[Federal Register Volume 65, Number 182 (Tuesday, September 19, 2000)]
[Rules and Regulations]
[Pages 56497-56500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23674]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 594

[Docket No. NHTSA 2000-7629; Notice 2]
RIN 2127-AI11


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

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

ACTION: Final rule.

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SUMMARY: This document adopts 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).
    We are increasing the fee for the registration of a new importer 
from $491 to $584, and the annual fee authorized by statute from $350 
to $416. These fees include the costs of maintaining the registered 
importer (RI) program. The fee required to reimburse the U.S. Customs 
Service for conformance bond processing costs will increase from $5.40 
to $5.75 per bond.
    The fee payable for a petition seeking a determination that a 
nonconforming vehicle is capable of conversion to meet the FMVSS will 
be reduced from $199 to $175 if the nonconforming vehicle is 
substantially similar to conforming vehicles. With respect to vehicles 
that have no substantially similar counterpart, the petition fee 
increases from $721 to $800. In addition, the fee payable by the 
importer of each ``substantially similar'' vehicle that benefits from 
an eligibility determination will be reduced to $105 but remain at $125 
for vehicles not ``substantially similar,'' regardless of whether the 
determination is made pursuant to a petition or by NHTSA on its own 
initiative. This fee does not apply to vehicles imported from Canada 
admitted under VSA 80-83, or to vehicles imported on and after October 
1, 2000 that are covered by determinations that were made on the 
agency's own initiative before October 1, 2000, for which all costs 
have now been recovered.
    Finally, the $16 fee that a RI must pay as a processing cost for 
review of each conformity package that it submits will remain at $16. 
However, if the RI files the HS-7 Declaration form for the vehicle 
electronically with the U.S. Customs Service though the Automated 
Broker Interface, and the RI has an e-mail address and pays by credit 
card, the present fee of $13 will be reduced to $6 per vehicle if the 
information in the entry and certificate is correct.

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

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, 
Public Law 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.

[[Page 56498]]

    The fees applicable in any fiscal year are to be established before 
the beginning of such year. On July 19, 2000, we proposed fees that 
would become effective on October 1, 2000, the beginning of FY 2001 (65 
FR 44713). There were no comments on this notice.
    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.
    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 will increase this fee from $290 to $345 for new applications. We 
will increase the fee representing the review of the annual statement 
from $149 to $177. The adjustments 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 are adopting. 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.
    Section 594.6(h) recounts indirect costs that were previously 
estimated at $12.12 per man-hour. This will 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 are reducing the fee of $199 presently required to accompany a 
``substantially similar'' petition to $175, but are increasing 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 remains 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 will 
remain at $125. For petitions based on substantially similar vehicles, 
the fee will 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 shall 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-

[[Page 56499]]

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 are 
increasing the current processing fee by $0.35, from $5.40 per bond to 
$5.75.

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 did not propose 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 we will 
pass this 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 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 are 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 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 are not 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.'' E.O. 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 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 the final rule based will not have an 
effect of $100 million, no Unfunded Mandates assessment has been 
prepared.

List of Subjects in 49 CFR Part 594

    Imports, Motor vehicle safety, Motor vehicles.

PART 594--[AMENDED]

    In consideration of the foregoing, 49 CFR part 594 is amended as 
follows:
    1. The authority citation for part 594 reads 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 is amended by:

[[Page 56500]]

    a. Revising the introductory language in paragraph (a),
    b. Revising paragraph (b),
    c. Removing the year ``1998'' in paragraph (d) and adding in its 
place ``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 is 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.
* * * * *
    4. Section 594.8 is amended by revising the first sentence of 
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 is 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.
    6. Section 594.10 is amended by adding two new sentences to 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: September 11, 2000.
Kenneth N. Weinstein,
Associate Administrator for Safety Assurance.
[FR Doc. 00-23674 Filed 9-18-00; 8:45 am]
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