115, VIN Identification 7-8-96

126, Truck-Camper Loading 9-1-97

211, Wheel Nuts, Wheel Discs, and Hub Caps

Enclosures

1. Canadian Vehicle List
2. Sample Renewal Letter
3. FMVSS Applicability Chart

REGISTERED IMPORTER NEWSLETTER No. 13

National Highway Traffic Safety Administration

Office of Vehicle Safety Compliance

May 1999

CANADIAN IMPORT PROCESS

Items 1-10 summarize your duties and responsibilities during the importation process. Items 11 and 12 identify your recall and reporting obligations after the importation process.

1. Theft prevention markings must be inscribed on the required parts prior to importation if the vehicle is subject to Part 541.
2. At time of entry a DOT bond must be posted by the RI or the person importing the vehicle under contract with an RI. If the RI is not the importer of record, then the Customs entry and the conformity package must contain a copy of the contract between the RI and the importer of record. (i.e., importer of a vehicle for personal use)
3. The vehicle must go directly to the RI's facility, which was approved by NHTSA.
4. Check and if necessary, perform work required by all outstanding recalls on the vehicle.
5. The RI performs all modifications required to bring the vehicle into conformity.
6. Upon completion of the modifications the RI permanently affixes its certification label to the vehicle at its facility.
7. Prepare the conformity package. The RI must sign the Statement of Conformity.
8. The RI maintains possession of the vehicle at its facility for 30 days after submission of the conformity package to NHTSA. Vehicles may be released in less than 30 days, if the RI receives a bond release letter from NHTSA .
9. Prior to releasing the vehicle, the RI places a copy of the bond release letter and the recall warranty policy in the glove box of the vehicle.
10. The vehicle may now be released and titled for highway use.

11. Notify and remedy vehicles conformed by the RI for 8 years after importation.
12. Submit quarterly recall status reports to NHTSA for 6 quarters or until all vehicles imported by the RI that are subject to the recall have been remedied.

CIVIL PENALTY, REVOCATION/SUSPENSION OF RI REGISTRATION, SEIZING OF VEHICLES

There are RIs who are not following all of the above requirements. Failure to adhere to the above requirements has and will be enforced. Enforcement actions will result in civil penalties, suspension or revocation of RI registration, and seizure of vehicles by Customs. A list of the enforcement actions taken will appear periodically in the Newsletter.

CONFORMITY PACKAGES

Too many conformity packages do not contain all of the required information. If you are not certain what belongs in the conformity package look at Newsletter 11. Many packages do not contain all of the required photos or the photos are out of focus and therefore are useless. In the past you have been reminded of shortcomings. This will no longer be the practice. After July 1, 1999, if a conformity package does not contain all of the required information it will returned. The submittal will not be counted as a bonafide submission of the conformity package since the conformity package was incomplete. Failure to submit an acceptable package within 120 days will result in forfeiture of the DOT bond.

COVER SHEET FOR CONFORMITY PACKAGES

When submitting groups of conformity packages please add a cover sheet to the package that identifies all vehicles in the group by year, make, model, and VIN. The cover sheet should also contain a statement to charge the fees to your credit card, or if paying by check, it should contain the check number and the amount.

MARKING ODOMETER KM

In the past we have accepted marking the odometer "KM" as meeting the requirements of FMVSS No. 101. Many have applied the marking on the clear plastic cover of the display. It appears that when the odometer is marked in this manner the "KM" is not permanent, since vehicles inspected at a later date no longer had the "KM". Effective July 1, 1999, the "KM" must be marked on the face of the display. Marking "KM" on the clear cover will not constitute the odometer being marked "KM". Photographs of the replaced speedometer/odometer or the odometer marked "KM" will be required in all conformity packages. Conformity packages that do not have a photograph with the odometer marked in this manner will be returned as an incomplete package.

