[Federal Register Volume 59, Number 198 (Friday, October 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25495]


[[Page Unknown]]

[Federal Register: October 14, 1994]


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DEPARTMENT OF TRANSPORTATION
49 CFR Parts 591 and 592

RIN 2127-AD00
[Docket No. 89-5; Notice 15]

 

Importation of Vehicles and Equipment Subject to Federal Safety, 
Bumper, and Theft Prevention Standards; Registered Importers of 
Vehicles Not Originally Manufactured To Conform to the Federal Motor 
Vehicle Safety Standards

AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule responds to comments received on a request for 
comments on an interim final rule which amended Part 591 to adopt a 
continuous entry bond as an alternative to the single entry bond that 
is required to accompany each nonconforming vehicle imported into the 
United States for which a registered importer certifies compliance. 
NHTSA is retaining the option of allowing the continuous entry bond, 
though adopting modifications to it which commenters believed were 
necessary to distinguish it from single entry bonds, and restricting it 
to registered importers who import more than one motor vehicle at a 
time. Importers who are not registered importers will continue to use 
the single entry bond.

DATES: The final rule is effective November 14, 1994.

FOR FURTHER INFORMATION CONTACT: Taylor Vinson, Office of Chief 
Counsel, NHTSA (202-366-5263).

SUPPLEMENTARY INFORMATION: On June 20, 1994, NHTSA adopted an interim 
final rule on amendments to the entry bonds required by 49 CFR parts 
591 and 592 to accompany the permanent importation of nonconforming 
motor vehicles to ensure their eventual compliance with the Federal 
motor vehicle safety standards (59 FR 31558). The reader is referred to 
that notice for further information (though denominated Notice 13, the 
notice was actually the 14th under Docket No. P89-5, and this notice, 
Notice 15, restores the proper sequence).
    In summary, it had been represented to NHTSA that bonding companies 
were no longer issuing single entry bonds to registered importers (RIs) 
covering individual vehicles, and that there was an immediate need for 
relief. This relief would be the allowance of continuous entry bonds 
which cover multiple entries of vehicles. For this reason, NHTSA 
amended 49 CFR part 591 to permit continuous entry bonds with a value 
of up to $1,000,000 as an alternative to single entry bonds. The 
interim final rule specified that the bond form specified in appendix A 
for single entries could be used, with plural references where 
appropriate. A conforming amendment was made to the importation 
procedures of part 592 to require a photocopy of the continuous entry 
bond to accompany each vehicle covered by it at the time of 
importation. NHTSA also requested comments on whether the alternative 
should be made permanent.
    Comments were received from Asset Protection Services (``Asset'') 
which writes DOT bonds on behalf of International Fidelity Insurance 
Company, Intercargo Insurance Company (``Intercargo'') which provides 
surety bonds for the international trade community through Trade 
Insurance Services, Inc., and The Surety Association of America 
(``Surety''), which describes itself as ``a service organization 
supported by more than 650 member companies which collectively write 
the majority of all surety bonds written in the United States''.
    There were three primary issues that concerned the commenters.

