[Federal Register Volume 65, Number 139 (Wednesday, July 19, 2000)]
[Proposed Rules]
[Pages 44713-44717]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18012]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 594

[Docket No. NHTSA 2000-7629; Notice 1]
RIN 2127-AI11


Schedule of Fees Authorized by 49 U.S.C. 30141

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes fees for Fiscal Year 2001 and until 
further notice, as authorized by 49 U.S.C. 30141, relating to the 
registration of importers and the importation of motor vehicles not 
certified as conforming to the Federal motor vehicle safety standards 
(FMVSS). These fees are needed to maintain the registered importer (RI) 
program.

DATES: Comments are due on the proposed rule August 18, 2000.

ADDRESSES: Comments should refer to the docket number and notice 
number, and be submitted to: Docket Management, Room PL-401, 400 
Seventh St., SW., Washington, DC 20590 (Docket hours are from 10 a.m. 
to 5 p.m.)

FOR FURTHER INFORMATION CONTACT: George Entwistle, Office of Vehicle 
Safety Compliance, Office of Safety Assurance, NHTSA (202-366-5306).

SUPPLEMENTARY INFORMATION:

Introduction

    On June 24, 1996, at 61 FR 32411, we published a notice that 
discussed in full the rulemaking history of 49 CFR part 594 and the 
fees authorized by the Imported Vehicle Safety Compliance Act of 1988, 
Pub. L. 100-562, since recodified as 49 U.S.C. 30141-47. The reader is 
referred to that notice for background information relating to this 
rulemaking action. Certain fees were initially established to become 
effective January 31, 1990, and have been in effect and occasionally 
modified since then.
    The fees applicable in any fiscal year are to be established before 
the beginning of such year. We are proposing fees that would become 
effective on October 1, 2000, the beginning of FY 2001. The statute 
authorizes fees to cover the costs of the importer registration 
program, to cover the cost of making import eligibility determinations, 
and to cover the cost of processing the bonds furnished to the Customs 
Service. We last amended the fee schedule in 1998; it has applied in 
Fiscal Years 1999-2000.

[[Page 44714]]

    The fees are based on actual time and costs associated with the 
tasks for which the fees are assessed and reflect the slight increase 
in hourly costs in the past two fiscal years attributable to the 
approximately 3.68 and 4.94 percent raise (including the locality 
adjustment for Washington, DC) in salaries of employees on the General 
Schedule that became effective on January 1 each year in the years 1999 
and 2000.

Requirements of the Fee Regulation

Section 594.6--Annual Fee for Administration of the Importer 
Registration Program

    Section 30141(a)(3) of Title 49 U.S.C. provides that RIs must pay 
``the annual fee the Secretary of Transportation establishes * * * . to 
pay for the costs of carrying out the registration program for 
importers * * *.'' This fee is payable both by new applicants and by 
existing RIs. In order for it to maintain its registration, at the time 
it submits its annual fee, each RI must also file a statement affirming 
that the information it previously furnished in its registration 
application (or as later amended) remains correct (49 CFR 592.5(e)).
    In accordance with the statutory directive, we reviewed the 
existing fees and their bases in an attempt to establish fees which 
would be sufficient to recover the costs of carrying out the 
registration program for importers for at least the next two fiscal 
years. The initial component of the Registration Program Fee is the fee 
attributable to processing and acting upon registration applications. 
We have tentatively determined that this fee should be increased from 
$290 to $345 for new applications. We have also tentatively determined 
that the fee representing the review of the annual statement should be 
increased from $149 to $177. The adjustments proposed reflect our 
recent experience in time spent reviewing both new applications and 
annual statements with accompanying documentation, as well as the 
inflation factor attributable to Federal salary increases and locality 
adjustments in the past two years since the regulation was last 
amended.
    We must also recover costs attributable to maintenance of the 
registration program which arise from our need to review a registrant's 
annual statement and to verify the continuing validity of information 
already submitted. These costs also include anticipated costs 
attributable to possible revocation or suspension of registrations.
    Based upon our review of the costs associated with this program, 
the portion of the fee attributable to the maintenance of the 
registration program is approximately $239 for each RI, an increase of 
$38. When this $239 is added to the $345 representing the registration 
application component, the cost to an applicant equals $584, which is 
the fee we propose. This represents an increase of $93 from the 
existing fee. When the $239 is added to the $177 representing the 
annual statement component, the total cost to the RI is $416, which 
represents an increase of $66.
    Sec. 594.6(h) recounts indirect costs that were previously 
estimated at $12.12 per man-hour. This should be raised $1.78, to 
$13.90, based on the agency costs discussed above.

