[Federal Register Volume 72, Number 93 (Tuesday, May 15, 2007)]
[Notices]
[Pages 27354-27361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9234]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
[Docket No. NHTSA-2007-28056]
Reports, Forms, and Recordkeeping Requirements
AGENCY: National Highway Traffic Safety Administration, DOT.
ACTION: Request for public comment on proposed collection of
information.
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SUMMARY: Before a Federal agency can collect certain information from
the public, it must receive approval from the Office of Management and
Budget (OMB). Under procedures established by the Paperwork Reduction
Act of 1995, before seeking OMB approval, Federal agencies must solicit
public comment on the proposed collection of information.
This document describes a proposed collection of information under
regulations in 49 CFR parts 591, 592, and 593 that pertain to the
importation of motor vehicles and items of motor vehicle equipment that
are subject to the Federal motor vehicle safety, bumper, and theft
prevention standards.
DATES: Comments must be received on or before July 16, 2007.
ADDRESSES: Comments should refer to the docket number and notice
number, and be submitted to: Docket Management, Room PL-401, 400
Seventh St., SW., Washington, DC 20590. [Docket hours are from 9 a.m.
to 5 p.m.]. Anyone is able to search the electronic form of all
comments received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review DOT's
complete Privacy Act Statement in the Federal Register published on
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit
http://dms.dot.gov.
FOR FURTHER INFORMATION CONTACT: Coleman Sachs, Office of Vehicle
Safety Compliance, NHTSA (202-366-3151).
SUPPLEMENTARY INFORMATION:
Prior Approval
On May 4, 2004, NHTSA submitted to OMB a request for the extension
of the agency's approval (assigned OMB No. 2127-0002) of the
information collection that is incident to NHTSA's administration of
the vehicle importation regulations at 49 CFR parts 591, 592, and 593.
On July 26, 2004, OMB notified NHTSA that it had approved this
extension request through July 31, 2007. That approval was based on
NHTSA submissions identifying information being collected on an annual
basis from 838,000 respondents, expending 72,860 hours of effort, at a
cost of $317,000. NHTSA wishes to file with OMB a request for that
agency to extend its approval for an additional three years.
Changes in Program
Since the information collection associated with NHTSA's
importation program was last approved by OMB, profound changes have
taken place that impact the information collection and the assessment
of its burden on affected members of the public. These are principally
attributable to the continuing weakening of the U.S. dollar against
foreign currencies. The focus of NHTSA's importation program is on
vehicles that were not originally manufactured to comply with all
applicable Federal motor vehicle safety standards (FMVSS). These
vehicles must be imported by a registered importer (RI) under bond to
ensure that the vehicles are brought into compliance with applicable
standards following importation. Nonconforming vehicles are entered
under Box 3 on the HS-7 Declaration form. In calendar year 2002,
212,210 nonconforming vehicles were imported under Box 3. Over 97
percent of those vehicles were imported from Canada. In 2003, after the
U.S. dollar began to weaken against the Canadian dollar, the volume of
nonconforming vehicle imports under Box 3 was reduced by more than
half, to 97,337 vehicles. The trend accelerated over the next three
years, with 43,648 vehicles imported under Box 3 in 2004, 12,642
imported in 2005, and 10,953 imported in 2006.
When NHTSA last requested OMB approval for the information
collection associated with the vehicle importation program, the agency
estimated that 163,000 nonconforming vehicles would be imported on an
annual basis under Box 3, for which HS-7 Declaration forms and HS-474
DOT Conformance bonds would have to be furnished. The agency estimated
that it would take five minutes to complete each HS-7 Declaration form,
and six minutes to complete each HS-474 DOT Conformance bond, for a
total expenditure of 29,882 hours to complete these forms. Given the
profound reduction in nonconforming vehicle imports under Box 3 in
recent years, future projections should assume an average of 11,000
vehicle imports per year. Relying on this figure, the hour burden
associated with the completion of paperwork for these vehicles would
[[Page 27355]]
be close to 2,017 hours (0.08333 hours to complete each HS-7 x 11,000
vehicles = 915.53 hours; 0.1 hours to complete each HS-474 x 11,000
vehicles = 1,100 hours; 915.53 + 1,100 = 2,016.53 hours). This
represents more than a 93 percent reduction in burden hours in
comparison to the figures used when OMB approval was last obtained.
Increased Scope of Accounting for Burdens
In this document, the agency has not focused exclusively on
vehicles imported under the RI program, but has instead made a
concerted effort to quantify the hour burden associated with the
completion of paperwork for vehicles and equipment items imported in
any legitimate way under NHTSA's regulations. As a consequence, we are
providing more particular information than we have in the past on the
paperwork burden associated with the importation of conforming motor
vehicles; the temporary importation of nonconforming vehicles for
personal use by nonresidents and by foreign diplomatic and military
personnel; the temporary importation of nonconforming vehicles for
purposes of research, investigations, demonstrations or training, and
other similar purposes; the importation of vehicles that are not
primarily manufactured for on-road use; and other entry categories
permitted under the agency's regulations. In addition, we have
attempted to account for all forms, whether required or optional, and
other types of information solicitations associated with vehicle and
equipment importation that appear on the agency's Web site and in
newsletters and other informational media that we employ to inform RIs
and others of our requirements. Accounting for all paperwork burdens in
this more particularized manner, we project that a total of 42,413
hours will be expended each year to complete paperwork associated with
all aspects of NHTSA's program that regulates the importation of motor
vehicles and equipment items subject to the FMVSS.
