[Federal Register Volume 70, Number 165 (Friday, August 26, 2005)]
[Proposed Rules]
[Pages 50277-50290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-16968]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Parts 567, 576 and 591

[Docket No. NHTSA-2005-22197]
RIN 2127-AI59, RIN 2127-AI60, RIN 2127-AI64


Retroactive Certification of Commercial Motor Vehicles by Motor 
Vehicle Manufacturers

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

ACTION: Notice of withdrawal of proposed rulemakings and policy 
statement.

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SUMMARY: This document completes NHTSA's consideration of its 
responsibilities to help implement the obligations of the United States 
under the North American Free Trade Agreement. The agency had proposed 
regulations to permit retroactive certification of foreign domiciled 
vehicles that, while built in compliance with U.S. standards applicable 
at the time of manufacture, had not been labelled as such. At the same 
time, the Federal Motor Carrier Safety Administration had proposed to 
require all commercial motor vehicles operating in the U.S. to have 
labels certifying compliance with the Federal motor vehicle safety 
standards (FMVSS).
    After reviewing the comments on the NHTSA and FMCSA proposals, the 
Department has decided on a more effective and less cumbersome approach 
to ensuring that commercial motor vehicles were built to the FMVSS (or 
the very similar Canadian motor vehicle safety standards) and operate 
safely in the United States.

[[Page 50278]]

    FMCSA requires Mexican-domiciled carriers applying to operate in 
the United States to certify in their applications that their vehicles 
were manufactured or retrofitted in compliance with the FMVSSs 
applicable at the time they were built, and will confirm that 
certification during the pre-authority safety audit and subsequent 
inspections. In addition, enforcement through the Federal Motor Carrier 
Safety Regulations focuses on real world, operational safety and 
incorporates the various FMVSS applicable through the useful life of 
the vehicle.
    FMCSA will not require vehicles to have labels certifying their 
compliance with the standards in effect when they were built, and NHTSA 
is not proceeding with a retroactive certification approach or the 
related proposal for a new recordkeeping and retention rule. We have 
also decided against placing a definition of the term ``import'' in the 
Code of Federal Regulations. After considering the comments, we have 
concluded that creating a new regulation to define the term serves no 
regulatory function and is unnecessary for the promotion of motor 
vehicle safety.

FOR FURTHER INFORMATION CONTACT: For technical issues, you may call 
Julie Abraham, Director of the NHTSA International Policy, Fuel Economy 
and Consumer Program, at 202-366-0846.
    For legal issues, you may call Edward Glancy of the NHTSA Office of 
Chief Counsel, at 202-366-2992.
    You may send mail to both of these officials at the National 
Highway Traffic Safety Administration, 400 Seventh St., SW., 
Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
    A. U.S. Moratorium on Operating Authority for Mexican-domiciled 
Motor Carriers
    B. NAFTA-U.S. Commitments and the Moratorium
    C. NAFTA-Related Activities by the Department of Transportation
II. Summary of Comments
III. NHTSA Analysis of the Differences Between the FMVSSs and the 
CMVSSs
IV. Impact of a Certification Requirement on Canadian- and Mexican-
domiciled Commercial Motor Carriers
    A. Federal Motor Carrier Safety Regulations
    B. Canadian-domiciled Commercial Motor Vehicles
    1. Volume of the U.S.-Canadian Cross-border Trade
    2. Impact of the Proposed Rules on Canadian Motor Carriers
    3. Safety Record of Commercial Motor Vehicles Selected for 
Inspection
    B. Mexican-domiciled Commercial Motor Vehicles
V. FMCSA's Enforcement Policy
VI. NHTSA's Interpretation of the Import Prohibition in the Vehicle 
Safety Act
    A. NHTSA's 1975 Interpretation
    B. Possible Alternative Interpretations of the Import 
Prohibition
    1. Import--Illegal Goods Definition
    2. Import--Definition Used in Determining Whether an Item 
Brought into the U.S. is Subject to Tariff
    3. Import--Use of Tariff Definition in non-Tariff Context
    C. Factors not Considered in the 1975 Interpretation or NPRM
    1. U.S. Customs Regulations in Effect in 1966
    2. Treatment of Canadian-domiciled Commercial Motor Vehicles
    3. FY 2002 DOT Appropriations Act
Appendix

I. Background

A. U.S. Moratorium on Operating Authority for Mexican-Domiciled Motor 
Carriers

    Since 1982, a statutory moratorium on the issuance of operating 
authority to Mexican-domiciled motor carriers has, with a few 
exceptions, limited the operations of such carriers to municipalities 
and commercial zones along the United States-Mexico border (``border 
zone''). Bus Regulatory Reform Act of 1982, Public Law No. 97-261, 96 
Stat. 1102 (1982). The nearly blanket moratorium, which initially 
applied to both Mexican- and Canadian-domiciled motor carriers, was 
lifted against Canada pursuant to a memorandum from President Reagan to 
the United States Trade Representative published in the Federal 
Register. 47 FR 54053; December 1, 1982.
    The memorandum was issued after the United States and Canada 
agreed, via an exchange of letters, to lift certain trade restrictions 
that were prohibiting the free flow of goods across the U.S.-Canadian 
border. Safety of the Canadian commercial motor vehicles was not 
identified as an area of concern in these letters.

B. NAFTA-U.S. Commitments and the Moratorium

    Groundwork for lifting the moratorium as to Mexican-domiciled 
commercial motor vehicles was laid on December 17, 1992, when the 
United States, Canada and Mexico signed the North American Free Trade 
Agreement (NAFTA or Agreement). Following approval by Congress, the 
Agreement entered into force on January 1, 1994. NAFTA establishes a 
free trade area, and its primary objectives are the promotion of free 
trade and investment through the elimination of trade barriers and the 
facilitation of cross-border movement of goods and services.
    Annex I of NAFTA called for liberalization of access for Mexican-
domiciled motor carriers on a phased schedule. Annex I: Reservations 
for Existing Measures and Liberalization Commitments, Schedule of the 
United States. Pursuant to this schedule, Mexican-domiciled charter and 
tour bus operations were to be permitted beyond the border zone on 
January 1, 1994. Truck operations were to have been permitted in the 
four United States border states in December 1995, and throughout the 
United States on January 1, 2000; scheduled bus operations were to have 
been permitted throughout the United States on January 1, 1997.
    However, the United States postponed implementation with respect to 
Mexican-domiciled truck and scheduled bus service due to concerns about 
safety, continuing its blanket moratorium on processing applications by 
these Mexican-domiciled motor carriers for authority to operate in the 
United States outside the border zone.
    On February 6, 2001, a NAFTA dispute resolution panel ruled that 
the blanket moratorium violated the United States' commitments under 
NAFTA. NAFTA Panel Established Pursuant to Chapter Twenty in the Matter 
of Cross-Border Trucking Services Final Report (Feb. 6, 2001), 40 
I.L.M. 772.

C. NAFTA-Related Actions by the Department of Transportation

    The Department of Transportation is now preparing for the 
implementation of the NAFTA provisions concerning Mexican-domiciled 
motor carriers. The Department is adopting and implementing appropriate 
and effective safety measures as the United States takes the steps 
necessary to comply with its obligations under NAFTA regarding the 
access of Mexican-domiciled motor carriers engaged in interstate 
commerce to the United States.
    As part of that effort, NHTSA has been examining the question of 
what role it should play under a statute originally known as the 
National Traffic and Motor Vehicle Safety Act. That statute has been 
codified at 49 U.S.C. 30101, et seq. (In the interest of simplicity, we 
will refer to that statute as the Vehicle Safety Act.) The purpose of 
the Vehicle Safety Act is to reduce the number of crashes and deaths 
and injuries resulting from crashes.
    Pursuant to the Vehicle Safety Act, NHTSA issues Federal motor 
vehicle safety standards (FMVSSs) that apply to new motor vehicles that 
are manufactured for sale in the United States. The FMVSSs also apply, 
subject

[[Page 50279]]

