[Federal Register Volume 64, Number 134 (Wednesday, July 14, 1999)]
[Rules and Regulations]
[Pages 37878-37883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17806]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 591

[Docket No. 99-NHTSA-5240; Notice 2]
RIN 2127-AH45


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.

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SUMMARY: This document amends NHTSA's importation regulations to 
implement a 1998 statutory amendment that adds ``show or display'' to 
the special limited purposes for which vehicles or equipment items may 
be imported without having to comply with the Federal motor vehicle 
safety standards (FMVSS). Under the amendments, a person who wants to 
import a vehicle or equipment item for ``show or display'' must 
persuade us that the vehicle or equipment item is of such historical or 
technological significance that it is worthy of being shown or 
displayed in this country even though it would be difficult or 
impossible to be brought into compliance with the FMVSS. We intend this 
provision to accommodate primarily individuals wishing to import an 
example of a make or model of a vehicle which its manufacturer never 
sold in the United States and which therefore has no counterpart that 
was certified to conform to the FMVSS.
    We will allow limited use on the public roads of vehicles imported 
for ``show or display.'' Before entry, an importer must describe the 
intended on-road use of the vehicle and submit a copy of an insurance 
contract containing the condition that the maximum annual mileage of 
the vehicle shall not exceed 2,500 miles.
    Pursuant to the 1998 statutory amendment, we are also allowing 
owners of vehicles already imported into the United States under other 
exemptions to apply to us for a change in the terms and conditions 
under which we permitted their vehicles to be imported. The opportunity 
to apply for such a change is statutorily limited to the period of 6 
months after the effective date of the final rule.

DATES: Effective date: The final rule is effective August 13, 1999

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


[[Page 37879]]


SUPPLEMENTARY INFORMATION: We discussed at some length the background 
of this rulemaking action in our notice of proposed rulemaking, 
published on March 22, 1999 (64 FR 13757). Given the fact that we 
received only one comment by the end of the 45-day comment period, May 
6, 1999, we are not repeating this discussion, and interested persons 
may read the earlier document for background information. That comment, 
from the Special Vehicle Coalition, supported the proposed rule, with a 
recommended change in the mileage permissible for on-road use. We 
discuss this at an appropriate place in the notice. Except for the 
annual mileage and verification statements, we are adopting a final 
rule as we proposed it.

1. The 1998 Amendment to the Import Regulations

    Sec. 7107(a) of Pub. L. 105-178, which was enacted on June 9, 1998, 
amended 49 U.S.C. 30114 by adding ``show, or display'' to the special 
purposes set forth in that section. As the Conference Report on the 
Transportation Equity Act for the 21st Century explained:

    Section 7107 reinstates NHTSA's authority to exempt certain 
motor vehicles imported for the purpose of show or display from 
certain applicable motor vehicle safety standards. Such authority 
was unintentionally deleted when title 49, United States Code was 
recodified in 1988.

(H. Report 105-550, p. 523)
    (We note that the deletion of ``show'' resulted from the 1988 
amendments to the importation authority, rather than from the 1994 
recodification, which deleted ``studies'').

2. Amendments to 49 CFR Part 591 That Implement Congress' Amendment 
of Sec. 30114

A. Sec. 591.5, Declarations Required for Importation

    As amended, sec. 30114 now reads:

    The Secretary of Transportation may exempt a motor vehicle or 
item of motor vehicle equipment from section 30112(a) of this title 
on terms the Secretary decides are necessary for research, 
investigations, demonstrations, training, competitive racing events, 
show or display.

    Currently, 49 CFR 591.5(j)(1) implements 49 U.S.C. 30114 by 
specifying requirements for importation of nonconforming vehicles or 
equipment for purposes of research, investigations, studies, 
demonstrations or training, and competitive racing events. In view of 
the intent of Congress at the time of recodification to include the 
word ``studies'' in the word ``research,'' as previously discussed, we 
are revising Sec. 591.5(j)(1)(iii) to substitute the term ``show or 
display'' for ``studies.'' We deem the term ``studies'' covered by the 
word ``research'' and subject to the same terms and conditions imposed 
on vehicles imported for purposes of ``research.''