Issues for Comments To Address
Under the Paperwork Reduction Act of 1995 (PRA), before an agency
submits a proposed collection of information to OMB for approval, it
must publish a document in the Federal Register providing a 60-day
comment period and otherwise consult with members of the public and
affected agencies concerning each proposed collection of information.
The OMB has promulgated regulations describing what must be included in
such a document. Under OMB's regulations (at 5 CFR 1320.8(d)), an
agency must ask for public comment on the following:
(i) Whether the proposed collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
(ii) The accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions;
(iii) How to enhance the quality, utility, and clarity of the
information to be collected; and
(iv) How to minimize the burden of the collection of information on
those who are to respond, including the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses.
Solicitation of Comments
In compliance with these requirements, NHTSA is requesting public
comment on the following proposed collection of information:
Title: Importation of Vehicles and Equipment Subject to the Federal
Motor Vehicle Safety, Bumper, and Theft Prevention Standards.
Type of Request: Extension of a Currently Approved Collection.
OMB Control Number: 2127-0002.
Affected Public: Importers of vehicles and regulated items of motor
vehicle equipment.
Requested Expiration Date of Approval: July 31, 2010.
Summary of Collection of Information
1. Declaration requirement for the importation of motor vehicles
and regulated items of motor vehicle equipment: NHTSA's regulations at
49 CFR part 591 provide that no person shall import a motor vehicle or
regulated item of motor vehicle equipment (e.g., tires, rims, brake
hoses, brake fluid, seat belt assemblies, lighting equipment, glazing,
motorcycle helmets, child restraints, compressed natural gas
containers, warning devices, rear impact guards, and platform lift
systems) unless the importer files a declaration. See 49 CFR 591.5.
This declaration is filed with U.S. Customs and Border Protection
(Customs) on a paper copy of the HS-7 Declaration form, or, if the
entry is made by a Customs House Broker, it can be made electronically
using Customs' Automated Broker Interface (ABI) system. The HS-7
Declaration form has 14 boxes, each of which identifies a lawful basis
for the importation of a motor vehicle or equipment item into the
United States.
a. Importation of vehicles at least 25 years old or equipment not
subject to the safety standards under Box 1: A motor vehicle at least
25 years old can be lawfully imported without regard to its compliance
with the FMVSS. So too can an equipment item manufactured on a date
when no applicable FMVSS was in effect. These vehicles and equipment
items are declared under Box 1 on the HS-7 Declaration form. In
calendar year 2004, 8,811 vehicles were imported under Box 1. In 2005,
10,146 vehicles were imported, and in 2006, the volume of imports
increased to 15,445 vehicles. Based on an average of these figures, the
agency projects that roughly 12,000 vehicles will be imported each year
under Box 1 over the next three years. Assuming that an HS-7
Declaration form is filed for each of these vehicles, and that it will
take five minutes to complete each of these forms, the agency estimates
the hour burden associated with completing the paperwork for these
vehicles to be approximately 1,000 hours per year (0.083333 hours x
12,000 = 1,000 hours).
b. Importation of conforming vehicles and equipment under Box 2A:
Vehicles and equipment that are originally manufactured to comply with
all applicable Federal motor vehicle safety, bumper, and theft
prevention standards, and that bear a label or tag certifying such
compliance that is permanently affixed by the original manufacturer,
are declared under Box 2A on the HS-7 Declaration form. In 2004,
2,767,839 vehicles were imported under Box 2A. In 2005, the figure
increased to 3,898,152 vehicles, and increased again in 2006, to
4,372,442. Based on an average of these figures, the agency projects
that roughly 3,700,000 vehicles will be imported each year under Box 2A
for the next three years. The overwhelming majority of vehicles entered
under Box 2A are imported by original manufacturers. As a rule,
manufacturers do not file a separate HS-7 Declaration form for each
conforming vehicle they import under Box 2A. Instead, the manufacturers
furnish NHTSA with a single declaration form, on a monthly basis, to
which they attach a list of all vehicles, identified by make, model,
model year, and vehicle identification number (VIN), that were imported
under Box 2A during that month. In this manner, it is not unusual for a
single HS-7 Declaration form to be filed with the agency to cover the
entry of many thousands of vehicles. Assuming that manufacturers
account for 90 percent of the vehicles imported under Box 2A, and that
a manufacturer
[[Page 27356]]
will, on average, report the entry of 5,000 vehicles on a single
Declaration form, and that all other vehicles imported under Box 2A are
declared individually, the agency projects the hour burden associated
with completing the paperwork for the entry of these vehicles to be
30,832 hours per year (3,700,000 vehicles x .9 = 3,330,000 vehicles
imported by original manufacturers; 3,330,000 vehicles / 5,000 vehicles
per declaration forms filed = 666 declaration forms being filed per
year by manufacturers; assuming that a separate declaration is filed
for each other vehicle imported under Box 2A yields 370,000
declarations being filed per year for these vehicles; 370,000 + 666 =
370,666 declarations per year; 0.08333 hours to complete each
declaration x 370,666 declarations = 30,832 hours).
c. Importation of conforming Canadian-market vehicles for personal
use under Box 2B: A motor vehicle that is certified by its original
manufacturer as complying with all applicable Canadian motor vehicle
safety standards can be imported by an individual for personal use
under Box 2B. To accomplish the entry, the importer must furnish
Customs with a letter from the vehicle's original manufacturer
confirming that the vehicle conforms to all applicable U.S. Federal
motor vehicle safety, bumper, and theft prevention standards, or that
it conforms to all such standards except for the labeling requirements
of Standard Nos. 101 Controls and Displays and 110 or 120 Tire
Selection and Rims, and/or the requirements of Standard No. 108 Lamps,
Reflective Devices, and Associated Equipment relating to daytime
running lamps. NHTSA received from Customs a total of 2012 HS-7
Declaration forms for vehicles imported under Box 2B in calendar year
2005. In addition, declarations were filed electronically for 546
vehicles imported under Box 2B in 2005. Combining these figures yields
a total of 2,558 vehicles imported under Box 2B in that calendar year.