to certain exemptions, to new or used motor vehicles imported into the 
United States. The Vehicle Safety Act requires manufacturers to certify 
that their vehicles, at the time of manufacture, comply with all 
applicable safety standards. 49 U.S.C. 30112. Each manufacturer must 
give evidence of this certification by affixing to its vehicles a 
permanent label stating that the manufacturer certifies that the 
vehicles comply with all applicable safety standards. 49 U.S.C. 30115.
    In 1975, NHTSA interpreted this provision of section 30112 as 
applying to all vehicles entering the United States. In a letter from 
the NHTSA Administrator to the Canadian Trucking Association, the 
agency stated that Canadian commercial vehicles transporting cargo into 
and within the United States are imports within the context of 49 
U.S.C. 30112 and must be certified.\1\ Although the 1975 letter did not 
address the issue of Mexico-domiciled commercial motor vehicles, its 
rationale applied equally to those vehicles.
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    \1\ See letter dated May 9, 1975 from NHTSA Administrator James 
B. Gregory to M. C. Carruth, Docket No. NHTSA-02-11593.
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    Following the decision of the NAFTA panel in February 2001, NHTSA 
reviewed its 1975 interpretation. On March 19, 2002, we proposed to 
define the term ``import'' in the Code of Federal Regulations in a 
manner consistent with the 1975 interpretation and sought comment on 
that interpretation of that term (67 FR 12806, Docket No. NHTSA-02-
11593).
    FMCSA also issued an NPRM on that date, proposing to require that 
all commercial motor vehicles operating in interstate commerce in the 
United States have labels certifying their compliance with the FMVSSs 
in effect when they were built (67 FR 12782, Docket No. FMCSA 01-
10886). FMCSA is the agency within the Department of Transportation 
that is responsible for oversight of commercial motor carriers engaged 
in interstate commerce. Its regulations address both the commercial 
motor vehicles \2\ (generally large trucks or passenger-carrying 
vehicles) operated in interstate commerce and drivers of those 
vehicles. The regulations also require commercial motor carriers, i.e., 
those businesses that engage in the transport of cargo or passengers, 
to meet specified operating requirements.
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    \2\ A ``commercial vehicle'' is any self-propelled or towed 
motor vehicle used on a highway in interstate commerce to transport 
passengers or property when the vehicle: (1) Has a gross vehicle 
weight rating (GVWR) or gross combination weight rating (GCWR)--or a 
gross vehicle weight (GVW) or gross combination weight (GCW)--of 
4,536 kilograms (10,001 pounds) or more, whichever is greater; or 
(2) is designed or used to transport more than 8 passengers, 
including the driver, for compensation; or (3) is designed or used 
to transport more than 15 passengers, including the driver, whether 
or not it is used to transport passengers for compensation; or (4) 
is used in transporting material found by the Secretary of 
Transportation to be hazardous under 49 U.S.C. 5103 and transported 
in a quantity requiring placarding under regulations prescribed by 
the Secretary under 49 CFR, Subtitle B, Chapter I, Subchapter C. See 
49 CFR 390.5.
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    In conjunction with those two proposals, NHTSA issued a request for 
comments on a draft policy statement providing that a vehicle 
manufacturer may, if it has sufficient basis for doing so, 
retroactively certify that a motor vehicle complied with all applicable 
FMVSSs in effect at the time of manufacture and affix a label to that 
effect (March 19, 2002, 67 FR 12790, Docket No. NHTSA 02-11594). To 
facilitate compliance further, FMCSA proposed a short-term exception 
from its proposed requirement, allowing a two-year grace period for 
carriers with existing operating authority to have their vehicles 
retroactively certified. New operators would have had to comply with 
the FMCSA requirement immediately. In addition, NHTSA issued an NPRM 
proposing recordkeeping requirements for manufacturers that 
retroactively certify their vehicles (March 19, 2002, 67 FR 12800, 
Docket No. NHTSA 02-11592).
    The comment period for all four notices ended on May 20, 2002.
    After careful consideration of the comments (which are discussed 
below) and also consistent with the actions being taken by FMCSA, we 
have decided to withdraw the three documents. The Department has 
developed a more effective and less cumbersome approach to ensure that 
commercial motor vehicles operating in the United States were 
originally built to the FMVSSs (or, as discussed below, the very 
similar Canadian motor vehicle safety standards (CMVSSs)) applicable at 
the time of their manufacture and operate safely in the U.S.
    FMCSA, among other things, requires Mexican-domiciled carriers 
applying to operate in the United States to certify in their 
application that their vehicles were manufactured or retrofitted in 
compliance with the FMVSSs applicable at the time they were built and 
will confirm that certification during the pre-authority safety audit 
and subsequent inspections.
    FMCSA's enforcement program will ensure that commercial motor 
vehicles operating in the United States comply with all of the 
operating and maintenance regulations necessary for real world safety. 
With only a few differences, the Canadian motor vehicle safety 
standards are identical to the U.S. manufacturing performance standards 
(the FMVSS), and FMCSA's operating regulations incorporate the FMVSS 
critical to continued safe operation. As necessary, FMCSA's enforcement 
program may use VINs and other available information to check that 
commercial motor vehicles operating in the U.S. were originally built 
to the FMVSS or CMVSS applicable at the time of their manufacture.
    FMCSA will not require vehicles to have labels certifying their 
compliance with the standards in effect when they were built, and is 
withdrawing its proposal on that subject. NHTSA is not proceeding with 
a retroactive certification approach or the related proposal for a new 
recordkeeping and retention rule. We have also decided against placing 
a definition of the term ``import'' in the Code of Federal Regulations. 
After considering the comments, we have concluded that creating a new 
regulation to define the term serves no regulatory function and is 
unnecessary for the promotion of motor vehicle safety.

II. Summary of Comments

    A total of 79 comments, many of them duplicative, were received in 
the docket for the four rulemakings. Most of the comments addressed the 
FMCSA notice proposing that all commercial motor vehicles operating in 
the U.S. be certified and be labeled as certified. However, several of 
the commenters also addressed the implications of the proposed 
definition of the word ``import'' and its impact on the existing open 
U.S.-Canadian border and motor vehicle safety. Only a few commenters 
offered an opinion as to the validity of the interpretation on which 
the proposed definition of ``import'' was based.
    Various trade organizations representing both motor carriers and 
truck manufacturers submitted comments generally opposed to the group 
of rulemakings. Representatives of the transit industry, labor 
organizations, vehicle insurers, and consumer groups filed comments 
that were generally supportive of the NPRM proposing to define 
``import,'' but generally not supportive of the draft policy statement 
on retroactive certification or the proposed recordkeeping 
requirements. They were particularly concerned about the potential for 
fraud and abuse if retroactive certification were permitted. They were 
also opposed to the proposed grace period in the FMCSA rulemaking.

[[Page 50280]]

    Additionally, the Canadian government, as well as two of its 
provinces, Manitoba, and Newfoundland and Labrador, filed submissions. 
While the Canadian authorities noted that they understood and supported 
the right of the U.S. to ensure the safety of its roads, they said that 
inspection and crash data showed that Canadian commercial vehicles are 
at least as safe as U.S. commercial vehicles. They argued that, in 
those circumstances, extending the certification requirements to the 
Canadian vehicles amounts to a technical trade barrier under the WTO 
and NAFTA.
    Canada emphasized the substantial similarity between the CMVSSs and 
the FMVSSs, as well as the similarity between their underlying statute 
and ours (both of which are over 30 years old). The CMVSSs are 
intentionally harmonized with the FMVSSs to the maximum extent 
possible. The exceptions are generally limited to labeling requirements 
(metric, both French and English) and those instances in which the 
Canadian environment is unique (mandatory daytime running lights 
because of long periods of twilight in many parts of the country).
    Industry representatives agreed with Canada's assessment, noting 
that like the U.S., Canada has a long history of comprehensive and 
substantially similar safety standards that govern the manufacture of 
motor vehicles, including commercial trucks. They said that, in some 
instances, the Canadian standards are arguably more stringent than the 
U.S. standards. The Truck Manufacturers Association (TMA) stated that, 
from a safety perspective, the two major areas of difference between 
U.S. and Canadian heavy vehicles are the effective dates for anti-lock 
brake systems (ABS) and automatic brake adjusters. It argued, however, 
that this lag time is of no practical consequence in view of the 
requirement at 49 CFR 393.55 of the Federal Motor Carrier Safety 
Regulations (FMCSRs) that all commercial motor vehicles operating in 
the U.S. be equipped with ABS and automatic brake adjusters that meet 
the requirements of FMVSS No. 105, Hydraulic and Electric Brake 
Systems, or FMVSS No. 121, Air Brake Systems.
    Canada also observed that the U.S. and Canada have engaged in 
mutual acceptance of safety rules related to commercial motor carriers 
(e.g., acceptance of commercial driver's license qualifications, 
vehicle inspection standards) since 1982, when the moratorium on 
issuing operating authority to Canadian-domiciled motor carriers was 
lifted. This system of mutual recognition has proven effective in 
maximizing cross-border trade, while ensuring that each country's 
legitimate safety concerns are sufficiently addressed.
    The American Trucking Associations (ATA) argued that NHTSA should 
not interpret ``import'' to include the entrance of foreign commercial 
motor vehicles engaged in the transport of goods in the cross-border 
trade. It argued that this interpretation is inconsistent with the U.S. 
Customs classification of such vehicles as ``instruments of 
international commerce,'' instead of ``imports.'' The province of 
Newfoundland and Labrador argued that commercial vehicles that enter 
the U.S. for purpose of the carriage of goods or passengers should not 
be considered imports unless there is a change of ownership such that 
the vehicle can no longer be considered foreign-domiciled.
    The Transportation Trades Department of the AFL-CIO (TTD), 
International Brotherhood of Teamsters (IBT), American Insurance 
Association (AIA), Public Citizen and Advocates for Highway and Auto 
Safety (Advocates) all believe NHTSA's 1975 interpretation of the 
import prohibition should be applied today, that it is based on 
``unequivocal'' statutory language, and that it is needed to ensure the 
safety of our roadways. However, their comments and criticisms were 
limited to the impact of non-certified commercial motor vehicles coming 
into the United States from Mexico.
    AIA pointed out that the NAFTA panel decision specifically allows 
for U.S. safety agencies to impose measures that guarantee the safe 
operation of trucks in the U.S., even if those measures impose 
limitations or requirements on Mexican-domiciled motor carriers that 
are not imposed on U.S.- or Canadian-domiciled carriers. It also noted 
that a lack of sufficient guarantees of safety, as a general rule, 
makes a class of business less insurable or increases the cost of 
coverage. The IBT argued that the application of vehicle safety 
requirements to Mexican carriers is consistent with the policy 
expressed by Congress in the Murray-Shelby legislation (section 350 of 
the 2002 DOT Appropriations Act, Pub. L. 107-87) regarding the 
importance of preventing unsafe commercial motor vehicles from entering 
the U.S.
    The Amalgamated Transit Union (ATU) and Greyhound, as well as AIA, 
argued that all commercial motor vehicles should be required to have a 
sticker or plate (i.e., a FMVSS certification label) before they are 
allowed to operate in the U.S., regardless of whether they have 
previously been allowed to operate in this country. They argued also 
that the grace period contemplated in the FMCSA proposal was 
inappropriate.
    Various commenters claimed that the vast majority of Mexican-
manufactured buses did not comply with the FMVSSs when originally 
manufactured, and do not comply now (particularly as to brakes, fuel 
systems, windows, and emergency exits). They also said that it is 
apparent from the FMCSA/NHTSA notices, when considered together, that 
many thousands of Mexican carriers have been traveling into the U.S. 
for many years without conforming to the U.S. safety standards. They 
argued that non-compliant commercial motor vehicles present a special 
safety hazard on U.S. roads, and non-compliant motor coaches, in 
particular, are especially dangerous for both bus passengers and other 
highway users. They believe the requirement that all vehicles display a 
valid FMVSS certification label would rectify this problem.
    Advocates and AIA tentatively supported the concept of retroactive 
certification, although they expressed some concerns about the program, 
most notably the possibility of the issuance of mistaken, unsupported, 
or fraudulent certifications. They argued that the large population of 
ineligible Mexican vehicles would inevitably encourage the issuance of 
false certifications and the production of fraudulent labels. They also 
argued that the proposed policy statement does not provide sufficient 
safeguards to ensure that only those vehicles that, in fact, complied 
when originally manufactured (or are subsequently modified to achieve 
compliance) would actually be certified. Finally, they claimed that 
since Mexican manufacturers and carriers are unfamiliar with the 
FMVSSs, and there is no labeling requirement in Mexico, the only way to 
verify compliance of each Mexican-manufactured vehicle certified as 
conforming to the FMVSSs is to inspect each vehicle along with the 
documentation at the time of the pre-authorization safety audit. 
Without this initial, threshold confirmation of conformity with the 
FMVSSs, they argued, Mexican-domiciled motor carriers might certify 
their vehicles without any demonstrable proof of conformity.