1. Whether There Should Be a Continuous Entry Bond

    Asset and Intercargo opposed the continuous entry bond as an 
alternative to the single entry bond. Surety was ``not opposed to the 
idea'' but doubted whether RIs would use it in the form adopted, and 
made ameliorative recommendations.
    According to Asset, it is untrue that bonding companies are 
refusing to write single entry bonds, and it named two new companies 
which began writing these bonds during spring 1994, Intercargo, and 
International Fidelity Insurance Company. In its view, there is no need 
for a continuous entry bond.
    Both Asset and Intercargo (in some detail) commented that 
continuous entry bonds were undesirable. In Intercargo's view, it is 
not possible to maintain an accurate running total of the bonded value 
of vehicles secured by the bond, and this will inevitably encourage RIs 
to abuse the bond by maintaining a running total in excess of the 
penalty amount. It sees six principal problems arising from this.
    Two of these problems relate to the effect upon Customs that 
Intercargo presumes would occur from continuous bonds. It argues that 
Customs must confirm that the original of the copy presented at the 
time of entry is on file with NHTSA, that the bond was validly executed 
by both the principal and surety and that the bond is still effective. 
Further, monitoring outstanding liability against the continuous bond 
will cause Customs to expend more manpower.
    NHTSA does not agree with this assessment of the effect of 
continuous bonds upon the U.S. Customs Service. Although Customs did 
not comment upon the interim final rule (nor did any RI for that 
matter), the role that Customs has performed with respect to NHTSA 
bonds has been limited, by Customs' choice, to verification that a bond 
is present and to forward to NHTSA the entry documents with bond 
attached. Customs has not sought to verify the accuracy of the bond, 
nor has NHTSA asked it to.
    A third undesirable aspect of the interim final rule, according to 
Intercargo, is that the facsimile signatures on a photocopied bond that 
accompany a vehicle are not binding, and, hence, that the United States 
will be at risk since it cannot enforce an invalid bond.
    The purpose of the photocopy is to assure NHTSA that the vehicle 
being imported is covered by a bond, not that the photocopy itself is a 
valid bond. Obviously, the signatures on the original bond will be 
genuine and, for NHTSA's purposes, it is irrelevant that the signatures 
on the copy it receives with the entry declaration are facsimiles.
    A fourth reason that Intercargo finds continuous entry bonds 
objectionable is that ``there is no adequate means to determine the 
value of all vehicles released under the continuous entry bond for 
which compliance has not yet been accepted by NHTSA''. This also 
burdens Customs because ``[w]hile one Customs Import Specialist may be 
able to manually keep track this accumulation under the bond * * * that 
person is not notified of acceptance of the certification by NHTSA.''
    Once again, Intercargo has attributed to Customs a role that it 
will not play when continuous entry bonds are used. It will be up to 
the principal and surety, who holds the original bond, to track the 
coverage of the bond and to ensure that it is not exceeded.
    A fifth reason is that the inability to adequately control the 
accumulated bond value of vehicles secured by the continuous bond 
places the United States at risk, due to the lack of control when 
claims exceed surety bond amounts.
    NHTSA deems it unlikely that claims will be made covering all 
vehicles covered by a continuous entry bond. RIs have an incentive to 
make a good faith effort to conform the vehicles for which they are 
responsible, or to redeliver them for export, because they are required 
to renew their status on a yearly basis.
    Finally, Intercargo raises the argument that ``the uncertainty as 
to how many vehicles are secured by the bond could cause the Surety 
market to refuse to offer this bond, refuse to enter the market, or 
refuse to remain in the market.''
    NHTSA doubts that ``the Surety market'' is a monolith acting as one 
unit, and has faith that the attractiveness of continuous entry bonds 
to RIs will ensure that they will be offered by other companies if 
Intercargo does not provide this type of service. Surety, which 
represents 650 member companies, conditionally supported continuous 
entry bonds, and NHTSA believes that it has addressed that commenter's 
reservations (see discussion below). And even if all companies withdraw 
from offering continuous entry bonds, the single entry bond will remain 
available according to Asset.
    NHTSA does not understand how the importer of a single motor 
vehicle could be the principal on a continuous entry bond that is 
intended to cover more than one vehicle. Given the fact that single 
entry bonds apparently remain available, contrary to NHTSA's 
understanding when it adopted the interim final rule, NHTSA believes 
that an individual who imports a nonconforming vehicle for personal use 
pursuant to a contract with a RI to conform them, should continue to 
use the single entry bond. This should address some of the concerns of 
the commenters as well. Consequently, the form of continuous entry bond 
that NHTSA is adopting (see discussion below) is intended for use by 
RIs who are the direct importers of the vehicle(s) covered by the 
continuous entry bond, whether they are the owners of the vehicles or 
whether they are importing them on behalf of another person whose 
intended disposition is commercial.

2. Whether $1,000,000 Is an Appropriate Amount

    Surety questions whether small businesses such as RIs would be able 
to qualify for a bond in this amount and whether they would actually 
need to be bonded for an amount this high.
    The interim final rule did not specify that, if a continuous entry 
bond was used, it must have a ceiling of $1,000,000. Rather, it 
provided for them to be allowed, with a ceiling of this amount. This 
does not prohibit continuous entry bonds with lesser ceilings based 
upon the individual RI's ability to qualify and its own individual 
needs (a ceiling of $1,000,000 would cover 60-some vehicles valued 
around $15,000 each).
    Asset comments without further explanation that ``[t]he bond limits 
of up to $1,000,000 without the effective controls now in place will 
probably prove intolerable.'' As noted above, the regulation permits 
sureties to set ceilings on continuous entry bonds related to their 
assessment of principals in amounts less than $1,000,000.