NHTSA received from Customs a total of 1,330 HS-7 Declaration forms for
vehicles imported under Box 2B in 2006. In addition, electronic entries
were made for 612 vehicles imported under Box 2B in that calendar year.
Combining these figures yields a total of 1,942 vehicles imported under
Box 2B in 2006. Assuming these figures represent a fair approximation
of the volume of vehicles imported under Box 2B in those two calendar
years, the agency projects that roughly 2,250 vehicles will be imported
under Box 2B in each of the next three calendar years. Assuming that a
separate HS-7 Declaration form is filed for each of these vehicles, the
hour burden associated with completing the paperwork for the entry of
these vehicles will be 188 hours per year (2,250 vehicles x 0.08333
hours per entry = 188 hours).
d. Importation of nonconforming vehicles by registered importers
under Box 3:
Statutory and Regulatory Background
Section 30112(a) of Title 49, U.S. Code prohibits, with certain
exceptions, the importation into the United States of a motor vehicle
manufactured after the date an applicable Federal motor vehicle safety
standard (FMVSS) takes effect, unless the motor vehicle was
manufactured in compliance with the standard and was so certified by
its original manufacturer. Under one of the exceptions to this
prohibition, found at 49 U.S.C. 30141, a nonconforming vehicle can be
imported into the United States provided (1) NHTSA decides that it is
eligible for importation, based on its capability of being modified to
conform to all applicable FMVSS, and (2) it is imported by a registered
importer (RI), or by a person who has a contract with an RI to bring
the vehicle into conformity with all applicable standards following
importation. Regulations implementing this statute are found at 49 CFR
parts 591 and 592.
HS-7 Declaration Form
The regulations require a declaration to be filed (on the HS-7
Declaration Form) at the time a vehicle is imported that identifies,
among other things, whether the vehicle was originally manufactured to
conform to all applicable FMVSS, and if it was not, to state the basis
for the importation of the vehicle.
A nonconforming vehicle that NHTSA has decided to be eligible for
importation can be imported by an RI, or by a person who has a contract
with an RI to modify the vehicle so that it conforms to all applicable
FMVSS, under Box 3 on the HS-7 Declaration form. As previously noted,
the volume of imports under Box 3 has steadily declined in recent
years. In 2005, 12,642 vehicles were imported under Box 3 and in 2006,
10,953 vehicles were imported. Based on these figures, the agency
projects that 11,000 vehicles will be imported each year under Box 3.
Assuming that volume, the hour burden associated with the completion of
the HS-7 Declaration form for these vehicles will be 916 hours (0.08333
hours to complete each HS-7 x 11,000 vehicles = 915.53 hours).
HS-474 Conformance Bond
NHTSA's regulations also require an RI, among other things, to
furnish a bond (on the HS-474 Conformance Bond form) at the time of
entry for each nonconforming vehicle it imports, to ensure that the
vehicle will be brought into conformity with all applicable safety and
bumper standards within 120 days of entry or will be exported from, or
abandoned to, the United States. A HS-474 Conformance Bond has to be
furnished for each nonconforming vehicle imported under Box 3. Assuming
an importation volume of 11,000 vehicles per year, the hour burden
associated with the completion of the HS-474 will be 1,100 hours (0.1
hours to complete each HS-474 x 11,000 vehicles = 1,100 hours).
Conformity Statement
After modifying the vehicle to conform to all applicable standards,
the RI submits a statement of conformity (on a suggested form) to
NHTSA, which issues a letter permitting the bond to be released if the
agency is satisfied that the vehicle has been modified in the manner
stated by the RI. The statement of conformity contains a check off list
on which the RI identifies the FMVSS and other agency requirements to
which the vehicle conforms as originally manufactured and the FMVSS and
other requirements to which the vehicle was modified to conform. The RI
also attaches to the statement of conformity documentary and
photographic evidence of the modifications that it made to the vehicle
to achieve conformity with applicable standards. Collectively, these
documents are referred to as a ``conformity package.''
A conformity package must be submitted for each nonconforming
vehicle imported under Box 3. Because the Canadian motor vehicle safety
standards are identical in most respects to the FMVSS, there are
relatively few modifications that need to be performed on a Canadian-
certified vehicle to conform it to the FMVSS and the conformity
packages that are submitted on these vehicles are considerably less
comprehensive than those submitted for vehicles from Europe, Japan, and
other foreign markets. The agency estimates that it would take the
average RI no more than 30 minutes to collect information for, and
assemble, a conformity package for a Canadian-certified vehicle.
Generally, more modifications are needed to conform a non-Canadian
vehicle to the FMVSS. To properly document these modifications, more
information must be included in the
[[Page 27357]]
conformity package for a non-Canadian vehicle than is required for a
Canadian-certified vehicle. The agency estimates that it would take an
RI approximately twice as long, or roughly one hour, to compile
information for, and assemble, a conformity package for a typical non-
Canadian vehicle.
