Importation of Vehicles and Equipment Subject to Federal Safety, Bumper, and Theft Prevention Standards

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