[Federal Register Volume 68, Number 192 (Friday, October 3, 2003)]
[Notices]
[Pages 57508-57511]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25154]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2003-16250]


Certification; Importation of Vehicles and Equipment Subject to 
Federal Safety and Bumper Standards; Registered Importers of Vehicles 
Not Originally Manufactured To Conform With the Federal Motor Vehicle 
Safety Standards; Schedule of Fees Authorized by 49 U.S.C. 30141

AGENCY: National Highway Traffic Safety Administration, DOT.

ACTION: Request for public comment on proposed collection of 
information.

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SUMMARY: Before a Federal agency can collect certain information from 
the public, it must receive approval from the Office of Management and 
Budget (OMB). Under procedures established by the Paperwork Reduction 
Act of 1995, before seeking OMB approval, Federal agencies must solicit 
public comment on the proposed collection of information.
    This document describes a proposed collection of information under 
regulations that pertain to the importation by registered importers 
(RIs) of motor vehicles that were not manufactured to comply with all 
applicable Federal motor vehicle safety and bumper standards. NHTSA has 
proposed certain amendments to those regulations (as found at 49 CFR 
parts 567, 591, 592, and 594) that would, in part, clarify the 
requirements applicable to RIs and applicants for RI status, as well as 
the procedures for suspending or revoking the registrations of RIs that 
violate the vehicle importation laws. The proposed regulations would 
require RIs to retain, for a period of ten years, records pertaining to 
the nonconforming vehicles they import. Under the regulations that are 
now in effect, RIs are required to retain that information for a period 
of eight years. The proposed regulations would also require RIs, and 
applicants for RI status, to submit to NHTSA more information than is 
currently required to obtain and maintain a registration. The 
additional information would enhance the agency's ability to ensure 
that RIs are conducting their business activities in accordance with 
applicable regulations, thereby protecting the interests of those who 
utilize the services of an RI to import a nonconforming motor vehicle, 
or who purchase a motor vehicle imported by an RI.

DATES: Comments must be received on or before December 2, 2003.

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 9 a.m. to 
5 p.m.). Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (Volume 65, Number 70; Pages 19477-78), or you may visit 
http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Coleman Sachs, Office of Vehicle 
Safety Compliance, NHTSA (202-366-3151).

SUPPLEMENTARY INFORMATION: Under the Paperwork Reduction Act of 1995 
(PRA), before an agency submits a proposed collection of information to 
OMB for approval, it must publish a document in the Federal Register 
providing a 60-day comment period and otherwise consult with members of 
the public and affected agencies concerning each proposed collection of 
information. The OMB has promulgated regulations describing what must 
be included in such a document. Under OMB's regulations (at 5 CFR 
1320.8(d)), an agency must ask for public comment on the following:
    (i) Whether the proposed collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (ii) The accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions;
    (iii) How to enhance the quality, utility, and clarity of the 
information to be collected; and
    (iv) How to minimize the burden of the collection of information on 
those who are to respond, including the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses.

Certification; Importation of Vehicles and Equipment Subject to Federal 
Safety and Bumper Standards; Registered Importers of Vehicles Not 
Originally Manufactured To Conform with the Federal Motor Vehicle 
Safety Standards; Schedule of Fees Authorized by 49 U.S.C. 30141

    Type of Request-- New Collection.
    OMB Clearance Number-- None.
    Requested Expiration Date of Approval--June 30, 2006.
    Summary of Collection of Information--Section 30112(a) of Title 49, 
U.S. Code prohibits, with certain exceptions, the importation into the 
United States of a motor vehicle manufactured after the date an 
applicable Federal motor vehicle safety standard (FMVSS) takes effect, 
unless the motor vehicle was manufactured in compliance with the 
standard and was so certified by its original manufacturer. Under one 
of the exceptions to this prohibition, found at 49 U.S.C. 30141, a 
nonconforming vehicle can be imported into the United States provided: 
(1) NHTSA decides that it is eligible for importation, based on its 
capability of being modified to conform to all applicable FMVSS, and 
(2) it is imported by an RI, or by a person who has a contract with an 
RI to bring the vehicle into conformity with all applicable standards. 
Regulations implementing this statute are found at 49 CFR parts 567, 
591, 592, and 594. The regulations require a declaration to be filed 
(on the HS-7 Declaration Form) at the time a vehicle is imported that 
identifies, among other things, whether the vehicle was originally 
manufactured to conform to all applicable FMVSS, and if it was not, to 
state the basis for the importation of the vehicle. The regulations 
also require an RI, among other things, to furnish a bond (on the HS-
474 Conformance Bond Form) at the time of entry for each nonconforming 
vehicle it imports, to ensure that the vehicle will be brought into 
conformity with all applicable safety and bumper standards within 120 
days of entry or will be exported from or abandoned to