Of the 43,684 nonconforming vehicles imported under Box 3 in 2004,
43,357, or over 99 percent, were Canadian market and 327, or under one
percent, were from markets other than Canada. Of the 12,668
nonconforming vehicles imported under Box 3 in 2005, 12,496, or roughly
98.5 percent, were Canadian market and 192, or roughly 2.5 percent,
were from markets other than Canada. Assuming this trend continues in
future years, the agency estimates the hour burden associated with the
submission of conformity packages on Canadian-certified vehicles to be
5,390 hours per year (11,000 vehicles x 98 percent or 0.98 = 10780
vehicles; 10780 vehicles x 0.5 hours per vehicle = 5,390 hours). The
agency estimates the hour burden associated with the submission of
conformity packages for non-Canadian vehicles to be 220 hours per year
(11,000 vehicles x 2 percent or 0.02 = 220 vehicles; 220 vehicles x 1.0
hours per vehicle = 220 hours. Adding these figures yields an estimated
burden of 5,610 hours per year for the entire RI industry to compile
and submit conformity packages to NHTSA on nonconforming vehicles
imported under Box 3 (5,390 hours + 220 hours = 5,610 hours).
Import Eligibility Petition
As previously noted, a motor vehicle that was not originally
manufactured to comply with all applicable FMVSS cannot be lawfully
imported into the United States on a permanent basis unless NHTSA
decides that the vehicle is eligible for importation, based on its
capability of being modified to conform to those standards. Under 49
U.S.C. 30141, the eligibility decision can be based on the
nonconforming vehicle's substantial similarity to a vehicle of the same
make, model, and model year that was manufactured for importation into,
and sale in the United States, and certified as complying with all
applicable FMVSS by its original manufacturer. Where there is no
substantially similar U.S.-certified vehicle, the eligibility decision
must be predicated on the vehicle having safety features that are
capable of being modified to conform to the FMVSS, based on destructive
crash test data or such other evidence that the agency may deem
adequate. The agency makes import eligibility decisions either on its
own initiative, or in response to petitions filed by RIs. Only a small
number of RIs (currently about 14 out of the 73 RIs registered with the
agency) ever submit import eligibility petitions. Many of these
businesses have, over, the years, submitted multiple petitions to the
agency. The agency estimates that it would take the typical RI that
petitions the agency roughly two hours to complete the paperwork
associated with the submission of a petition for a vehicle that has a
substantially similar U.S.-certified counterpart, and roughly twice as
long, or four hours, to complete the paperwork associated with the
submission of a petition for a vehicle that lacks a substantially
similar U.S.-certified counterpart. In 2004, 37 import eligibility
petitions were submitted to the agency. Of these, 33, or 89 percent,
were for vehicles with substantially similar U.S.-certified
counterparts and 4, or 11 percent, were for vehicles for which there
were no substantially similar U.S. certified counterparts.
In 2005, 24 import eligibility petitions were submitted to the
agency. Of these, 16, or 67 percent, were for vehicles with
substantially similar U.S.-certified counterparts, and 8, or 33
percent, were for which there were no substantially similar U.S.-
certified counterparts. Assuming this trend continues in future years,
the agency estimates that roughly 30 import eligibility petitions will
be submitted each year, 80 percent of which, or 24 petitions, will be
for vehicles with substantially similar U.S.-certified counterparts,
and 20 percent of which, or 6 petitions, will be for vehicles lacking
substantially similar U.S.-certified counterparts. Based on these
figures, the agency estimates that the hour burden for the paperwork
associated with the submission of import eligibility petitions to be 72
hours per year (24 petitions x 2 hours per petition = 48 hours; 6
petitions x 4 hours per petition = 24 hours; 48 hours + 24 hours = 72
hours).
e. Importation of vehicles or equipment intended solely for export
under Box 4: A nonconforming vehicle or equipment item that is intended
solely for export, and bears a tag or label to that effect, can be
entered under Box 4 on the HS-7 Declaration form. In 2005, 12,977
vehicles were imported under Box 4. In 2006, 18,800 vehicles were
imported under that box. The majority of these vehicles were imported
by original manufacturers that did not file individual declaration
forms with the agency for each vehicle imported, but instead included
those vehicles in the monthly count supplied to the agency along with
conforming vehicles imported under Box 2A. The agency received only 147
HS-7 Declaration forms for vehicles imported under Box 4 in 2006.
Assuming this represents the share of vehicles imported under Box 4 by
parties other than original manufacturers, the agency projects that HS-
7 Declaration forms will be filed for no more than one percent of the
vehicles imported under Box 4 in future years. Averaging the volume of
those imports over the past two years yields an estimate of slightly
less than 16,000 vehicles being imported on an annual basis in the next
three years, and 160 HS-7 Declaration forms being filed in each of
those years. Based on that figure, the hour burden associated with the
completion of the HS-7 Declaration form for these vehicles will be
under 14 hours (0.08333 hours to complete each HS-7 x 160 vehicles =
13.33 hours).
f. Temporary importation of nonconforming vehicles by nonresidents
of the United States under Box 5: Under an international convention to
which the United States is a signatory, a nonresident of the United
States can import a nonconforming vehicle for personal use, for a
period of up to one year, provided the vehicle is not sold while in the
United States and is exported no later than one year from its date of
entry. These vehicles are entered under Box 5 on the HS-7 Declaration
form. To enter a vehicle under Box 5, the importer must also furnish
Customs with the importer's passport number and the name of the country
that issued the passport. In 2005, a total of 427 vehicles were
imported under Box 5. In 2006, 354 vehicles were imported under that
box. Based on these figures, the agency estimates that roughly 400
vehicles will be imported under Box 5 in each of the next three years.
