Gray Market Vehicle Program: Extension Warranted, but Improvements in
Vehicle Identification Are Needed (Letter Report, 01/03/94,
GAO/RCED-94-22).

"Gray market" vehicles are cars and trucks imported into the United
States, either permanently or temporarily, by persons other than the
original manufacturer; permanent imports must be converted to meet U.S.
safety standards.  The National Highway Traffic Safety Administration
(NHTSA), which runs the gray market program, has yet to set user fees to
cover program costs, and registered importers have not recalled gray
market vehicles when manufacturers have recalled similar vehicles.  More
significantly, NHTSA still has few assurances that gray market vehicles
that the Customs Department has identified as temporary imports
ultimately either leave the United States or are converted to meet U.S.
standards.  Despite these limitations, safety considerations warrant
extending and strengthening the gray market program.  Although
relatively few gray market vehicles are now being imported--fewer than
300 in 1992--this figure probably understates the actual number of such
imports. Further, future changes in the exchange rates and other
financial incentives could make importing gray market vehicles more
attractive.  GAO recommends that the Transportation Department (1)
evaluate the merits of a uniform vehicle identification number code to
indicate whether vehicles were originally built to conform to U.S.
safety standards and (2) improve cooperation among state and federal
agencies to better identify and control gray market vehicles.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-94-22
     TITLE:  Gray Market Vehicle Program: Extension Warranted, but 
             Improvements in Vehicle Identification Are Needed
      DATE:  01/03/94
   SUBJECT:  Motor vehicle safety
             Motor vehicle pollution
             Motor vehicle standards
             Automobile industry
             Internal controls
             Inspection
             Safety standards
             Pollution control
             Import regulation
             Safety regulation
IDENTIFIER:  Customs Service Gray Market Vehicle Enforcement Program
             
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