and at $721 for

a petition seeking such a decision on the basis that a nonconforming

vehicle is capable of being altered to conform to all applicable

standards. As detailed in section 594.7, this fee is based on the

direct and indirect costs incurred by NHTSA in processing and acting

upon import eligibility petitions.

The third fee is for importing a vehicle pursuant to an eligibility

decision made by the Administrator. This fee, which is covered by 49

CFR 594.8, is currently set at $134 per vehicle. As described in

section 594.8, this fee is calculated to cover NHTSA's direct and

indirect costs in making import eligibility decisions.

[[Page 37849]]

The fourth fee has been established pursuant to 49 U.S.C.

Sec. 30141(a)(3)(A) to ``pay for the costs of processing bonds provided

to the Secretary of the Treasury.'' Registered importers furnish these

bonds for each vehicle covered by a certificate of conformity that is

submitted to NHTSA. This fee, which is covered by 49 CFR 594.9, is

currently set at $5.15 and only reimburses the U.S. Customs Service for

services performed at the time of entry. It is based on direct and

indirect cost information provided to NHTSA by the Customs Service.

D. Additional Fees That NHTSA Believes Are Justified

Although the above-described fees have permitted NHTSA to recover

the costs it incurs in administering certain aspects of the registered

importer program and making import eligibility decisions, other NHTSA

activities that are a service to the importers of noncomplying vehicles

have gone unreimbursed. One such activity for which the agency believes

it is entitled to reimbursement under 49 U.S.C. Sec. 30141 is the

review of conformity packages to decide whether vehicles, as altered by

the registered importers, comply with all applicable FMVSS and thus,

whether the conformance bonds that cover those vehicles may be

released.

Because NHTSA's approval of the conformity package is a necessary

predicate to the release of these bonds, NHTSA has tentatively

concluded that the expense incurred by the agency in reviewing and

processing each package may be treated as part of the bond processing

cost, for which NHTSA is authorized to set a fee under 49 U.S.C.

Sec. 30141(a)(3)(A). Additionally, NHTSA's decision to approve the

release of a bond based on its review of a conformity package would

qualify as a ``decision'' under Subchapter III of Title 49, U.S. Code,

for which the agency is authorized to set a fee under 49 U.S.C.

Sec. 30141(a)(3)(B).

When it first proposed the fee schedule found in Part 594, NHTSA

excluded ``activities connected with the processing of certificates and

compliance documentation'' from the fee for the agency's administration

of the importer registration program. See 54 FR 17792, 17793 (April 25,

1989). Although NHTSA acknowledged that verification of the

certification submitted by a registered importer could be relevant to

the maintenance of the registered importer's status, the agency

concluded that Congress did not intend for those activities to be

included in the registration program. NHTSA based this conclusion on

the language of section 108(c)(3)(B)(i) of the former National Traffic

and Motor Vehicle Safety Act, then codified at 15 U.S.C.

Sec. 1397(c)(3)(B)(i), which allowed fees collected from registered

importers to be used for administrative purposes other than the

periodic inspection of a representative number of vehicles for which

compliance certifications had been provided. The agency now recognizes

that its prior interpretation of this provision was overly restrictive,

and that the provision in fact places no impediment on NHTSA's ability

to collect fees for the processing and review of conformity packages.

The Safety Act was repealed and its provisions were codified as

part of Title 49, U.S. Code under Public Law 103-272 (July 5, 1994).

The relevant provision, now found at 49 U.S.C. Sec. 30141(e), states

that the amounts collected as fees from registered importers under

section 30141(a)(3) ``are only for use by the Secretary of

Transportation--(1) in carrying out this section and sections 30146

(a)-(c)(1), (d), and (e) and 30147(b) of this title. * * * '' NHTSA's

authority to review conformity packages is principally derived from

section 30146(c). As previously noted, that provision authorizes the

Secretary of Transportation to require the compliance certification

submitted by a registered importer to ``be accompanied by evidence of

compliance the Secretary considers appropriate. * * * ''

When it originally issued the regulations in 49 CFR Part 594, NHTSA

narrowly construed the language of section 108(c)(3)(A)(iii) of the

Safety Act, which authorized the Secretary to establish fees for

``making the determinations under this section,'' as pertaining only to

import eligibility determinations. The agency overlooked the fact that

its decisions to release conformance bonds, based on the review of

conformity packages, were also ``determinations'' under section 108 of

the Safety Act, and that the use of fees for this purpose was clearly

permitted under section 108(c)(3)(B)(i). Likewise, 49 U.S.C.

