Interpretation ID: shulman.crs

Mr. Burt Shulman
15D Van Horn Circle
Beacon, NY 12508
Dear Mr. Shulman:

This is in response to a letter that you sent by fax on August 5, 1999, requesting an interpretation of NHTSA's vehicle importation regulations at 49 CFR Part 591. Section 591.5(d) permits the importation of a vehicle that does not conform to all applicable Federal motor vehicle safety, bumper, and theft prevention standards if the importer files a declaration at the time the vehicle is offered for importation that states that the importer is a nonresident of the United States, "is temporarily importing the vehicle for personal use for a period not to exceed one year," will not sell the vehicle during that time, and will export the vehicle not later than one year from the date of entry. You have asked whether the term "personal use," as found in this provision, would preclude anyone other than the nonresident importer from driving the vehicle while it is in the United States. You have more particularly asked whether the nonresident importer would have to be in the vehicle if it is driven by his consignee. In your fax, you have cited 19 CFR 12.73 and 148.45 in support of your belief that a consignee may drive a vehicle imported by a non-resident for "personal use." However, as you have noted, the regulations you cite are not those of the Department of Transportation, and we have no knowledge of how the Customs Service may have interpreted them.

The Department of Transportation's importation regulations and the statute that they implement (49 U.S.C. 30141 through 30147) distinguish between vehicles that are imported "for personal use," and those that are imported "for resale." The term "personal use," as found in these provisions, identifies the purpose for which the vehicle is imported. Sec. 591.5(d) was adopted in recognition of international treaties to which the United States is a party, which are intended to assure the free flow of international road traffic. The primary beneficiaries of these treaty provisions are citizens of other countries who tour the United States and who wish to import their personal vehicles to use during their visits. These provisions also benefit American citizens who are in the United States temporarily between work assignments outside the United States and bring their vehicle with them.

It is in the public interest that there be consistency among Federal regulations to the extent that this is possible. We have reviewed 19 CFR 148.45's provisions and believe that they are consistent with the purpose of Sec. 591.5(d). Sec. 148.45 exempts from duties automobiles imported by nonresidents "in connection with the arrival of the nonresident to be used in the United States only for the transportation of the nonresident, his family and guests, and such incidental carriage of articles as may be appropriate to his personal use of the conveyance." If we adopt a similar meaning for "personal use" for purposes of Sec. 591.5(d), we would say that "guests" means people unrelated to the nonresident's family who are being transported by the nonresident, and that "guests" does not refer to a "consignee" operating the vehicle.

We understand from discussions with our Office of Vehicle Safety Compliance (OVSC) that you have inquired about the various means by which you may import a 1999 Smart passenger car that does not conform to all applicable Federal motor vehicle safety standards. In the course of your discussions with OVSC, you have indicated that you may wish to take advantage of the exemption from the prohibition on importing such a vehicle that is provided by Sec. 591.5(d) by finding a nonresident to import the vehicle, but then using the vehicle yourself as its "consignee." If this is in fact your intent, we wish to advise you that we would not regard the importation of the Smart by the non-resident, or you as the "consignee," as being an importation for the importer's "personal use" within the meaning of Sec. 591.5(d) as interpreted in this letter.

If you have any further questions regarding this matter, please contact Coleman Sachs or Taylor Vinson of my staff at 202-366-5263.

Sincerely,
Frank Seales, Jr.
Chief Counsel
ref:591
d.9/2/99