B. Sec. 591.6, Documents Accompanying Declarations

    We recognize two types of importers under sec. 591.5(j): one that 
has received written permission from us to import a vehicle under its 
provisions (sec. 591.5(j)(2)(i)); and one that is an original 
manufacturer of motor vehicles (or its wholly-owned subsidiary) and 
that certifies that its products comply with the Federal motor vehicle 
safety standards (sec. 591.5(j)(2)(ii)).
    Sec. 591.6(f) specifies the procedure for an importer who wishes to 
obtain written permission from us to import a vehicle or equipment item 
under sec. 591.5(j)(2)(i). Sec. 591.6(f)(1) requires all such requests 
to contain information sufficient to identify the vehicle or equipment 
and the specific purpose of importation, which must include a 
discussion of the use to be made of the vehicle or equipment. With 
respect to any such vehicle to be imported for research, 
investigations, demonstrations or training (but not for studies), if 
use on the public roads is to be an integral part of the purpose of 
importation, the statement must request permission for use on the 
public roads, describing the purpose that makes such use necessary and 
stating the estimated period of time during which use of the public 
roads is necessary. The request must also state the intended means of 
final disposition (and disposition date) of the vehicle or equipment 
after completion of the purpose for which it is imported.
    After review, we have decided that it is appropriate to retain this 
requirement in implementing the new statutory provision but we will 
amend sec. 591.6(f)(1) to clarify that it pertains to importations 
other than those for show or display, which will now be covered by sec. 
591.6(f)(2).
    Currently, if a sec. 591.5(j)(2)(i) importer wishes to import a 
vehicle or equipment for ``studies,'' the importer's written request:

shall explain why the vehicle or equipment item is of historical or 
technological interest, and describe the studies for which 
importation is sought. The importer, if other than the National 
Museum of History and Technology, Smithsonian Institution, shall 
also provide a copy of the Determination Letter from the Internal 
Revenue Service approving the importer's status as a tax-exempt 
corporation or foundation under section 501(c)(3) or section 509, 
respectively, of the Internal Revenue Code. The time between the 
date of the Letter and the date of the importer's written request to 
the Administrator shall be not less than 5 years. The importer shall 
also provide a statement that it shall not sell, or transfer 
possession of, or title to, the vehicle, or license it for use, or 
operate it on the public roads, until the vehicle is not less than 
25 years old.

    We have concluded that the statutory amendment providing authority 
to admit vehicles or equipment for show or display, without any 
qualification on the eligibility of the importer, means that tax-exempt 
entities as well as individual importers may import vehicles for show 
or display. For this reason, there is no further need to maintain an 
exemption for studies. Accordingly, we are amending the regulation to 
delete the provisions expressly relating to importations for studies. 
As noted, importations for ``studies'' are essentially those of 
importations for ``research.''
    One of the terms and conditions of the allowance of importation for 
``studies'' was that the vehicle not be licensed for use or operated on 
the public roads. We have reviewed this restriction in view of our new 
authority to allow importation for ``show or display,'' and have 
concluded that limited on-road use should be allowed, pursuant to our 
permission. We believe that the historical and technological 
significance of a vehicle may be maintained by its limited use of the 
public roads on an occasional basis in order to ensure that its engine, 
braking, lighting, and other dynamic systems remain in good working 
order, in short, so that it may be preserved. Another appropriate use 
of such a vehicle on the public roads would be to allow it to travel to 
and from nearby displays of automobiles of similar significance, so 
that its significance could be appreciated by a greater number of 
people than were it restricted to off-road use. We proposed that on-
road use of these nonconforming vehicles should be limited to a maximum 
of 500 miles per year. For the reasons discussed below, this proposed 
restriction has been modified.
    Consistent with the previous exemption for ``studies,'' we have 
decided that a person who wishes to import a vehicle for show or 
display ought to establish that the vehicle is one of historical or 
technological interest. This criterion has existed for many years, 
beginning with the previous ``show'' exemption, and continuing with the 
one for ``studies.''
    Our most detailed discussion of the criterion of historical and 
technical

