[Federal Register Volume 60, Number 226 (Friday, November 24, 1995)]
[Rules and Regulations]
[Pages 57953-57955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28539]



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DEPARTMENT OF TRANSPORTATION
49 CFR Part 591

[Docket No. 89-5; Notice 16]
RIN 2127-AG13


Importation of Vehicles and Equipment Subject to Federal Safety, 
Bumper and Theft Prevention Standards

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

ACTION: Final rule; response to petition for reconsideration.

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SUMMARY: This notice responds to a petition for reconsideration of a 
final rule which amended Part 591 to adopt a continuous entry bond as 
an alternative to the single entry bond that is otherwise required to 
accompany the permanent importation of nonconforming motor vehicles to 
ensure their eventual compliance with the Federal motor vehicle safety 
standards. The provisions regarding the new bond are amended in minor 
respects to reflect the bond's true nature as a bond covering more than 
one vehicle under a single entry.

DATES: The final rule is effective December 26, 1995.

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

SUPPLEMENTARY INFORMATION: On October 14, 1994, NHTSA adopted a final 
rule on amendments to the entry bonds required by 49 CFR Part 591 to 
accompany the permanent importation of nonconforming motor vehicles to 
ensure their eventual compliance with the Federal motor vehicle safety 
standards (Docket No. 89-5; Notice 15, 59 FR 52095). That notice 
responded to a request for comments on an interim final rule published 
on June 20, 1994 (Docket No. 89-5; Notice 13, 59 FR 31558). The reader 
is referred to those notices for further information.
    These rulemaking actions amended 49 CFR Part 591 to adopt a 
continuous entry bond with a value of up to $1,000,000 (Appendix B, 49 
CFR Part 591) as an alternative to single entry bonds (Appendix A). 
Heretofore, each motor vehicle that was imported into the United States 
and that did not conform to all applicable Federal motor vehicle safety 
standards was admitted pursuant to a separate bond. To simplify 
importation procedures and the cost of doing business, Registered 
Importers asked NHTSA to allow entry of vehicles pursuant to a 
continuous entry bond. This would allow importation of an indeterminate 
number of vehicles under a single bond, thereby avoiding the necessity 
of having to obtain a separate bond for each vehicle. NHTSA agreed, and 
amended Part 591 in what it believed to be a manner responsive to the 
concerns expressed.
    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'', submitted a letter asking for 
clarification of Notice 15. In its view, the bond that NHTSA adopted 
was simply a ``schedule'' type bond, one that accommodates more than 
one vehicle on the same entry, rather than an ``umbrella'' type of bond 
covering multiple vehicles and multiple entries. Since the request was 
received during the period in which petitions for reconsideration could 
be submitted, and since the request asks for relief in the manner of a 
petition, the agency has treated the request as a petition for 
reconsideration.
    Surety offered to assist NHTSA in developing a true blanket or 
continuous entry bond. At the agency's request, it presented one. The 
principal drawback to this type of bond, from NHTSA's viewpoint, is 
that it falls upon the Obligee (NHTSA) to monitor the bond to ensure 
that the aggregate sum, or ceiling, is not exceeded by the number of 
vehicles under its coverage at any single point in time. After review, 
NHTSA decided that this would increase the burden upon NHTSA's import 
compliance staff at a time when it is attempting to streamline the 
importation process and provide a more responsive service to importers, 
registered and otherwise. Neither Surety nor NHTSA are aware of any 
complaints from registered importers that the Appendix B bond is 
unsuitable for them in the form adopted. While a true continuous entry 
bond covers importations through any port of entry, the ``schedule'' 
bond relates to a single entry of a multiple number of vehicles through 
a single port. This appears to be the way that registered importers are 
doing business--importing vehicles through one port of entry. On 
balance, then, there appears to be no reason to adopt a true continuous 
entry bond when there is no demonstrated need for it and its adoption 
would impair the ability of NHTSA to process new entries in a timely 
manner.
    Surety pointed out that the utility of the Appendix B Bond as a 
``schedule'' or multiple vehicle type bond could be enhanced by a 
clearer indication on the bond form where the information identifying 
the vehicles should be inserted. It also called the agency's attention 
to a typographical error in 

[[Page 57954]]
paragraph 3 of the ``Now Therefore'' clause, that the principal shall 
not release a vehicle before the 30th calendar day, if the principal 
has received written notice from the Administrator that ``no'' 
inspection is required. The correct word is ``an''. Appendix B is 
modified to reflect these two comments. Conforming amendments are also 
made to 49 CFR 591.6(c).
    As written, both Appendix A and Appendix B permit a Registered 
Importer to import a single vehicle under their respective bond 
provisions (Appendix A also specifies the bond for individuals 
importing a single vehicle pursuant to a contract with a Registered 
Importer). Because this is redundant, and because the terms and 
obligations affecting the importation of a single vehicle by a 
Registered Importer are identical under both forms of bonds, NHTSA is 
also amending Appendix B to remove references to the importation of a 
single vehicle.

Effective Date

    NHTSA has received no bonds in the form of Appendix B adopted in 
October 1994 and is therefore making this amendment effective 30 days 
after publication. Because of the need to ensure an uninterrupted flow 
of commerce, and because the rule imposes no additional burden upon any 
party, 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 has not been reviewed under E.O. 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 is to remove a redundancy 
in bond availability to registered importers. 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 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 removal of an option has no substantive effect since 
the obligation is identical whether or not the option exists. 
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), 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 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 Part 591

    Imports, Motor vehicle safety, Motor vehicles.

    In consideration of the foregoing, 49 CFR part 591 is 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 paragraph Sec. 591.5(f), and 
under a bond for the entry of a single vehicle, shall be accompanied by 
a bond in the form shown in Appendix A, in an amount equal to 150% of 
the dutiable value of the vehicle, or, if under bond for the entry of 
more than one vehicle, shall be accompanied by a bond in the form shown 
in Appendix B 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.
* * * * *

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

    5. The title of Appendix A is revised to read as follows:

Appendix A--Section 591.5(f) Bond for the Entry of a Single Vehicle

    6. Appendix B is revised to read as follows:

Appendix B--Section 591.5(f) Bond for the Entry of More Than a 
Single Vehicle

Department of Transportation--National Highway Traffic Safety 
Administration--Bond To Ensure Conformance With U.S. Federal 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 U.S. 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:


[[Page 57955]]

[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 vehicles described above, 
which are motor vehicles that 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 
each of the motor vehicles described above is eligible for 
importation into the United States; and
    WHEREAS, the motor vehicles described above 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 vehicles described above, voluntarily undertakes and 
agrees to have such vehicles 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, 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 an 
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 United 
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

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PRINCIPAL: (name and address)

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(Signature)      (SEAL)

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(Printed name and title)

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SURETY: (name and address)

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(Signature)

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(Printed name and title)

    Issued on: November 16, 1995.
Ricardo Martinez,
Administrator.
[FR Doc. 95-28539 Filed 11-22-95; 8:45 am]
BILLING CODE 4910-59-P