Sections 594.7, 594.8--Fees To Cover Agency Costs in Making Importation 
Eligibility Determinations

    Section 30141(a)(3) also requires registered importers to pay 
``other fees the Secretary of Transportation establishes to pay for the 
costs of * * * (B) making the decisions under this subchapter.'' This 
includes decisions on whether the vehicle sought to be imported is 
substantially similar to a motor vehicle originally manufactured for 
import into and sale in the United States, and certified as meeting the 
FMVSS, and whether it is capable of being readily altered to meet those 
standards. Alternatively, where there is no substantially similar U.S. 
motor vehicle, the decision is whether the safety features of the 
vehicle comply with or are capable of being altered to comply with the 
FMVSS. These decisions are made in response to petitions submitted by 
RIs or manufacturers, or pursuant to the Administrator's initiative.
    The fee for a vehicle imported under an eligibility decision made 
pursuant to a petition is payable in part by the petitioner and in part 
by other importers. The fee to be charged for each vehicle is the 
estimated pro rata share of the costs in making all the eligibility 
determinations in a fiscal year.
    Inflation and the small raises under the General Schedule also must 
be taken into account in the computation of costs. However, we have 
been able to reduce our processing costs through combining several 
decisions in a single Federal Register notice as well as achieving 
efficiencies through improved word processing techniques. Accordingly, 
we propose to reduce the fee of $199 presently required to accompany a 
``substantially similar'' petition to $175, but to increase from $721 
to $800 the fee for petitions for vehicles that are not substantially 
similar and that have no certified counterpart. In the event that a 
petitioner requests an inspection of a vehicle, the fee for such an 
inspection will remain at $550 for each of those types of petitions.
    The importer of each vehicle determined to be eligible for 
importation pursuant to a petition currently must pay $125 upon its 
importation, the same fee applicable to those whose vehicles covered by 
an eligibility determination on the agency's initiative (other than 
vehicles imported from Canada that are covered by code VSA 80-83, for 
which no eligibility determination fee is assessed). This fee will 
change due to the different costs associated with petitions. For 
petitions based on non-substantially similar vehicles, the fee would 
remain at $125. For petitions based on substantially similar vehicles, 
the fee would be reduced from $125 to $105. Costs associated with 
previous eligibility determinations on the agency's own initiative will 
have been recovered by October 1, 2000. We would apply the fee of $125 
per vehicle only to vehicles covered by determinations made by the 
agency on its own initiative on and after October 1, 2000.

Section 594.9--Fee To Recover the Costs of Processing the Bond

    Section 30141(a)(3) also requires a registered importer to pay 
``any other fees the Secretary of Transportation establishes * * * to 
pay for the costs of--(A) processing bonds provided to the Secretary of 
the Treasury'' upon the importation of a nonconforming vehicle to 
ensure that the vehicle will be brought into compliance within a 
reasonable time or if the vehicle is not brought into compliance within 
such time, that it is exported, without cost to the United States, or 
abandoned to the United States.
    The statute contemplates that we will make a reasonable 
determination of the cost to the United States Customs Service of 
processing the bond. In essence, the cost to Customs is based upon an 
estimate of the time that a GS-9, Step 5 employee spends on each entry, 
which Customs has judged to be 20 minutes.
    Because of the modest salary and locality raises in the General 
Schedule that were effective at the beginning of 1999 and 2000, we 
propose that the current processing fee be increased by $0.35, from 
$5.40 per bond to $5.75.