[[Page 57509]]

the United States. After modifying the vehicle to conform to all 
applicable standards, the RI submits a statement of conformity to 
NHTSA, which issues a letter permitting the bond to be released if it 
is satisfied that the vehicle has been modified in the manner stated by 
the RI.
    On April 10, 2003, NHTSA submitted to OMB a request for the 
extension of that agency's approval (assigned OMB No. 2127-0002) of the 
information collection that is incident to NHTSA's administration of 
the vehicle importation regulations at 49 CFR Parts 591 and 592, 
including information collected through the HS-7 Declaration Form and 
the HS-474 Conformance Bond Form. On June 4, 2003, OMB notified NHTSA 
that it had approved this extension request through June 30, 2006.
    NHTSA published a Notice of Proposed Rulemaking (NPRM) to amend the 
vehicle import regulations on November 20, 2000 (65 FR 69810-38). If 
adopted, those amendments would slightly increase the information 
collection beyond that which was approved by OMB. The proposed 
amendments are intended, in part, to clarify the requirements 
applicable to RIs and applicants for RI status, as well as the 
procedures for suspending or revoking the registrations of RIs that 
violate the vehicle importation laws.

Record Retention for 10 Years

    If the proposed amendments were adopted, RIs would be required to 
retain, for a period of ten years, records pertaining to the 
nonconforming vehicles they import (including a copy of the declaration 
filed for the vehicle at the time of importation, correspondence with 
the vehicle's owner or purchaser, identifying information on the 
vehicle, information to substantiate that the vehicle was brought into 
conformity with all applicable standards and is not subject to any 
outstanding safety recall campaigns, a copy of the statement certifying 
the vehicle's conformity that the RI furnished to NHTSA, and 
information on the service insurance policy procured by the RI to 
guarantee that it will remedy any safety-related defects or 
noncompliances that are determined to exist in the vehicle). Under the 
regulations that are now in effect, RIs are required to retain this 
information for a period of eight years from the vehicle's date of 
entry. See 49 CFR 562.6(b).

One-Time Reporting of Information on Company's Business Structure and 
Key Personnel

    In addition, the proposed amendments would require RIs and 
applicants for RI status to submit, on a one-time basis, information on 
their form of business organization (i.e., sole proprietorship, 
partnership, or corporation), and, depending upon that form of 
organization, identifying information (including the name, address, and 
social security number of the RI or applicant if the RI or applicant is 
organized as a sole proprietorship, all partners if the RI or applicant 
is organized as a partnership, and all officers, directors, managers, 
and persons authorized to sign documents on behalf of the RI or 
applicant if the RI or applicant is organized as a corporation). RIs 
and applicants that are organized in the form of non-public 
corporations would also be required to submit a statement issued by the 
Office of the Secretary of State, or other responsible official of the 
State in which the RI or applicant is incorporated, certifying that the 
RI or applicant is a corporation in good standing. If the RI or 
applicant is a public corporation, it would be required to submit a 
copy of its latest 10-K filing with the Securities and Exchange 
Commission.

One-Time Reporting of Information on Facility Addresses and Telephone 
Numbers, Business Licenses, and Agents for Service of Process

    The proposed amendments would also require RIs and applicants for 
RI status to submit to the agency the street address and telephone 
number in the United States of each of its facilities for the 
conformance, storage, and repair of motor vehicles and for the 
maintenance of records which it will use to fulfill its duties as an 
RI. RIs and applicants for RI status would also be required to furnish 
the agency with a copy of a business license or other similar document 
issued by an appropriate State or local authority, authorizing it to do 
business as an importer, modifier, or seller of motor vehicles, as 
applicable, or a statement by the RI or applicant that it has made a 
bona fide inquiry and is not required by such State or local authority 
to have such a license or document. RIs and applicants for RI status 
would also be required to submit to the agency the name of each 
principal of the RI or applicant who is authorized to submit conformity 
certifications to NHTSA and the street address of the repair, storage, 
or conformance facility where each such principal will be located. In 
addition, if the RI or applicant is not a resident of the United 
States, it would be required to submit to NHTSA its designation of an 
agent for service of process in the form required by the agency's 
regulations at 49 CFR 551.45.

