Interpretation ID: SWI

Mr. John W. McLeod

Vice President and General Counsel

Southwest Research Institute

6220 Culebra Road

San Antonio, TX 78228

Dear Mr. McLeod:

This responds to your letter concerning two Honda scooters that Southwest Research Institute (SwRI) temporarily imported in September 2007, under the research provision specified at 49 CFR 591.5(j). You stated that you understand that once the research is complete, NHTSA requires final disposition of the scooters, which usually entails exportation or destruction.

You stated that instead of exporting or destroying the scooters in their entirety, SwRI desires to remove the engines to comply with Environmental Protection Agency regulations and retain the rest of the scooters for further research, such as construction of prototype electric vehicles. You asked whether removal of the engine and keeping the remainder of the vehicle off public roads constitutes proper final disposition of a vehicle for purposes of complying with our temporary import requirements. As discussed below, the answer is no. However, there are procedures SwRI can use to request permission to keep the scooters in the country beyond the time already approved for further research.

By way of background, a motor vehicle that does not conform to all applicable Federal motor vehicle safety standards (FMVSS) can be temporarily imported for certain statutorily prescribed purposes, including research, investigations, demonstrations or training, or competitive racing events.  See 49 U.S.C. 30114.  If the importer is not a manufacturer of motor vehicles that are certified to the FMVSS, it must request written permission from NHTSA to temporarily import a motor vehicle for one of these purposes.  See 49 CFR 591.5(j)(2)(i).  NHTSA grants permission in annual increments for up to three years if duty is not paid on a vehicle, or for up to five years if duty is paid.  See 49 CFR 591.7(b).  Further written permission must be obtained from NHTSA if the importer wishes to keep the vehicle in the United States for longer than five years from its date of entry.  Ibid.

By letter dated September 19, 2007, NHTSA's Office of Vehicle Safety Compliance (OVSC) granted permission to SwRI to import a 2007 Honda SH150 scooter (VIN:  ZDCKF08A07F177413) for purposes of testing.  By letter dated September 20, 2007, OVSC granted SwRI permission to import a 2007 Honda SH300 scooter (VIN:  CNF02A07F018295), also for testing purposes.  The letters informed SwRI that the vehicles could remain in the United States for a period not to exceed one year and that if additional time was required, a request for extension should be made to OVSC.  The letters further noted that after the completion of the testing, the agency would require documentation that the vehicles have been exported or destroyed under Customs supervision.

You have asked whether removal of the engine and keeping the remainder of the vehicle off public roads constitutes proper final disposition of a vehicle for purposes of complying with our temporary import requirements. Since such action would constitute neither exportation of the vehicle nor its destruction, the answer is no. See 49 CFR 591.5(j)(3).  We note that the various letters of interpretation you cite in your letter were not related to the provision under which you temporarily imported the vehicles. If you wish to keep the vehicles in the country longer, you need to request an extension from OVSC, as described above. If you have any questions relating to this process, you may contact Coleman R. Sachs, Chief, Import and Certification Division, OVSC, at 202-366-3151.

Sincerely yours,

Anthony M. Cooke

Chief Counsel

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