3. Whether the Bond Form Adopted is Appropriate

    In the final rule, NHTSA specified that the language of the 
continuous entry bond could be that required for single entries 
(appendix A to part 591), with plural wording used where appropriate, 
i.e., ``vehicles'' for ``vehicle''. Though opposing continuous entry 
bonds, both Intercargo and Surety recommended changes which they felt 
were required were NHTSA to decide to continue to offer the option of 
continuous entry bonds.
    Intercargo, and, in less detail, Security, pointed out that 
adopting the single entry bond form language per se could result in 
interpretations requiring an RI to make all vehicles subject to 
inspection that are covered by the continuous entry bond, as well as 
redelivery of all of them. Similarly, when there has been no redelivery 
of a single vehicle and the RI is obligated to ``pay the amount of this 
obligation'', the amount of the continuous entry bond will far exceed 
the value of the individual vehicle to be redelivered. NHTSA considers 
these comments well taken, and is adopting a specific form for a 
continuous entry bond, which will be designated as appendix B.
    Intercargo believes that ``the regulations must provide a means for 
the principal or the surety to terminate the bond'', saying that it is 
impracticable to consider that any surety will commit itself to an 
obligation that does not have an expiration date or a means to 
terminate its guarantee commitment. Surety also recommended that the 
bond include a cancellation clause. To implement this recommendation, 
Intercargo submitted a suggested amendment to Sec. 591.8 Conformance 
bond and conditions under which a principal would submit a written 
request to NHTSA to terminate a continuous entry bond, and a surety 
would be able to terminate its bond with or without the principal's 
consent.
    NHTSA disagrees with Intercargo's view that provisions governing 
termination of continuous entry bonds must be part of the importation 
regulation. The provision for termination of a bond is a business 
matter to be resolved between the principal and the surety. If its 
continuous entry bond is terminated, the principal (RI) remains 
responsible for providing a bond, either continuous or single entry, 
for any vehicle for which it must furnish a certificate of conformity. 
However, in view of Intercargo's comment, the continuous entry bond 
form which has been set forth in Appendix B allows the insertion by the 
parties thereto of termination provisions at its end. Finally, for the 
reasons discussed above, NHTSA has not set forth terminology in the 
bond which recognizes a principal other than a RI.

4. Amendments Necessitated by Recodification

    NHTSA is also revising Secs. 591.4, 591.10(b) and (c), 592.1, 
592.4, 592.6(g)(2)(i), 592.7(c), and 592.8(g), as well as the authority 
sections of these parts, to reflect the codification in Title 49 on 
July 5, 1994, of the provisions of the National Traffic and Motor 
Vehicle Safety Act and the Motor Vehicle Information and Cost Savings 
Act.

Effective Date

    Because of the need to ensure an uninterrupted flow of commerce 
that the interim final rule has provided, it is hereby found that an 
effective date earlier than 180 days after issuance is in the public 
interest, and the final rule is effective 30 days after publication in 
the Federal Register.

Rulemaking Analyses

A. Executive Order 12866 (Federal Regulation) and DOT Regulatory 
Policies and Procedures

    This notice, like the interim final rule that preceded it, was not 
reviewed under EO 12866. After considering the impacts of this 
rulemaking action, NHTSA has determined that the action is not 
significant within the meaning of the Department of Transportation 
regulatory policies and procedures. The only substantive change that 
this final rule makes in the interim final rule is to set forth the 
form of the continuous entry bond. The number of RIs affected by the 
final rule is less than 35. The cost impacts of this regulatory action 
are cost savings to the RIs in procuring bonds (an estimated $20 per 
vehicle), and nonquantifiable cost savings in the paper work involved 
to obtain single-entry bonds. The impacts are so minimal as not to 
warrant the preparation of a full regulatory evaluation.

B. Regulatory Flexibility Act

    The agency has also considered the effects of this action in 
relation to the Regulatory Flexibility Act. The RIs, which number less 
than 35, are small businesses within the meaning of the Regulatory 
Flexibility Act. However, for the reasons discussed above under E.O. 
12866 and the DOT Policies and Procedures, I certify that this action 
would not have a significant economic impact upon ``a substantial 
number of small entities.'' The interim final rule appeared necessary 
to allow them to continue in business; the final rule allows them the 
option of choosing a continuous entry bond even if single entry bonds 
are available to them. Governmental jurisdictions will not be affected 
at all since they are generally neither importers nor purchasers of 
nonconforming imported motor vehicles.

