Importations of Certain Vehicles and Engines Subject to Federal Antipollution Emission Standards |
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Timothy E. Skud
Department of the Treasury
27 December 2016
[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Rules and Regulations]
[Pages 94974-94979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31050]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Part 12
[USCBP-2016-0011; CBP Dec. 16-29]
RIN 1515-AE11
Importations of Certain Vehicles and Engines Subject to Federal
Antipollution Emission Standards
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Final rule.
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SUMMARY: This document amends the U.S. Customs and Border Protection
(CBP) regulations relating to the importation into the United States of
certain vehicles and engines under the Clean Air Act (CAA) in order to
harmonize the documentation requirements applicable to different
classes of vehicles and engines that are subject to the CAA's emission
standards. This document further amends the regulations to permit
importers to file the required U.S. Environmental Protection Agency
(EPA) Declaration Forms with CBP electronically, and amends non-
substantive provisions to update regulatory citations and delete
obsolete provisions.
DATES: Effective January 26, 2017.
FOR FURTHER INFORMATION CONTACT: For questions related to the filing of
EPA forms with CBP, please contact William Scopa, Partner Government
Agencies Interagency Collaboration Division, Office of Trade, Customs
and Border Protection, at William.R.Scopa@cbp.dhs.gov. For questions
related to EPA's vehicle and engine imports program, please contact
Holly Pugliese at pugliese.holly@epa.gov.
SUPPLEMENTARY INFORMATION:
Background
On August 17, 2016, U.S. Customs and Border Protection (CBP)
published a Notice of Proposed Rulemaking (NPRM) in the Federal
Register (81 FR 54763) proposing to amend title 19 of the Code of
Federal Regulations (19 CFR) in order to harmonize the documentation
requirements applicable to different classes of vehicles and engines
that are subject to the Clean Air Act's (CAA's) emission standards.
Sections 203(a) and (b)(2) of the CAA, 42 U.S.C 7522, deal with the
importation of new motor vehicles and new motor engines and the
requirement of a Certificate of Conformity (COC) as prescribed by
regulation authorized by the CAA. Without a valid COC, the admission of
new motor vehicles and new motor engines into the United States will be
denied. Section 208 of the CAA, 42 U.S.C. 7542, provides that the
Administrator of the U.S. Environmental Protection Agency (EPA) may
require a manufacturer to produce, among other items, all records,
files, and papers necessary to demonstrate compliance with applicable
CAA provisions. Section 213(d) of the CAA, 42 U.S.C. 7547, requires
that nonroad vehicles and engine standards be enforced in the same
manner as those applicable to onroad vehicles and engines.
These statutory provisions are implemented in the CBP regulations
at Sec. Sec. 12.73 and 12.74 of title 19 of the Code of Federal
Regulations (19 CFR 12.73 and 12.74). Section 12.73 provides for
``Motor vehicle and engine compliance with Federal antipollution
emission requirements,'' and section 12.74 provides for ``Nonroad and
stationary engine compliance with Federal antipollution emission
requirements.'' EPA makes available Declaration Forms 3520-1 (for the
importation of passenger vehicles, highway motorcycles and their
corresponding engines) and 3520-21 (for the importation of heavy-duty
engines and nonroad engines, including engines already installed in
vehicles or equipment) for purposes of compliance with the CAA.
The final rule conforms the entry filing requirements applicable to
EPA Declaration Form 3520-21 to those that are currently applicable to
EPA Declaration Form 3520-1. Sections 12.73(i) and 12.74(b) and (d) are
[[Page 94975]]
amended to require importers of stationary, nonroad or heavy-duty
highway engines (including engines incorporated into vehicles or
equipment) to file EPA Declaration Form 3520-21 at the time of entry,
except when filing a weekly entry from a foreign trade zone (FTZ) in
accordance with 19 CFR 146.63(c)(1). An importer of engines is exempt
from the requirement to file an EPA Declaration Form 3520-21 if the
importer holds a valid EPA COC and the engines are labeled to show
compliance with applicable emission requirements.
