Interpretation ID: nht68-3.20

DATE: 02/03/68

FROM: AUTHOR UNAVAILABLE; Alan S. Boyd; NHTSA

TO: John E. Moss; House of Representatives

TITLE: FMVSR INTERPRETATION

TEXT: Thank you for your letter of November 30 regarding the Notice of Proposed Rule Making published that day in the Federal Register relative to the promulgation by the Department of the Treasury and the Department of Transportation of regulations governing the importation of motor vehicles and equipment manufactured after December 31, 1967.

You have asked the statutory authority for "six proposed exemptions" set forth in proposed 19 C.F.R. Sec. 12.80(b). You will see from the enclosed copy of the final regulations published on January 10 that there are now seven exceptions in 19 C.F.R. Sec. 12.80(b). However, there are exceptions only from the requirement of paragraph (b) that a vehicle(Illegible Word) valid certification as a condition of entry into the United States. They are not exemptions from compliance with the Federal motor vehicle safety standards where compliance is required by the National Traffic and Motor Vehicle Safety Act of 1966. With specific reference to each of the seven exceptions to vehicle certification provided by 19 C.F.R. Sec. 12.80(b):

"(i) Such vehicle or equipment item was manufactured on a date when there were no applicable safety standards in force, a verbal declaration being acceptable at the option of the district director of customs for vehicles entering at the Canadian and Mexican borders;"

Section D8(a)(1) of the Act prohibits importation of a motor vehicle manufactured on or after the date any applicable safety standard is in effect unless the vehicle is in conformity with such standard. This section makes it clear to customs officer and the public that vehicles manufactured prior to the effective date of a standard need not comply with the standard in order to be imported.

"(ii) Such vehicle on equipment item was not manufactured in conformity with applicable standards but has since been brought into conformity, such declaration to be accompanied by the certificate of the manufacturer, contractor, or other person who has brought such vehicle or equipment item into conformity which described the nature and extent of the work performed;"

No exemption from compliance is allowed and it is assumed from the statement of the responsible contractor submitted concurrent with the declaration that the vehicle fully conforms with the requirements of section 108(a)(1) at the time of its admission into the United States.

"(iii) Such vehicle or equipment item does not conform with applicable standards, but that the importer or consiance will bring such vehicle or equipment item into conformity with such standards;"

This temporary exemption is permitted by section 108(b)(3) of the Act which provides that nonconformity vehicles may be admitted upon terms and conditions sufficient to insure they are brought into conformity.

"(iv) Such vehicle is a new vehicle being imported for purposes of resale which does not presently conform to all applicable safety standards because readily attachable equipment items are not attached, but that there is affixed to its windshield a label stating the standard with which and the manner in which such vehicles does not conform and that the vehicle will be brought into conformity by attachment of such equipment items before it will be offered for sale to the first purchaser for purposes other than resale;"

Comments submitted by several European motor vehicle manufacturers in response to the Notice of November 30 indicated that exterior equipment items such as rearview mirrors and wheel covers, which are subject to breakage or theft, are commonly shipped separately from new motor vehicles. Additionally, one foreign manufacturer expressed its preference for utilization of American made passenger restraint systems and consequent installation of such systems after arrival of its vehicles in the United States. Since it is only in minor ways that the vehicles in the United States, the offer for sale of a nonconforming vehicle would be a violation of section 108(a)(1) of the Act, it seems appropriate to allow entry of there vehicles with an informational label stating the fact of nonconformance and that the vehicle will be brought into conformance before being offered for sale at the retail level.

"(v) The importer or consignee is a nonresident of the United States, importing such vehicle or equipment item primarily for personal use or for the purpose of making repairs or alterations to the vehicle or equipment item, for a period not exceeding 1 year from the date of entry, and that he will not resell it in the United States during that time; Provided, That person regularly entering the United States by a motor vehicle at the Canadian and Mexican borders may apply to the district director of custom for an appropriate means of identification to be affixed to such vehicle which will serve in place of the declaration required by this paragraph;"

"(vi) The importer or consignee is a member of the armed forces of a foreign country on assignment in the United States, or is a member of the Secretariat of a public international organization so designated pursuant to 59 Stat. 669 on assignment in the United States, or is a member of the personnel of a foreign government on assignment in the United States who comes within the class of persons for whom free entry of motor vehicles has been authorized by the Department of State and that he is importing such vehicle or equipment item for purposes other than resale;"

These exemptions are permitted by section 108(b)(4) of the Act which permit "temporary importation" of noncomplying motor vehicles. The Department of State informally advised that any interpretation of "temporary" as meaning a period of less than "one year" might not be in accordance with several international road and traffic Conventions to which the United States is a party. The Canadian-Mexican provision in item (v) is designed to facilitate entry and exit of vehicles owned by nationals of these countries who are employed in the United States, and who commute regularly to and from their jobs across the border.

"(vii) The importer or consignee is importing such vehicle or equipment item solely for the purposes 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 is not an exemption permitted by section 108(b) but an exemption granted on the basis that experimental, show, test, or competition vehicles have not been built "primarily for use on the public roads" and hence are not "motor vehicles" (within the definition of section 102(2) of the Act) subject to regulation by the Secretary.

I hope this will answer your questions.