MOTORCYCLE IMPORTATION

All motorcycles imported for resale from Canada must be imported by an RI. This includes all Harley Davidson motorcycles because the Canadian certification has been misinterpreted as a U.S. certification. The photo documentation required includes the following: speedometer compliance with FMVSS No 123, the Canadian maple leaf, the RI label prior to affixing, and the RI label permanently affixed to the vehicle.

CHANGE OF FACILITIES

If you want to change or add facilities i.e. modification facility, record storage location, or vehicle storage location you must submit a video and a copy of the lease or ownership documentation for the new facility to NHTSA and obtain approval before you may use the facility. The type of documentation required is the same as when you initially became an RI. Changes in mailing address, phone or fax numbers, and e-mail address must be submitted no later than 30 days after the change.

US PHONE AND FAX NUMBERS

An RI is a company located in the U.S. All phone and fax numbers for that company must therefore be U.S. numbers (cell phone numbers are not acceptable). If your phone or fax number on record with NHTSA is located outside of the U.S. or is a cell phone number, you have until July 1, 1999, to provide a new number. This newsletter is to be considered your notification on which you have 30 days to respond before action is taken. Failure to provide phone and fax numbers for your company will result in suspension of your registration for six months.

IMPORTATION FOR ANOTHER RI

An RI cannot import vehicles for another RI. This is considered contracting out the duties of an RI which is prohibited.

CERTIFICATION LABELS

RI certification labels must contain block lettering in accordance with Part 567. The information can not be hand written on the label. The information typed on the label must not smear when washed with soap and water and the label must be permanently affixed.

STATEMENT OF CONFORMITY

A new Statement of Conformity is attached. The new statement adds FMVSS No. 135, which applies to passenger cars manufactured on or after 9-1-00, MPVs, trucks and buses with a GVWR less than 3,500 kg manufactured on or after 9-1-02. Manufacturers, however, may now certify to the requirements of this standard instead of FMVSS No. 105. Currently the following vehicles are certified to FMVSS No. 135 not FMVSS No. 105: Acura, BMW 328i, Buick Regal, Ford Windstar, Ford Mustang, Ford Contour, Mercury Cougar, Oldsmobile Intrigue, Saab 9-5, and Toyota Solara.

ELECTRONIC ENTRY

Many electronic entries filed by brokers contain incorrect information. Ensure that you provide your broker with correct information for the year, make, model, VIN and eligibility number of the vehicle as well as the name of your surety company. You should also check with your broker periodically to ensure that Customs entries that identify you as the RI are for vehicles that you have imported.

REGISTERED IMPORTER NEWSLETTER No. 14

National Highway Traffic Safety Administration

Office of Vehicle Safety Compliance

September 1999

DAYTIME RUNNING LIGHTS (DRL)

Daytime running lights have been required on Canadian vehicles manufactured since December 1, 1989. As of February 10, 1993, FMVSS No. 108 allows DRLs that meet certain requirements as a manufacturer option. Many Canadian vehicles do not comply with FMVSS No. 108. RIs have stated that they are disconnecting the DRLs to achieve compliance with this standard however, they are failing to say so on their statements of conformity. When vehicle modification is required, the statement of conformity must reflect that the vehicle was modified to comply with FMVSS No. 108. We will begin monitoring statements of conformity submitted after October 1, 1999 to verify inclusion of modification to achieve conformity with FMVSS No. 108.

HIGH THEFT LIST FOR MY 2000

The final listing of model year 2000 high-theft vehicle lines was published in the Federal Register (64 FR 28110) on May 25, 1999. Vehicles on the high-theft list must have the required parts inscribed with the vehicle identification number prior to importation. A copy of the list is attached.

MAINTENANCE OF RI REGISTRATION

This will be your only reminder that it is time to submit the information required to renew your RI registration for FY 2000. The following information must be submitted for FY 2000 registration, which begins October 1, 1999, not later than October 31, 1999:

1. Check made payable to the Treasurer of the United States, or authorization to charge the $350 fee if we have approved you for credit card use,

2. Statement required by 49 CFR Part 592.5(e),

3. Warranty Insurance Policy for FY 2000 with notarized signatures,

4. Changes in any application information not previously reported.

Attachment 2 to Newsletter 12 is a sample of the required letter.