Further, the final rule permits importers to file the required EPA
Declaration Forms with CBP electronically. The electronic transmission
of EPA Declaration Forms 3520-1 and 3520-21 to CBP will automate and
enhance the interaction between the EPA and CBP by facilitating
electronic collection, processing, sharing, and review of requisite
trade data and documents during the cargo import and export process.
Lastly, this rule updates regulatory citations and deletes obsolete
provisions.
The NPRM solicited for public comments on the proposed rulemaking.
The public comment period closed on September 16, 2016.
Discussion of Comments
Four commenters responded to the solicitation of comments to the
proposed rule. A description of the comments received, together with
CBP's analysis, is set forth below.
Comment: Two commenters expressed a concern with regard to EPA's
handling of Type 06 (FTZ) ``weekly estimate'' entry filings. According
to the proposed rule, EPA is requiring all filers to demonstrate
compliance with all applicable laws and regulations at the time of
cargo release, in particular the filing of EPA Declaration Forms 3520-1
and 3520-21. (19 CFR 12.73(i)(2)). The commenters stated that many
vehicle and engine importers would not be able to provide accurate
information, such as VIN or engine serial numbers, at the time of
entry. When the weekly estimated entry is prepared and filed, the
identity of the vehicles and/or engines is many times unknown since the
vehicle/engine has not gone into production or has not been ordered for
distribution. Both commenters propose to implement the ``dual option''
system that is being used by other Partner Government Agencies (PGAs),
separating the ``regular'' Type 06 entry filers, which are required to
present PGA data at time of entry/cargo release, from the ``weekly''
Type 06 entry filers, which are required to present PGA data at the
time of entry summary.
CBP Response: CBP reviewed the concerns raised by the commenters
and is in agreement with the commenters' proposal. When a Type 06 (FTZ)
entry is filed, the vehicle and engine data used by EPA is required at
time of entry/ACE cargo release. When a ``weekly estimate'' Type 06
entry is filed, the vehicle and engine data used by EPA is required at
time of entry summary.
Comment: One of the commenters asked CBP to extend the exemption
from filing EPA Declaration Form 3520-21 to any engines and equipment
that are exempt from filing that form under the provisions of 40 CFR
1068.201 (test engines and equipment) and 40 CFR 1068.230 (engines and
equipment for export). The commenter stated that 40 CFR part 1068,
subpart C, provides for the exemption of certain engines and equipment
from ``some or all of the prohibited acts'' of 40 CFR 1068.101(a)(1).
The commenter further stated that EPA has deemed such engines and
equipment as appropriate for entry into the U.S. commerce and as such
are substantively no different from engines and equipment that are
covered by a valid COC that is issued under the standard-setting part
(e.g. 40 CFR part 1033).
CBP Response: CBP does not agree that the exemption for filing EPA
Declaration Form 3520-21 should be extended to engines and equipment
for testing and export covered by 40 CFR 1068, subpart C. CBP also does
not agree that such engines and equipment are ``substantively no
different'' from engines produced under a valid COC. If engines and
equipment are produced under an exemption for testing or export, the
exemption is needed because these engines and equipment are different
than the certified engines and equipment. It is therefore not correct
to consider any exemption under Part 1068 as a basis for determining
engines and equipment to be ``appropriate for entry into the U.S.
commerce.'' Exempted engines and equipment are permitted to enter the
U.S. commerce subject to certain terms and conditions to ensure
compliance with the regulations. Filing import information such as that
prescribed by EPA Declaration Form 3520-21 assists with compliance
oversight.
Comment: Another commenter expressed a concern with the proposed
regulatory language at 19 CFR 12.74(c)(3) which references temporary
exemptions, including the partially complete engine exemption under 40
CFR 1068.325(g). The commenter stated that the proposed language
requires a CBP bond, whereas the underlying EPA regulation at 40 CFR
1068.325 states that EPA ``may ask'' CBP to require a specific bond
amount. It is the opinion of the commenter that the proposed language
in 19 CFR 12.74(c)(3) would go beyond the EPA requirements and increase
the burden on users of the partially complete engine exemption by
making the bond and associated administrative process an absolute
requirement. The commenter suggested to use ``may be required'' instead
of the proposed ``is required'' language. The commenter further noted
that a similar change would be needed at the beginning of 12.74(c) to
harmonize the proposed language in the NPRM with the conditional
language in 40 CFR 1068.325.