Sec. 30141(e) clearly authorizes the use of fees collected from

registered importers under section 30141(a)(3) to pay for the costs of

making decisions following agency review of conformity packages.

Accordingly, NHTSA has reconsidered the scope of its authority to

establish fees for making decisions regarding the importation of

noncomplying vehicles, and has tentatively concluded that it was

authorized under section 108(c)(3)(A)(iii) of the Safety Act, and is

authorized under 49 U.S.C. Sec. 30141(a)(3)(B) to charge fees to

reimburse the agency's costs for making decisions to release

conformance bonds.

Even if such authority did not exist in Chapter 301 of Title 49,

U.S. Code, the Independent Offices Appropriation Act of 1952, 31 U.S.C.

Sec. 9701, provides ample authority for NHTSA to impose fees that are

sufficient to recover the agency's full costs for the review and

processing of conformity packages. By reviewing the package and

authorizing the release of the conformance bond that is posted upon

entry of a nonconforming vehicle, NHTSA is performing a specific

service for an identifiable beneficiary that can form the basis for the

imposition of a fee under 31 U.S.C. Sec. 9701. Courts have long

recognized that Federal agencies may impose fees under section 9701 for

providing comparable services to regulated entities. See, e.g.,

Seafarers International Union of North America v. U.S. Coast Guard, 81

F.3d 179, 183 (D.C. Cir. 1996) (finding the Coast Guard authorized to

charge reasonable fees for processing applications for merchant mariner

licenses, certificates, and work documents); Engine Manufacturers

Association v. E.P.A., 20 F.3d 1177, 1180 (D.C. Cir. 1994) (finding the

E.P.A. authorized to impose a fee to recover its costs for testing

vehicles and engines for compliance with the emission standards of the

Clean Air Act); and National Cable Television Association, Inc. v.

F.C.C., 554 F.2d 1094, 1101 (D.C. Cir. 1976) (finding the F.C.C.

authorized to impose fees for issuing certificates of compliance to

cable television operators).

In view of the language and judicial construction of 31 U.S.C.

Sec. 9701, NHTSA is relying on this provision as an independent source

of authority for the proposed fee. The agency believes that this

provision and 49 U.S.C. Sec. 30141 each provide sufficient separate

authority for the proposed fee and the other fees that the agency has

established under 49 CFR Part 594.

When the prior fees were established, NHTSA did not recognize a

need to impose a fee for the review and processing of conformity

packages because those actions accounted for a relatively small share

of the work performed by OVSC. In the ensuing years, OVSC has devoted a

substantially greater share of its staff time to those efforts, so that

a fee now appears necessary to offset the agency's costs for performing

this work.

E. Fee Computation

As previously noted, NHTSA has computed all other fees that it

collects under the authority of 49 U.S.C. Sec. 30141

[[Page 37850]]

on the basis of all direct and indirect costs incurred by the agency in

performing the function for which the fee is charged. In the Federal

Register notice proposing the original schedule of fees that was

adopted in Part 594, the agency observed that this approach was

consistent with the manner in which other agencies have computed user

fees under the Independent Offices Appropriation Act, 31 U.S.C.

Sec. 9701, and the Consolidated Omnibus Budget Reconciliation Act, Pub.

L. 99-272. See 54 FR 17792, 17793 (April 25, 1989). NHTSA specified in

the 1989 proposed rules that ``the fees imposed by Part 594 would

include the agency's best direct and indirect cost estimates of the

man-hours involved in each activity, on both the staff and supervisory

levels, the costs of computer and word processor usage, costs

attributable to travel, salary, and benefits, and maintenance of work

space,'' as appropriate for each fee. See 54 FR 17795. Subsequently,

the Office of Management and Budget (OMB), in Circular A-25

establishing Federal policy for the assessment of user fees under 31

U.S.C. Sec. 9701, stated that such fees must be ``sufficient to recover

the full cost to the Federal Government * * * of providing the service,

resource, or good when the Government is acting in its capacity as a

sovereign.'' See 58 FR 38142, 38144 (July 15, 1993).