ODOMETER LABELS

When a vehicle is conformed to the requirements of FMVSS No. 101 by replacement of the odometer with a unit calibrated in miles, the odometer reading must be adjusted to reflect the reading on the unit being replaced, converted from kilometers to miles. This is done by multiplying the kilometer reading by .62. If the odometer reading cannot be reset to this figure, it must be adjusted to zero and a sticker must be applied to the left door frame specifying the mileage before replacement. For motorcycles, the sticker should be affixed to the headstock (area where the fork assembly attaches to the frame).

RECALL SEARCH

When using the Recall Database on the NHTSA web site to identify a recall, make sure the Make is entered properly. For example, if searching for a Ford Windstar, the make would be "Ford truck" not "Ford". If you only enter Ford the result will be incorrect. If you are not certain of the make use the pull-down menus.

RECALLS

Currently RIs are notified of vehicles which may be subject to recall on a quarterly basis by letter (hard copy). Some RIs have indicated that they would prefer to receive this information electronically to make the recall process easier. If you would prefer to receive this information electronically, in lieu of hard copy, please contact Ms. Rena Lee at 202-366-7982.

FEES

When paying by check, fees for processing conformity packages are due when the conformity package is submitted. Starting November 1, 1999, in an effort to reduce the number of checks you must write, we will begin billing on a monthly basis for the conformity packages received during the month. You will receive a monthly statement, due upon receipt, with the charges associated with each VIN. If payment is not received within 10 days, we will not process new conformity packages from you until payment is received. If you continue to fail to pay, action will be taken to suspend your registration.

MONTHLY FEE STATEMENTS

All conformity packages should identify whether payment will be by credit card or by monthly check. Effective November 1, 1999, all statements will be sent directly to the RI unless other arrangements are made and approved. Monthly statements for RI fees, whether you pay by credit card or by check, will be sent by e-mail if you have an e-mail address on file.

REGISTERED IMPORTER NEWSLETTER No. 15

National Highway Traffic Safety Administration

Office of Vehicle Safety Compliance

November 1999

STATEMENT OF CONFORMITY

All conformity packages submitted on or after December 1, 1999, must use the attached Statement of Conformity. The information on recalls has been revised on the Statement of Conformity. You must attach documentation (manufacturer recall printout, letter from the manufacturer, etc.) to the Conformity Statement that shows that there are no outstanding recalls on the vehicle. If the documentation shows that the vehicle was covered by a recall, you must identify the recall number on the Conformity Statement and submit proof that the vehicle was remedied.

The conformity statement has also been revised to reflect a new standard, FMVSS No. 225, Child Restraint Anchorage Systems, which applies to passenger cars, trucks and multipurpose passenger vehicles with a GVWR of 8,500 lb or less and buses including school buses with a GVWR of 10,000 lb or less. The notice implementing the standard was published on March 5, 1999 (64 FR 10823), and amended on August 31, 1999 (64 FR 47565).

CONFORMITY PACKAGES

We request that you submit certain information (RI number, VIN, vehicle type and date of manufacture) on a diskette as part of your conformity package. This will help speed up NHTSA turn around time. Submission is voluntary and will not affect the order in which conformity packages are reviewed. After January 1, 2000, priority will be given to conformity packages which include the above information on diskette. For more information contact Ms. Rena Lee at 202-366-7982.

CERTIFICATION LABELS

RI certification labels are not always permanently affixed to the vehicles as required 49 CFR Part 567.4. If the RI certification label falls off within 6 months of certification by the RI, the RI or one of his employees will be required to affix a replacement certification label. A duplicate of that label must be submitted to NHTSA. If an RI's certification label falls off more than 6 months after certification by the RI, it will be required to send out a new label to the current owner of a vehicle.