CBP Response: CBP believes that there is a no conflict between the
EPA regulation and the proposed rule regarding the bond requirements
and that the proposed rule does not need to be harmonized with the EPA
regulation. The proposed rule does not change the substantive bond
requirement for conditional entry for nonconforming nonroad engines
claiming exemption under the EPA regulations, it only allows for
conditional release in conjunction with a bond filed in the Automated
Commercial Environment (ACE).
The commenter potentially confuses the different contexts of import
bond requirements. The confusion stems from the use of the term
``bond'' in EPA regulations and CBP regulations. Under 19 CFR
127.74(c)(3) and 19 CFR 113.62, CBP requires a single entry or a
continuous bond, to be applied for the conditional release of imported
engines as required in all cases (``Basic Import Entry'' bond). In
contrast, the ``bond'' referenced in 40 CFR 1068.325, which ``may be
required,'' is addressing situations where EPA ``may'' want to secure
compliance with relevant EPA regulations and have CBP require
additional bonding.
Lastly, the substance of 19 CFR 12.74(c) is unchanged by the
proposed rule, and has been in place since published in 1998. The only
change is to provide for the use of Basic Import Entry bonds submitted
through ACE.
Comment: The same commenter requested that the proposed language in
19 CFR 12.74 include permanent exemptions listed in 40 CFR 1068.315(a)-
(h), including the manufacturer-owned exemption in 40 CFR 1068.315(b),
to make it clear that permanent exemptions also present a valid basis
for admission. According to the commenter, CBP and EPA
[[Page 94976]]
regulations will have apparent inconsistences and it will be easy for
users of those regulations to be confused if no clarifying section is
added.
CBP Response: CBP agrees with the inclusion of the permanent
exemptions listed in 40 CFR 1068.315 with the exemptions listed in 19
CFR 12.74(c)(3). As such, the regulatory language for 19 CFR
12.74(c)(3) will be amended accordingly below. In addition, the
introductory text in section 19 CFR 12.73(h) will be amended by adding
reference to 40 CFR parts 85, 86 and 1068 to fully cover the current
list of both permanent and temporary exemptions and exclusions found in
all applicable EPA regulatory parts.
Comment: The commenter also requested clarification as to whether
an imported on-highway motorcycle engine that is separate from, and not
installed in, an on-highway motorcycle is subject to 19 CFR 12.73. The
commenter pointed out that the EPA Declaration Form 3520-1, recognized
by CBP, includes a Code W = ``Non-chassis mounted engine to be used in
. . . a motorcycle . . . which will be covered by an EPA COC prior to
the introduction into commerce.'' Unlike other codes on the form, there
is no listed underlying regulation associated with the use of Code W.
CBP Response: CBP agrees that a clarification is appropriate as
suggested by the commenter. The regulatory text in 19 CFR 12.73(a) will
be amended to include separately-imported on-highway motorcycle
engines.
Comment: The same commenter requested clarification of a passage in
the Preamble in the NPRM which says ``although existing 19 CFR 12.73
does not expressly require the submission of the EPA Declaration Form
3520-1, it does require that the same information captured by that form
be submitted to CBP.'' Specifically, the commenter asked whether the
EPA exemption policy for certificate-holding manufacturers (OEMs) to
import new motor vehicles and engines without filing Declaration Forms
3520-1 or 3520-21 still applied under 19 CFR 12.73. The commenter
expressed concern that if this exemption did no longer apply, it would
be inconsistent with both current EPA and CBP requirements, as well as
guidance issued by EPA that summarizes the filing exemptions for OEMs.
CBP Response: The statement in the NPRM simply pointed out that the
current regulations at 19 CFR 12.73 do not specifically refer to EPA
Declaration Form 3520-1, but require all the data elements listed in
that form. 19 CFR 12.73(i)(3) (A)-(K) currently provides a list of the
information that must be included in an importer's declaration. This
information mirrors the information that is required to be filled in
the EPA Declaration Form 3520-1 itself. CBP is only updating the
regulations to specifically reference EPA Declaration Form 3520-1 and
is not changing the provision that exempts OEMs who import products for
which they hold a valid EPA COC from filing the form.