Applying an approach consistent with the OMB Circular and the one

followed in its 1989 rulemaking, the agency has considered its direct

and indirect costs in calculating the proposed fee for the review and

processing of conformity packages as follows:

The direct costs that would be used to calculate the proposed fee

include the estimated cost of contract and professional staff time,

computer costs, and costs for record assembly, marking, shipment and

storage.

The estimated cost of contract and professional staff time is

calculated on the basis of the full cost for time spent at the

following currently prevailing rates: Data entry--$44,410 per year;

computer programmer--$86,650 per year; compliance analyst--$60,092 per

year. Three quarters of the total hours worked by a single data entry

specialist on contract to OVSC are devoted to the processing of

compliance packages. A second data entry specialist on contract to OVSC

is engaged full time in the processing of compliance packages.

Multiplying the annual contract cost for the hours worked by these

contract support staff members ($44,410 each) by 1.75 (representing the

one data entry position devoted fully to compliance package processing

and the other in which three quarters of the total hours worked are

devoted to that function) yields $77,715.50 in data entry labor costs

that are incurred by NHTSA on an annual basis in the processing of

compliance packages. Eighteen and three quarters percent of the total

hours worked by a single computer programmer on contract to OVSC is

devoted to the processing of compliance packages. Multiplying the

annual contract cost for the hours worked by this contract support

staff member ($86,650) by 18.75 percent yields $16,246.88 in computer

programming labor costs that are incurred by NHTSA on an annual basis

in the processing of compliance packages. Ninety percent of the total

hours worked by a single compliance analyst employed by OVSC is devoted

to the review of compliance packages. Multiplying the annual rate of

pay for this staff member ($60,092) by 90 percent yields $54,082.80 in

compliance analyst labor costs that are incurred by NHTSA on an annual

basis in the review of compliance packages.

Adding these amounts yields a total of $148,045.18 in contract and

professional staff costs that NHTSA incurs each year for the processing

and review of compliance packages. Dividing that amount by 16,000, the

number of compliance packages reviewed by OVSC in calendar year 1996,

yields a direct cost of $9.25 for each compliance package reviewed.

Computer costs are calculated on the following basis: NHTSA pays

$13,800 per year to maintain a link with the Customs Service computer.

Ninety-five percent of the agency's usage of this computer is

associated with the review of compliance packages, resulting in a cost

of $13,110 that can be allocated to that use. Additionally, the agency

pays $30,000 per year for the purpose of running OVSC's computers and

performing necessary backups of data entries. Ninety percent of this

usage is associated with the review of compliance packages, yielding a

cost of $27,000 that can be allocated to that use. The agency also pays

$4,000 per year for a maintenance contract on OVSC's computers, ninety

percent of which can also be allocated to that office's review of

compliance packages, yielding an annual cost of $3,600. Additionally,

NHTSA pays a $9,360 annual licensing fee for the data base management

system that is used in the processing of compliance packages. Because

that system is not used for any other purpose, the full annual fee can

be allocated to that use. Adding these costs produces the sum of

$53,070 that is spent annually on computer usage associated with the

review of compliance packages. Dividing this sum by 16,000, which, as

previously indicated, is the number of compliance packages reviewed by

OVSC in calendar year 1996, yields a direct cost of $3.32 for each

compliance package reviewed.

The average cost for record assembly, marking, and shipment is

calculated at the rate of $16.56 per box. The average cost for record

storage is calculated to be $7.92 per box for a storage period of three

years. Based on an average of 110 records per box, these costs amount

to 22 cents for each compliance package received by the agency. Adding

the direct costs for contract and professional staff hours ($9.25),

computer usage ($3.32), and record assembly, marking, shipment, and

storage ($0.22) produces a total of $12.79 for each compliance package

reviewed and processed by NHTSA.

The indirect costs include a pro rata allocation of the average

benefits of persons employed in processing and reviewing conformity

packages. Benefits provided by NHTSA amount to eighteen percent of the

salary earned by its employees. Multiplying the $54,082.80 in

professional staff costs that NHTSA incurs each year for the processing

and review of compliance packages by eighteen percent yields a figure

of $9,734.90.