III. NHTSA's Analysis of the Differences Between the FMVSSs and the 
CMVSSs

    As noted by Canada in its comments, the FMVSSs and CMVSSs are 
issued under virtually identical statutes that were enacted over thirty 
years ago. The

[[Page 50281]]

two statutory schemes both require manufacturers to certify that their 
vehicles comply with all applicable safety standards in effect at the 
time of manufacture and employ similar enforcement schemes. Both sets 
of standards are performance based, based on research and data, and 
generally do not dictate a particular design, although they may have 
the effect of prohibiting certain designs. NHTSA and Transport Canada, 
the Canadian regulatory agency tasked with implementing and enforcing 
its vehicle safety act, work closely in researching the causes and 
potential means of addressing deaths and injuries related to motor 
vehicle crashes.
    In 1984, the Department of Transportation and Transport Canada 
signed Addendum 5, Traffic and Motor Vehicle Safety Research (Addendum 
5), to the existing Memorandum of Understanding between Transport 
Canada and the United States Department of Transportation Concerning 
Research and Development Cooperation in Transportation (June 18, 1970). 
Addendum 5 initially addressed cooperative research activities related 
to traffic safety research, crash avoidance research, crashworthiness 
research, and road safety data collection and analysis. The results of 
these research activities were often used to initiate rulemaking 
activities. In the 1996 version of Addendum 5, NHTSA and Transport 
Canada agreed to extend the cooperation agreement formally to the 
rulemaking activities of the United States and Canada. The two agencies 
also agreed to meet at least once a year to review the status of their 
respective rulemaking actions, alert the other to rules potentially of 
interest, and discuss near-term rulemaking plans. In 2002, NHTSA and 
Transport Canada concluded a revision to Addendum 4, which renewed the 
cooperation agreement indefinitely in order to ensure continuation of 
collaborative activities between the two departments. A copy of 
Addendum 5, including all updated versions, has been placed in the 
docket.
    As a result of both the similar statutory schemes and the 
longstanding cooperative relationship between the two regulatory 
agencies, as well as the similarity in their physical environments and 
population, the FMVSSs and CMVSSs mirror each other in almost all 
substantive respects, especially as they apply to heavy trucks and 
buses.
    NHTSA has evaluated the differences between the FMVSSs and the 
CMVSSs that apply to heavy trucks and buses (over 4,536 kg (10,000 lb) 
GVWR). We shared our analysis with Transport Canada, which provided 
additional feedback. Tables 1 and 2 in the appendix to this document 
generally outline the similarities and differences between the two sets 
of standards. We believe the efforts of both agencies have identified 
all of the significant differences between the two sets of standards as 
they apply to these vehicles.
    As an initial matter, we note that this analysis is neither a 
tentative nor a final determination of functional equivalence. NHTSA 
has a formal process that allows for functional equivalence 
determinations with the consequence being a change in the standard that 
may be utilized by any manufacturer. Rather, today's analysis 
recognizes the tremendous similarity between the respective standards. 
In most instances, no amendment would be needed. The regulatory 
requirements already mirror each other. In some instances, minor 
differences exist and a series of minor changes to the FMVSS would be 
required in order for us to determine that the respective standards are 
functionally equivalent. We have decided against such an approach. 
Rather, we believe that the manufacture or retrofitting of vehicles in 
compliance with either the FMVSS or CMVSS ensures sufficient adequate 
design integrity to meet the safety concerns posed by the operation of 
commercial motor vehicles on the nation's highways as long as the 
vehicles also meet all FMCSRs.
    Given the similarities between the two sets of standards and the 
existing manufacturer compliance practices, it is neither difficult nor 
impermissible for a commercial motor vehicle certified to the CMVSSs to 
meet the substantive requirements of the FMVSSs. We have identified 14 
FMVSS/CMVSS pairs of standards that have differences. Most of these 
have only minor differences in performance values, with Canadian 
requirements that are at least as stringent as, and possibly stricter 
than, the corollary requirements in the FMVSSs. For example, one of the 
Canadian standards, CMVSS No. 301.1, has no U.S. counterpart, while 
another, CMVSS No. 301.2, has broader applicability than the corollary 
FMVSS Nos. 303 and 304.
    The differences between Canadian standards and other U.S. standards 
like FMVSS Nos. 101, 105, and 121 relate solely to information on the 
instrument panel. These are designed to relay specific information to 
the vehicle operator and may be based on the customs and practices of 
the respective countries. We believe these differences do not have any 
consequence so long as the vehicle operator is familiar with the 
vehicle. Indeed, NHTSA and Transport Canada are involved in a 
harmonization effort that would eliminate most of these differences.
    The remaining differences are not likely to pose safety problems. 
Portions of FMVSS No. 108 (reflective tape on trailers and allowance of 
European head lamps) and FMVSS Nos. 223 and 224 (underride prevention) 
have no Canadian counterpart. However, according to the CTEA, all 
Canadian trailers entering the United States already meet the 
applicable underride requirements of FMVSS Nos. 223 and 224 because of 
the underride requirements in the FMCSRs. Similarly, while CMVSS No. 
108 allows single-colored reflective tape on trailers, the Canadian 
trailers used in the cross-border trade meet the requirements of FMVSS 
No. 108, in part because of the requirement in the FMCSRs that they do 
so. Finally, the TMA polled its Canadian members and has determined 
that no Canadian truck manufacturers are using European headlamps, even 
though the standard allows them. Communications submitted by CTEA 
documenting these statements have been placed in the docket.
    As a result of our analysis, we have determined that allowing 
commercial motor vehicles certified to the Canadian motor vehicle 
safety standards rather than the U.S. motor vehicle safety standards to 
operate in the United States will have no negative safety consequences. 
Accordingly, requiring these vehicles to be certified twice, once to 
the CMVSSs and then secondarily to the FMVSSs, would impact U.S./Canada 
trade and impose requirements on the Canadian motor carriers, both in 
terms of cost and access to the U.S. market that cannot be justified.

IV. Impact of a Certification Requirement on Canadian- and Mexican-
Domiciled Commercial Motor Carriers

A. Federal Motor Carrier Safety Regulations

    The condition of safety equipment and features on commercial motor 
vehicles is governed by 49 CFR Part 393, Parts and Accessories 
Necessary for Safe Operation. The Vehicle Safety Act, 49 U.S.C. 
30103(a), specifically requires the FMCSRs be fully consistent with the 
FMVSSs. The provision does not require FMCSA to adopt all applicable 
FMVSSs as FMCSRs. However, if the item of equipment is regulated by the 
FMCSRs, then they must do so in a manner consistent with the FMVSSs. 
Section 30103(a) states:


[[Page 50282]]


    The Secretary of Transportation may not prescribe a safety 
regulation related to a motor vehicle subject to subchapter I of 
chapter 135 of this title [49 U.S.C. 13501 et seq.] that differs 
from a motor vehicle safety standard prescribed under this chapter 
[49 U.S.C. Sec. Sec.  30101 et seq.]. However, the Secretary may 
prescribe, for a motor vehicle operated by a carrier subject to 
subchapter I of chapter 135 [49 U.S.C. 13501 et seq.], a safety 
regulation that imposes a higher standard of performance after 
manufacture than that required by an applicable standard in effect 
at the time of manufacture.