Comment: A commenter stated that it supported CBP's plan to
harmonize the filing requirements. However, it pointed out that EPA
must update the existing EPA guidance document titled ``Procedures for
Importing Vehicles and Engines into the U.S.'' which states the
following on Page 3, related to importers currently subject to the
requirements of EPA Declaration Form 3520-21: ``As with vehicles, OEMs
importing new certified engines do not need to submit EPA Declaration
Form 3520-21 to U.S. Customs.'' The commenter further noted that EPA
must also update Declaration Form 3520-21 to reflect the change of the
filing requirements.
CBP Response: CBP agrees that certain statements in certain EPA
guidance documents contradict each other regarding when OEMs currently
need to file EPA Declaration Form 3520-21. In consultation with CBP,
EPA will ensure that all of EPA's documentation regarding the amended
regulations accurately reflects that OEMs importing their own certified
engines do not need to file EPA Declaration Form 3520-21.
Comment: The fourth commenter wrote that she had no objection to
the proposed changes as long as the compliance with anti-pollution
emission standards was not compromised for the sake of efficiency. The
commenter further stated that accurate records for vehicle and engine
imports must be maintained in order to ensure compliance with the CAA.
CBP Response: CBP believes that electronic filing of EPA
Declaration Forms will support key modernization initiatives, expedite
the entry and clearance process, enhance targeting and enforcement
objectives, and connect CBP with PGAs and the trade community through a
single-window access point.
Conclusion
After review of the comments, CBP has decided to adopt as final the
proposed rule published in the Federal Register on August 17, 2016 with
the changes described above.
Executive Orders 12866 and 13563
Executive Orders 13563 and 12866 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if a
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule is not a ``significant regulatory action,''
under section 3(f) of Executive Order 12866. Accordingly, the Office of
Management and Budget has not reviewed this regulation.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et. seq.), as amended
by the Small Business Regulatory Enforcement and Fairness Act of 1996,
requires agencies to assess the impact of regulations on small
entities. A small entity may be a small business (defined as any
independently owned and operated business not dominant in its field
that qualifies as a small business per the Small Business Act); a small
not-for-profit organization; or a small governmental jurisdiction
(locality with fewer than 50,000 people). This final rule would modify
the requirements for the submission of EPA Declaration Form 3520-21.
Currently, importers are required to fill out the form, but are only
required to submit it to CBP upon request. This final rule would
require importers to file EPA Declaration Form 3520-21 with CBP with
the filing of entry information, and no later than the filing of entry
summary, unless the importer is a manufacturer of nonroad or stationary
engines, including engines incorporated into vehicles and equipment,
and holds a valid EPA certificate of conformity for those engines and
the engines are labeled to show compliance with applicable emission
requirements. As this form has already been completed by the filer by
the time the filing is required under this rule, the cost of actually
submitting it to CBP is negligible. This rule would also explicitly add
electronic filing as an accepted method of form submission. Importers
will still be able to file the form by paper if they so choose. This
change will affect all importers who are covered by EPA Declaration
Form 3520-21, including small importers. Therefore, it is likely to
have an impact on a substantial number of small entities. However, the
only costs
[[Page 94977]]
incurred are the negligible costs of submitting the already completed
form to CBP along with other required entry documents. These costs do
not rise to the level of significance. Therefore, CBP certifies that
this final rule will not have a significant economic impact on a
substantial number of small entities.
Paperwork Reduction Act
The collection of information contained in this final rule was
previously reviewed and approved by OMB in accordance with the
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3507)
under control numbers OMB 2060-0104 (EPA Declaration Form 3520-1,
``Importation of Motor Vehicles and Motor Vehicle Engines Subject to
Federal Air Pollution Standards''), OMB 2060-0320 (EPA Declaration Form
3520-21, ``Importation of Engines, Vehicles and Equipment Subject to
Federal Air Pollution Standards''), and OMB 1405-0105 (Department of
State form DS-11504, ``Request for Customs Clearance of Merchandise'').