The indirect costs also include a pro rata allocation of the costs

attributable to the rental and maintenance of office space and

equipment, the use of office supplies, and other overhead items. For

fiscal year 1998, these costs are projected to average $21,131 for each

employee and contract support staff member working at NHTSA

headquarters. This figure was derived by dividing $13,566,000 in

projected headquarters costs (reached by subtracting $482,000 in field

operating costs from total agency costs of $14,048,000) by 642

(representing 510 full time equivalent positions that are authorized

for NHTSA headquarters plus 132 on-site contract personnel).

Multiplying that figure by 2.8375, which represents the number of

combined contract and professional staff-years devoted annually to the

review and processing of compliance packages, yields a figure of

$59,959.21. Adding this figure to $9,734.90 produces the sum of

$69,694.11, representing the total indirect costs incurred by NHTSA in

the review and processing of compliance packages. Dividing this amount

by 16,000, which, as previously indicated, is the number of compliance

packages reviewed by NHTSA in calendar year 1996, yields $4.36 in

indirect costs for each compliance package reviewed. Adding these

indirect costs to the $12.79 in direct

[[Page 37851]]

costs that NHTSA incurs in the review and processing of each compliance

package yields a total of $17.15 in direct and indirect costs for each

compliance package reviewed by the agency.

Based on the above factors, NHTSA proposes to charge $17.00 as the

fee to recover its costs for the review and processing of compliance

packages. This fee would have to be tendered with each compliance

package submitted to the agency for processing.

E. Applicability of Fee to Canadian Vehicles

If the proposed fee is adopted, registered importers would have to

pay the fee for each conformity package they submit to NHTSA. This

would include conformity packages submitted for vehicles imported from

Canada. In recent years, Canadian imports have accounted for a growing

share of NHTSA's oversight program that is directed at the importation

of nonconforming vehicles. In NHTSA's Calendar Year 1995 Report to

Congress concerning this program, the agency stated that 15,096 of the

15,332 nonconforming vehicles that were permanently imported into the

country during that year (or over 98%) were from Canada. The report

noted a continuing upward trend in the importation of noncomplying

vehicles from Canada since 1993, and attributed that development to the

exchange rate favoring the U.S. over the Canadian dollar.

In past years, NHTSA has not collected the per vehicle import

eligibility determination fee established under 49 CFR 594.8 from the

importers of vehicles that were certified by their original

manufacturer as complying with all applicable Canadian motor vehicle

safety standards and that were eligible for importation under vehicle

eligibility number VSA-1. As NHTSA explained in a final import

eligibility decision covering Canadian-certified motor vehicles,

published on May 13, 1997 at 62 FR 26348, the per vehicle import

eligibility fee was not imposed on the importers of these vehicles

because the first importer of a Canadian-certified motor vehicle paid

the full $1,560 fee that was established in 1989 to cover the agency's

costs for an eligibility decision made on the Administrator's

initiative.

In the May 13, 1997 final decision, NHTSA rescinded VSA-1 as the

eligibility number assigned to all eligible Canadian-certified

vehicles, and replaced it with four separate eligibility numbers (VSA-

80 through 83), based on vehicle classification and weight. If the

proposed fee for the review and processing of conformity certificates

is adopted, NHTSA intends to collect that fee from all importers

submitting conformity packages to the agency, including the importers

of Canadian-certified vehicles eligible for importation under VSA-80

through 83. The agency deems this action to be necessary because the

review and processing of conformity packages submitted for Canadian

imports have assumed an increasing share of the staff time within

OVSC's Equipment and Imports Division and now comprise a major portion

of the work performed by that division. The imposition of such a fee

would also be consistent with OMB's policy for Federal agencies to

obtain full cost reimbursement from the recipients of agency services.

Effective Date

Section 30141(e) of Title 49, U.S. Code requires the amount of fees

imposed under section 30141(a) to be reviewed, and, if appropriate,

adjusted by NHTSA at least every two years. It also requires that the

fee for each fiscal year be established before the beginning of that

year. Any final rule on this proposal must therefore be issued not

later than Tuesday, September 30, 1997 so that the fee it establishes

will be applicable in Fiscal Year 1998, which begins on October 1,

1997. Because of these time constraints, NHTSA has good cause to limit

the comment period for this proposed rule to thirty days.

Rulemaking Analyses and Notices

1. Executive Order 12866 (Federal Regulatory Planning and Review) and

DOT Regulatory Policies and Procedures

This proposal was not reviewed under E.O. 12866. NHTSA has analyzed

this proposal and determined that it is not ``significant'' within the

meaning of the Department of Transportation's regulatory policies and

procedures.