    Because of the cross-reference in the Vehicle Safety Act to 49 
U.S.C. 13501, et seq., foreign-domiciled commercial motor vehicles 
engaged in interstate commerce are already subject to requirements 
based on most of the FMVSSs applicable to heavy trucks and buses. In 
most instances, the FMCSRs directly cross-reference the applicable 
portions of the FMVSSs that apply to the regulated vehicles. Further, 
the FMCSRs require that all motor carriers operating in the United 
States maintain much of the safety equipment and features that NHTSA 
requires vehicle manufacturers to install.
    In the case of many manufacturing standards, for example where a 
compliance symbol is placed on the piece of equipment, a visual 
inspection is sufficient to verify compliance. With respect to other 
manufacturing standards, most notably the braking standards, a roadside 
inspection cannot tell the inspector whether the safety equipment, as 
originally manufactured, was effective enough to have actually complied 
with the applicable FMVSS. In these instances, however, the operating 
standard itself is designed to ensure that the motor vehicle is 
currently operating in a safe condition. Indeed, many of these types of 
standards involve aspects of motor vehicle performance that do not 
remain constant over the life of the vehicle. Thus, some FMCSRs address 
the current operational safety of components which wear over the life 
and use of the vehicle, while others cross-reference FMVSSs to ensure 
that required equipment is in place and maintained. In this way, the 
FMVSSs and FMCSRs comprise a consistent and mutually-supportive set of 
regulations, as intended by Congress in the Vehicle Safety Act.

B. Canadian-Domiciled Commercial Motor Vehicles

1. Volume of the U.S.-Canadian Cross-Border Trade
    Canada and the U.S. have the largest bilateral trade relationship 
in the world, with the vast majority of goods exported from each 
country being carried via commercial motor vehicles (65% for Canada, 
80% for U.S.). According to Canada, this trade generates 13 million 
truck trips across the U.S.-Canadian border annually, and represents 
more than 25% of the Canadian for-hire trucking revenues.
    Industry representatives have proffered similar figures. According 
to the Canadian Trucking Association (CTA), the total merchandise trade 
between the U.S. and Canada is valued at almost $600 billion (2001 
dollars). Typically about 70%, by value, of that trade is carried by 
truck, leading to more than 13 million truck trips across the U.S.-
Canadian border. Trade by truck is crucial to maintaining shippers' 
just-in-time delivery schedules. CTA estimates that approximately 
70,000 (out of 225,000) Canadian truck drivers enter the U.S. each 
year.
    Canada contended that the proposed rules would make it impossible 
for many Canadian motor carriers to operate in the U.S. The small 
fleets and owner-operators (more than 50% of the Canadian carriers) 
would be the most substantially impacted.
2. Impact of the Proposed Rules on Canadian Motor Carriers
    The Canadian fleets are not segregated into ``domestic'' or 
``international'' equipment. Accordingly, the CTA argued that, from a 
practical standpoint, all Canadian vehicles would have to be 
retroactively certified and fitted with a FMVSS label in addition to 
the existing CMVSS label if the proposed labeling requirement were 
adopted. We agree that, if true, that would constitute a significant 
burden on the Canadian fleet.
    TMA claimed that the vast majority of carriers that would seek 
retroactive certification under the proposed policy statement would be 
domiciled in Canada rather than Mexico. It noted that in 2000 there 
were approximately 700,000 heavy commercial motor vehicles (greater 
than 10,000 lb GVWR) registered in Canada. Since 87% of Canada's 
merchandise trade is with the U.S. and most of this merchandise is 
transported to the U.S. in commercial motor vehicles, a large portion 
of these 700,000 vehicles would need to be retroactively certified. 
According to TMA, retroactive certification for such a large number of 
vehicles would be both costly and time-consuming. Since these vehicles 
are already certified to the substantially similar CMVSSs and are 
already operating in the U.S. without a U.S. certification label, TMA 
argued that the increase in safety benefits that result from 
retroactive certification would be minimal at best.
    TMA also noted that NHTSA, in proposing to place a definition of 
the term ``import'' in the CFR, did not offer any data indicating that 
the Canadian vehicles currently operating in the U.S. are unsafe. 
Accordingly, they suggested there is no safety need for the proposed 
regulation. Additionally, TMA and CTA argued that the most important 
influence on in-use vehicle safety is the level and quality of 
maintenance, driver performance, and the environment in which the 
vehicle is operated. The FMVSSs do not address the condition of a 
vehicle after it has been sold and put into service.
    Canada also argued that complying with the certification 
requirements after-the-fact would be very difficult and costly, and, in 
many instances, impossible. Because the useful life of a commercial 
motor vehicle (particularly trailers) is well in excess of the Canadian 
5-year record retention requirement, retroactive certification would, 
in many cases, be impossible. Additionally, many manufacturers have 
indicated to the Canadian government that they would not retroactively 
certify their vehicles. To the extent they were willing and able to 
retrofit these vehicles, they would pass the cost of certification onto 
the carrier. According to CTA, the cost of retroactive certification is 
impossible to determine. However, assuming the cost would be $1,000 per 
vehicle,\3\ Canadian motor carriers would have to spend at least $250 
million to comply with a FMVSS label requirement and would lose the 
valuable use of their vehicles while they are being certified.
---------------------------------------------------------------------------

    \3\ CTA's cost estimate was premised on the following 
assumptions:
    Each and every piece would have to be taken out of service for a 
period of time; returned to the manufacturer of deliverer to a 
registered importer; receive certification; and then returned to the 
vehicle fleet. Depending on the length of time required, the motor 
carrier may have to lease replacement equipment. Presumably 
manufacturers, and certainly registered importers, would charge a 
fee for service.
    CTA further argued that ``since carriers do not segregate their 
fleet into `domestic' and `international' equipment, from a 
practical standpoint, all equipment in fleets with cross-boarder 
operations would fall under the proposed labeling requirements.''
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3. Safety Record of Commercial Motor Vehicles Selected for Inspection
    According to data collected by the FMCSA, concerning the out-of-
service rates of commercial motor vehicles selected for roadside 
inspection in this country, Canadian commercial motor vehicles appear 
to have a lower out-of-service rate than do U.S.-domiciled commercial 
motor vehicles. These data are shown in the table below. It is

[[Page 50283]]

important to note that the roadside inspection data are not 
statistically representative of all commercial motor vehicles, since 
States typically select commercial motor vehicles for inspection based 
upon the operating motor carrier's safety record, as well as indicators 
of potential safety problems noted when a vehicle enters an inspection 
facility. Thus, FMCSA and State inspectors focus their inspections on 
vehicles thought to have an above average likelihood of having safety 
problems. Further, the number of inspections performed on Mexico-
domiciled commercial motor vehicles, particularly long-haul commercial 
motor vehicles, is a minute fraction of the total. Virtually all of the 
``Mexico--all'' inspections were performed on short haul drayage 
operations during which Mexican-domiciled vehicles enter the U.S. not 
farther than the commercial zone along the border. Those vehicles are 
typically older than the Mexican-domiciled vehicles used in long haul 
operations.

                                   Out-of-Service Rates by Country of Domicile
----------------------------------------------------------------------------------------------------------------
                                                                                                     Percentage
                                                                                         Vehicle      of total
                                                          Total number     Vehicle     inspections     vehicle
                                                           of vehicle    inspections  with an out-   inspections
                                                           inspections  with a FMCSR   of-service   with an out-
                                                                          violation     violation    of-service
                                                                                                      violation
----------------------------------------------------------------------------------------------------------------
FY 1999:
    All inspected vehicles..............................     1,387,236       935,453       316,546          22.8
    Canada..............................................        33,655        18,496         4,766          14.2
    Mexico--long haul...................................        19,695        17,362         8,165          41.5
    Mexico--all.........................................        38,236        33,544        15,294          40.0
    U.S.................................................     1,315,345       883,413       296,486          22.5
FY 2000:
    All inspected vehicles..............................     1,488,023     1,002,187       329,659          22.2
    Canada..............................................        38,207        21,668         5,407          14.2
    Mexico--long haul...................................        23,275        19,900         8,948          38.4
    Mexico--all.........................................        51,202        43,233        18,772          36.7
    U.S.................................................     1,398,614       937,286       305,480          21.8
FY 2001:
    All inspected vehicles..............................     1,610,780     1,114,754       356,191          22.1
    Canada..............................................        40,276        23,474         5,538          13.8
    Mexico--long haul...................................        25,175        21,569         9,046          35.9
    Mexico--all.........................................        64,892        54,806        21,901          33.7
    U.S.................................................     1,505,612     1,036,474       328,752          21.8
FY 2002:
    All inspected vehicles..............................     1,712,628     1,158,576       356,091          20.8
    Canada..............................................        62,344        31,365         6,883          11.0
    Mexico--long haul...................................        27,702        23,484         8,557          30.9
    Mexico--all.........................................        89,566        73,750        24,525          27.4
    U.S.................................................     1,560,718     1,053,461       324,683          20.8
FY 2003:
    All inspected vehicles..............................     1,771,845     1,194,709       383,427          21.6
    Canada..............................................        55,439        27,642         6,890          12.4
    Mexico--long haul...................................        29,052        23,952         7,375          25.4
    Mexico--all.........................................       137,211       113,155        32,031          23.3
    U.S.................................................     1,579,195     1,053,912       344,506          21.8
FY 2004:
    All inspected vehicles..............................     1,905,244     1,286,227       423,742          22.2
    Canada..............................................        58,960        30,425         8,161          13.8
    Mexico--long haul...................................        12,799         9,452         3,079          24.1
    Mexico--all.........................................       150,378       123,268        34,665          23.1
    U.S.................................................     1,695,906     1,132,534       380,916          22.5
FY 2005: *
    All inspected vehicles..............................       912,693       619,794       177,988          19.5
    Canada..............................................        27,092        14,313         3,243          12.0
    Mexico--long haul...................................         5,106         3,396           918          18.0
    Mexico--all.........................................        88,159        71,560        15,367          17.4
    U.S.................................................       797,442       533,921       159,378         20.0
----------------------------------------------------------------------------------------------------------------
* Inspections through April 21, 2005.

