[Federal Register Volume 69, Number 154 (Wednesday, August 11, 2004)]
[Notices]
[Pages 48907-48909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18355]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2004-18848]


Electronic Submission of Conformity Information Regarding Certain 
Imported Nonconforming Motor Vehicles

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

ACTION: Notice of proposed action.

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SUMMARY: This document announces that NHTSA is considering a proposal 
to permit registered importers (RIs) to submit to the agency, in an 
electronic format, certain information regarding imported vehicles that 
are certified by their manufacturer as complying with Canadian motor 
vehicle safety standards (CMVSS), but not with all applicable Federal 
motor vehicle safety standards (FMVSS). Currently, RIs submit this 
information to the agency in a hard copy format. The proposal should 
result in a savings, for both the agency and the RI community, of the 
costs that are currently associated with the assemblage, mailing, and 
storage of these records in hard copy form.

DATES: The closing date for comments on the petition is September 10, 
2004.

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: One of NHTSA's responsibilities is to 
monitor the importation into the United States of motor vehicles that 
were not originally manufactured to comply with all

[[Page 48908]]

applicable Federal motor vehicle safety and bumper standards. Such 
vehicles cannot be permanently imported into the United States unless 
(1) they are determined eligible for importation by NHTSA, based on 
their capability of being modified to conform to all applicable FMVSS 
and bumper standards and (2) they are imported by an importer specially 
registered with the agency (a ``registered importer'' or ``RI''), or by 
a person who has a contract with an RI to bring the vehicle into 
compliance with all applicable FMVSS and bumper standards. See 49 
U.S.C. Sec. Sec.  30112(a) and 30141. At the time that a nonconforming 
vehicle is imported, the importer furnishes to Customs a bond, in an 
amount equivalent to 150 percent of the dutiable value of the vehicle, 
to ensure that the vehicle is brought into compliance with all 
applicable FMVSS and bumper standards within 120 days of entry, or is 
exported from, or abandoned to, the United States. To obtain release of 
the bond, the importer must submit to NHTSA a statement certifying that 
the vehicle has been brought into conformity with all applicable 
standards, supported by documentary and photographic evidence of the 
vehicle's conformity, and evidence that there are no unremedied safety-
related defects or noncompliances with FMVSS. We refer to this 
statement and its supporting material as a ``conformity package.'' We 
currently require these conformity packages to be submitted to us in 
hard copy format. A separate conformity package is submitted to the 
agency for each nonconforming vehicle imported under the RI program. If 
the conformity package is adequate, NHTSA notifies the RI that the DOT 
Conformance bond is released, which authorizes the RI to release the 
vehicle so that it can be licensed or registered for use on public 
roads.
    In calendar years 2002 and 2003, more than 309,000 vehicles were 
imported under this program, 307,000 (over 99%) of which were imported 
from Canada and were originally certified as complying with the CMVSS. 
The remaining non-conforming vehicles, commonly referred to as gray-
market vehicles, were imported from countries other than Canada. 
Because the CMVSS, with limited exceptions, are substantially identical 
to the FMVSS, few modifications ordinarily need to be performed to 
conform a Canadian-certified motor vehicle to U.S. standards. As a 
consequence, the conformity packages that are submitted to NHTSA for 
Canadian-certified vehicles contain relatively little information. That 
is not the case for vehicles that were originally manufactured for sale 
in Europe and other foreign markets, which generally have standards 
that differ significantly from the FMVSS. Owing to those differences, 
the conformity packages for those vehicles ordinarily contain 
considerably more documentary and photographic evidence on the 
modifications that were necessary to conform the vehicles to U.S. 
standards than is the case for Canadian-certified motor vehicles. 
Consequently, we are not proposing to allow conformity packages for 
non-Canadian vehicles to be submitted electronically at this time.
    Conformity packages are normally sent to the agency by parcel 
delivery service, such as Federal Express, United Parcel Service, or 
DHL. Following review of the packages by NHTSA, they are warehoused for 
a period of two years, at considerable expense to the agency. To 
relieve the paperwork burdens and costs the current procedures have 
imposed on both the affected RI community and the agency, we are 
considering permitting RIs to submit conformity packages to us 
electronically for Canadian-certified motor vehicles.
    We are considering the establishment of a secure, web-based 