[[Page 37880]]

interest was contained in a letter of July 12, 1983, to Richard London, 
and it is worth repeating here. Mr. London asked about the 
acceptability of importing a Mercedes-Benz 280SL which would be 
trailered to various auto meets, and which would not be licensed for 
use or used on the public roads. We advised Mr. London that:

    The agency considers several factors in determining whether to 
accept a declaration that a vehicle is imported solely for ``show.'' 
One of these is the nature of the vehicle itself. If it is a unique 
machine generally considered to be of technological or historical 
significance, it is more likely to be admitted under the exception 
than if it were a mass-produced vehicle similar to many that were 
manufactured to conform to the Federal motor vehicle safety 
standards. The smaller the production run, the greater the 
likelihood that it will be considered to be unique. Mechanical 
components that differ substantially from those commonly in use at 
the time of manufacturer are evidence of its technological 
significance. Association with historical personages that would 
create a desire in the public to see the car is also considered 
relevant in the agency's interpretation of the word ``show.''

    Examples of vehicles that might qualify under this exemption are 
high technology vehicles such as the McLaren F1, or certain types of 
Porsches or Ferraris that were never, in the first instance, sold in 
the United States. We might consider a vehicle owned by the Pope, the 
Queen of England, or some other important figure to be a vehicle of 
historical significance.
    We went on to explain to Mr. London that

    In interpreting the word ``show'' and thereby exercising its 
discretion whether to allow importation of nonconforming motor 
vehicles for this purpose, the agency must balance the harm to the 
public likely to occur through use of the vehicle on the public 
roads, with the benefit to the public of importation of 
nonconforming vehicle for show purposes. * * * [t]he agency believes 
it is less likely that a rare or unique vehicle, part of a 
collection available to the public will be sold for use on the 
public roads than a vehicle such as the 1968-72 Mercedes 280SL that 
has been imported in numerous quantities as a conforming motor 
vehicle.