C. Mexican-Domiciled Commercial Motor Vehicles

    Our understanding is that the commercial motor vehicles 
manufactured in Mexico are produced either by subsidiaries of American 
companies such as Freightliner and International, or by the European-
based company Scania. There are currently significant differences 
between the applicable manufacturing standards of the United States and 
the European Union. It is unlikely that a vehicle built by a European 
manufacturer to the European standards would have all the safety 
equipment needed to comply with either the FMCSRs or the FMVSSs.
    However, according to information provided by the TMA, U.S. 
manufacturers or their affiliates provide the majority of the heavy 
trucks domiciled in Mexico.\4\ According to the

[[Page 50284]]

TMA,\5\ U.S. manufacturers have been building their Mexican-domiciled 
vehicles in conformity with the FMVSSs since the mid to late 1990s, and 
over 50,000 U.S.-certified heavy trucks have been sold in the Mexican 
market since 1993. KenMex, a subsidiary of Paccar Inc., began affixing 
U.S. certification labels to all vehicles built for the Mexican market 
that met all applicable U.S. safety standards in that year. 
International, Freightliner, and Volvo began certifying most or all of 
their vehicles to the FMVSSs in 1996, 1997, and 1998, respectively. TMA 
estimates that approximately 4,500 additional heavy trucks produced by 
these manufacturers were built in accordance with then applicable U.S. 
safety standards, although not labeled as such.\6\
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    \4\ The rest are either produced by Scania or are built in two 
or more stages, with the chassis manufactured by a U.S. manufacturer 
and a Mexican final stage manufacturer completing the manufacturing 
process. It is doubtful that any of these vehicles would or could be 
certified to the FMVSSs.
    \5\ A letter from TMA providing a breakdown of the Mexican heavy 
truck market is in the docket. Docket NHTSA-2004-11593-22.
    \6\ We believe that the vast majority of Mexican-domiciled 
vehicles engaged in U.S. long haul traffic either carry the label or 
were originally built to then applicable U.S. standards. Those 
potentially not originally built to U.S. standards are generally 
used only in the short haul drayage operation within the commercial 
zone. As noted earlier, FMCSA and state inspections currently focus 
on these vehicles.
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    The information provided by TMA members provides sufficient 
assurance that a substantial number of Mexican-domiciled vehicles 
originally built to the Federal motor vehicle safety standards will be 
able to engage in cross-border trade between the U.S. and Mexico.

V. FMCSA's Enforcement Policy

    After carefully reviewing the comments filed in response to the 
FMCSA and NHTSA proposals, including the potential for fraud that was 
noted in the proposals, the Department has developed a more effective 
approach for ensuring that commercial motor vehicles were built to the 
FMVSS (or the very similar Canadian motor vehicle safety standards) and 
operate safely in the United States. Rather than relying on retroactive 
labelling, FMCSA is continuing and reinforcing its program focused on 
operational safety requirements applicable to current conditions.
    First, FMCSA requires Mexican-domiciled carriers applying to 
operate in the United States to certify in their applications that 
their vehicles were manufactured or retrofitted in compliance with the 
FMVSSs applicable at the time they were built. False certification 
subjects the carrier to suspension or revocation of its license to 
operate in the United States. (49 CFR Part 365)
    Second, enforcement through the Federal Motor Carrier Safety 
Regulations focuses on real world, operational safety and incorporates 
the various FMVSS applicable through the useful life of the vehicle.\7\ 
FMCSA will continue to focus on assessing compliance with the FMCSRs, 
including those regulations that cross reference the FMVSSs (e.g., 
lamps and reflectors, air brake systems [including antilock brake 
systems], rear impact guards on trailers, conspicuity treatments on 
truck tractors and trailers, emergency exits on buses, etc.).
---------------------------------------------------------------------------

    \7\ We note that a label certifying compliance with performance 
standards applicable to lights, brakes and other wear items does not 
ensure real world safety in the absence of the FMCSRs, especially 
with regard to vehicles built many years ago. The American public is 
better protected by the FMCSRs than solely through a label 
indicating that a commercial motor vehicle had originally been built 
to certain manufacturing performance standards.
---------------------------------------------------------------------------

    Third, FMCSA may use Vehicle Identification Numbers (VINs) coupled 
with VIN information obtained from vehicle manufacturers, as well as 
other available information, when necessary to check whether vehicles 
were originally built to the FMVSSs.
    We have concluded that the incorporation of numerous FMVSS into the 
FMCSRs, combined with the various certification and inspection 
procedures being adopted by FMCSA, will better ensure the operational 
safety of commercial motor vehicle on the public roads than a program 
of retroactive certification potentially fraught with fraud. 
Accordingly, we have determined that the regulatory scheme proposed in 
March 2002 would serve no meaningful safety function and are 
withdrawing the proposal for retroactive certification and record 
keeping.

VI. NHTSA's Interpretation of the Import Prohibition in the Vehicle 
Safety Act

    In addition to proposing a regulatory scheme of retroactive 
labelling, the agency proposed including in the Code of Federal 
Regulations a definition of the word ``import'' based on a 1975 
interpretive memo. The word ``import'' appears in 49 U.S.C. 30112, 
which prohibits a motor vehicle from being placed into interstate 
commerce or imported into the U.S. unless it is certified as complying 
with the FMVSS applicable at the time. NHTSA operates an extensive 
Registered Importer program to ensure that vehicles imported for sale 
and permanent use in the U.S. comply with this requirement. The 
question here is whether the word ``import,'' as used in this statute, 
necessarily applies to commercial motor vehicles that may be used 
temporarily in the United States and that are subject to an alternative 
regulatory program designed to ensure the vehicles operate safely on 
the U.S. roads.
    After reviewing the various comments, all of which raised concerns 
regarding the practical application of the proposed definition of the 
term ``import'' as used in the Vehicle Safety Act, we decided to re-
examine some of the basic assumptions made in the three documents that 
supported the agency's 1975 interpretation. We have delved more 
thoroughly into the language of the entire Vehicle Safety Act, as well 
as Congress' intent vis-[aacute]-vis the treatment of commercial motor 
vehicles under the Act. Additionally, we decided to reevaluate the 
existing case law relevant to the use of the term ``import'' outside of 
the context of tariff law to see whether and how other statutes define 
the term. Finally, we looked at additional factors and in additional 
contexts that were not considered in developing the 1975 
interpretation. We believe the term ``import'' is subject to various 
interpretations, of which the agency's 1975 interpretation is but one. 
We do not believe it is the only reasonable interpretation. 
Accordingly, based on the comments we have received, and our research 
and evaluation, we have decided against adding a definition of the term 
in the Code of Federal Regulations, and we have decided to withdraw the 
agency's 1975 interpretation.

A. NHTSA's 1975 Interpretation

    The proposed interpretive rule was based, in large part, on the 
analyses contained in the 1975 letter from NHTSA's Administrator, James 
Gregory, to the Canadian Trucking Association (1975 letter) and in an 
internal 1975 legal memorandum that preceded that letter. (The 1975 
letter and memorandum were placed in the docket for the NPRM.) Both the 
1975 letter and the legal memorandum concluded that entrances of 
Canadian-domiciled commercial motor vehicles into the United States 
were importations under the Vehicle Safety Act and were not subject to 
any exceptions under that Act. The letter was issued in response to a 
request by the Canadian Trucking Association that Canadian-domiciled 
commercial motor vehicles be excluded from the requirements of FMVSS 
No. 121, Air brake systems. At the time, Canada did not have a 
corollary standard.

[[Page 50285]]

    In concluding that Canadian vehicles were imports within the 
meaning of the Vehicle Safety Act, the agency interpreted the term 
``import'' in the former section 108(a)(1) of the Act (now codified at 
49 U.S.C. 30112(a)(1)) when read in conjunction with the exemptions 
provided in section 108(b)(4). Section 108(a)(1) stated that:

    No person shall manufacture for sale, sell, offer for sale, or 
introduce or deliver for introduction in interstate commerce, or 
import into the United States, any motor vehicle or item of motor 
vehicle equipment manufactured on or after the date any applicable 
Federal motor vehicle safety standard takes effect under this title 
unless it is in conformity with such standard except as provided in 
subsection (b) of this section.

    Section 108(b)(3) stated that motor vehicles or equipment offered 
for importation in violation of section 108(a)(1) would be refused 
admission into the United States under joint regulations to be issued 
by the Secretary of Treasury and the Secretary of Commerce. Under an 
exception in section 108(b)(3), those regulations could authorize 
imports as long as the vehicles were subsequently brought into 
conformity with all applicable safety standards, but otherwise the 
vehicles would have to be exported or abandoned to the United States. 
The exception did not specify that the regulations only address those 
vehicles imported for sale or resale, although it is unlikely that 
anyone would so modify a vehicle unless it were to be permanently 
domiciled in the United States. Section 108(b)(4) authorized the 
issuance of joint regulations that would permit the temporary 
importation of used motor vehicles.\8\
---------------------------------------------------------------------------

    \8\ As explained in the House Report on the Act, the purpose of 
section 108(b)(4) was to ``accommodate foreign tourists who may 
bring their vehicles with them on visits to this country and also to 
permit import of certain vehicles for diplomatic use. H. Rep. 1776, 
89th Cong., 2d Sess., p.24.
---------------------------------------------------------------------------

    The agency noted that the exceptions for non-complying imports in 
section 108(b)(3) of the Act and temporary importation of personal 
vehicles in section 108(b)(4) of the Act would not be needed if 
foreign-domiciled vehicles that were not sold in the United States were 
not considered imports under section 108(a). The language of the 
exceptions is the strongest evidence that Congress intended the term 
``import'' to apply to all vehicles brought into the United States.
    In our NPRM proposing the formal adoption of the 1975 
interpretation, we relied on what we then believed was a ``plain 
meaning'' of the term when considered in conjunction with the overall 
purpose of the Vehicle Safety Act, relying exclusively on the analysis 
proffered in 1975. We did not revisit the original analysis of whether 
the Vehicle Safety Act was in fact akin to the statutes underlying the 
cases relied on in issuing the original interpretation, or whether 
other analyses might be more applicable.