C. Executive Order 12612 (Federalism)

    The agency has analyzed this action in accordance with the 
principles and criteria contained in Executive Order 12612 
``Federalism'' and determined that the action does not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Assessment.

D. National Environmental Policy Act

    NHTSA has analyzed this action for purposes of the National 
Environmental Policy Act. The action will not have a significant effect 
upon the environment because it is anticipated that the annual volume 
of motor vehicles imported will not vary significantly from that 
existing before promulgation of the rule.

E. Civil Justice Reform

    This final rule will not have any retroactive effect. Under 49 
U.S.C. 30103 (formerly section 103(d) of the National Traffic and Motor 
Vehicle Safety Act, 15 U.S.C. 1392(d)), whenever a Federal motor 
vehicle safety standard is in effect, a state may not adopt or maintain 
a safety standard applicable to the same aspect of performance which is 
not identical to the Federal standard. A procedure is set forth in 49 
U.S.C. 30161 (formerly Section 105 of the Act, 15 U.S.C. 1394)) for 
judicial review of final rules establishing, amending or revoking 
Federal motor vehicle safety standards. That section does not require 
submission of a petition for reconsideration or other administrative 
proceedings before parties may file suit in court.

List of Subjects in 49 CFR Parts 591 and 592

    Imports, Motor vehicle safety, Motor vehicles.

    In consideration of the foregoing, 49 CFR parts 591 and 592 are 
amended as follows:

PART 591--IMPORTATION OF VEHICLES AND EQUIPMENT SUBJECT TO FEDERAL 
SAFETY, BUMPER, AND THEFT PREVENTION STANDARDS

    1. The authority citation for part 591 is revised to read as 
follows:

    Authority: Pub. L. 100-562, 49 U.S.C. 322(a), 30117; delegation 
of authority at 49 CFR 1.50.

    2. Section 591.4 is amended by revising the introductory text to 
read as follows:


Sec. 591.4  Definitions.

    All terms used in this part that are defined in 49 U.S.C. 30102, 
32101, 32301, 32502, and 33101 are used as defined in those sections 
except that the term ``model year'' is used as defined in part 593 of 
this chapter.
* * * * *
    3. Section 591.6 is amended by revising paragraph (c) to read as 
set forth below:


Sec. 591.6  Documents accompanying declarations.

* * * * *
    (c) A declaration made pursuant to Sec. 591.5(f), and under a 
single entry bond, shall be accompanied by a bond in the form shown in 
Appendix A to this part, in an amount equal to 150% of the dutiable 
value of the vehicle, or, if under a continuous entry bond, shall be 
accompanied by a photocopy of a bond in the form shown in Appendix B to 
this part and by Customs Form CF 7501, for the conformance of the 
vehicle(s) with all applicable Federal motor vehicle safety and bumper 
standards, or, if conformance is not achieved, for the delivery of such 
vehicle to the Secretary of the Treasury for export at no cost to the 
United States, or for its abandonment.
* * * * *
    4. Section 591.10 is amended by revising paragraphs (b) and (c) to 
read as follows:


Sec. 591.10  Offer of cash deposits or obligations of the United States 
in lieu of sureties on bonds.

* * * * *
    (b) At the time the importer deposits any obligation of the United 
States, other than United States money, with the Administrator, (s)he 
shall deliver a duly executed power of attorney and agreement, in the 
form shown in Appendix C to this part, authorizing the Administrator or 
delegate of the Administrator, in case of any default in the 
performance of any of the conditions of the bond, to sell the 
obligation so deposited, and to apply the proceeds of sale, in whole or 
in part, to the satisfaction of any penalties for violations of 49 
U.S.C. 30112 and 49 U.S.C. 32506 arising by reasons of default.
    (c) If the importer deposits money of the United States with the 
Administrator, the Administrator, or delegate of the Administrator, may 
apply the cash, in whole or in part, to the satisfaction of any 
penalties for violations of 49 U.S.C. 30112 and 49 U.S.C. 32506 arising 
by reason of default.
* * * * *
    5. The heading of appendix A is revised to read as follows:

Appendix A--Section 591.5(f) Single Entry Bond

* * * * *
    6. Appendix B is added to read as follows:

Appendix B--Section 591.5(f) Continuous Entry Bond

Department of Transportation

National Highway Traffic Safety Administration

BOND TO ENSURE CONFORMANCE WITH MOTOR VEHICLE SAFETY AND BUMPER 
STANDARDS
(To redeliver vehicles, to produce documents, to perform conditions 
of release, such as to bring vehicles into conformance with all 
applicable Federal motor vehicle safety and bumper standards)
    Know All People by These Presents That [principal's name, 
mailing address which includes city, state, ZIP code, and state of 
incorporation if a corporation], as principal, and [surety's name, 
mailing address which includes city, state, ZIP code and state of 
incorporation] are held and firmly bound unto the United States of 
America in the sum of [bond amount in words] dollars (Sec. [bond 
amount in numbers]) which represents 150% of the entered value of 
the following described motor vehicle(s) as determined by the U.S. 
Customs Service: [model year, make, series, engine and chassis 
number of each vehicle] for the payment of which we bind ourselves, 
our heirs, executors, administrators, successors, and assigns 
(jointly and severally), firmly by these presents
    Witness our hands and seals this ________ day of ________, 
199____
    Whereas, motor vehicles may be entered under the provisions of 
49 U.S.C. 30112 and 49 U.S.C. 32506; and
    Whereas, pursuant to 49 CFR part 591, a regulation promulgated 
under the provisions of 49 U.S.C. 30112, the above-bounden principal 
desires to import permanently the motor vehicle(s) described above, 
which (is a)(are) motor vehicle(s) that (was)(were) not originally 
manufactured to conform with the Federal motor vehicle safety and 
bumper standards; and
    Whereas, pursuant to 49 CFR part 592, a regulation promulgated 
under the provisions of 49 U.S.C. 30112, the above bounden principal 
has been granted the status of Registered Importer of motor vehicles 
not originally manufactured to conform with the Federal motor 
vehicle safety standards; and
    Whereas, pursuant to 49 CFR part 593, a regulation promulgated 
under the provisions of 49 U.S.C. 30112, the Administrator of the 
National Highway Traffic Safety Administration has determined that 
the motor vehicle(s) described above (is)(are) eligible for 
importation into the United States; and
    Whereas, the motor vehicle(s) described above (has)(have) been 
imported at the port of [ name of port of entry], and entered at 
said port for consumption on entry No. ____________ dated ________, 
199____,
    Now, therefore, the condition of this obligation is such that--
    (1) The above-bounden principal (``the principal''), in 
consideration of the permanent admission into the United States of 
the motor vehicle(s) described above, voluntarily undertakes and 
agrees to have such vehicle(s) brought into conformity with all 
applicable Federal motor vehicle safety and bumper standards within 
a reasonable time after such importation, as specified by the 
Administrator of the National Highway Traffic Safety Administration 
(the ``Administrator'');
    (2) For each vehicle described above (``such vehicle''), the 
principal shall then file, with the Administrator, a certificate 
that such vehicle complies with each Federal motor vehicle safety 
standard in the year that such vehicle was manufactured and which 
applies in such year to such vehicle, and that such vehicle complies 
with the Federal bumper standard (if applicable);
    (3) The principal shall not release custody of any vehicle to 
any person for license or registration for use on public roads, 
streets, or highways, or license or register the vehicle from the 
date of entry until 30 calendar days after it has certified 
compliance of such vehicle to the Administrator, unless the 
Administrator notifies the principal before 30 days that (s)he has 
accepted such certification and such vehicle and all liability under 
this bond for such vehicle may be released, except that no such 
release shall be permitted, before or after the 30th calendar day, 
if the principal has received written notice from the Administrator 
that no inspection of such vehicle will be required, or that there 
is reason to believe that such certification is false or contains a 
misrepresentation.
    (4) And if the principal has received written notice from the 
Administrator that an inspection of such vehicle is required, the 
principal shall cause such vehicle to be available for inspection, 
and such vehicle and all liability under this bond for such vehicle 
shall be promptly released after completion of an inspection showing 
no failure to comply. However, if the inspection shows a failure to 
comply, such vehicle and all liability under this bond for such 
vehicle shall not be released until such time as the failure to 
comply ceases to exist;
    (5) And if the principal has received written notice from the 
Administrator that there is reason to believe that such certificate 
is false or contains a misrepresentation, such vehicle and all 
liability under this bond for such vehicle shall not be released 
until the Administrator is satisfied with such certification and any 
modification thereof;
    (6) And if the principal has received written notice from the 
Administrator that such vehicle has been found not to comply with 
all applicable Federal motor vehicle safety and bumper standards, 
and written demand that such vehicle be abandoned to the Untied 
States, or delivered to the Secretary of the Treasury for export (at 
no cost to the United States), the principal shall abandon such 
vehicle to the United States, or shall deliver such vehicle, or 
cause such vehicle to be delivered to, the custody of the District 
Director of Customs of the port of entry listed above, or any other 
port of entry, and shall execute all documents necessary for 
exportation of such vehicle from the United States, at no cost to 
the United States; or in default of abandonment or redelivery after 
proper notice by the Administrator for the principal, the principal 
shall pay to the Administrator an amount equal to 150% of the 
entered value of such vehicle as determined by the U.S. Customs 
Service;
    Then this obligation shall be void; otherwise it shall remain in 
full force and effect. [At this point the terms agreed upon between 
the principal and surety for termination of the obligation may be 
entered]
    Signed, sealed and delivered in the presence of