As importers are already required under existing regulations to
complete the EPA Declaration Forms and either submit them to CBP or
retain them in their records, and the burden estimates in the above-
identified OMB approved information collection requests presume the
forms are submitted to CBP, there are no new collections of information
stated in this document. In this regard, it is noted that although
existing 19 CFR 12.73 does not expressly require the submission of EPA
Declaration Form 3520-1 by name, it does require that the same
information captured by that form be submitted to CBP. Similarly,
shipments sent from abroad to foreign diplomatic or consular missions
in the U.S., or their personnel, currently must be cleared by
respondents submitting to CBP a Department of State-approved form DS-
1504; therefore, this document does not impose any new collections of
information by requiring the DS-1504 to be presented to CBP for
purposes of claiming an exemption from emission documentation
requirements.
Signing Authority
This document is being issued in accordance with 19 CFR 0.1(a)(1)
pertaining to the Secretary of the Treasury's authority (or that of his
delegate) to approve regulations related to certain customs revenue
functions.
List of Subjects in 19 CFR Part 12
Customs duties and inspection, Reporting and recordkeeping
requirements.
Amendments to the CBP Regulations
For the reasons set forth above, part 12 of title 19 of the Code of
Federal Regulations (19 CFR part 12) is amended as set forth below.
PART 12--SPECIAL CLASSES OF MERCHANDISE
0
1. The general authority citation for part 12, and the specific
authority citation for sections 12.73 and 12.74, continue to read as
follows:
Authority: 5 U.S.C. 301, 19 U.S.C. 66, 1202 (General Note 3(i),
Harmonized Tariff Schedule of the United States), 1624.
* * * * *
Sections 12.73 and 12.74 also issued under 19 U.S.C. 1484, 42
U.S.C. 7522, 7601;
* * * * *
0
2. The undesignated center heading preceding Sec. 12.73 is revised to
read as follows:
Entry of Motor Vehicles, Engines, and Equipment Containing Engines
Under the Clean Air Act, as Amended
0
3. In Sec. 12.73:
0
a. The section heading is revised;
0
b. Paragraph (a) is revised;
0
c. Paragraph (b)(1) is amended by removing the word ``shall'' and
adding in its place the word ``will''; removing the word ``Customs''
and adding in its place the term ``CBP'', and; removing the term
``ICI's'' and adding in its place the language, ``Independent
Commercial Importers'';
0
d. Paragraph (b)(2) is amended by removing the word ``Customs'' and
adding in its place the term ``CBP'';
0
e. Paragraphs (c)(3) and (4) are removed;
0
f. Paragraphs (d), (e) introductory text, (e)(4), and (f) are revised;
0
g. Paragraph (g)(2) is amended by removing the reference to ``(i)(4)''
and adding in its place a reference to ``(i)(6)'';
0
h. Paragraph (h) introductory text is revised;
0
i. Paragraph (h)(1) is amended, in the first sentence, by removing the
word ``Any'' and adding in its place the following language, ``A motor
vehicle imported for repairs is any'';
0
j. Paragraph (h)(2) is amended, in the first sentence, by removing the
word ``Any'' and adding in its place the following language, ``A test
vehicle is any'';
0
k. Paragraph (h)(3) is amended, in the first sentence, by removing the
word ``Any'' and adding in its place the following language, ``A
prototype vehicle is any'', and in the second sentence, by removing the
word ``shall'' and adding in its place the word ``will'', and by
removing the parenthetical reference ``(1)'' and adding in its place
the parenthetical reference ``(l)'';
0
l. Paragraph (h)(4) is amended, in the first sentence, by removing the
word ``Any'' and adding in its place the following language, ``A
display vehicle is any'';
0
m. Paragraphs (h)(5) through (7) are revised;
0
n. Paragraphs (i) through (k) are revised;
0
o. Paragraph (l) is amended by removing the word ``shall'' and adding
in its place the word ``will'' and removing the word ``Customs'' and
adding in its place the term ``CBP''; and
0
p. Paragraph (m) is revised.