B. Possible Alternative Interpretations of the Import Prohibition

    The term ``import'' in a statute may be interpreted differently 
based upon the intent of Congress in using the term. When Congress does 
not specifically define a particular term, its meaning should be 
construed in such a way as to further the goals that Congress was 
seeking to achieve when enacting the law. See Barnhart v. Walton, 122 
S. Ct. 1265,1270 (2002); United States v. Haggar Apparel Co., 526 U.S. 
380,392, 119 S. Ct. 1392, 1398 (1999), citing Nations Bank of N.C.N.A. 
v. Variable Annuity Life Ins. Co., 513 U.S. 251, 257, 115 S. Ct. 810, 
813-814 (1995). Congress' stated goal in enacting the Vehicle Safety 
Act was ``to reduce traffic accidents and deaths and injuries resulting 
from traffic accidents. 49 U.S.C. 30101.
    The statute should not be viewed in isolation, but rather in 
conjunction with other, relevant statutes. See Kokoszka v. Belford, 417 
U.S. 642, 650, 94 S.Ct. 2431, 2436 (1974), citing Brown v. Duchesne, 60 
U.S. 183, 194 (1856). Commercial motor vehicles are subject to 
regulation under both the Vehicle Safety Act (codified as 49 U.S.C. 
Chapter 301, Motor Vehicle Safety) and 49 U.S.C. Chapter 311, 
Commercial Motor Vehicle Safety. One of the Congressionally stated 
purposes for Chapter 311, Subchapter III, Safety Regulation, is ``to 
promote the safe operation of commercial motor vehicles.'' 49 U.S.C. 
31131(a). The Federal Motor Carrier Safety Administration implements 
this statute in large part through enforcement of the Federal Motor 
Carrier Safety Regulations.
    In the NPRM, the agency referred to a dictionary definition of the 
word ``import,'' meaning ``to bring in (merchandise, commodities, 
workers, etc.) from a foreign country for use, sale, processing, 
reexport or services'' (Random House Compact Unabridged Dictionary, 
Special Second Edition). The dictionary also defines the term as ``the 
act of importing or bringing in; importation, as of goods from 
abroad.'' Black's Law Dictionary also provides slightly differing 
definitions: ``a product brought into a country from a foreign country 
where it originated'' versus ``the process of bringing foreign goods 
into a country'' (Black's Law Dictionary, Seventh Edition, 1999).
1. Import--Illegal Goods Definition
    Courts have broadly defined the term ``import'' in cases involving 
prohibited products that the government has seized. An example is 
Cunard v. Mellon, 262 U.S. 100 (1929), the case primarily relied upon 
by NHTSA in its 1975 analysis as supporting its ``plain language'' 
approach. The case addressed an interpretation of the National 
Prohibition Act, which prohibited the manufacture, sale and 
transportation, importation, and exportation of alcohol in or from any 
U.S. territory other than direct transport through the Panama Canal 
Zone. The statute was enacted in response to passage of the Eighteenth 
Amendment. The Court determined that the National Prohibition Act's 
criminal prohibition on bringing alcohol into the United States 
(including its territorial waters) required a broad definition of the 
term ``import'' as used in the statute, since such a reading ``better 
comports with the object to be attained,'' i.e., the total ban on 
alcoholic beverages in the United States other than those liquors 
``obtained before the act went into effect and kept in the owner's 
dwelling for use therein by him, his family, and his bona fide 
guests.''
    Similar analysis can be found in more recent cases interpreting the 
criminal prohibition on ``importation'' of controlled substances (e.g., 
heroin, morphine, and cocaine), where ``import'' is expressly and 
broadly defined by statute as ``any bringing in or introduction of such 
article into any area (whether or not such bringing in or introduction 
constitutes an importation within the meaning of the tariff laws of the 
United States).'' \9\ (21 U.S.C. 951 et seq.) (See generally, U.S. v. 
Catano, 553 F.2d 497 (5th Cir. 1975); U.S. v. Lewis, 676 F.2d 508 (11th 
Cir. 1982); and U.S. v. Perez, 776 F. 2d 759 (9th Cir. 1985).)
---------------------------------------------------------------------------

    \9\ See also, 16 U.S.C. 1151, et seq., generally prohibiting 
importation, sale, or possession of North Pacific fur seal skins; 16 
U.S.C. 1531, et seq., generally prohibiting importation, sale, or 
possession of endangered fish and wildlife; and 16 U.S.C. 2401, et 
seq., generally prohibiting importation, sale, or possession of 
birds, mammals, or plants native to Antarctica, where ``import'' is 
defined by statute as bringing into the jurisdiction of the United 
States, regardless of whether such act constitutes an importation 
within the meaning of customs law.
---------------------------------------------------------------------------

2. Import--Definition Used in Determining Whether an Item Brought Into 
the U.S. Is Subject to Tariff
    Since 1926, courts have consistently held that in tariff cases, 
unless it clearly appears that Congress intended

[[Page 50286]]

otherwise, the term ``importation'' means the bringing of goods within 
the jurisdictional limits of the U.S. with the intent to unlade. 
However, the courts have held that this definition is not literally 
applicable to a seagoing vessel or yacht entering the United States 
under its own power. Instead, they have given deference to a Treasury 
Department ruling cited in Estate of Lev H. Prichard v. United States, 
43 CCPA 85, 87-88, CAD 612 (1956), which stated that ``if coming into 
this country temporarily as carriers of passengers or merchandise, they 
[vessels] are not subject to customs entry or the payment of duty, but 
if brought into the United States permanently they are to be considered 
and treated as imported merchandise.'' The court said that the question 
as to whether a vessel is brought into the United States 
``permanently'' must be determined on the basis of intent. (See 
generally, American Customs Brokerage Co., Inc. v. United States, 375 
F.Supp. 1360, 1366 (C.C.P.A., 1974).)
3. Import--Use of Tariff Definition in Non-Tariff Context
    A third alternative is that contained in the Harmonized Tariff 
Schedule of the United States (HTSUS), even though the underlying 
statutory concern is not tariff-related. In 1999, the Environmental 
Protection Agency (EPA) took this approach in a final rule establishing 
an emission control program for certain new marine diesel engines 
pursuant to the Clean Air Act (64 FR 73300, December 29, 1999). The 
final rule is codified at 40 CFR Part 94. One of the issues addressed 
by the final rule was how the application to ``new marine engines'' 
would affect the engines on foreign vessels that were engaged in 
international trade. The EPA specified that, with respect to imported 
engines, ``new marine engine'' means an engine that is not covered by a 
certificate of conformity at the time of importation, and that was 
manufactured after the starting date of the emission standards which 
are applicable to such engine (or which would be applicable to such 
engine had it been manufactured for importation into the United 
States). It then specified prohibitions against certain acts by all 
persons with respect to the engines covered by the regulation.\10\
---------------------------------------------------------------------------

    \10\ 40 CFR Part 94, Subpart I allows for some temporary 
importations with specified bond requirements (see 40 CFR 94.804).
---------------------------------------------------------------------------

    For the purposes of determining what constitutes an importation 
within the ``new marine engine'' definition, and consequently an 
importation under the prohibition, the EPA decided to adopt the 
approach contained in the HTSUS. Under the HTSUS, vessels used in 
international trade or commerce and personal pleasure craft brought 
into the territorial United States by non-residents are admitted 
without formal customs consumption entry or the payment of a duty. EPA 
said that its approach was consistent with the Treasury Department 
ruling cited in Prichard discussed above. (See discussion at 64 FR 
73300, 73302.) \11\
---------------------------------------------------------------------------

    \11\ The Environmental Protection Agency (EPA) recently 
considered whether it should amend its interpretation of ``new 
marine engines'' to include engines in foreign-flag vessels, 
regardless of whether the presence of those vessels in U.S. ports 
would be treated as an import under HTSUS. Proposed rule; 67 FR 
37548; May 29, 2002. It expressed concerns that the emissions of 
foreign-flagged commercial vessels may contribute significantly to 
problems in the U.S. since U.S.-flag vessels only account for 6.7% 
of all vessels entering U.S. ports. In the final rule, EPA did not 
decide whether it had the discretion to interpret new to include 
foreign vessels. It indicated that deferring this decision may help 
facilitate the adoption of more stringent consensus international 
standards, and noted that a new set of internationally negotiated 
marine diesel engine standards would apply to engines on all 
vessels, regardless of where they are flagged. Final rule; 68 FR 
9746, 9759; February 28, 2003. In any event, the circumstances 
addressed by EPA, i.e., the application or non-application of a 
solitary Federal regulatory program, are not closely analogous to 
those before this agency.
---------------------------------------------------------------------------

