[Federal Register Volume 62, Number 208 (Tuesday, October 28, 1997)]
[Proposed Rules]
[Pages 55764-55766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28490]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 62, No. 208 / Tuesday, October 28, 1997 / 
Proposed Rules  

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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 192

RIN 1515-AC19


Exportation of Used Motor Vehicles

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes amendments to the Customs Regulations 
which relate to the exportation of used self-propelled vehicles. These 
amendments are being proposed to clarify the intent of the regulations 
and provide for uniformity and standardized procedures. They are also 
being proposed to conform the regulations to legislation which was 
enacted since the regulations were originally written. The overall 
objective of the proposed amendments is to more efficiently and 
effectively deter the export of stolen vehicles.

DATES: Comments must be received on or before December 29, 1997.

ADDRESSES: Comments (preferably in triplicate) may be submitted to 
Regulations Branch, Office of Regulations and Rulings, U.S. Customs 
Service, 1300 Pennsylvania Avenue, N.W., 3rd Floor, Washington, D.C. 
20229, and may be inspected at the same location.

FOR FURTHER INFORMATION CONTACT: Hugh Austin, Outbound Process, Office 
of Field Operations, 202-927-3735.

SUPPLEMENTARY INFORMATION:

Background

    Part 192 of the Customs Regulations (19 CFR Part 192) was 
established by the publication of T.D. 89-46 on April 18, 1989. These 
regulations implemented a provision of the Trade and Tariff Act of 1984 
(19 U.S.C. 1627a) concerning the unlawful exportation of used self-
propelled vehicles. Generally, that statute provides for civil 
penalties for the knowing importation or exportation, or attempted 
importation or exportation, of stolen self-propelled vehicles or 
equipment or any similar activity with respect to any self-propelled 
vehicle or part of such vehicle from which the vehicle identification 
number (VIN) has been removed, obliterated, tampered with or altered. 
The statute also directs that regulations be prescribed by the 
Secretary of the Treasury with regard to the procedures for the lawful 
exportation of used self-propelled vehicles. In implementing the 
existing regulations, both Customs and the public have encountered 
several difficulties which this proposed amendment to the regulations 
is intended to resolve.

Proposed Amendments

    The first proposed amendment to the existing regulations is to 
require the presentation to Customs of the original or certified copy 
of a title as proof of ownership of the vehicle to be exported. This is 
intended to eliminate a situation where there is a conflict between 
differences over a certified and a notarized copy of a title and the 
validity of each type of document. Certified copies can only be 
obtained from official issuing authorities. While the current 
regulations do not specifically address notarized copies, the proposed 
amendments explicitly disallow the use of notarized copies as proof of 
ownership. Customs field offices are currently accepting a variety of 
paperwork to establish ownership of vehicles presented for export. 
There is no national standard. Because all 50 states now have title 
laws, requiring the presentation of a title to show ownership will 
provide the field with a standard. By requiring that the documents be 
certified by the issuing authority, and not merely notarized, Customs 
will have a greater assurance of the authenticity of the documentation.
    In instances when a vehicle owned by a foreign national and 
registered in a foreign country is being exported, where no title is 
available, Customs will require production of satisfactory proof of 
ownership by the exporter.
    Realizing that there are instances where a party purchases a 
``new'' car from a dealer and then immediately exports it without 
registering it in any state, and thus never receives a title in a 
state, Customs is making a provision for that situation by adding a 
document known as a ``manufacturer's statement of origin'' to the list 
of items which Customs will accept as proof of ownership. In those 
instances where a vehicle's purchaser does not intend to operate the 
vehicle in the U.S., Customs does not want to unnecessarily burden him 
by requiring that he obtain a state title. The manufacturer's statement 
of origin can provide a clear chain of possession from the manufacturer 
through the dealership to the present owner/exporter.