[[Page 44715]]

Section 594.10--Fee for Review and Processing of Conformity Certificate

    This fee currently requires each RI to pay $16 per vehicle to cover 
the cost of the agency's review of the certificate of conformity 
furnished to the Administrator. However, if a RI enters a vehicle with 
the U.S. Customs Service through the Automated Broker Interface (ABI), 
has an e-mail address to receive communications from NHTSA, and pays 
the fee by credit card, the fee is $13. Based upon an analysis of the 
direct and indirect costs for the review and processing of these 
certificates, we find that the costs continue to average $16 per 
vehicle for non-automated entries, and we therefore are not proposing a 
change in this fee. We estimate that there has been a reduction in cost 
to the agency for automated entries of approximately $7, and this would 
be passed on to the RI by reducing the fee from $13 to $6 per vehicle 
if all the information in the ABI entry is correct. Because errors in 
ABI entries eliminate the time-saving advantages of electronic entry, 
the processing cost will remain at $16 for certificates of conformity 
or ABI entries containing incorrect information.

Effective Date

    The proposed effective date of the final rule is October 1, 2000.

Rulemaking Analyses

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

    This rulemaking action was not reviewed under Executive Order 
12886. Further, NHTSA has determined that the action is not significant 
under Department of Transportation regulatory policies and procedures. 
Based on the level of the fees and the volume of affected vehicles, 
NHTSA currently anticipates that the costs of the final rule will be so 
minimal as not to warrant preparation of a full regulatory evaluation. 
The action does not involve any substantial public interest or 
controversy. There will be no substantial effect upon State and local 
governments. There will be no substantial impact upon a major 
transportation safety program. Both the number of registered importers 
and determinations are estimated to be comparatively small. A 
regulatory evaluation analyzing the economic impact of the final rule 
adopted on September 29, 1989, was prepared, and is available for 
review in the docket.

B. Regulatory Flexibility Act

    The agency has also considered the effects of this action in 
relation to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). I 
certify that this action will not have a substantial economic impact 
upon a substantial number of small entities.
    The following is NHTSA's statement providing the factual basis for 
the certification (5 U.S.C. 605(b)). The proposed amendment would 
primarily affect entities that currently modify nonconforming vehicles 
and which are small businesses within the meaning of the Regulatory 
Flexibility Act; however, the agency has no reason to believe that a 
substantial number of these companies cannot pay the fees proposed by 
this action which are only modestly increased (and in some instances 
decreased) from those now being paid by these entities, and which can 
be recouped through their customers. The cost to owners or purchasers 
of altering nonconforming vehicles to conform with the FMVSS may be 
expected to increase (or decrease) to the extent necessary to reimburse 
the registered importer for the fees payable to the agency for the cost 
of carrying out the registration program and making eligibility 
decisions, and to compensate Customs for its bond processing costs.
    Governmental jurisdictions will not be affected at all since they 
are generally neither importers nor purchasers of nonconforming motor 
vehicles.

C. Executive Order 13132 (Federalism)

    Executive Order 13132 (64 FR 43255, August 10, 1999), revokes and 
replaces Executive Orders 12612 ``Federalism'' and 12875 ``Enhancing 
the Intergovernmental Partnership.'' Executive Order 13132 requires 
NHTSA to develop an accountable process to ensure ``meaningful and 
timely input by State and local officials in the development of 
regulatory policies that have federalism implications.'' Executive 
Order 13132 defines the term ``Policies that have federalism 
implications'' to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.'' Under 
Executive Order 13132, NHTSA may not issue a regulation that has 
federalism implication, that imposes substantial direct compliance 
costs, and that is not required by statute, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by State and local governments, or NHTSA consults with 
State and local officials early in the process of developing the 
proposed regulation.
    The proposed rule will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government as specified in Executive Order 13132. 
Thus, the requirements of section 6 of the Executive Order do not apply 
to this rulemaking action.

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 through registered importers will not vary 
significantly from that existing before promulgation of the rule.