RI INFORMATION AT NHTSA WEB SITE

RI Newsletters will be moving to a new location on the NHTSA web site: www.nhtsa.dot.gov/cars/rules/maninfo/. Information for Registered Importers will be found under Information for New Manufacturers. This location will also contain information on how to become a Registered Importer and the package that is sent after a company becomes a Registered Importer.

ELECTRONIC SPEEDOMETER OR ODOMETER

Photographs to document replacement of a speedometer or odometer on a vehicle with an electronic display should be taken with the ignition on so that the display may be viewed.

MOTORCYCLE CONFORMITY PACKAGES

Photographs of the RI label or odometer label permanently affixed to the frame of a motorcycle are often difficult to read. Please submit a second photograph or a photocopy of the label in a flat position. Motorcycles are not subject to the Bumper Standard or the Theft Prevention Standard; therefore, the RI certification label should not refer to these standards. The conformity statement should address only the FMVSS that are applicable to motorcycles.

REGISTERED IMPORTER NEWSLETTER No. 16

National Highway Traffic Safety Administration

Office of Vehicle Safety Compliance

May 2000

SERVICE INSURANCE POLICIES

RIs are required to provide service insurance policies for each vehicle that they import or bring into compliance with the FMVSS to assure that recalls will be performed at no cost to owner of the vehicle. These policies should be placed in the glove box of every vehicle. If the vehicle does not have a glove box it should be given to the owner of the vehicle with other important vehicle documents. These policies must be written by an insurance company or by a company that is backed by an nsurance company. The insurance company must be registered with a state as authorized to issue insurance policies and be totally independent of any RI to which it is providing policies. You should check with your provider to assure that it meets these requirements.

VEHICLE TITLES

Letters to Auto Enterprises and Akin, Gump, Strauss, Haur & Feld, L.L.P. were recently written addressing the sale of vehicles and when titles may be obtained for imported vehicles. To fully understand your duties and responsibilities concerning these subjects read the attached letters.

RI INFORMATION AT NHTSA WEB SITE

In the last Newsletter we identified where RI information would be moving to on the NHTSA web site: www.nhtsa.dot.gov/cars/rules/maninfo/. The Registered Importer Information page contains the packages How to Become a Registered Importer and Registered Importer Procedures and Requirements, RI Newsletters, and a link for payment of RI fees by credit card.

RECALLS AT TIME OF IMPORTATION

Vehicles imported by an RI are deemed to have the same defect or noncompliance as the substantially similar U.S. certified vehicle unless the RI can demonstrate otherwise. In Newsletter 15 you were advised to attach documentation (manufacturer recall printout, letter from the manufacturer, etc.) to the Conformity Statement that shows that there are no outstanding recalls on the vehicle. If the documentation shows that the vehicle was covered by a recall, you must identify the recall number on the Conformity Statement and submit proof that the vehicle was remedied. On GM vehicles this check should be made in Canada since GM's U.S. database may not have record of this vehicle at this time. Hundreds of conformity packages have been returned to RIs for failure to meet this requirement.

RECALL NOTIFICATION

We have received numerous complaints of owners being notified by RIs that their vehicle is subject to a recall when, in fact, it is not subject to a recall. To assist RIs with their recall notification responsibility, NHTSA provides RIs with a list on a quarterly basis of vehicles which may be subject to recall. This list is based on the date the vehicle was manufactured. Since it is not based on the VIN, it is not conclusive. Before sending notification letters to vehicle owners the RI should check with the manufacturer to assure that the vehicle is subject to a recall.

PART 573 RECALL REPORTS

Currently RIs are required to submit quarterly hard copy Part 573 reports on vehicles that are subject to recall. Some RIs have indicated that they would prefer to submit this information electronically to make the reporting process easier. If you would prefer to submit this information electronically, in lieu of hard copy, please contact Ms. Rena Lee at 202-366-7982.