Leased and Liened Vehicles

    Today, there are many vehicles being operated legally in the United 
States by people who do not have title to the vehicle. Since the 
original regulations in this area were issued, there has been a 
significant increase in the number of vehicles which are ``on the 
road'' by virtue of a lease rather than a sale. In instances where a 
vehicle has been leased to an operator, the title to the vehicle is 
never intended to pass to the operator, because the right to use the 
vehicle will revert to the owner upon termination of the lease. Another 
instance of legal operation of a vehicle by one not in possession of a 
title occurs when a vehicle is purchased on time. Most often, in that 
situation, title is retained by the finance company until the note is 
paid, at which time the title will be transferred to the owner/
operator. In recent years, Customs has seen an increase in the 
frequency in which either leased or liened vehicles are attempted to be 
exported without the knowledge or authorization of the actual title 
holder--the owner or the lien-holder. If the potential exporter keeps 
either the lease or note payments current until after the vehicle is 
exported, a check to see whether the vehicle is stolen at the time of 
export will not reveal anything suspicious. This is because, at the 
time of exportation, the vehicle is not yet stolen. Once the vehicle 
has been taken out of the reach of the lienholder or owner, payments 
are stopped and the theft takes place. In order to prevent this from 
happening as easily as it does now, Customs is proposing to amend the 
regulations to require that a party attempting to export a vehicle that 
is either leased or is subject to a lien present a letter from the 
lienholder or owner stating that they have knowledge

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of and authorize the exportation of the vehicle.

Other Areas of Clarification

    There are certain other areas where the current regulations have 
caused some uncertainty among groups or individuals, which this 
document proposes to clarify. In Sec. 192.2(b) of the current 
regulations, the phrase ``in other cases'' appears at the beginning of 
the second sentence. Customs proposes to change the phrase to read ``in 
cases other than automobiles, trucks, vans, minivans, motorcycles, and 
buses''. This proposal is being made because some situations have 
developed where exporters and Customs field locations have interpreted 
the current phrase ``in other cases'' to mean situations in which 
individuals may present other types of documentation to prove 
ownership.
    It is further proposed to amend Sec. 192.2(b) by changing the word 
``available'' to ``required'' in the phrase ``or other document if a 
certificate of title is not available as a result of a state regulatory 
requirement''. This change is being made to mandate presentation of 
titles at exportation if titles are required in the state in which the 
vehicle was purchased. All states require titles. However, some states 
only require titles for vehicles if they are of a certain age. Older 
vehicles, depending on the state, may or may not require titles. If the 
state does not require a title, then acceptable documentation for 
Customs export purposes would include a bill of sale.
    Because of their growing popularity, and to prevent any 
misunderstanding about the intended coverage of the scope of vehicles 
intended to be covered by the regulation, the proposed regulation 
expressly includes vans and minivans as types of vehicles intended to 
be covered by the regulation.

Time and Place of Presentation

    In an attempt to resolve some uncertainty which has arisen in the 
implementation of Sec. 192.2(c) of the current regulations, which deals 
with the time when the required documentation must be presented, 
Customs is proposing the following amendments.
    The current regulation states that the documentation must be 
presented at least 3 days prior to the lading or exportation of the 
vehicle. Questions have arisen whether that phrase meant calendar or 
business days. Those questions were made moot, however, by enactment of 
the Anti Car Theft Act of 1992. That Act amended the Tariff Act of 1930 
by adding a new section, 19 U.S.C. 1646c, which requires that all 
persons or entities exporting used automobiles provide to Customs both 
the vehicle identification numbers and proof of ownership at least 72 
hours before the export. In order to conform the regulatory 
requirements to the law and still provide port personnel the 
opportunity to examine vehicles which are being exported, it is 
proposed that the time for required presentation of documents in 
Sec. 192.2(c) be changed to at least 72 hours, to include not less than 
2 full business days for air or sea exports. The addition of the phrase 
``at the port of exit'' is also being proposed as the place where 
documentation must be presented. There have been instances where 
documentation has been presented at a port which is not the exit port. 
The addition of this phrase is intended to remove any opportunity for 
confusion as to where the documentation is to be produced.
    Because many vehicles are exported through land border ports, 
Customs is proposing to permit exporters to transmit copies of the 
required documentation by facsimile to the port of exit. This means 
that an exporter will not have to wait at the border for 72 hours after 
presenting the documentation. However, the original documents required 
will need to be presented, along with the vehicle, on the date of exit.
    The proposed amendments change the terminology used in reference to 
the type of non-original documents which Customs will accept from 
``facsimile'' to ``copy.'' This change is being made to avoid confusion 
resulting from current usage of the word ``facsimile''; the word is 
used often interchangeably with ``FAX.'' By using the word ``copy,'' 
Customs wishes to clarify that it intends to accept photocopies as well 
as ``faxes.'' In order that the regulations will be consistent, it is 
proposed to amend paragraph (d) by replacing the word ``facsimile'' 
with the word ``copy''.
    A new paragraph (e) is being proposed which states that each Port 
Director has the authority to establish a time and place for 
presentation of original documentation and inspection of vehicles. 
Customs believes that in order to implement the law, it is necessary to 
impose constraints on times when the original documentation and 
vehicles will be accepted. By giving the Port Director the authority to 
set times and places for acceptance of original documents, it is 
intended that processing of exported used vehicles will be more 
efficient for both Customs and exporters in this time of limited 
resources.

