Interpretation ID: nht90-2.77

TYPE: INTERPRETATION-NHTSA

DATE: 06/11/90

FROM: RALPH H. SHEPPARD -- ADDUCI, MASTRIANI, MEEKS & SCHILL

TO: TAYLOR VINSON; PAUL JACKSON RICE, ESQ. -- CHIEF COUNSEL NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

TITLE: IMPORTATION OF A NON-CONFORMING VOLVO CAB CHASSIS INTENDED FOR RE-EXPORT TO SWEDEN OUR FILE: BAF-001

ATTACHMT: ATTACHED TO LETTER DATED 06/22/90 FROM PAUL JACKSON RICE -- NHTSA TO RALPH H. SHEPPARD; A35, PART 591

TEXT: This letter follows my telephone conversation with Taylor Vinson, Esq., of your office, regarding the Department of Transportation (DOT) requirements with regard to importation of a non-conforming Volvo truck cab chassis manufactured in Belgium pursuant to Swedish environmental and safety standards. As discussed with Mr. Vinson, the vehicle would be presented to the U.S. Customs Service as a temporary importation under bond (TIB) entry at the time of its arrival.

Once the vehicle is in the United States, our client, BAF Communications Corporation, or Peabody, Massachusetts (hereafter "BAF") will install a passenger and equipment box on the rear of the cab chassis, and then install various telecommunications eq uipment in order to equip the vehicle as a mobile television transmission facility. Upon completion, anticipated within 90 days of importation, the vehicle will be re-exported to Sweden, for use there by our clients' customer, Comvik Skyport of Sollentun a, Sweden.

As I indicated in my telephone conversation with Mr. Vinson, we request your priority consideration of the appropriate DOT Waiver criteria for this transaction, which involves pending importation. Based on our review of the regulations, and their sta tutory intent, we believe that a waiver of DOT requirements for this vehicle is warranted under any one of four different waiver options itemized on DOT Form HS-7. First, under item 4, since this vehicle is intended solely for re-export after the additi on of the box and telecommunications equipment, and all applicable shipping documents and entry documents will so indicate, we believe waiver is warranted under Section 591.5(c) of your regulations. Second, the president of the Swedish company, the ulti mate purchaser of the completed vehicle, and a non-resident of the United States, is prepared to certify that the vehicle would be imported solely for the purpose of the addition of the various equipment, that it will not be sold during its time here, an d that it will be exported within the time provided in the regulation, and therefore is entitled to a waiver under regulation section 591.5(d).

Third, under item 8, the vehicle would be eligible for a waiver under that provision as well since the vehicle is not manufactured primarily for use on the U.S. public roads and therefore is not a motor vehicle subject to Federal Motor Vehicle Safety Bumper and Theft Protection Standards. Finally, pursuant to item 9 of the form HS-7, "the vehicle requires further manufacturing operations to perform its intended functions", and will be exported after the further manufacturing operations are accomplis hed.

Since the above-described vehicle is not intended for permanent use in the United States, we believe that the letter and spirit of the various laws enforced by the Department of Transportation support waiver of those provisions with regard to vehicles such as this which are imported for customizing work, and solely intended for re-exportation. Needless to say, such operations benefit the United States, by permitting U.S. businesses to contract for work on such vehicles, bringing in valuable funds re lated to the services and equipment provided, thus helping improve the U.S. trade deficit. We do not believe that the regulations should be enforced in a way which has a chilling effect on the ability of U.S. businesses to remain competitive with foreig n companies performing similar customizing operations.

Accordingly, we request that you clarify the Department of Transportation requirements with regard to the above-described transaction, and confirm that the vehicle would be permitted entry, subject to subsequent re-exportation under one of the four wa iver criteria outlined above.

We look forward to your expedited consideration of this matter, and ask that you immediately contact us at (212) 949-7120 if there are any questions regarding our request. Further, upon formulating a response to our letter, please transmit that respo nse by facsimile to (212) 949-7271, rather than relying on normal mail delivery.