INCOMPLETE VEHICLES

A truck or tractor certified to the Canadian motor vehicle safety standards as an incomplete vehicle is not eligible for importation under VSA-82. If the vehicle has been completed but is not certified by the final stage manufacturer, the RI must submit a petition to establish that the vehicle is capable of being modified to comply with the FMVSS. The petition must present test data to support that the vehicle, as completed, complies with all applicable FMVSS.

SALVAGE VEHICLES

Vehicles that are salvage or repaired using another vehicle can no longer be considered as being certified by the original manufacturer. In these cases the vehicles have undergone such extensive reconstruction that the structural integrity on which the original vehicle was certified may no longer exist. Such vehicles imported from Canada, are not eligible under the Canadian VSA eligibility numbers. This type of vehicle would have to be petitioned to establish that the vehicle is capable of being modified to comply with the FMVSS. If approved, any subsequent conformity packages submitted to NHTSA must present test data to support that the vehicle, as reconstructed, complies with all applicable FMVSS.

RECORD RETENTION

Records must be maintained in the United States, at your facility, for a period of 8 years from the date of entry for any vehicle for which you submit a certificate of conformity. The RI must retain correspondence and other documents relating to the importation, modification, and substantiation of certification (including documentation that there are no outstanding recalls). A more detailed listing of the information you must retain is found in 49 CFR 592.6(b). We will be making audits to determine if RIs are retaining the required information. If an RI does not have the necessary information, it may be subject to appropriate disciplinary action by NHTSA.

PAYMENT OF FEES BY CREDIT CARD

We are introducing payment of RI fees on the internet. This will give you greater control over how your fees are paid and will allow you to pay using Visa, MasterCard, Discover or American Express. To use the system your browser will have to support 128-bit encryption and you will need the invoice number from your monthly statement. If you are interested in making your credit card payment on the web contact Ms. Rena Lee at 202-366-7982. In the coming months this may become the only method to pay by credit card.

NO CONTRACTING OUT

An RI cannot contract out any of the modification work that brings the vehicle into conformity. If an RI signs a contract with a prospective importer and later determines that it does not have the expertise to modify the vehicle, the RI must export the vehicle. After the vehicle has been exported, another RI with the expertise may import the vehicle. The vehicle may not be directly transferred to another RI which has the expertise to modify the vehicle.

EPA CERTIFICATION

RIs are eligible to modify vehicles certified to the safety standards of a country other than Canada. In most cases these vehicles do not meet EPA requirements. If a vehicle does not meet EPA requirements, the vehicle must also go to an Independent Commercial Importer (ICI) in addition to the RI. If you are not an ICI, you should become associated with one to coordinate the modification of the vehicle to the requirements of both agencies. If you are not an ICI and plan to modify vehicles certified to a country other than Canada, please contact Ms. Kathy Rice at (202) 366-5291 before June 15 with the name of the ICI that you are associated.

FMVSS NO. 201 UPPER, Occupant protection in interior impact

In 1995 FMVSS No. 201 was amended requiring vehicles to provide protection when an occupant's head strikes upper interior components. Manufacturers have been meeting this phased-in requirement by introducing certain models that meet this requirement. If the substantially similar US vehicle is certified as meeting this requirement then the imported vehicle must also meet this requirement. A listing of the vehicles that are certified to FMVSS No. 201U may be found in the NHTSA brochure BUYING A SAFER CAR 2000 (HS 808988). This brochure may be ordered by selecting information on Vehicle Safety from the following NHTSA web page.

Attachments, NHTSA letters to

1. Auto Enterprises dated April 17, 2000


2. Akin, Gump, Strauss, Haur & Feld, L.L.P. dated April 19, 2000

Attachment 1

April 17, 2000

Mr. Philip Trupiano
President
Auto Enterprises
28801 Universal Drive
Warren, MI 48092

Dear Mr. Trupiano:

This is in reply to your letter of November 11, 1999, to Taylor Vinson of this Office asking for an interpretation of 49 U.S.C. 30146 as implemented by 49 CFR 592.8.

