Interpretation ID: Colman

Mr. Earl Colman
Colman Equipment Co.
901 Foster Drive
Casper, WY 82601

Dear Mr. Colman:

This is in response to your letter of January 21, 2002, requesting an interpretation of the vehicle certification regulations at 49 CFR Parts 567 and 568. You state that you run a full line truck equipment company that qualifies as a final stage truck manufacturer, and that you ensure that the vehicles your company manufactures comply with all applicable safety requirements. You express concern, however, that other companies conducting similar operations in your area are less conscientious than your company. As a consequence, you suspect that the number of small commercial trucks being operated in your area that are not properly certified is greater than the number that are. This had led you to ask what the agencys enforcement position would be in three distinct scenarios.

The first scenario involves a new truck dealer who delivers an incomplete vehicle, such as a chassis cab, to a private customer, such as a farmer or rancher, but makes no mention of the vehicle certification requirements. You state that in this circumstance, the purchaser will often complete the vehicle himself or have a local machine shop do the necessary work. Under the statutes and regulations that this agency administers, there is nothing that would restrict a dealer from directly selling an incomplete vehicle to a consumer. In this circumstance, the party who completes the vehicle by adding components that are necessary for the vehicle to perform its intended function would be considered the final stage manufacturer, regardless of whether that party is the purchaser himself or a commercial entity such as a local machine shop.

If a vehicle is manufactured in two or more stages, the final stage manufacturer must certify that the vehicle, as finally manufactured, conforms to all applicable Federal motor vehicle safety standards (FMVSS). To assist the final stage manufacturer in carrying out this responsibility, the certification regulations at 49 CFR 568.4 require an incomplete vehicle manufacturer to furnish with the vehicle a document (referred to as the incomplete vehicle document, or IVD, or, more commonly, as the build book) that specifies, among other things, the gross vehicle weight rating (GVWR) and the gross axle weight ratings (GAWR) to be assigned to the vehicle once it is completed, a listing of the vehicle types (e.g., truck, multi-purpose passenger vehicle, bus, trailer) into which the incomplete vehicle can be manufactured, and a listing of all FMVSS that apply to each of those vehicle types. The IVD must also specify, with respect to each of those standards, either (1) that the vehicle will conform to the standard upon completion if no alterations are made in identified components of the incomplete vehicle, (2) the conditions of final manufacture under which the completed vehicle will conform to the standard, or (3) that conformity with the standard is not substantially affected by the design of the incomplete vehicle. In order to assure that the final stage manufacturer understands what further steps are needed to complete the vehicle in such a manner that it conforms to all applicable FMVSS, the dealer must ensure that the applicable incomplete vehicle document is either furnished with the vehicle or is forwarded immediately after the purchase to the party who is to complete the vehicle.

As provided in the certification regulations at 49 CFR 568.6, the final stage manufacturer of a vehicle built in two or more stages must complete the vehicle in such a manner that it conforms to all applicable FMVSS in effect on the date of manufacture of the incomplete vehicle, the date of final completion, or a date between those two dates. The final stage manufacturer must also affix a label to the completed vehicle certifying such conformance. It is a violation of 49 U.S.C. 30112(a) for any person to introduce into interstate commerce a motor vehicle manufactured after the date an applicable FMVSS takes effect unless the vehicle complies with the standard and is so certified. The agencys Office of Vehicle Safety Compliance (OVSC) investigates suspected violations of section 30112(a), and where a probable violation is found, will refer the matter to this Office with a recommendation for civil penalties. Under 49 U.S.C.

30165(a)(1), a civil penalty of up to $5,000 can be imposed for each violation of section 30112(a). A separate violation exists for each vehicle introduced into interstate commerce in violation of that provision. See 49 U.S.C. 30165(a).

In the second scenario described in your letter, the new truck dealer removes a pickup box from a certified vehicle and sells the vehicle as a chassis cab. If this is done prior to the first retail sale of the vehicle, under our regulations the dealer would be considered a vehicle alterer. The certification regulations at 49 CFR 567.7 provide that a person who alters a previously certified vehicle, other than by the addition, substitution, or removal of readily attachable components such as mirrors or tire and rim assemblies, or minor finishing operations such as painting, or who alters the vehicle in such a manner that its stated weight ratings are no longer valid, must allow the original certification label to remain on the vehicle, and must affix an additional label stating that the vehicle, as altered, conforms to all applicable FMVSS affected by the alteration. Section 567.7 additionally provides that [i]f the gross vehicle weight rating or any of the gross axle weight rating of the vehicle as altered are different from those shown on the original certification label, the modified values must be specified on the alterers certification label. See 49 CFR 567.7(b).

It is unlikely that the dealer could certify the vehicle as conforming to all applicable FMVSS once it has removed the pickup box, because removal of the box could bring the vehicle out of compliance with certain FMVSS, such as Standard

No. 108, Lamps, Reflective Devices, and Associated Equipment. In addition, by eliminating substantial weight from the vehicle, the removal could affect the vehicles compliance with other FMVSS, such as Standard No. 105, Hydraulic and Electric Brake Systems. It would be a violation of 49 U.S.C. 30112(a) for the dealer to sell such a nonconforming vehicle. As previously noted a civil penalty of up to $5,000 per vehicle can be imposed under 49 U.S.C. 30165(a) for a violation of this nature.

If the dealer removes the pickup box after the vehicles first retail sale, the removal of the box would not constitute an alteration under our regulations and the dealer would not have the certification responsibilities described above. However, in this circumstance the dealer would be subject to the statutory prohibition in 49 U.S.C.

30122(b) against knowingly [making] inoperative any part of a device or element of design installed on or in a motor vehicle in compliance with an applicable [FMVSS]. As previously noted, removal of the pickup box could bring the vehicle out of compliance with certain FMVSS, such as Standard No. 108, and, by virtue of removing substantial weight from the vehicle, could affect its compliance with other FMVSS, such as Standard No. 105. By the terms of Section 30122(b), the making inoperative prohibition does not apply in circumstances where the dealer reasonably believes the vehicle . . . will not be used (except for testing or a similar purpose during maintenance or repair) when the device or element is inoperative. Unless it could establish that it had such a reasonable belief, a dealer who violates the making inoperative prohibition is subject to civil penalties of up to $5,000 per vehicle under 49 U.S.C. 30165(a).

The third scenario described in your letter involves ranch supply stores in small distant communities that stock and sell ranch and contractor bodies for pickup trucks. You state that in selling these components, the stores often advise the customer not to be concerned about the need to certify the vehicle once it is completed and that the component manufacturers are often aware of this practice. Under the statutes and regulations that we administer, there is nothing that would require a party selling the components you have described to alert the purchaser to the need to certify its vehicle after the components are installed.

I hope this explanation of our statutory and regulatory authorities is helpful. If you have any further questions regarding vehicle certification requirements, feel free to contact Coleman Sachs of my staff at 202-366-5238.

Sincerely,
Jacqueline Glassman
Chief Counsel

NCC-10:CSachs:crs:5-1-02:65238:cyt(5/1/02)
revised per KWeinstein 6-7-02
revised 7/5/02
Doc. 24173; NHTSA # CC2002033445
cc: NCC-01 Subj/Chron
NCC-10 Csachs, cyt
NPS-01; NSA-01
Redbooks(2), Part 567