Principal: (name and address)

----------------------------------------------------------------------
(signature)

----------------------------------------------------------------------
(printed name and title)
(Seal)

Surety: (name and address)

----------------------------------------------------------------------
(signature)

----------------------------------------------------------------------
(printed name and title)

PART 592--REGISTERED IMPORTERS OF VEHICLES NOT ORIGINALLY 
MANUFACTURED TO CONFORM TO THE FEDERAL MOTOR VEHICLE SAFETY 
STANDARDS

    7. The authority citation for part 592 is revised to read as 
follows:

    Authority: Pub. L. 100-562, 49 U.S.C. 322(a), 30117; delegation 
of authority at 49 CFR 1.50.

    8. Section 592.1 is revised to read as follows:


Sec. 592.1  Scope.

    This part establishes procedures under 49 U.S.C. 30141(c) for the 
registration of importers of motor vehicles that were not originally 
manufactured to comply with all applicable Federal motor vehicle safety 
standards. This part also establishes the duties of Registered 
Importers.
    9. The introductory text of Sec. 592.4 is revised to read as 
follows:


Sec. 592.4  Definitions.

    All terms in this part that are defined in 49 U.S.C. 30102 and 
30125 are used as defined therein.
* * * * *
    10. Section 592.6 is amended by revising paragraph (g)(2)(i) to 
read as follows:


Sec. 592.6  Duties of a registered importer.

* * * * *
    (g) * * *
    (2) * * *
    (i) The requirement of 49 U.S.C. 30120 that remedy shall be 
provided without charge shall not apply if the noncompliance or safety 
related defect exists in a motor vehicle whose first sale after 
importation occurred more than 8 calendar years before notification 
respecting the failure to comply is furnished pursuant to part 577 of 
this chapter, except that if a safety related defect exists and is 
attributable to the original manufacturer and not the Registered 
Importer, the requirements of 49 U.S.C. 30120 shall not apply to a 
motor vehicle whose date of first purchase, if known, or if not known, 
whose date of manufacture as determined by the Administrator, is more 
than 8 years from the date on which notification is furnished pursuant 
to part 577 of this chapter.
* * * * *
    11. Section 592.7 is amended by revising the first sentence of 
paragraph (c) to read as follows:


Sec. 592.7  Revocation, suspension, and reinstatement of registration.

* * * * *
    (c) The Administrator may suspend a registration if a Registered 
Importer fails to comply with any requirement set forth in 49 U.S.C. 
30141(c), Sec. 592.5(c), or Sec. 592.6, or if (s)he denies an 
application filed under Sec. 592.5(d). * * *
    12. Section 592.8 is amended by revising paragraph (g) to read as 
follows:


Sec. 592.8  Inspection; release of vehicle and bond.

* * * * *
    (g) Release of the performance bond shall constitute acceptance of 
certification or completion of inspection of the vehicle concerned, but 
shall not preclude a subsequent decision by the Administrator pursuant 
to 49 U.S.C. 30118 that the vehicle fails to conform to any applicable 
Federal motor vehicle safety standard.

    Issued on: October 7, 1994.
Ricardo Martinez,
Administrator.
[FR Doc. 94-25495 Filed 10-13-94; 8:45 am]
BILLING CODE 4910-59-P