Assuming that volume, the hour burden associated with the completion of
the HS-7 Declaration form for these vehicles will be under 34 hours
(0.08333 hours to complete each HS-7 x 400 vehicles = 33.33 hours).
g. Temporary importation of nonconforming vehicles by foreign
diplomat under Box 6: A member of a foreign government on assignment in
the United States, or a member of the secretariat of a public
international organization so designated under the International
Organizations Immunities Act, and within the class of persons for whom
free entry of motor vehicles has been authorized by the Department of
State, can temporarily import a nonconforming vehicle for personal use
while in the United States. These vehicles are entered under Box 6 on
the HS-7 Declaration form. The importer must attach to the declaration
a copy of
[[Page 27358]]
the importer's official orders and supply Customs with the name of the
embassy to which the importer is attached. In 2005, a total of 82
vehicles were imported under Box 6. In 2006, 70 vehicles were imported
under that box. Based on these figures, the agency estimates that
roughly 75 vehicles will be imported under Box 6 in each of the next
three years. Assuming that volume, the hour burden associated with the
completion of the HS-7 Declaration form for these vehicles will be
under 7 hours (0.08333 hours to complete each HS-7 x 75 vehicles = 6.25
hours).
h. Temporary importation of nonconforming vehicles and equipment
under Box 7: Under 49 U.S.C. 30114, NHTSA is authorized to exempt a
motor vehicle or item of motor vehicle equipment from the importation
restriction in 49 U.S.C. 30112(a), on such terms the agency decides are
necessary, for purposes of research, investigations, demonstrations,
training, competitive racing events, show, or display. Regulations
implementing this provision are found at 49 CFR part 591. Under those
regulations, written permission from NHTSA is needed to temporarily
import a nonconforming motor vehicle or equipment item for one of the
specified purposes unless the importer is a manufacturer of motor
vehicles that are certified to the FMVSS. An application form that can
be used to obtain the letter of permission is posted to the agency's
Web site at www.nhtsa.gov/cars/rules/import. If NHTSA grants it
permission, the nonconforming motor vehicle or equipment item can be
temporarily imported under Box 7 on the HS-7 Declaration form. In 2005,
5,416 vehicles were imported under Box 7. In 2006, 4,344 vehicles were
imported under that box. Permission letters were requested from NHTSA
for 283 of those vehicles, representing less than seven percent of the
total number of vehicles imported under Box 7 in 2006. The remaining
vehicles were imported by original manufacturers of vehicles that are
certified to the FMVSS, who can temporarily import nonconforming
vehicles for any of the specified purposes under Box 7 without the need
for a NHTSA permission letter. Averaging the volume of imports over the
past two years, the agency projects that roughly 5,000 vehicles will be
imported under Box 7 in each of the next three years. Assuming that
applications for NHTSA permission letters will be submitted for ten
percent of those vehicles, and that a single application will be filed
for each vehicle, the agency estimates that 500 applications will be
filed in each of the next three years. Based on the estimate that it
will take roughly five minutes to complete each of those applications,
the agency projects that under 42 hours will be expended on an annual
basis to submit applications for permission from NHTSA to import
vehicles under Box 7 (0.0833 hours per application x 500 applications =
41.66 hours). Assuming that a single HS-7 Declaration form is filed for
each vehicle imported under Box 7, the agency projects that under 420
hours will be expended on an annual basis in completing the declaration
for vehicles imported under Box 7 (0.0833 hours per declaration x 5000
vehicles = 416.66 hours).
i. Importation of off-road vehicles under Box 8: NHTSA regulates
the importation of ``motor vehicles,'' which are defined (at 49 U.S.C.
30102) as vehicles that are driven or drawn by mechanical power and
manufactured primarily for use on public streets, roads, and highways.
Vehicles that are not primarily manufactured for on-road use do not
qualify as ``motor vehicles'' under this definition, and may therefore
be imported without regard to their compliance with the FMVSS. These
vehicles are entered under Box 8 on the HS-7 Declaration form. Vehicles
that can be entered in this fashion include those that are originally
manufactured for closed circuit racing. Although approval from NHTSA is
not needed to import a vehicle that was originally manufactured for
racing purposes, the agency will issue a letter recognizing a
particular vehicle as having been so manufactured if the importer
requests the agency to do so. An application form that can be used to
obtain such a letter is also posted to the agency's Web site at
www.nhtsa.gov/cars/rules/import. In 2005, applications were submitted
to NHTSA for 60 vehicles imported under Box 8. In 2006, 69 applications
were filed. Based on these figures, the agency projects that 65
applications to import vehicles for racing purposes under Box 8 will be
submitted in each of the next three years. Assuming that it will take
five minutes to complete each of these applications, the agency
estimates that under 6 hours will be expended in completing these
applications (0.08333 hours x 65 applications = 5.41 hours).
In 2005, a total of 88,528 vehicles were imported under Box 8. In
2006, 105,609 vehicles were imported under that box. Averaging those
figures, the agency projects that roughly 100,000 vehicles will be
imported under Box 8 in each of the next three years. The vast majority
of these vehicles were off-road motorbikes or all-terrain vehicles that
were imported in bulk shipments for which a single declaration was
filed. NHTSA received only 117 HS-7 Declaration forms for vehicles
imported under Box 8 in 2006. The remainder of the entries were made
electronically. Based on the assumption that each entry covers 100
vehicles, the agency estimates that approximately 10,000 Box 8 entries
will be made on an annual basis over the next three years. Relying on
this assumption, the agency projects that under 840 hours will be
expended on an annual basis in completing the declaration for vehicles
imported under Box 8 (0.0833 hours per declaration x 10000 vehicles =
833.33 hours).