The revisions read as follows:
Sec. 12.73 Importation of motor vehicles and motor vehicle engines.
(a) Applicability of EPA requirements. This section is ancillary to
the regulations of the U.S. Environmental Protection Agency (EPA)
issued under the Clean Air Act, as amended (42 U.S.C. 7401 et seq.),
and found in 40 CFR parts 85, 86, 1036, 1037, and 1068. The EPA
regulations should be consulted for more detailed information
concerning EPA emission requirements. This section applies to imported
motor vehicles; this section also applies to separately imported
engines only if they will be installed in highway motorcycles or heavy-
duty motor vehicles. All references in this section to ``motor
vehicles'' include these highway motorcycles and heavy-duty engines.
Nothing in this section should be construed as limiting or changing in
any way the applicability of the EPA regulations.
* * * * *
(d) Importation of vehicles by an Independent Commercial Importer
(ICI). An ICI is generally an importer that does not have a contract
with a foreign or domestic motor vehicle manufacturer for distributing
products into the United States market (see 40 CFR 85.1502). ICIs act
independently of motor vehicle manufacturers, but are required to bring
motor vehicles into compliance with all applicable emissions
requirements found in 40 CFR part 86 and any other applicable
requirements of the Clean Air Act. Before the vehicle is deemed to be
in compliance with applicable emission requirements and finally
admitted into the United States, the ICI must keep the vehicle in
storage for a 15-business day period. This period follows notice to EPA
of completion of the compliance work to give EPA the opportunity to
conduct confirmatory testing and inspect the vehicle and records. The
15-business day period is part of the 120-
[[Page 94978]]
day period in which an ICI must bring the vehicle into compliance with
applicable emission requirements. A motor vehicle may also be
conditionally admitted by an ICI if it meets the requirements in 40 CFR
85.1505 or 85.1509. Individuals and businesses not entitled to enter
nonconforming motor vehicles may arrange for their importation through
an ICI certificate holder. In these circumstances, the ICI will not act
as an agent or broker for CBP transaction purposes unless it is
otherwise licensed or authorized to do so.
(e) Exemptions and exclusions from emission requirements based on
age of vehicle. The following motor vehicles may be imported by any
person and do not have to be shown to be in compliance with emission
requirements before they are entitled to admissibility:
* * * * *
(4) Highway motorcycles manufactured before January 1, 1978;
* * * * *
(f) Exemption for exports. A new motor vehicle intended solely for
export to a country not having the same emission standards applicable
in the United States is not required to be covered by an EPA
certificate of conformity if both the vehicle and its container bear a
label or tag indicating that it is intended solely for export. 40 CFR
85.1709.
* * * * *
(h) Other exemptions and exclusions. EPA regulations in 40 CFR
parts 85, 86 and 1068 allow for exempting or excluding vehicles from
certification requirements. The following scenarios illustrate several
examples of exemptions or exclusions that apply only if prior approval
has been obtained in writing from EPA:
* * * * *
(5) Racing cars. A racing car is any vehicle that meets one or more
of the criteria found at 40 CFR 85.1703(a), and that will not be
registered or licensed for use on or operated on public roads or
highways in the United States. See also 40 CFR 85.1511(e).
(6) National security importations. A national security importation
includes any motor vehicle imported for purposes of national security
by a manufacturer. 40 CFR 85.1511(c)(1), 85.1702(a)(2) and 85.1708; and
(7) Hardship exemption. A hardship exemption includes any motor
vehicle imported by anyone qualifying for a hardship exemption. 40 CFR
85.1511(c)(2).
(i) Documentation requirements--(1) Exception for certain companies
that manufacture and import motor vehicles. The special documentation
requirements of this paragraph do not apply to the importation of motor
vehicles by the company that manufactures the motor vehicles if the
motor vehicles are covered by a valid EPA Certificate of Conformity
(COC) held by the manufacturer and the motor vehicles are labeled to
show compliance with applicable emission requirements pursuant to
paragraph (b)(1) of this section.