Reporting of Information on Recalled Vehicles

    The proposed amendments would also require an RI to notify NHTSA 
within 30 days if it becomes aware that the manufacturer of a vehicle 
it has imported will not provide a remedy without charge for a defect 
or noncompliance that has been determined to exist in that vehicle. The 
agency is unaware of any circumstance to date in which a vehicle 
manufacturer has refused to remedy a safety-related defect or 
noncompliance in a vehicle imported by an RI. Should these practices 
continue, there will therefore be little if any need for RIs to furnish 
this information to NHTSA. Should a manufacturer refuse to provide a 
remedy, the RI would also be required to submit to the agency a copy of 
the notification letter it intends to send to owners of the affected 
vehicles to fulfill the defect and noncompliance notification 
requirements of 49 CFR part 577. The proposed amendments would also 
require an RI that provides owner notification to submit to NHTSA two 
progress reports on the recall campaign, containing information 
specified in 49 CFR 573.7(b)(1)-(4). This requirement would not apply, 
however, in circumstances where the vehicle's original manufacturer 
conducts a recall campaign that includes the vehicles imported by the 
RI.

One-Time Reporting of Information on Alternate Facilities

    If an RI intends to use a facility not identified in its 
application for RI status, the proposed amendments would require it to 
notify NHTSA of that intent no later than 30 days before it begins to 
use that facility. In addition, the RI would be required to provide a 
description of the intended use, a sufficient number of photographs of 
the facility to fully depict the intended use, a copy of the lease or 
deed evidencing the RI's ownership or tenancy of the facility, and a 
copy of the license or similar document issued by an appropriate State 
or municipal authority stating that the RI is licensed to do business 
at that facility as an importer and/or modifier and/or seller of motor 
vehicles (or a statement that it has made a bona fide inquiry and is 
not required by State or local law to have such a license or 
permission). If an RI intends to change its street address or telephone 
number or discontinue use of a facility that was identified in its 
registration application, the proposed amendments would require it to 
notify NHTSA not less than 10 days before such change or discontinuance 
of such use, and identify

[[Page 57510]]

the facility, if any, that will be used instead.

Deadline for Fulfilling One-Time Reporting Requirements

    The proposed amendments would require those already holding RI 
status to submit the additional information that would have to be 
submitted by new applicants not later than 30 days after the effective 
date of the final rule adopting the amendments. However, if an RI has 
previously provided any of the additional information to NHTSA in its 
registration application, annual statement, or notification of change, 
it would not be required to resubmit that information under the 
proposed amendments. In this circumstance, the RI would be allowed to 
incorporate the information by reference in its response, provided it 
clearly indicates the date, page, and entry of the previously provided 
document.
    Description of the Need for the Information and Proposed Use of 
sthe Information--NHTSA would rely on the information provided under 
the proposed amendments by RIs and applicants for RI status to better 
ensure that RIs are meeting their obligations under the statutes and 
regulations governing the importation of nonconforming vehicles and to 
make more informed decisions in conferring RI status on applicants and 
in permitting RI status to be retained by those currently holding 
registrations. In this manner, those lacking the capability to 
responsibly provide RI services, or who have committed or are 
associated with those who have committed past violations of the vehicle 
importation laws, could be more readily denied registration as an RI, 
or if they already hold such a registration, have that registration 
suspended or revoked when circumstances warrant such action.
    Description of the Likely Respondents (Including Estimated Number 
and Proposed Frequency of Responses to the Collection of Information)--
Currently 172 RIs are registered with NHTSA. Within 30 days from the 
date that a final rule adopting the amendments is published, these RIs 
would be required to submit information updating the information they 
have previously submitted to the agency, including all new information 
items that would be required from applicants for RI status. In recent 
years, NHTSA has received approximately 20 applications per year from 
individuals and entities seeking to acquire RI status. Over the past 
year, however, a number of RIs have gone out of business. From reports 
in the trade press, this development appears to have occurred on 
account of a reduction in the demand for imported used vehicles caused 
by currency fluctuations and the availability of incentive programs 
such as zero-percent financing and rebates on new cars purchased in the 
United States. For the first five months of this year, the number of 
nonconforming vehicles imported from Canada is 56 percent lower that 
the number imported during the first five months of 2002 (50,948 
vehicles imported from January 1 through May 31 of 2003 vs. 114,930 
imported in the same period of 2002). Given the profound reduction in 
the volume of Canadian imports, it is reasonable to assume that there 
will be a concomitant reduction in applications from those seeking to 
import such vehicles. The additional information that would be required 
from RIs and applicants for RI status under the proposed regulations 
would need to be submitted only once.
    Estimate of the Total Annual Reporting and Recordkeeping Burden of 
the Collection of Information in the Amended Regulations--It is 
estimated that it should take each RI and applicant for RI status 
approximately two hours to assemble and supply the additional 
information that would be required under the proposed amendments. There 
are currently 172 RIs in active status, and the agency receives 
approximately 20 applications per year from those seeking to become 
RIs. Based on the agency's estimate that it would take approximately 2 
hours to assemble and supply the additional information that would be 
required under the proposed amendments, the total estimated reporting 
burden on the entire industry would be approximately 344 hours to 
comply with the one-time reporting requirement (172 importers x 2 hours 
= 344 hours). The total estimated reporting burden on those seeking to 
become RIS would be approximately 40 hours per year (20 applicants x 2 
hours = 40 hours). In addition, it should take each RI that is required 
to conduct a safety recall campaign approximately one hour to compile 
information for and prepare each of the two reports it would be 
required to submit to the agency detailing the progress of the recall 
campaign. Since vehicle manufacturers in most cases include vehicles 
imported by RIs in their own recall campaigns, it is likely that very 
few of these reports would have to be prepared or submitted by RIs.
    Estimate of the Total Annual Costs of the Collection of Information 
in the Amended Regulations--Other than the cost of the burden hours, 
the only additional costs associated with this information collection 
are those incident to the storage, for a period of an additional two 
years, of records pertaining to the nonconforming vehicles that each RI 
imports into the United States. The agency's regulations at 49 CFR 
592.6(b) state that those records must consist of ``correspondence and 
other documents relating to the importation, modification, and 
substantiation of certification of conformity to the Administrator.'' 
The regulations further specify that the records to be retained must 
include: (1) A copy of the HS-7 Declaration Form furnished for the 
vehicle at the time of importation, (2) all vehicle or equipment 
purchase or sales orders or agreements, conformance agreements with 
importers other than RIs, and correspondence between the RI and the 
owner or purchaser of each vehicle for which the RI furnishes a 
certificate of conformity to NHTSA, (3) the last known name and address 
of the owner or purchaser of each vehicle for which the RI furnishes a 
certificate of conformity, and the vehicle identification number (VIN) 
of the vehicle, and (4) records, both photographic and documentary, 
reflecting the modifications made by the RI, which were submitted to 
NHTSA to obtain release of the conformance bond furnished for the 
vehicle at the time of importation. See 49 CFR 592.6(b)(1) through 
(b)(4).
    The latter records are referred to as a ``conformity package.'' 
Most conformity packages submitted to the agency covering vehicles 
imported from Canada are comprised of approximately six sheets of paper 
(including a check-off sheet identifying the vehicle and the standards 
that it was originally manufactured to conform to and those that it was 
modified to conform to, a statement identifying the recall history of 
the vehicle, a copy of the HS-474 conformance bond covering the 
vehicle, and a copy of the mandatory service insurance policy obtained 
by the RI to cover its recall obligations for the vehicle). In 
addition, most conformity packages include photographs of the vehicle, 
components that were modified or replaced to conform the vehicle to 
applicable standards, and the certification labels affixed to the 
vehicle. Approximately 120 conformity packages can be stored in a cubic 
foot of space. Based on projected imports of 100,000 nonconforming 
vehicles per year, 833 cubic feet of space will be needed on an 
industry-wide basis to store one year's worth of conformity packages. 
Assuming an annual cost of $20 per cubic foot to store the information, 
NHTSA estimates the aggregate cost to industry for storing a