j. Importation of vehicles or equipment requiring further
manufacturing operations under Box 9: A motor vehicle or equipment item
that requires further manufacturing operations to perform its intended
function, other than the addition of readily attachable components such
as mirrors or wipers, or minor finishing operations such as painting,
can be entered under Box 9 on the HS-7 Declaration form. Documents from
the manufacturer must be furnished for these entries. In 2005, 6,454
vehicles were imported under Box 9. In 2006, 7,697 vehicles were
imported under that box. Averaging those figures, the agency projects
that roughly 7,000 vehicles will be imported under Box 9 in each of the
next three years. Assuming that a separate HS-7 Declaration form is
filed for each of those vehicles, the agency projects that under 584
hours will be expended on an annual basis in completing the declaration
for vehicles imported under Box 9 (0.0833 hours per declaration x 7000
vehicles = 583.31).
k. Importation of vehicles for show or display under Box 10:
Vehicles that are deemed by NHTSA to have sufficient technological or
historical significance that they would be worthy of being exhibited in
car shows if they were brought to the United States are eligible for
importation for purposes of show or display under Box 10 on the HS-7
Declaration form. Written permission from NHTSA is also needed to
import a vehicle for that purpose. An application form that can be used
to request the agency to decide that a particular make, model, and
model year vehicle is eligible for importation for purposes of show or
display is posted to the agency's Web site at www.nhtsa.gov/cars/rules/import. In 2005, the agency received eleven applications to determine
vehicles eligible for importation for purposes of show or display. In
2006, the agency received eight such applications. Averaging these
figures, the agency projects that it will receive ten applications to
determine
[[Page 27359]]
vehicles eligible for importation for purposes of show or display in
each of the next three years. Assuming that it will take the typical
applicant up to ten hours to compile and assemble the materials needed
to support each application, the agency estimates that up to 100 hours
will be expended in this activity in each of those years.
Also on the agency's Web site is an application form that can be
used to request NHTSA to permit a particular vehicle to be imported for
purposes of show or display once the agency has decided that the
vehicle is of a make, model, and model year that is eligible for
importation for those purposes. Certain restrictions apply to vehicles
that are imported for purposes of show or display. Among those is a
requirement that the vehicle not be driven in excess of 2,500 miles per
year. The application specifies the terms of the importation and makes
provision for the applicant to agree to those terms. In 2005, the
agency received 22 applications to import specific vehicles for
purposes of show or display. In 2006, the agency received 30 such
applications. Averaging those figures, the agency estimates that it
will receive roughly 26 applications in each of the next three years.
Assuming that it will take the typical applicant up to one hour to
compile and assemble the materials needed to support each application,
the agency estimates that up to 26 hours will be expended in this
activity in each of those years.
l. Importation of equipment subject to the Theft Prevention
Standard under Box 11: Items of motor vehicle equipment that are marked
in accordance with the Theft Prevention Standard in 49 CFR part 541 are
entered under Box 11 on the HS-7 Declaration form. In 2005, there were
2,696 entries under Box 11. In 2006, there were 7,542 such entries.
Averaging these figures, the agency estimates that 5,000 entries will
be made under Box 11 in each of the next three years. Virtually all of
these entries are made electronically. This is evidenced by the fact
that the agency received only eleven HS-7 Declaration forms for Box 11
entries made in 2006. Assuming that it will take five minutes to
complete each of these entries, the agency projects that under 420
hours will be expended on an annual basis in making these entries for
vehicles imported under Box 11 (0.0833 hours per declaration x 5000
vehicles = 416.66 hours).
m. Temporary importation of nonconforming vehicles by foreign
military personnel under Box 12: A member of the armed forces of a
foreign country on assignment in the United States can temporarily
import a nonconforming vehicle for personal use during the member's
tour of duty under Box 12 on the HS-7 Declaration form. In 2005, a
total of 284 vehicles were imported under Box 12. In 2006, 130 such
vehicles were imported. Averaging these figures, the agency projects
that roughly 200 vehicles will be imported under Box 12 in each of the
next three years. Assuming that volume, the hour burden associated with
the completion of the HS-7 Declaration form for these vehicles will be
under 17 hours (0.08333 hours to complete each HS-7 x 200 vehicles =
16.666 hours).
n. Importation of vehicles to prepare import eligibility petitions
under Box 13: A nonconforming vehicle imported by an RI for the purpose
of preparing a petition for NHTSA to decide that a particular make,
model, and model year vehicle is eligible for importation is entered
under Box 13 on the HS-7 Declaration form. A letter from NHTSA granting
the importer permission to import the vehicle for that purpose must be
filed with the declaration. NHTSA has issued guidance to inform RIs
that it will permit no more than two vehicles to be imported for the
purpose of preparing an import eligibility petition. Box 13 was
incorporated into the HS-7 Declaration form when that form was last
revised in May, 2006. Since that time, the agency has received requests
to permit the importation of 17 vehicles under Box 13. As previously
noted, the agency projects that roughly 30 import eligibility petitions
will be submitted in each of the next three years. The agency permits
an RI to import up to two vehicles for the purpose of preparing an
import eligibility petition. Assuming that each petitioning RI imports
two vehicles, the agency estimates that it will receive up to 60
requests per year for letters permitting those vehicles to be imported
under Box 13. Estimating that it will take five minutes to complete
each of those requests, the hour burden associated with this activity
will be under 5 hours (0.08333 hours to complete each request x 60
vehicles = 4.99 hours).