    This explanation clearly demonstrated our view that nonconforming 
analogues of certified vehicles sold in the United States were not very 
likely to be considered of historical or technological significance.
    In any event, use on the public roads will not be a matter of right 
for vehicles imported for ``show or display,'' but subject to such 
terms and conditions as may be established at the time of entry. In 
some cases where there are safety concerns, we may refuse to authorize 
on-road use of a particular vehicle. In order to ensure that any on-
road use is limited, the prospective importer, in his or her request 
letter, must describe the purposes for which on-road use is deemed 
required.
    We proposed that the request be accompanied with an affirmation 
that the vehicle will not be driven on the public roads more than 500 
miles in any 12-month period beginning as of the date of its 
importation, and that the affirmation be confirmed by the importer's 
submittal of an annual notarized mileage statement for the vehicle on 
the anniversary date of its importation, for the first five years after 
it is imported. We have been requested by the one commenter on the 
proposal, the Special Vehicle Coalition (the ``Coalition''), to 
increase the permissible annual mileage to 2,500 miles. Describing 
itself as ``a group of vehicle collectors who own limited-production 
high-performance vehicles,'' the Coalition asserted that ``restricting 
mileage to 500 miles per year will prohibit participation in many civic 
and charitable events designed to benefit, entertain, and inspire the 
American public.'' More persuasively, the Coalition argued that an 
annual odometer reading might not accurately reflect actual on-road 
usage, since it would include mileage attributable to any use of the 
vehicle off the public roads as well. It brings to our attention that 
``a 2,500 mile allotment is consistent with current practice for these 
kind of vehicles, including normal on-road usage of much older 
collector vehicles that, because of their age, will not meet Federal 
motor vehicle safety standards.'' This comment was accompanied by a 
footnote saying that ``Insurance policies for classic cars and vehicles 
of special interest typically set a maximum mileage allowance of 2,500 
miles per year.''
    We have reconsidered our proposal in light of the Coalition's 
comments. In proposing a 500-mile limitation, we had not focused on the 
fact that other vehicles not subject to the Federal motor vehicle 
safety standards have been permitted to use the public roads under 
insurance policies that limit their mileage allowance to 2,500 miles 
per year. While the Coalition did not discuss the kind of insurance 
policy that would be obtained by importers for show and display, we 
assume that all vehicles imported for show and display will, in fact, 
be insured, and that the policy would not deviate materially from those 
that cover classic and special interest vehicles. Furthermore, the 
mileage limitation imposed as a condition of insurance appears to 
remove the need for the importer to submit an annual mileage statement 
to us. However, we believe that we ought to be able to inspect the 
vehicle if we wish to verify that the accumulated mileage of the 
vehicle is not more than 2,500 miles in any 12-month period. 
Accordingly, our final rule requires the prospective importer to submit 
with its request the current mileage of the vehicle and a copy of an 
insurance contract covering the car, which contains as a condition the 
restriction of annual mileage to a maximum of 2,500 miles (this 
limitation refers to all mileage, not merely on-road mileage). In 
addition, the prospective importer must state that (s)he will allow us 
to inspect the vehicle upon our request. As proposed, the prospective 
importer will also have to state that the vehicle will not be used on 
the public roads unless it complies with the requirements of the 
Environmental Protection Agency. Moreover, as indicated above, we may 
impose additional requirements or limitations in particular instances 
when we find such requirements are appropriate.
    We have substituted the conditions for an insurance policy and its 
maintenance until the vehicle is 25 years old for the notarized mileage 
statement submitted for 5 years after importation which we originally 
proposed. Under 49 U.S.C. 30112(b)(9), a noncomplying motor vehicle may 
be imported with no Federal legal requirement to conform it if it is at 
least 25 years old. Our new provision, thus, serves to release the 
importer or owner from the restrictions imposed on show or display 
importations when the vehicle reaches 25 years of age. We retain the 
right to inspect it for mileage verification until that point.
    The current regulation also restricts sale and transfer of 
possession of a vehicle imported for ``studies'' until it is 25 years 
old. While this restriction might not be burdensome to a museum, the 
agency recognizes that there are circumstances such as the death of an 
importer where a sale or transfer of a vehicle imported for ``show or 
display'' must occur before it is 25 years old. To fully implement its 
new authority to allow importation for ``show or display,'' the agency 
is modifying this restriction, and allow sale or transfer of a vehicle 
imported for ``show or display'' upon approval by the Administrator.
    Accordingly, we are revising sec. 591.6(f)(2) to require that a 
prospective importer:

shall explain why the vehicle or equipment item is of historical or 
technological interest. The importer shall also provide a statement 
that, until the vehicle is not less than 25

[[Page 37881]]

years old, (s)he shall not sell, or transfer possession of, or title 
to, the vehicle, and shall not license it for use, or operate it on 
the public roads, except under such terms and conditions as the 
Administrator may authorize. If the importer wishes to operate the 
vehicle on the public roads, the request to the Administrator shall 
include a description of the purposes for which (s)he wishes to use 
it on the public roads, a copy of an insurance policy or a contract 
to acquire an insurance policy, which contains as a condition 
thereof that the vehicle will not accumulate mileage of more than 
2,500 miles in any 12-month period and a statement that the importer 
shall maintain such policy in effect until the vehicle is not less 
than 25 years old, a statement that the importer will allow the 
Administrator to inspect the vehicle at any time after its 
importation to verify that the accumulated mileage of the vehicle is 
not more than 2,500 miles in any 12-month period, and a statement 
that the vehicle will not be used on the public roads unless it is 
in compliance with the regulations of the Environmental Protection 
Agency.