C. Factors Not Considered in the 1975 Interpretation or NPRM

1. U.S. Customs Regulations in Effect in 1966
    Neither the documents NHTSA relied upon when proposing an 
interpretive rule nor the preamble of that notice addressed the U.S. 
Customs regulations in effect when the Vehicle Safety Act was enacted. 
The 1963 Tariff Schedule specifically excluded commercial motor 
vehicles from entry requirements so long as the vehicles did not engage 
in local traffic in the United States.\12\ This exclusion was adopted 
as part of the implementation of the Tariff Act of 1930, which provided 
that ``vehicles and other instruments of international traffic, of any 
class specified by the Secretary of the Treasury, shall be granted the 
customary exceptions from the application of customs laws to such 
extent and subject to terms and conditions as may be prescribed in 
regulations or instructions of the Secretary of the Treasury.'' (19 
U.S.C. 1322(a)). Because the foreign-domiciled commercial motor 
vehicles were not subject to entry under the existing Tariff Schedule 
when the Vehicle Safety Act was passed, any prohibition on allowing 
non-compliant commercial motor vehicles into the United States could 
not be enforced at the border without significantly amending those 
regulations in a manner inconsistent with the Tariff Act of 1930.\13\
---------------------------------------------------------------------------

    \12\ The prohibition against engaging in local traffic was the 
result of cabotage laws in effect at the time. These laws were 
designed to prevent foreign carriers from engaging in the purely 
domestic transport of goods or passengers. Corollary laws applied to 
foreign-owned railroads, airlines and merchant vessels.
    \13\ U.S. Customs regulations currently provide that trucks, 
buses and other vehicles in international traffic shall be subject 
to the treatment specified in part 123 (19 CFR 10.41(a)), and that 
they may be admitted without formal entry or the payment of duty (19 
CFR 123.14(a)).
---------------------------------------------------------------------------

2. Treatment of Canadian-Domiciled Commercial Motor Vehicles
    None of the three previous NHTSA documents addressed the fact that 
throughout all the different legislative activities addressing vehicles 
brought into the United States, Canadian-domiciled commercial motor 
vehicles were allowed to operate in the cross-border trade without 
being subject to formal entry. In 1966, when the Vehicle Safety Act was 
enacted, both the Mexican and Canadian borders were open. In 1988, when 
Congress passed the Imported Vehicle Safety Compliance Act of 1988, the 
Canadian border was open. In 2001, when the Murray-Shelby provisions of 
the 2002 DOT Appropriations Act were enacted, the Canadian border was 
open.\14\ None of the legislative histories of any of these statutes 
indicate intent on the part of Congress to change the operating status 
of the Canadian motor carriers, even though there was no basis to 
believe the foreign-domiciled commercial motor vehicles were fully 
compliant with the requirements of all applicable FMVSSs.
---------------------------------------------------------------------------

    \14\ In 1988 and 2001, the Mexican border was open to Mexican-
domiciled carriers operating only in the border zones and to such 
carriers that had obtained authority to operate beyond the border 
zones before the imposition of the 1982 moratorium.
---------------------------------------------------------------------------

    We have been unable to determine how many Mexican- and Canadian-
domiciled motor carriers were operating in the trans-border trade when 
the Vehicle Safety Act was initially enacted, although the specific 
reference to these vehicles in the 1963 Tariff Schedule (28 FR 14663, 
December 31, 1963) indicates that at least some foreign-domiciled 
commercial motor vehicles were being used to transport cargo and 
passengers to and from the United States.
    According to the statistics gathered by Transport Canada \15\ 
regarding international carrier activities in 1984, a total of 941 
Canadian motor carriers

[[Page 50287]]

were engaged in the U.S.-Canada cross-border trade at that time. These 
carriers owned or operated, in the aggregate, 72,441 commercial motor 
vehicles. Thus, when Congress amended the Vehicle Safety Act in 1988 to 
address specifically concerns it had with the importation of non-
compliant motor vehicles, the United States and Canada enjoyed an 
active trade relationship in which shipping via commercial motor 
vehicles clearly played a major role. Yet the legislative history 
associated with the 1988 amendments never raises the prospect that 
Congress was concerned about whether the Canadian commercial motor 
vehicles posed a safety risk while operating in the United States. 
Certainly Congress would have been aware that at least some percentage 
of goods imported to the United States from Canada were transported via 
truck, since President Reagan had lifted the Congressional moratorium 
on grants of new operating authority for Canadian carriers as recently 
as December 1982.
---------------------------------------------------------------------------

    \15\ Statistics Canada, Trucking in Canada, 1984, Minister of 
Supply and Services Canada, 1986, table 2.7.
---------------------------------------------------------------------------

3. FY 2002 DOT Appropriations Act
    Finally, as noted by the comments on this rulemaking, by 2001, when 
the provisions of the 2002 DOT Appropriations Act governing Mexican 
motor carriers were enacted, the United States and Canada enjoyed the 
largest trading relationship in the world, with most of the cargo 
coming into the United States via commercial motor vehicles that were 
not certified as compliant with the FMVSSs. Indeed, the concern over 
compliance with all applicable FMVSSs was not raised during the debates 
and hearings on the safety of Mexican commercial motor vehicles. 
Rather, Congress' stated concern was with the level of maintenance of 
the Mexican vehicles.
    Based on consideration of both the factors addressed by the 
previous documents interpreting the term ``import,'' as well as the 
other factors articulated above, we have determined that the agency's 
previous interpretation of the importation restriction on non-certified 
foreign-domiciled commercial motor vehicles may be overly encompassing 
and place unreasonable restrictions on foreign-based motor carriers. 
Unlike statutes related to the regulation and control of narcotics, the 
Vehicle Safety Act does not require, or even allow, NHTSA to eliminate 
entirely the possibility of motor vehicle crashes in this country. 
While the agency was directed to establish motor vehicle safety 
standards, those standards must be practicable (both technically and 
financially) and must meet the need for motor vehicle safety (49 U.S.C. 
30111). Additionally, the Vehicle Safety Act does not directly regulate 
used vehicles. The authority rests with the states, subject to the 
Vehicle-in-Use Inspection Standards (49 CFR Part 570). Likewise, while 
the Vehicle Safety Act prohibits motor vehicle repair businesses from 
making required safety equipment inoperative (49 U.S.C. 30122), it does 
not prohibit individuals from modifying their own vehicles in whatever 
manner they choose.
    Additionally, unlike the narcotics laws, possession of non-
compliant motor vehicles has never been illegal. Indeed, section 
108(b), as originally enacted, provides for several circumstances under 
which the sale, delivery, introduction, or importation of non-compliant 
vehicles are not prohibited. As noted above, there is no prohibition 
against the sale, offer for sale, or introduction or delivery of non-
compliant used motor vehicles. The prohibition does not apply to 
vehicles that are imported into the U.S. pursuant to joint regulations 
issued by Customs and NHTSA. Finally, it does not apply to vehicles 
labeled for export. The 1988 amendments further expanded the number of 
exceptions to the general prohibition by adding an exemption for 
vehicles that are at least 25 years old.
    The NPRM was proposed to provide context to the proposals for 
retroactive certification and record keeping. These proposals did not 
consider whether, as we have learned through the benefit of notice and 
comment rulemaking, alternative approaches can better serve the 
nation's safety needs. The FMCSA's program of enforcing its on-the-road 
operational standards, combined with the processes it is establishing 
to check that vehicles were originally built to then applicable U.S. 
standards, satisfies the stated Congressional concern over the 
maintenance of Mexican trucks better than any program of retroactive 
labelling.
    The NPRM proposing to add to the Code of Federal Regulations a 
definition of ``import'' relied heavily on the 1975 memo and added 
little analysis. We did not consider whether the overall regulatory 
scheme applicable to commercial motor vehicles would alter our 
conclusory statement about the purposes of the Vehicle Safety Act, nor 
whether it should affect our proclamation that such vehicles are 
equivalent to criminally illegal illicit drugs and contraband. The 
public comments we received have led us to review and consider more 
fully the underlying basis for the 1975 memo, and therefore the NPRM. 
Our more thorough and careful review leads us to conclude that the 
proposed definitional regulation does not adequately reflect the 
current regulatory environment and, in light of FMCSA's program to 
ensure operational safety, would provide no additional safety benefit. 
Accordingly, we have decided to withdraw the proposed definitional 
regulation.
    We also believe it is important to note that while NHTSA issued its 
interpretation of the word ``import'' in 1975 in the context of 
addressing whether Canadian-domiciled commercial motor vehicles 
operating in the United States must meet the requirements of NHTSA's 
safety standard on air brake systems, as a practical matter NHTSA has 
never required vehicles with CMVSS labels to also carry FMVSS labels. 
Indeed, the comments indicate that the primary burdens associated with 
retroactive certification would fall on Canadian-domiciled commercial 
motor carriers, which have long been operating safely in the U.S. using 
commercial vehicles that were certified to the CMVSS and also met the 
FMCSRs.
    In practice, NHTSA has generally sought to ensure that non-U.S.-
domiciled commercial motor vehicles meet the same safety standards as 
U.S. vehicles (or very similar standards) by other means, especially 
working with FMCSA. We note, for example, that in responding to 
requests for interpretation in the late 1990's as to whether Canadian 
carriers can operate in the U.S. without the antilock brake systems 
required by NHTSA's safety standard, NHTSA's responses referred to the 
Federal motor carrier safety regulations rather than to our 1975 
interpretation.\16\ Also, NHTSA and Transport Canada have a close 
working relationship.
---------------------------------------------------------------------------

    \16\ See interpretation to Mr. Ted Reiniger, June 2, 1998; to 
Mr. Barrie Montague, June 1, 1998.
---------------------------------------------------------------------------

    Thus, the approach discussed elsewhere in this document that the 
Department will be following for ensuring that commercial vehicles were 
built to the FMVSS (or the very similar CMVSS) and operate safely in 
the United States is consistent with our longstanding practices.