E. Civil Justice

    This proposed rule does not have a retroactive or preemptive 
effect. Judicial review of a rule based on this proposal may be 
obtained pursuant to 5 U.S.C. 702. That section does not require that a 
petition for reconsideration be filed prior to seeking judicial review.

F. 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 a final rule based on this proposal 
would not have an effect of $100 million, no Unfunded Mandates 
assessment has been prepared.

G. Plain Language

    Executive Order 12866 and the President's memorandum of June 1, 
1998, require each agency to write all rules in plain language. 
Application of the principles of plain language include consideration 
of the following questions:

--Have we organized the material to suit the public's needs?
--Are the requirements in the proposed rule clearly stated?
--Does the proposed rule contain technical language or jargon that is 
unclear?
--Would a different format (grouping and order of sections, use of 
heading, paragraphing) make the rule easier to understand?

[[Page 44716]]

--Would more (but shorter) sections be better?
--Could we improve clarity by adding tables, lists, or diagrams?
--What else could we do to make the rule easier to understand?

    If you have any responses to these questions, please include them 
in your comments on this document.

Request for Comments

How Do I Prepare and Submit Comments?

    Your comments must be written in English. To ensure that your 
comments are correctly filed in the Docket, please include the docket 
number of this document in your comments.
    Your comments must not be more than 15 pages long (49 CFR 553.21). 
We established this limit to encourage you to write your primary 
comments in a concise fashion. However, you may attach necessary 
additional documents to your comments. There is no limit on the length 
of the attachments.
    Please submit two copies of your comments, including the 
attachments, to Docket Management at the beginning of this document, 
under ADDRESSES.

How Can I be Sure That My Comments Were Received?

    If you wish Docket Management to notify you upon its receipt of 
your comments, enclose a self-addressed, stamped postcard in the 
envelope containing your comments. Upon receiving your comments, Docket 
Management will return the postcard by mail.

How Do I Submit Confidential Business Information?

    If you wish to submit any information under a claim of 
confidentiality, you should submit three copies of your complete 
submission, including the information you claim to be confidential 
business information, to the Chief Counsel, NHTSA, at the address given 
at the beginning of this document under FOR FURTHER INFORMATION 
CONTACT. In addition, you should submit two copies from which you have 
deleted the claimed confidential business information, to Docket 
Management at the address given at the beginning of this document under 
ADDRESSES. When you send a comment containing information claimed to be 
confidential business information, you should include a cover letter 
setting forth the information specified in our confidential business 
information regulation, 49 CFR part 512.

Will the Agency Consider Late Comments?

    We will consider all comments that Docket Management receives 
before the close of business on the comment closing date indicated at 
the beginning of this notice under DATES. To the extent possible, we 
will also consider comments that Docket Management receives after that 
date. If Docket Management receives a comment too late for us to 
consider in developing a final rule (assuming that one is issued), we 
will consider that comment as an informal suggestion for future 
rulemaking action.

How Can I Read the Comments Submitted by Other People?

    You may read the comments received by Docket Management at the 
address and times given near the beginning of this document under 
ADDRESSES.
    You may also see the comments on the internet. To read the comments 
on the internet, take the following steps:
    (1) Go to the Docket Management System (DMS) Web page of the 
Department of Transportation (http://dms.dot.gov/).
    (2) On that page, click on ``search.''
    (3) On the next page (http://dms.dot.gov/search/), type in the 
four-digit docket number shown at the heading of this document. 
Example: if the docket number were ``NHTSA-2000-1234,'' you would type 
``1234.''
    (4) After typing the docket number, click on ``search.''
    (5) The next page contains docket summary information for the 
docket you selected. Click on the comments you wish to see.
    You may download the comments. Although the comments are imaged 
documents, instead of the word processing documents, the ``pdf'' 
versions of the documents are word searchable. Please note that even 
after the comment closing date, we will continue to file relevant 
information in the Docket as it becomes available. Further, some people 
may submit late comments. Accordingly, we recommend that you 
periodically search the Docket for new material.