Failure to allow a mileage inspection or to maintain a policy with an 
accumulated mileage limitation or the accumulation of more than 2,500 
miles in any 12-month period will be regarded as a violation of the 
terms of entry.

C. Sec. 591.7, Restrictions on Importations

    Until now, all importations under sec. 591.5(j)(1) have been ``for 
a temporary period,'' requiring a U.S. Customs Service Temporary 
Importation Bond (TIB). Under sec. 591.7(a), the TIB requires that 
vehicles which it covers shall not remain in the United States for a 
period that exceeds 3 years from the date of entry. However, under sec. 
591.7(b), if the importer decides to liquidate the bond, it may apply 
to us for permission to keep the vehicle in the country for an 
additional period of time not to exceed 5 years from the date of entry, 
unless further written permission has been obtained from us. Such 
written permission, after 5 years, can result in an ``importation for a 
temporary period'' becoming a permanent one. This regulatory scheme has 
caused uncertainty as to whether we permit permanent importations under 
sec. 591.5(j).
    Because we do permit permanent importations under sec. 591.5(j), we 
believe that we should clarify this point and simplify this process to 
allow a permanent importation ab initio, if an importer chooses to pay 
duty upon entry of the vehicle, rather than treating the entry as a 
``temporary'' one, requiring a TIB and subsequent letters of 
permission. Amendments of this nature will not affect the existing 
right under sec. 591.5(j)(1) to import vehicles on a temporary basis 
with a TIB for those importers who wish to choose this option.
    Another restriction is imposed by sec. 591.7(c). If the importer 
has brought a vehicle into the United States pursuant to sec. 
591.5(j)(2)(i), sec. 591.7(c) requires the importer to retain title to 
and possession of it, forbids its leasing, and allows its use on the 
public roads only if written permission has been granted by the 
Administrator pursuant to sec. 591.6(f)(1) (covering importations for 
research, investigations, demonstrations or training, but not studies 
or competitive racing events).
    The restriction of sec. 591.7(c) implements the statement that an 
importer is required to make as part of the request letter. Given the 
fact that limited on-road use is being permitted for importations for 
``show or display,'' we are amending sec. 591.7(c) to allow limited on-
road use of all vehicles imported under sec. 591.5(j)(2)(i) ``under 
such terms and conditions as the Administrator may authorize in 
writing.'' We are also amending the first sentence of sec. 591.7(c) to 
conform to the statement that an importer gives under sec. 591.6(f)(2), 
and imposing affirmative obligations not to sell or transfer the 
vehicle, or license it or operate it on the public roads except upon 
written approval by the Administrator in place of the presently 
existing absolute prohibition.
    Sec. 591.7(d) specifically provides that any violation of a term or 
condition that we impose ``in a letter authorizing importation or on-
road use under sec. 591.5(j) shall be considered a violation'' of the 
Safety Act for which a civil penalty may be imposed. We note that this 
language could possibly be read as suggesting that a civil penalty 
would be the only consequence of a violation of a condition imposed as 
part of an exemption from sec. 30112(a). Therefore, we are modifying 
sec. 591.7(d) to make it clear that such a violation of a term or 
condition in an exemption authorization will void the authorization and 
require exportation of the vehicle. In addition, the statutory 
reference in sec. 591.7(d) to 15 U.S.C. 1397(a)(1)(A) is changed to 49 
U.S.C. 30112(a) to reflect the recodification of the Safety Act into 
Chapter 301.
    Sec. 591.7(e) prohibits the importation for ``studies'' by any 
person not recognized as a tax-exempt entity by the Internal Revenue 
Service for not less than 5 years before the date of its written 
request. Because we are incorporating the ``studies'' exemption into 
the exemption for ``research'' where this restriction does not exist, 
this section is moot. Sec. 591.7(e), therefore, is being removed. A new 
subsection (e) will replace it, to implement the statutory directive of 
section 7107(b) of Pub. L. 105-178 discussed below.