You have informed us that "Auto Enterprises, Inc., and some of the customers on behalf of whom Auto Enterprises is performing importing services, wish to obtain United States titles for re-sale purposes only for vehicles imported into the United States during the period that the vehicles are still within the custody and control of Auto Enterprises." Specifically, you want "to obtain such titles for re-sale purposes prior to the time that the performance bond . . . is released." You asked:

May a Registered Importer, or the customer on whose behalf the vehicle is imported, obtain a title for re-sale purposes for a vehicle which it has imported, prior to the time that the applicable performance bond has been released by the Administrator?

As you know, pursuant to 49 U.S.C. 30146(a)(1), a Registered Importer (RI) "may license or register an imported motor vehicle for use on the public streets, roads, or highways, or release custody of a motor vehicle . . . to a person for license or registration for use on the public streets, roads, or highways, only after 30 days after" the RI has certified to NHTSA that the vehicle complies with all applicable Federal motor vehicle safety standards. We are unsure of precisely what you are referring to by "a title for re-sale purposes." However, we do not construe the statutory provisions as prohibiting a RI from obtaining a title in its own name to a vehicle it has imported for resale, while the vehicle is still bound by its performance bond, in order to expedite the subsequent licensing or registration of that vehicle for on-road use after the bond has been released.

You have also asked if "the customer on whose behalf the vehicle is imported" may obtain a title for re-sale purposes before the bond is released. The answer is no; the title may not be in the name of the customer. One of the conditions of the bond is that the vehicle it covers be exported or abandoned to the United States in the event that an insufficient showing of conformity is made and the bond and the vehicle are not released (49 U.S.C. 30141(d)(1), as implemented by 49 CFR 591.8(e), and Appendices A and B, and 49 CFR 592,6(a)). If the RI has transferred or reassigned title to the vehicle to "the customer on whose behalf the vehicle is imported" before the bond has been released, the RI could not fulfill its duty to export or abandon the nonconforming vehicle because it would no longer own the vehicle. In that instance, NHTSA's sole remedy would be to foreclose on the bond. This is insufficient to fulfill the safety purpose of the statute and the bond which is to ensure that imported noncomplying vehicles be brought into compliance before being licensed for use, and used, on the public roads.

I hope that this answers your question.

Sincerely,
Frank Seales, Jr.
Chief Counsel

Attachment 2

April 19, 2000

Mr. John M. Dowd
Mr. James C. Osborne, Jr.
Ms. Elizabeth C. Peterson
Akin, Gump, Strauss, Hauer & Feld, L.L.P.
1333 New Hampshire Avenue, N.W.
Suite 400
Washington, DC 20036
Re: American Vehicle Importers, Inc.

Dear Messrs. Dowd and Osborne, and Ms. Peterson:

We are replying to your letter of December 23, 1999, addressed to myself, and to Messrs. Guerci, Vinson, and Entwistle of this agency submitting a proposal to resolve the matters discussed at your meeting with us on December 21. This meeting concerned the practices of your client, American Vehicle Importers, Inc. ("AVI") with respect to statutes and regulations enforced by the Office of Vehicle Safety Compliance ("OVSC").

I will address the items in your letter in the order you have raised them. Your initial remark ascribes to us the acknowledgment that "the current regulations do not prohibit a Registered Importer ('RI') from moving an imported vehicle to an auction lot prior to receipt of a Bond Release for a vehicle." This is coupled with your realization that we may need to know the location of the vehicle during the period before the bond is released in order to be able to inspect it for conformance, and you state that AVI will inform OVSC of the location where the vehicles may be inspected. We agree that the current regulations do not specifically prohibit a RI from placing bonded vehicles on an auction lot, and that AVI's informing us of the location of bonded vehicles should facilitate our ability to inspect them. However, AVI must also ensure that we have unfettered access to these vehicles on an auction lot in the same manner as we would were they retained on AVI's property, at all times until receipt of the bond release. That is to say, we must be admitted to inspect bonded vehicles stored on an auction lot during all business hours. We will require the same information location from all RIs that do not store bonded vehicles on the lots identified in their registration application.