2. Regulatory Flexibility Act

In accordance with the Regulatory Flexibility Act, NHTSA has

evaluated the effects of this action on small entities. Based upon this

evaluation, I certify that the proposed amendment would not have a

significant economic impact on a substantial number of small entities.

Although most registered importers would qualify as small businesses

within the meaning of the Regulatory Flexibility Act, the agency has no

reason to believe that these companies could not pay the fee that would

be imposed under this proposed regulation. This fee would in all

likelihood be passed along to the purchaser of the vehicle for which a

conformity package is submitted to NHTSA for review. Most nonconforming

vehicles that are imported into the United States are of very recent

vintage, and many would be considered luxury models. Given the nominal

amount of the proposed fee, especially when viewed in relation to the

purchase price of the vehicles to which it would pertain, it would not

appreciably increase the purchase price of those vehicles and would be

unlikely to have any significant impact on their importation and sale.

For that reason, registered importers and small businesses, small

organizations, and small governmental units that purchase motor

vehicles would not be significantly affected by the proposed fee.

Accordingly, no regulatory flexibility analysis has been prepared.

3. Executive Order 12612 (Federalism)

This action has been analyzed in accordance with the principles and

criteria contained in Executive Order 12612, and it has been determined

that the proposed rule would not have sufficient Federalism

implications to warrant preparation of a Federalism Assessment. No

State laws would be affected.

4. National Environmental Policy Act

The agency has considered the environmental implications of this

proposed rule in accordance with the National Environmental Policy Act

of 1969 and determined that the proposed rule would not significantly

affect the human environment.

5. Civil Justice Reform

This proposed rule would not have any retroactive effect. It would

not repeal or modify any existing Federal regulations. A petition for

reconsideration or other administrative proceeding will not be a

prerequisite to an action seeking judicial review of this proposed

rule. This proposed rule does not preempt the states from adopting laws

or regulations on the same subject, except that if adopted, the

resulting Federal regulation would preempt a state regulation that is

in actual conflict with the Federal regulation or makes compliance with

the Federal regulation impossible or interferes with the implementation

of the Federal statute.

Public Comments

Interested persons are invited to submit comments on the proposal.

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

[[Page 37852]]

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. 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 594

Administrative practice and procedure, Imports, Motor vehicle

safety.

In consideration of the foregoing, the agency proposes to amend

part 594, Schedule of Fees Authorized by 49 U.S.C. 30141, in Title 49

of the Code of Federal Regulations as follows:

PART 594--[AMENDED]

1. The authority citation for part 594 would be amended to read as

follows:

Authority: 49 U.S.C. 30141, 31 U.S.C. 9701; delegation of

authority at 49 CFR 1.50.

2. Section 594.5 would be amended by redesignating paragraphs (g)

and (h) as paragraphs (h) and (i), respectively, and by adding a new

paragraph (g), to read as follows:

Sec. 594.5 Establishment and payment of fees.

* * * * *

(g) A fee for the review and processing of a conformity certificate

shall be submitted with each certificate of conformity furnished to the

Administrator.

* * * * *

3. A new section 594.10 would be added to part 594, to read as

follows:

Sec. 594.10 Fee for review and processing of conformity certificate.

(a) Each registered importer shall pay a fee based on the agency's

direct and indirect costs for the review and processing of each

certificate of conformity furnished to the Administrator pursuant to

Sec. 591.7(e) of this chapter.

(b) The direct costs attributable to the review and processing of a

certificate of conformity include the estimated cost of contract and

professional staff time, computer usage, and record assembly, marking,

shipment and storage costs.

(c) The indirect costs attributable to the review and processing of

a certificate of conformity include a pro rata allocation of the

average benefits of persons employed in reviewing and processing the

certificates, and a pro rata allocation of the costs attributable to

the rental and maintenance of office space and equipment, the use of

office supplies, and other overhead items.

(d) For certificates of conformity submitted on and after October

1, 1997, the fee is $17.00.

Issued on: July 10, 1997.

Kenneth N. Weinstein,

Associate Administrator for Safety Assurance.

[FR Doc. 97-18529 Filed 7-14-97; 8:45 am]

BILLING CODE 4910-59-P