3. Seeking Exemptions Under Sec. 30114 for Vehicles in the United 
States at the Time the Amendment Was Enacted

    Section 7107(b) of Pub. L. 105-178 provides that:

    (b) TRANSITION RULE--A person who is the owner of a motor 
vehicle located in the United States on the date of enactment of 
this Act may seek an exemption under section 30114 of title 49, 
United States Code, as amended by subsection (a) of this section, 
for a period of 6 months after the date regulations of the Secretary 
of Transportation promulgated in response to such amendment take 
effect.

    We interpret sec. 7017(b) as authorizing owners of vehicles 
imported under sec. 591.5(j) before June 9, 1998, to apply to the 
Administrator for a change in the terms and conditions under which the 
vehicle was admitted so that engaging in an act contrary to those 
original terms and conditions will not be held to be a violation. If 
the change requested is to reclassify the vehicle as one imported for 
show or display, we proposed that the request also include a statement 
that the owner will provide the annual mileage statement required of de 
novo importers for show or display by sec. 591.6(f)(2). However, the 
final rule for change-of-status importers is modified to reflect the 
changes we are adopting in sec. 591.6(f)(2) relating to an increase in 
maximum mileage subject to insurance limitations, and the right to 
inspect the vehicle to verify its accumulated mileage. Therefore, we 
are revising sec. 591.7(d) and (e) to read as follows:

    (d) Any violation of a term or condition imposed by the 
Administrator in a letter authorizing importation or on-road use 
under Sec. 591.5(j), or a change of status under paragraph (e) of 
this section, including a failure to allow inspection upon request 
to verify that the accumulated mileage of the vehicle is not more 
than 2,500 miles in any 12-month period, shall be considered a 
violation of 49 U.S.C. 30112(a) for which a civil penalty may be 
imposed. Such a violation will also act to void the authorization 
and require the exportation of the vehicle. With respect to 
importations under Sec. 591.6(f)(2) or a change of status to an 
importation for show or display as provided under paragraph (e) of 
this section, if the Administrator has reason to believe that a 
violation has occurred, the Administrator may tentatively conclude 
that a term of entry has been violated but shall make no final 
conclusion until the importer or owner has been afforded an 
opportunity to present data, views, and arguments as to why there is 
no

[[Page 37882]]

violation or why a penalty should not be imposed.
    (e) The owner of a vehicle located in the United States on June 
9, 1998, which the owner had imported pursuant to Sec. 591.5(j), may 
apply to the Administrator on or before February 14, 2000, for a 
change in any such term or condition contained in the 
Administrator's letter. If the owner requests a change to 
importation for show or display, the request to the Administrator 
shall contain the information and statements required under 
Sec. 591.6(f)(2) for a new importation for show or display. All 
requests for change shall be sent to the Director, Office of Vehicle 
Safety Compliance (NSA-32), National Highway Traffic Safety 
Administration, Room 6111, 400 Seventh Street, SW, Washington, DC 
20590.

4. Effective Date

    The final rule is effective 30 days after its publication in the 
Federal Register.

5. Rulemaking Analyses and Notices

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

    This rule 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 rule makes is to add an additional justification for 
importing motor vehicles without the need to comply with the Federal 
motor vehicle safety standards, and to require their importers to 
submit substantiating information similar to that already required for 
similar importations (see discussion below on Paperwork Reduction Act). 
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. For the reasons discussed 
above under E.O. 12866 and the DOT Policies and Procedures, I certify 
that this action does not have a significant economic impact upon ``a 
substantial number of small entities.'' The addition of an option to 
import a vehicle for ``show or display'' without the need to conform it 
relieves a previously existing restriction. Because the agency has 
permitted manufacturers of motor vehicles to import vehicles for 
purposes similar to ``show or display'' in the past, NHTSA believes 
that virtually all who wish to import a vehicle for ``show or display'' 
will be individuals. Individuals are not ``small entities.'' 
Governmental jurisdictions will be affected only to the extent that 
they must decide whether local laws permit the operation on local 
public roads of motor vehicles imported for show or display that do not 
conform to all applicable Federal motor vehicle safety standards, and 
this decision will not have a significant economic impact.