2. Information collected from applicants for RI status and existing
RIs seeking to renew their registrations: Under 49 U.S.C. 30141, a
motor vehicle that was not originally manufactured to comply with all
applicable FMVSS cannot be lawfully imported into the United States on
a permanent basis unless (1) NHTSA decides it is eligible for
importation, based on its capability of being modified to conform to
all applicable FMVSS and (2) it is imported by an RI or by a person who
has a contract with an RI to modify the vehicle so that it complies
with all applicable FMVSS following importation. NHTSA is authorized by
49 U.S.C. 30141(c) to establish, by regulation, procedures for
registering RIs. Those regulations are found in 49 CFR part 592.
a. Information collected from applicants: Under the terms of the
regulations in part 592, an applicant for RI status must submit to the
agency information that identifies the applicant, specifies the manner
in which the applicant's business is organized (i.e., sole
proprietorship, partnership, or corporation), and, depending on the
form of organization, identifies the principals of the business. The
application must also state that the applicant has never had a
registration revoked and identify any principal previously affiliated
with another RI. The application must also provide the street address
and telephone number in the United States of each facility for the
conformance, storage, and repair of vehicles that the applicant will
use to fulfill its duties as an RI, including records maintenance, and
the street address in the United States that it designates as its
mailing address. The applicant must also furnish a business license or
other similar document issued by a State or local authority authorizing
it to do business as an importer, seller, or modifier of motor
vehicles, or a statement that it has made a bona fide inquiry and is
not required by any State or local authority to maintain such a
license. The application must also set forth sufficient information to
allow the Administrator to conclude that the applicant (1) is
technically able to modify nonconforming vehicles to conform to
applicable Federal motor vehicle safety and bumper standards, (2) owns
or leases one or more facilities sufficient in nature and size to
repair, conform, and store the vehicles for which it furnishes
statements of conformity to NHTSA, (3) is financially and technically
able to provide notification of and a remedy for a noncompliance with
an FMVSS or a defect related to motor vehicle safety determined to
exist in the vehicles it imports, and (4) is able to acquire and
maintain information on the vehicles that it imports and the owners of
those vehicles so that it can notify the owners if a safety-related
defect or noncompliance is determined to exist in such vehicles. The
application must also contain a statement that the applicant will abide
by the duties of an RI and attesting to the truthfulness and
correctness of the information provided in the application. A brochure
[[Page 27360]]
containing sample documents that an applicant may use in applying to
become an RI is posted to the agency's Web site at www.nhtsa.gov/cars/rules/import. In 2005, NHTSA received five applications for RI status.
In 2006, the agency received four applications of this kind. Based on
these figures, the agency anticipates that it will receive five
applications for RI status in each of the next three years. Assuming
that it will take up to ten hours to compile and assemble the material
needed to support a single application, the agency estimates that 50
hours will be expended in this activity for each of the next three
years (5 applications x 10 hours = 50 hours).
b. Information collected from existing RIs: To maintain its
registration, an RI must file an annual statement affirming that all
information it has on file with the agency remains correct and that it
continues to comply with the requirements for being an RI. Formats that
existing RIs may use to renew their registrations are included in a
newsletter sent electronically to each RI before the renewal is due and
posted to the agency's Web site at www.nhtsa.gov/cars/rules/import. The
number of RI renewals has been steadily declining in recent years on
account of the continual weakening of the U.S. dollar against the
Canadian dollar, and the concomitant reduction in the volume of
vehicles imported from Canada. In 2005, NHTSA received renewal packages
from 94 RIs. In 2006, the agency received only 69 renewal packages.
Based on these figures, the agency anticipates that it will receive an
average of 65 renewal packages in each of the next three years.
Assuming that it will take up to two hours to compile and assemble the
material needed to support a single application for renewal, the agency
estimates that 130 hours will be expended in this activity for each of
the next three years (65 renewal applications x 2 hours = 130 hours).
3. Information to be retained by RIs: The agency's regulations at
49 CFR 592.6(b) require an RI to maintain and retain certain specified
records for each motor vehicle for which it furnishes a certificate of
conformity to NHTSA, for a period of 10 years from the vehicle's date
of entry. As described in the regulations, those records must consist
of ``correspondence and other documents relating to the importation,
modification, and substantiation of certification of conformity to the
Administrator.'' The regulations further specify that the records to be
retained must include (1) a copy of the HS-7 Declaration Form furnished
for the vehicle at the time of importation, (2) all vehicle or
equipment purchase or sales orders or agreements, conformance
agreements with importers other than RIs, and correspondence between
the RI and the owner or purchaser of each vehicle for which the RI
furnishes a certificate of conformity to NHTSA, (3) the last known name
and address of the owner or purchaser of each vehicle for which the RI
furnishes a certificate of conformity, and the vehicle identification
number (VIN) of the vehicle, and (4) records, both photographic and
documentary, reflecting the modifications made by the RI, which were
submitted to NHTSA to obtain release of the conformance bond furnished
for the vehicle at the time of importation. See 49 CFR 592.6(b)(1)
through (b)(4).
The latter records are referred to as a ``conformity package.''
Most conformity packages submitted to the agency covering vehicles
imported from Canada are comprised of approximately six sheets of paper
(including a check-off sheet identifying the vehicle and the standards
that it was originally manufactured to conform to and those that it was
modified to conform to, a statement identifying the recall history of
the vehicle, a copy of the HS-474 conformance bond covering the
vehicle, and a copy of the mandatory service insurance policy obtained
by the RI to cover its recall obligations for the vehicle). In
addition, most conformity packages include photographs of the vehicle,
components that were modified or replaced to conform the vehicle to
applicable standards, and the certification labels affixed to the
vehicle.