Comments

    Before adopting this proposal, consideration will be given to any 
written comments (preferably in triplicate) that are timely submitted 
to Customs. All such comments received from the public pursuant to this 
notice of proposed rulemaking will be available for public inspection 
in accordance with the Freedom of Information Act (5 U.S.C 552), 
Sec. 1.4, Treasury Department Regulations (31 CFR 1.4), and 
Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)), on regular 
business days between the hours of 9:00 a.m. and 4:30 p.m., at the 
Regulations Branch, U.S. Customs Service, 1300 Pennsylvania Avenue, 
NW., 3rd Floor Washington, D.C.

Regulatory Flexibility Act

    In so far as the proposed amendment is intended to assist Customs 
exercise its law enforcement responsibilities with a minimum burden on 
legitimate exporters of used vehicles, pursuant to the provisions of 
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), it is certified 
that the amendment, if adopted, will not have a significant economic 
impact on a substantial number of small entities. Accordingly, it is 
not subject to the regulatory analysis or other requirements of 5 
U.S.C. 603 and 604.

Executive Order 12866

    The proposed amendment does not meet the criteria for a 
``significant regulatory action'' under E.O. 12866.

Paperwork Reduction Act

    The collection of information contained in this rulemaking has been 
submitted to the Office of Management and Budget (OMB) in accordance 
with the Paperwork Reduction Act of 1995. (44 U.S.C. 3507).
    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless the collection of 
information displays a valid control number.
    The clarification of the collection of information in these 
regulations is in Sec. 192.2. All information required by this proposed 
amendment is contained or identified in the above-cited section. This 
information is to be maintained and provided in the form of documents 
which are necessary to ensure that the Customs Service will be able to 
effectively administer the laws it is charged with enforcing while, at 
the same time, imposing a minimum burden on the public it is serving. 
Respondents or recordkeepers are already required by state statute or 
regulation to maintain or have most of the information covered in

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this proposed regulation. The likely respondents or recordkeepers are 
business organizations and individuals, including exporters.
    Estimated total annual reporting and/or recordkeeping burden: 
83,330 hours.
    Estimated average annual burden per respondent/recordkeeper: 10 
minutes.
    Estimated number of respondents and/or recordkeepers: 500,000.
    Estimated annual frequency of responses: 1.
    Comments concerning the collections of information should be sent 
to the Office of Management and Budget, Attention: Desk Officer of the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, D.C. 20503. A copy should also be sent to the 
Regulations Branch, Office of Regulations and Rulings, U.S. Customs 
Service, 1300 Pennsylvania Avenue, N.W., Washington, D.C. 20229. 
Comments should be submitted within the time frame that comments are 
due regarding the substance of the proposal.
    Comments are invited on: (a) whether the collection of information 
is necessary for the proper performance of the functions of the agency, 
including whether the information shall have practical utility; (b) the 
accuracy of the agency's estimate of the burden of the collection of 
information; (c) ways to enhance the quality, utility, and clarity of 
the information to be collected; (d) ways to minimize the burden of the 
collection of information on respondents, including through the use of 
automated collection techniques or other forms of information 
technology; and (e) estimates of capital or startup costs and costs of 
operations, maintenance, and purchase of services to provide 
information.

Drafting Information

    The principal author of this document was Peter T. Lynch, 
Regulations Branch, Office of Regulations and Rulings, U.S. Customs 
Service. However, personnel from other offices participated in its 
development.

List of Subjects in 19 CFR Part 192

    Customs duties and inspection, Exports, Motor vehicles, Penalties.