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 the promulgation of this rule.

E. Civil Justice Reform

    This final rule does not have any retroactive effect.

F. Paperwork Reduction Act

    The procedures in this rule to permit importation of motor vehicles 
and equipment not originally manufactured for the U.S. market include 
information collection requirements as that term is defined by the 
Office of Management and Budget (OMB) in 5 CFR Part 1320. The original 
information collection requirements of Part 591 were approved by the 
OMB pursuant to the requirements of the Paperwork Reduction Act (44 
U.S.C. Sec. 3501 et seq.). NHTSA believes that the existing clearance 
covers a final rule that is based on implementing a statutory 
amendment, and has not sought a new or expanded clearance. This 
collection of information has been assigned OMB Control No. 2127-0002 
(``Motor Vehicle Information'').

G. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires 
agencies to prepare a written assessment of the cost, benefits, and 
other effects of proposed or final rules that include a Federal mandate 
likely to result in the expenditure by state, local, or tribal 
governments, in the aggregate, or by the private sector, of more than 
$100 million annually. Because this final rule will not have an effect 
of $100 million, no Unfunded Mandates assessment has been prepared.

List of Subjects in 49 CFR Part 591

    Imports, Motor vehicle safety, Motor vehicles, Reporting and 
recordkeeping requirements.

    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: 49 U.S.C. 322(a), 30114; Pub. L. 100-562, 102 Stat. 
2824; Pub. L. 105-178, 112 Stat. 469; delegations of authority at 49 
CFR 1.50 and 501.8.

    2. Section 591.5 is amended by revising paragraph (j)(1) to read as 
follows:


Sec. 591.5  Declarations required for importation.

* * * * *
    (j)(1) The vehicle or equipment item does not conform with all 
applicable Federal motor vehicle safety and bumper standards, but is 
being imported solely for the purpose of:
    (i) Research;
    (ii) Investigations;
    (iii) Show or display;
    (iv) Demonstrations or training; or
    (v) Competitive racing events;
* * * * *
    3. Section 591.6(f)(1) and (f)(2) are revised to read as follows:


Sec. 591.6  Documents accompanying declarations.

* * * * *
    (f) * * *
    (1) A declaration made pursuant to Sec. 591.5(j)(1)(i), (ii), (iv), 
or (v) and (j)(2)(i) shall be accompanied by a letter from the 
Administrator authorizing importation pursuant to Sec. 591.5(j)(1)(i), 
(ii), (iv), or (v) and (j)(2)(i). Any person seeking to import a motor 
vehicle or motor vehicle equipment pursuant to these sections shall 
submit, in advance of such importation, a written request to the 
Administrator containing a full and complete statement identifying the 
vehicle or equipment, its make, model, model year or date of 
manufacture, VIN if a motor vehicle, and the specific purpose(s) of 
importation. The discussion of purpose(s) shall include a description 
of the use to be made of the vehicle or equipment. If use on the public 
roads is an integral part of the purpose for which the vehicle or 
equipment is imported, the statement shall request permission for use 
on the public roads, describing the purpose which makes such use 
necessary, and stating the estimated period of time