(2) Release. CBP will not release a motor vehicle from custody
unless the importer has submitted all documents necessary to
demonstrate compliance with all applicable laws and regulations.
(3) Required EPA documentation. Unless otherwise exempt, importers
of motor vehicles must submit one of the following EPA declaration
forms to CBP at the time of entry, or when filing a weekly entry from
an FTZ in accordance with Sec. 146.63(c)(1) of this chapter at the
time of entry summary:
(i) For heavy-duty motor vehicle engines, whether they are
installed in a vehicle or separately imported as loose engines, submit
EPA Declaration Form 3520-21, ``Importation of Engines, Vehicles, and
Equipment Subject to Federal Air Pollution Regulations;''
(ii) For all other motor vehicles, submit EPA Declaration Form
3520-1, ``Importation of Motor Vehicles and Motor Vehicle Engines
Subject to Federal Air Pollution Regulations.''
(4) Filing method. The EPA declaration forms required to be
submitted to CBP pursuant to paragraph (i)(3) of this section must be
filed with CBP electronically in the Automated Commercial Environment
(ACE) or via any other CBP-authorized electronic data interchange
system, or as a paper filing, at the time of entry, or when filing a
weekly entry from an FTZ in accordance with Sec. 146.63(c)(1) of this
chapter at the time of entry summary.
(5) Recordkeeping. Documents supporting the information required in
EPA Declaration Form 3520-1 must be retained by the importer for a
period of at least five (5) years in accordance with Sec. 163.4 of
this chapter and must be provided to CBP upon request.
(6) Documentation for diplomatic or foreign military personnel
exemption. In order for a diplomat or foreign military personnel to
claim an exemption pursuant to paragraph (g)(2) of this section, CBP
must receive a Department of State-approved form DS-1504 (``Request for
Customs Clearance of Merchandise'') or its electronic equivalent.
(j) Release under bond. If an EPA declaration form filed in
accordance with paragraph (i)(3) of this section states that the entry
is being filed under one or more of the exemptions and exclusions
identified in paragraph (h)(1), (2), (3), or (4) of this section, the
entry will be accepted only if the importer, consignee, or surety, as
appropriate, files a basic importation and entry bond containing the
bond conditions set forth in Sec. 113.62 of this chapter, or files
electronically in ACE or via any other CBP-authorized electronic data
interchange system. The importer or consignee must deliver to CBP,
either at the port of entry or electronically, documentation of EPA
approval before the exemption or exclusion indicated on the EPA
declaration form expires, or before some later deadline specified by
the Center director based on good cause. If the EPA approval is not
delivered to the port director within the specified period, the
importer or consignee must deliver or cause to be delivered to the port
director those vehicles which were released under a bond required by
this paragraph. In the event that the vehicle or engine is not
redelivered within five (5) days following the date the exemption or
exclusion indicated on the EPA declaration form expires, or any later
deadline specified by the port director, whichever is later, liquidated
damages will be assessed in the full amount of the bond, if it is a
single entry bond, or if a continuous bond is used, in the amount that
would have been assessed under a single entry bond.
(k) Notices of inadmissibility or detention. If a motor vehicle is
determined to be inadmissible before or after release from CBP custody,
the importer or consignee will be notified in writing of the
inadmissibility determination and/or redelivery requirement. However,
if a motor vehicle cannot be released from CBP custody merely because
the importer has failed to attach to the entry the documentation
required by paragraph (i) of this section, the vehicle will be held in
detention by the port director for a period not to exceed 30-calendar
days after filing of the entry at the risk and expense of the importer
pending submission of the missing documentation. An additional 30-
calendar day extension may be granted by the port director upon
application for good cause shown. If the requisite EPA declaration form
required pursuant to paragraph (i)(3) of this section has not been
filed within this deadline, which must not exceed 60 days from the date
of entry, CBP will issue a notice of inadmissibility.
* * * * *
(m) Prohibited importations. The importation of motor vehicles
other than
[[Page 94979]]
in accordance with this section and the EPA regulations in 40 CFR parts
85, 86, 600, 1036, 1037, and 1068 is prohibited.