Proposed Amendments

    It is proposed to amend Part 192, Customs Regulations (19 CFR Part 
192), as set forth below:

PART 192--EXPORT CONTROL

    1. The authority citation for Part 192, Customs Regulations (19 CFR 
Part 192), is proposed to be revised to read as follows:

    Authority: 19 U.S.C. 66, 1624, 1627a, 1646a, 1646c.

    2. It is proposed to amend Sec. 192.2 by revising paragraphs (b), 
(c) and (d) and adding a new paragraph (e) to read as follows:


Sec. 192.2  Requirements for exportation.

* * * * *
    (b) Documentation required. (1) For certain registered vehicles 
owned by the exporter. In the case of automobiles, trucks, vans, 
minivans, motorcycles and buses owned by the exporter and registered in 
any state of the United States, the following documentation is required 
to be presented at the port of exit:
    (i) An original or certified copy of the Certificate of Title from 
a state issuing authority. A notarized copy of the Certificate of Title 
is not acceptable; and
    (ii) Two copies of the original or certified copy of the 
Certificate of Title.
    (2) For certain vehicles purchased with the intention of 
exportation. In the case of automobiles, trucks, vans, minivans, 
motorcycles and buses purchased from a dealer and not registered in any 
state of the United States because of plans to immediately export, an 
original manufacturer's statement of origin and two copies of the 
manufacturer's statement of origin are required to be presented at the 
port of exit.
    (3) For certain vehicles where a Certificate of Title is not 
required as a result of state or foreign country requirements. In the 
case of automobiles, trucks, vans, minivans, motorcycles and buses 
owned by a foreign national and registered in a foreign country or 
instances in which a state does not require a Certificate of Title, an 
original document that provides satisfactory proof of ownership by the 
exporter and two copies of that document are required to be presented 
at the port of exit.
    (4) For certain leased or liened vehicles. In the case of 
automobiles, trucks, vans, minivans, motorcycles and buses that are 
leased or on which there is a lien, a letter from the lienholder or, if 
leased, the owner stating that the lienholder or owner agrees that the 
vehicle may be exported is required to be presented at the port of 
exit. The letter must include the name, address and telephone number of 
the lienholder or owner and must include the Vehicle Identification 
Number of the vehicle.
    (5) For other self-propelled vehicles. In the case of self-
propelled motorized vehicles other than automobiles, trucks, vans, 
minivans, motorcycles, and buses, an original or certified Certificate 
of Title, memorandum of ownership, or right of possession, or any other 
document sufficient to prove lawful ownership, such as an original bill 
of sale or an original sales invoice, as well as 2 copies of the 
document, shall be presented.
    (c) When presented. (1) Exportation by vessel or aircraft. If the 
vehicle is to be transported by vessel or aircraft, all documentation 
and the vehicle must be presented to Customs at the port of exit at 
least 72 hours, to include not less than 2 full business days, prior to 
lading in accordance with such directives as may be issued by the Port 
Director pursuant to paragraph (e) of this part.
    (2) Exportation at land border port. If the vehicle is to be 
transported by rail, highway, or under its own power, copies of the 
required documentation may be sent or transmitted to the port of exit 
in a manner so that they will arrive at least 72 hours prior to the 
intended time of exportation. The original documents need to be 
presented at time of exit along with the vehicle. The vehicle and 
original documentation shall be presented at the port of exportation in 
accordance with such directives as may be issued by the Port Director 
pursuant to paragraph (e) of this part.
    (d) Authentication of documentation. Customs shall authenticate 
both copies of the documents submitted, one of which shall remain in 
the possession of the exporter and one of which shall be collected by 
Customs. Authentication will include the stamping of the copies of the 
documents with the date and time of presentation of the documents. The 
authenticated copy of the document will be the only acceptable evidence 
from the exporter of compliance with the requirements of this section.
    (e) Time and place of document presentation. Each Port Director 
shall establish and publicize the hours and location at which original 
documentation required by this section will be received and the hours 
and place for presentation of the vehicle.
George J. Weise,
Commissioner of Customs.

    Approved: September 24, 1997.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 97-28490 Filed 10-27-97; 8:45 am]
BILLING CODE 4820-02-P