[[Page 57511]]

year's worth of conformity packages to be $16,664 per year. Over an 
eight-year retention period, a member of the industry would be required 
to retain 36 annual units of records and over a ten-year retention 
period 55 annual units (assuming that one annual unit were stored in 
the first year, two annual units in the second year, and so on). The 
aggregate cost to industry of the proposed two-year increase in the 
record retention requirement will therefore be $316,616 (55 - 36 = 19; 
19 x $16,664 = $316,616).
    RIs are also required under 49 CFR 592.6(b) to retain a copy of the 
HS-7 Declaration Form furnished to Customs at the time of entry for 
each nonconforming vehicle for which they submit a conformity package 
to NHTSA. Paper HS-7 Declaration Forms are only filed for a small 
fraction of the nonconforming vehicles imported into the United States. 
Customs brokers file entries for most nonconforming vehicles 
electronically by using the Automated Broker Interface (ABI) system. 
For example, in Calendar year 2002, 208,942 ABI entries were made for 
nonconforming vehicles imported into the United States, and only 3,183 
paper HS-7 Declaration Forms (representing 1.5 percent of the total) 
were filed for such vehicles. Because HS-7 Declaration Forms are filed 
for only a small fraction of the nonconforming vehicles that are 
imported by RIs, the proposed two-year increase in the retention period 
for those records will have a negligible cost impact on the industry. 
Because the remaining records that RIs are required to retain under 49 
CFR 592.6(b) may be stored electronically, the agency anticipates that 
the costs incident to the storage of those records for an additional 
two years will also be negligible.

    Authority: 44 U.S.C. 3506(c); delegation of authority at 49 CFR 
1.50 and 501.8(f).

    Issued on: September 29, 2003.
Kenneth N. Weinstein,
Associate Administrator for Enforcement.
[FR Doc. 03-25154 Filed 10-2-03; 8:45 am]
BILLING CODE 4910-59-P