Approximately 120 conformity packages can be stored in a cubic foot
of space. Based on projected imports of 10,000 nonconforming vehicles
per year, 83.3 cubic feet of space will be needed on an industry-wide
basis to store one year's worth of conformity packages. Assuming an
annual cost of $20 per cubic foot to store the information, NHTSA
estimates the aggregate cost to industry for storing a year's worth of
conformity packages to be $1,666.40 per year. Over a ten-year retention
period, a member of the industry would be required to retain 55 annual
units of records (assuming that one annual unit was stored in the first
year, two annual units in the second year, and so on). The aggregate
cost to industry of the ten-year record retention requirement will
therefore be $91.652 (55 x $1,666.40).
RIs are also required under 49 CFR 592.6(b) to retain a copy of the
HS-7 Declaration Form furnished to Customs at the time of entry for
each nonconforming vehicle for which they submit a conformity package
to NHTSA. Paper HS-7 Declaration Forms are only filed for a small
fraction of the nonconforming vehicles imported into the United States.
Customs brokers file entries for most nonconforming vehicles
electronically by using the Automated Broker Interface (ABI) system.
For example, in calendar year 2006, 10,953 ABI entries were made for
nonconforming vehicles imported into the United States under Box 3, and
only 440 paper HS-7 Declaration Forms (representing less than four
percent of the total) were filed for such vehicles. Because HS-7
Declaration Forms are filed for only a small fraction of the
nonconforming vehicles that are imported by RIs, the storage
requirement for those records can have no more than a negligible cost
impact on the industry. Because the remaining records that RIs are
required to retain under 49 CFR 592.6(b) may be stored electronically,
the costs incident to the storage of those records should also be
negligible.
RIs who conduct recall campaigns to remedy a safety-related defect
or a noncompliance with an FMVSS determined to exist in a vehicle they
import must report the progress of those campaigns to NHTSA. The agency
estimates that it should take each RI that is required to conduct a
safety recall campaign approximately one hour to compile information
for and prepare each of the two reports it would be required to submit
to the agency detailing the progress of the recall campaign. Since
vehicle manufacturers in most cases include vehicles imported by RIs in
their own recall campaigns, it is likely that very few of these reports
would have to be prepared or submitted by RIs.
Description of the Need for the Information and Proposed Use of the
Information: The information collection detailed above is necessary to
ensure that motor vehicles and items of motor vehicle equipment subject
to the Federal motor vehicle safety, bumper and theft prevention
standards are lawfully imported into the United States. To be lawfully
imported, the vehicle or equipment item must be covered by one of the
boxes on the HS-7 Declaration form and the importer must declare,
subject to penalty for making false statements, that the vehicle or
equipment item is entitled to entry under the conditions specified on
the form, including the provision of any supporting information or
materials that may be required.
NHTSA relies on the information provided by RIs and applicants for
RI
[[Page 27361]]
status to obtain and renew their registrations so that it can better
ensure that RIs are meeting their obligations under the statutes and
regulations governing the importation of nonconforming vehicles and can
make more informed decisions in conferring RI status on applicants and
in permitting RI status to be retained by those currently holding
registrations. In this manner, those lacking the capability to
responsibly provide RI services, or who have committed or are
associated with those who have committed past violations of the vehicle
importation laws, can be more readily denied registration as an RI, or
if they already hold such a registration, have that registration
suspended or revoked when circumstances warrant such action.
Description of the Likely Respondents (Including Estimated Number
and Proposed Frequency of Responses to the Collection of Information):
With regard to the HS-7 Declaration form, likely respondents include
any private individual or commercial entity importing into the United
States a vehicle or item of motor vehicle equipment subject to the
Federal motor vehicle safety standards. It is difficult to estimate,
with reliability, the absolute number of such respondents; however,
that number would include:
The 73 RIs who are currently registered with NHTSA and
import nonconforming vehicles under Boxes 3 and 13;
The roughly 2,000 individuals who import each year
Canadian-certified vehicles for personal use under Box 2B;
The several hundred original manufacturers who import
conforming motor vehicles and equipment items under Box 2A;
nonconforming vehicles or equipment intended for export under Box 4;
nonconforming vehicles and equipment on a temporary basis for purposes
of research, investigations, or other reasons specified under Box 7;
vehicles and equipment requiring further manufacturing operations under
Box 9; and equipment subject to the Theft Prevention Standard under Box
11.
The several hundred dealers, distributors, and individuals
who import off-road vehicles such as dirt bikes and all-terrain
vehicles or ATVs, as well as other vehicles that are not primarily
manufactured for on-road use under Box 8.
The several hundred nonresidents of the United States and
foreign diplomatic and military personnel who temporarily import
nonconforming vehicles for personal use under Boxes 5, 6, and 12.
Estimate of the Total Annual Reporting and Recordkeeping Burden of
the Collection of Information in the Amended Regulations: Adding
together the burden hours detailed above yields a total of 42,413 hours
expended on an annual basis for all paperwork associated with the
filing of the HS-7 Declaration form and other aspects of the vehicle
importation program.
Estimate of the Total Annual Costs of the Collection of
Information: Other than the cost of the burden hours, the only
additional costs associated with this information collection are those
incident to the storage, for a period of ten years, of records
pertaining to the nonconforming vehicles that each RI imports into the
United States.
Authority: 44 U.S.C. 3506(c); delegation of authority at 49 CFR
1.50 and 501.8(f).
Issued on: May 8, 2007.
Daniel Smith,
Associate Administrator for Enforcement.
[FR Doc. E7-9234 Filed 5-14-07; 8:45 am]
BILLING CODE 4910-59-P