interface through which RIs could transmit electronically to NHTSA 
documentary and photographic evidence that the vehicle had been brought 
into conformity with the FMVSS, as well as evidence that remedies for 
all safety-related defects and noncompliances with safety standards 
that are the subject of outstanding safety recall campaigns have been 
performed on the vehicles.
    By using a web-based interface, the time and effort needed to 
prepare, send, process, and store conformity packages should be 
significantly reduced. We also anticipate that NHTSA will be able to 
issue an electronic bond release letter promptly following the 
successful submission of the electronic conformity package. This should 
benefit RIs and their customers by permitting imported Canadian-
certified vehicles to be released for registration and licensing for 
use on U.S. roads more quickly after their importation. However, those 
RIs that wish to continue to submit hard copy conformity packages could 
continue to do so.
    Pursuant to 49 CFR 592.6(f), RIs must submit `` * * * photographic 
and documentary evidence of conformance with each applicable Federal 
motor vehicle safety and bumper standard and * * * such information, if 
any, as the Administrator may request.'' Over the years, the agency has 
advised RIs of the information that is required. For an electronically 
submitted conformity package, we would accept documents created in an 
electronic format, digital photographs (images) from a digital camera, 
and documents converted to electronic format by a scanner. The 
following items, at a minimum, must be included in each conformity 
package transmitted to the agency for a Canadian vehicle:
    (1) A statement from the RI certifying that the vehicle complies 
with all applicable Federal motor vehicle safety and bumper standards, 
and specifying whether the vehicle was originally manufactured to 
conform, or was modified to conform, to each applicable standard.
    (2) A statement describing the specific conformance modifications 
made.
    (3) Photographs of the original manufacturer's certification label; 
the RI certification label affixed to vehicle; the instrument cluster 
showing the speedometer scale graduated in miles per hour (MPH); the 
steering wheel hub and dashboard facing the outboard front passenger 
seat on vehicles equipped with an air bags; the automatic seat belts on 
vehicles that are so equipped; and a \3/4\ front overall photo showing 
the vehicle's exterior.
    (4) The DOT conformance bond number, the amount, and the name of 
the surety.
    (5) The name of the company issuing the mandatory service insurance 
policy covering recall work that may have to be performed on the 
vehicle and the effective date of the policy.
    (6) Evidence that all safety-related defects and noncompliances 
with safety standards that have been determined to exist in the vehicle 
have been remedied.
    Although this policy would not amend any NHTSA regulation, we are 
interested in the public's views on the issues addressed in this 
notice. If you are an RI or are affiliated with such an entity and 
elect to respond to this notice, your response should describe:
    (1) The extent to which your company believes it could easily 
transition to a web-based approach for submitting conformity packages 
electronically to NHTSA, and if it does not believe that this could be 
easily achieved, the factors that may complicate your company's 
transition.
    (2) Whether your company currently uses electronic equipment of the 
type that would be needed for a web-based submission, including 
personal computers, scanners, and digital cameras.
    (3) Whether your company currently uses the Internet, including e-
mail, and

[[Page 48909]]

whether it has high-speed or dial-up Internet access.
    (4) Whether your company is currently transmitting vehicle 
importation information in electronic format (e.g., to a Customs 
broker). If so, state whether your company is using ``off the shelf'' 
software or software specifically designed for this purpose.
    (5) The extent to which you believe the electronic submission of 
conformity packages would be beneficial or detrimental to your company 
(e.g., increases or decreases in errors and anticipated costs).
    Interested persons are invited to submit comments on this proposal. 
Comments should refer to the docket 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.) It is requested but not 
required that 10 copies be submitted.
    All comments received before the close of business on the closing 
date indicated above will be considered, and will be available for 
examination in the docket at the above address both before and after 
that date. To the extent possible, comments filed after the closing 
date will also be considered.

    Authority: 49 U.S.C. 30141(d)(1)(A) and 30146(a)(1), (c), and 
(e); 49 CFR 591.8(d)(2), (d)(3), and (d)(5); delegations of 
authority at 49 CFR 1.50 and 501.8.

Claude H. Harris,
Director, Office of Vehicle Safety Compliance.
[FR Doc. 04-18355 Filed 8-10-04; 8:45 am]
BILLING CODE 4910-59-P