[[Page 50288]]

Appendix

    Table 1.--Comparison of CMVSS and FMVSS Requirements for Trucks and Buses over 4,536 kg (10,000 lb) GVWR
----------------------------------------------------------------------------------------------------------------
                Title                           CMVSS                    FMVSS                Most stringent
----------------------------------------------------------------------------------------------------------------
CMVSS No. 101, Controls and displays.  --Requires the ISO       --Requires the word      Safety difference is
FMVSS No. 101, Controls and displays.   brake failure symbol     ``brake'' with minimum   inconsequential.
                                        if a common brake        height if a common
                                        malfunction indicator    brake malfunction
                                        is used.                 indicator is used.
--------------------------------------
CMVSS No. 102, Transmission control                No significant differences            Safety difference is
 functions.                                                                               inconsequential.
FMVSS No. 102, Transmission shift
 lever sequence, starter interlock,
 and transmission braking effect..
--------------------------------------
CMVSS No. 103, Windshield defrosting               No significant differences            Safety difference is
 and defogging.                                                                           inconsequential.
FMVSS No. 103, Windshield defrosting
 and defogging systems..
--------------------------------------
CMVSS No. 104, Windshield wiping and               No significant differences            Safety difference is
 washing system.                                                                          inconsequential.
FMVSS No. 104, Windshield wiping and
 washing system..
--------------------------------------
CMVSS No. 105, Hydraulic and electric  --Requires statement to  --Requires specific      Safety differnce is
 brake systems.                         the same effect as       working for brake        inconsequential.
FMVSS No. 105, Hydraulic and electric   U.S. for brake fluid     fluid reservoir
 brake systems..                        reservoir labeling.      labeling.
                                       --Requires the ISO ABS   --Requires the word
                                        symbol for indicating    ``ABS'', ``Anti-lock''
                                        ABS malfunction.         or ``Antilock'' with
                                                                 minimum height for
                                                                 indicating ABS
                                                                 malfunction..
--------------------------------------
CMVSS No. 106, Brake hoses...........              No significant differences            Safety difference is
FMVSS No. 106, Brake hoses...........                                                     inconsequential.
--------------------------------------
CMVSS No. 108, Lighting system and     --Requires Daytime       Allows, but does not     --CMVSS on daytime
 retro-reflective devices.              running lights.          require daytime          running lights.
FMVSS No. 108, Lamps, reflective       --Allows European         running lights.         --Allowance of European
 devices, and associated equipment..    headlamps..                                       headlamps is a
                                                                                          significant
                                                                                          difference.
--------------------------------------
CMVSS No. 111, Mirrors...............              No significant differences            Safety difference is
FMVSS No. 111, Rearview mirrors......                                                     inconsequential.
--------------------------------------
CMVSS No. 113, Hood latch system.....              No significant differences            Safety difference is
FMVSS No. 113, Hood latch system.....                                                     inconsequential.
--------------------------------------
CMVSS No. 116, Hydraulic brake fluids              No significant differences            Safety difference is
FMVSS No. 116, Motor vehicle brake                                                        inconsequential.
 fluids..
--------------------------------------
CMVSS No. 119, Tires for vehicles      Requires maple leaf      Requires DOT marking...  Saftey difference is
 other than passenger cars.             certification marking.                            inconsequential.
FMVSS No. 119, New pneumatic tires
 for vehicles other than passenger
 cars..
--------------------------------------
CMVSS No. 120, Tire selection and                  No significant differences            Safety difference is
 rims for vehicles other than                                                             inconsequential.
 passenger cars.
FMVSS No. 120, Tire selection and
 rims for motor vehicles other than
 passenger cars..
--------------------------------------

[[Page 50289]]

 
CMVSS No. 121, Air brake systems.....  Requires the ISO ABS     Requires the letters     Safety difference is
FMVSS No. 121, Air brake systems.....   symbol for indicating    ``ABS'' or               inconsequential.
                                        ABS malfunction.         ``Antilock'' with
                                                                 minimum height for
                                                                 indicating ABS
                                                                 malfunction.
--------------------------------------
CMVSS No. 124, Accelerator control                 No significant differences            Safety difference is
 systems.                                                                                 inconsequential.
FMVSS No. 124, Accelerator control
 systems..
--------------------------------------
CMVSS No. 131, School bus pedestrian               No significant differences            Safety difference is
 safety devices.                                                                          inconsequential.
FMVSS No. 131, School bus pedestrian
 safety devices..
--------------------------------------
CMVSS No. 203, Driver impact           Requirement that         Requirement that         CMVSS.
 protection.                            clothing and jewelry     clothing and jewelry
FMVSS No. 203, Impact protection for    cannot catch on          cannot catch on
 the driver from the steering control   steering wheel.          steering wheel does
 system..                                                        not apply to vehicles
                                                                 of this class.
--------------------------------------
CMVSS No. 205, Glazing materials.....  References more recent   Only references older    Safety difference is
FMVSS no. 205, Glazing materials.....   version of ANSI Z26      versions of ANSI Z26.    inconsequential.
                                        test requirement, but
                                        allows older versions
                                        to be followed.
--------------------------------------
CMVSS No. 207, Anchorage of seats....  All seats must be        Allows separate testing  CMVSS.
FMVSS No. 207, Seating systems.......   tested as an assembly    of seating and seat
                                        of seat and seat base    base tested in a test
                                        when installed in        fixture.
                                        vehicle.
--------------------------------------
CMVSS No. 208, Occupant protection in  All vehicles must have   Allows for crash         Safety difference is
 frontal impact.                        seat belt.               testing in lieu of       inconsequential.
FMVSS No. 208, Occupant crash                                    seat belts in vehicles
 protection..                                                    over 4,536 kg.
--------------------------------------
CMVSS No. 209, Seat belt assemblies..  --Includes a             .......................  Safety difference is
FMVSS No. 209, Seat belt assemblies..   colorfastness test.                               inconsequential.
                                       --Requires label
                                        stating seat belt
                                        assembly must be
                                        installed in vehicle
                                        with an air bag if
                                        load limiters are
                                        used..
--------------------------------------
CMVSS No. 210, Seat belt assembly      Different requirements   Provides an exemption    Safety difference is
 anchorages.                            for seat belt            from seat belt           inconsequential.
FMVSS No. 210, Seat belt assembly       anchorage location for   anchorage
 anchorages..                           adjustable seats with    installation,
                                        seat travel greater      strength, and location
                                        than 70 mm than for      requirements if
                                        seats with seat travel   certified to unbelted
                                        equal to or less than    barrier test in FMVSS
                                        70 mm.                   No. 208.
--------------------------------------
CMVSS No. 217, Bus window retention,   Requires push-out        Requires either push-    Safety difference is
 release and emergency exits.           windows on all buses     out windows or sliding   inconsequential.
FMVSS No. 217, Bus emergency exits      other than school        windows.
 and window retention and release..     buses.
--------------------------------------
CMVSS No. 301.1--LPG Fuel system       .......................  No FMVSS corollary.....  CMVSS.
 integrity.
--------------------------------------
CMVSS No. 301.2--CNG fuel system       --Applies to all         --Only regulated         CMVSS.
 integrity.                             vehicles.                vehicles over 4,536 kg
FMVSS No. 303, Fuel system integrity   --Fuel container must     are school buses.
 of compressed natural gas vehicles/    remain attached to      --No environmental
 FMVSS No. 304, compressed natural      vehicle at minimum of    testing requirements..
 gas fuel container integrity..         one attachment point..
                                       --Adopts environmental
                                        testing requirements
                                        of CSA B51 or ANSI/AGA-
                                        NGV 2..
--------------------------------------
CMVSS No. 302, Flammability..........             No significant differences             Safety difference is
FMVSS No. 302, Flammability of                                                            inconsequential.
 interior materials..
----------------------------------------------------------------------------------------------------------------


[[Page 50290]]


     Table 2.--Comparison of CMVSS and FMVSS Requirements for Trucks Trailer Over 4,536 kg (10,000 lb) GVWR
----------------------------------------------------------------------------------------------------------------
                Title                           CMVSS                    FMVSS                Most stringent
----------------------------------------------------------------------------------------------------------------
CMVSS No. 108, Lighting system and     --Requires pole          Requires red and white   --CMVSS on pole
 retro-reflective devices.              trailers to have         reflective tape.         trailers.
FMVSS No. 108, Lamps, reflective        reflective markings.                             --FMVSS on reflective
 devices, and associated equipment..   --Allows colors of                                 tape.
                                        reflective tape other
                                        than red and white
                                        markings (e.g., all
                                        white or all orange)..
--------------------------------------
CMVSS No. 119, Tire for vehicles       Requires maple leaf      Requires DOT marking...  Safety difference is
 other than passenger cars.             certification marking.                            inconsequential.
FMVSS No. 119, Tire for vehicles
 other than passenger cars..
--------------------------------------
CMVSS No. 120, Tire selection and                 No significant differences.            Safety difference is
 rims for vehicles other than                                                             inconsequential.
 passenger cars.
FMVSS No. 120, Tire selection and
 rims for motor vehicles other than
 passenger cars..
--------------------------------------
CMVSS No. 121, Air brake systems.....             No significant differences.            Safety difference is
FMVSS No. 121, Air brake systems.....                                                     inconsequential.
--------------------------------------
FMVSS No. 223, Rear impact guards/     No CMVSS corollary.....  Trailers must be         FMVSS
 FMVSS No. 224, Rear impact                                      equipped with rear
 protection.                                                     impact guard having
                                                                 strength requirement
                                                                 of 100kN and 5.65 kJ
                                                                 of energy absorption
                                                                 on one side.
----------------------------------------------------------------------------------------------------------------


    Issued on: August 22, 2005.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.

[FR Doc. 05-16968 Filed 8-25-05; 8:45 am]
BILLING CODE 4910-59-P