You contend "that the regulation, which prohibits an RI from licensing or registering the vehicle or 'releas[ing] custody of the vehicle to any person for license or registration for use on public streets . . .' prior to receipt of a Bond Release, do not preclude the vehicle's sale at a wholesale auction prior to receipt of the Bond Release." We disagree with you on this point. One of the conditions of the bond is that the vehicle it covers be exported or abandoned to the United States in the event that an insufficient showing of conformity is made and the bond and the vehicle are not released (49 U.S.C. 30141(d)(1) as implemented by 49 CFR 591.8(e) and Appendices A and B, and 49 CFR 592.6(a)). If a bonded vehicle has been sold at auction, wholesale or otherwise, before the bond has been released, we could not be certain that the RI could fulfill its duty to export or abandon the nonconforming vehicle because it would no longer own the vehicle. In that instance, NHTSA's sole remedy would be to foreclose on the bond. This is insufficient to fulfill the safety purpose of the statute and the bond, which is to ensure that imported noncomplying vehicles be brought into compliance before being licensed for use, and used, on the public roads. We note, however, your statement that "AVI will agree to await receipt of a Bond Release before selling its imported vehicles at a wholesale auction," and your opinion that all RI s should be preluded from selling their vehicles before receiving a bond release. To address your concern, we do intend to enforce the law equally, and we have informed RIs that they must not sell bonded vehicles while the bond is in effect, whether at auctions, to dealers, or to individuals.

Your final concern regards titling of bonded vehicles. You assert that we acknowledged that "the current regulations do not prohibit the titling of an imported vehicle prior to release of the bond on the vehicle." You refer to the letter of November 11, 1999, by Philip Trupiano, the president of Auto Enterprises, Inc. (and a principal of AVI), requesting an interpretation whether a RI may obtain a title for re-sale purposes before this agency has released the applicable performance bond. I enclose a copy of the Chief Counsel's recent response to Mr. Trupiano. As he advised Mr. Trupiano, we do not interpret 49 U.S.C. 30146(a)(1) as precluding a RI from obtaining a title to a bonded vehicle in its own name before the bond is released. However, for the reasons explained in that letter, we have concluded that a RI may not have a vehicle retitled to another entity pending bond release.

With respect to other issues, you ask that OVSC commit to release the bond on a vehicle no more than seven days after receipt of conformance certification. While OVSC will not make such a "commitment," which, in any event, would not be enforceable, our policy has been, and will be, to process conformance certification packages expeditiously and in the order in which they are received. During the past three months, the average period between receipt of a RI's conformance package and bond release has been reduced to five days.

You also ask that OVSC engage in further discussions regarding implementation of a software program presented to OVSC by AVI and Avalon Risk Management. OVSC is willing to consider any software program, provided that the developer of the program agrees to waive all proprietary rights if the program is implemented. With regard to AVI's proposal to work with OVSC "to develop a procedure by which Vehicle Identification Numbers are inspected and verified prior to entry into the U.S," we believe that the U.S. Customs Service would be a more appropriate Federal agency to work with, particularly regarding procedures intended to identify stolen vehicles before their entry into the U.S.

Finally, we agree with you that fundamental fairness requires us to interpret and enforce the law equally against all RIs. To assure that RIs understand their duties and responsibilities, we will discuss these matters in Newsletter No. 16, currently being prepared to be sent to the RI community.

Sincerely,
Kenneth N. Weinstein
Associate Administrator
for Safety Assurance