Interpretation ID: 1983-2.30

TYPE: INTERPRETATION-NHTSA

DATE: 07/18/83

FROM: AUTHOR UNAVAILABLE; Frank Berndt; NHTSA

TO: Leo J. Landry; Esq.

TITLE: FMVSR INTERPRETATION

TEXT:

Leo J. Landry, Esq. 5959 West Loop South Suite 464 Bellaire, Texas 77401

Dear Mr. Landry:

This is in reply to your letter of June 2, 1983, asking "whether the importation of automobiles directly into a foreign trade zone would eliminate the requirement for a bond imposed by the Department of Transportation." You have informed us that "Customs requirements for a foreign trade zone would insure that no automobile would leave the zone until conformity with Environmental Protection Agency and Department of Transportation requirements are met."

The bond you reference is not imposed by the Department of Transportation, but is a bond required by Customs, one purpose of which is to insure that the importer produce a statement that a nonconforming vehicle has been brought into compliance with Department of Transportation safety standards. Under 19 CFR 12.80(b)(1)(iii) the bond is required whenever a vehicle enters the United States which was not originally manufactured to meet the safety standards and which is conformed before importation. The compliance documentation submitted at the time of importation, when the vehicle enters under bond, is forwarded to the Department of Transportation for its review. If the documentation is inadequate, the importer is notified and afforded an opportunity to complete the compliance work. Upon completion of the work and the submission of adequate documentation, the vehicle is released from bond.

Therefore, in answer to your question, the bond would still be required but would be deferred until the time the vehicle left the foreign trade zone and entered the United States.

I hope this answers your question.

Sincerely,

Frank Berndt Chief Counsel June 2, 1983

Administrator Department of Transportation National Highway Traffic Safety Administration 400 7th Street, SW Washington, DC 20590

Dear Sir:

I represent Jack's Conversion, a Texas corporation with its principal place of business in Houston, Texas. The corporation is in the business of modifying imported automobile to conform to EPA emission control standards and DOT safety standards.

My client is contemplating participating in a foreign trade zone to be established in Houston in the near future. My purpose in writing this letter is to obtain a determination from your agency as to whether the importation of automobiles directly into a foreign trade zone would eliminate the requirement for a bond imposed by DOT. Customs requirements for a foreign trade zone would insure that no automobile would leave the zone until conformity with EPA and DOT standards is met.

After you have reviewed this letter, I would appreciate the opportunity to discuss this matter with appropriate agency personnel in greater. I would appreciate a response from your agency at the earliest possible convenience.

Very truly yours,

Leo J. Landry

LL/jd