List of Subjects in 49 CFR Part 594

    Imports, Motor vehicle safety, Motor vehicles.
    In consideration of the foregoing, 49 CFR part 594 would be amended 
as follows:

PART 594--SCHEDULE OF FEES AUTHORIZED BY 49 U.S.C. 30141

    1. The authority citation for part 594 would remain to read as 
follows:

    Authority: 49 U.S.C. 30141, 31 U.S.C. 9701; delegation of 
authority at 49 CFR 1.50.

    2. Section 594.6 would be amended by;
    (a) Revising the introductory text of paragraph (a),
    (b) Revising paragraph (b),
    (c) Revising the year ``1998'' in paragraph (d) to read ``2000,''
    (d) Revising the final sentence of paragraph (h); and
    (e) Revising paragraph (i) to read as follows:


Sec. 594.6  Annual fee for administration of the registration program.

    (a) Each person filing an application to be granted the status of a 
Registered Importer pursuant to part 592 of this chapter on or after 
October 1, 2000, must pay an annual fee of $584, as calculated below, 
based upon the direct and indirect costs attributable to: * * *
* * * * *
    (b) That portion of the initial annual fee attributable to the 
processing of the application for applications filed on and after 
October 1, 2000, is $345. The sum of $345, representing this portion, 
shall not be refundable if the application is denied or withdrawn.
* * * * *
    (h) * * * This cost is $13.90 per man-hour for the period beginning 
October 1, 2000.
    (i) Based upon the elements, and indirect costs of paragraphs (f), 
(g), and (h) of this section, the component of the initial annual fee 
attributable to administration of the registration program, covering 
the period beginning October 1, 2000, is $239. When added to the costs 
of registration of $345, as set forth in paragraph (b) of this section, 
the costs per applicant to be recovered through the annual fee are 
$584. The annual renewal registration fee for the period beginning 
October 1, 2000, is $416.
* * * * *
    3. Section 594.7 would be amended by revising paragraph (e) to read 
as follows:


Sec. 594.7  Fee for filing petitions for a determination whether a 
vehicle is eligible for importation.

* * * * *
    (e) For petitions filed on and after October 1, 2000, the fee 
payable for seeking a determination under paragraph (a)(1) of this 
section is $175. The fee payable for a petition seeking a determination 
under paragraph (a)(2) of this section is $800. If the petitioner 
requests an inspection of a vehicle, the sum of $550 shall be added to 
such fee. No portion of this fee is refundable if the petition is 
withdrawn or denied.

[[Page 44717]]

    4. Section 594.8 would be amended by revising paragraph (c) to read 
as follows:


Sec. 594.8  Fee for importing a vehicle pursuant to a determination by 
the Administrator.

* * * * *
    (c) If a determination has been made on or after October 1, 2000, 
pursuant to the Administrator's initiative, the fee for each vehicle is 
$125. * * *
    5. Section 594.9 would be amended by revising paragraph (c) to read 
as follows:


Sec. 594.9  Fee for reimbursement of bond processing costs.

* * * * *
    (c) The bond processing fee for each vehicle imported on and after 
October 1, 2000, for which a certificate of conformity is furnished, is 
$5.75.
    5. Section 594.10 would be amended by adding two new sentences at 
the end of paragraph (d) to read as follows:


Sec. 594.10  Fee for review and processing of conformity certificate.

* * * * *
    (d) * * * However, if the vehicle covered by the certificate has 
been entered electronically with the U.S. Customs Service through the 
Automated Broker Interface and the registered importer submitting the 
certificate has an e-mail address, the fee for the certificate is $6, 
provided that the fee is paid by a credit card issued to the registered 
importer. If NHTSA finds that the information in the entry or the 
certificate is incorrect, requiring further processing, the processing 
fee shall be $16.

    Issued on: July 7, 2000.
Kenneth N. Weinstein,
Associate Administrator for Safety Assurance.
[FR Doc. 00-18012 Filed 7-18-00; 8:45 am]
BILLING CODE 4910-52-M