[[Page 37883]]

during which use of the vehicle or equipment on the public roads is 
necessary. The request shall also state the intended means of final 
disposition, and disposition date, of the vehicle or equipment after 
completion of the purposes for which it is imported. The request shall 
be addressed to Director, Office of Vehicle Safety Compliance (NSA-32), 
National Highway Traffic Safety Administration, Room 6111, 400 Seventh 
Street, SW, Washington, DC 20590.
    (2) A declaration made pursuant to Sec. 591.5(j)(1)(iii) and 
(j)(2)(i) shall be accompanied by a letter from the Administrator 
authorizing importation pursuant to Sec. 591.5(j)(1)(iii) and 
(j)(2)(i). Any person seeking to import a motor vehicle or motor 
vehicle equipment pursuant to those sections shall submit, in advance 
of such importation, a written request to the Administrator containing 
a full and complete statement identifying the equipment item or the 
vehicle and its make, model, model year or date of manufacture, VIN, 
and mileage at the time the request is made. The importer's written 
request to the Administrator shall explain why the vehicle or equipment 
item is of historical or technological interest. The importer shall 
also provide a statement that, until the vehicle is not less than 25 
years old, (s)he shall not sell, or transfer possession of, or title 
to, the vehicle, and shall not license it for use, or operate it on the 
public roads, except under such terms and conditions as the 
Administrator may authorize. If the importer wishes to operate the 
vehicle on the public roads, the request to the Administrator shall 
include a description of the purposes for which (s)he wishes to use it 
on the public roads, a copy of an insurance policy or a contract to 
acquire an insurance policy, which contains as a condition thereof that 
the vehicle will not accumulate mileage of more than 2,500 miles in any 
12-month period and a statement that the importer shall maintain such 
policy in effect until the vehicle is not less than 25 years old, a 
statement that the importer will allow the Administrator to inspect the 
vehicle at any time after its importation to verify that the 
accumulated mileage of the vehicle is not more than 2,500 miles in any 
12-month period, and a statement that the vehicle will not be used on 
the public roads unless it is in compliance with the regulations of the 
Environmental Protection Agency.
* * * * *
    4. Section 591.7 is amended by revising the first sentence of 
paragraph (c) and by revising paragraphs (d) and (e) to read as 
follows:


Sec. 591.7  Restrictions on importations.

* * * * *
    (c) An importer of a vehicle which has entered the United States 
under a declaration made pursuant to Sec. 591.5(j)(2)(i) shall not 
sell, or transfer possession of, or title to, the vehicle, and shall 
not license it for use, or operate it on the public roads, except under 
such terms and conditions as the Administrator may authorize in 
writing. * * *
    (d) Any violation of a term or condition imposed by the 
Administrator in a letter authorizing importation for on-road use under 
Sec. 591.5(j), or a change of status under paragraph (e) of this 
section, including a failure to allow inspection upon request to verify 
that the accumulated mileage of the vehicle is not more than 2,500 
miles in any 12-month period, shall be considered a violation of 49 
U.S.C. 30112(a) for which a civil penalty may be imposed. Such a 
violation will also act to void the authorization and require the 
exportation of the vehicle. With respect to importations under 
Sec. 591.6(f)(2) or a change of status to an importation for show or 
display as provided under paragraph (e) of this section, if the 
Administrator has reason to believe that a violation has occurred, the 
Administrator may tentatively conclude that a term of entry has been 
violated, but shall make no final conclusion until the importer or 
owner has been afforded an opportunity to present data, views, and 
arguments as to why there is no violation or why a penalty should not 
be imposed.
    (e) The owner of a vehicle located in the United States on June 9, 
1998, which the owner had imported pursuant to Sec. 591.5(j), may apply 
to the Administrator on or before February 14, 2000 for a change in any 
such term or condition contained in the Administrator's letter. If the 
owner requests a change to importation for show or display, the request 
to the Administrator shall contain the information and statements 
required under Sec. 591.6(f)(2) for a new importation for show or 
display. All requests for change shall be sent to the Director, Office 
of Vehicle Safety Compliance (NSA-32), National Highway Traffic Safety 
Administration, Room 6111, 400 Seventh Street, SW, Washington, DC 
20590.

    Issued on: July 8, 1999.
Kathleen C. DeMeter,
Acting Associate Administrator for Safety Assurance.
[FR Doc. 99-17806 Filed 7-13-99; 8:45 am]
BILLING CODE 4910-59-P