0
4. In 12.74:
0
a. The section heading and paragraphs (a) through (d) are revised; and
0
b. Paragraph (e) is amended by removing the word ``shall'' and adding
in its place the word ``must''.
The revisions read as follows:
Sec. 12.74 Importation of nonroad and stationary engines, vehicles,
and equipment.
(a) Applicability of EPA regulations. The requirements governing
the importation of nonroad and stationary engines subject to
conformance with applicable emission standards of the U.S.
Environmental Protection Agency (EPA) are contained in 40 CFR parts
1033 through 1068. These EPA regulations should be consulted for
detailed information as to the admission requirements for subject
nonroad and stationary engines. EPA emission regulations also apply to
vehicles and equipment with installed engines and all references in
this section to nonroad or stationary engines include the vehicles and
equipment in which the engines are installed. Nothing in this section
may be construed as limiting or changing in any way the applicability
of the EPA regulations.
(b) Documentation requirements--(1) Exception for certain companies
that manufacture and import nonroad or stationary engines, including
engines incorporated into vehicles and equipment. The special
documentation requirements of this paragraph (b) do not apply to the
importation of nonroad or stationary engines, including engines
incorporated into vehicles or equipment, by the company that
manufactures the engines, provided that the engines are covered by a
valid EPA Certificate of Conformity (COC) held by the importing
manufacturer and bear the manufacturer's label showing such conformity
and other EPA-required information.
(2) Release. CBP will not release engines, vehicles, or equipment
from custody unless the importer has submitted all required documents
to demonstrate that the engines, vehicles, or equipment meet all
applicable requirements.
(3) Required EPA documentation. Importers of nonroad or stationary
engines, including engines incorporated into vehicles and equipment,
must submit EPA Declaration Form 3520-21, ``Importation of Engines,
Vehicles, and Equipment Subject to Federal Air Pollution Regulations,''
to CBP at the time of entry, or when filing a weekly entry from an FTZ
in accordance with Sec. 146.63(c)(1) of this chapter at the time of
entry summary.
(4) Filing method. EPA Declaration Form 3520-21 may be filed with
CBP electronically in the Automated Commercial Environment (ACE) or via
any other CBP-authorized electronic data interchange system, or as a
paper filing, at the time of entry, or when filing a weekly entry from
an FTZ in accordance with Sec. 146.63(c)(1) of this chapter at the
time of entry summary.
(5) Recordkeeping. Documents supporting the information required in
EPA Declaration Form 3520-21 must be retained by the importer for a
period of at least five (5) years in accordance with Sec. 163.4 of
this chapter and must be provided to CBP upon request.
(c) Release under bond--(1) Conditional admission. If the EPA
declaration form states that the entry for a nonconforming nonroad
engine is being filed under one of the exemptions described in
paragraph (c)(3) of this section, under which the engine may be
conditionally admitted under bond, the entry will be accepted only if
the importer, consignee, or surety, as appropriate, files a basic
importation and entry bond containing the bond conditions set forth in
Sec. 113.62(c) of this chapter, or files electronically in ACE or via
any other CBP-authorized electronic data interchange system.
(2) Final admission. Should final admission be sought and granted
pursuant to EPA regulations for an engine conditionally admitted
initially under one of the exemptions described in paragraph (c)(3) of
this section, the importer or consignee must deliver to the port
director the prescribed statement. The statement must be delivered
within the period authorized by EPA for the specific exemption, or such
additional period as the port director of CBP may allow for good cause
shown. Otherwise, the importer or consignee must deliver or cause to be
delivered to the port director the subject engine, either for export or
other disposition under applicable CBP laws and regulations (see
paragraph (e) of this section). If such engine is not redelivered
within five (5) days following the allotted period, liquidated damages
will be assessed in the full amount of the bond, if a single entry
bond, or if a continuous bond, the amount that would have been assessed
under a single entry bond (see 40 CFR 1068.335).
(3) Exemptions. EPA regulations in 40 CFR parts 60 and 1033 through
1068 allow for exempting or excluding imported engines from
certification requirements (see especially 40 CFR part 1068, subpart
D). The specific exemptions under which a nonconforming nonroad engine
may be conditionally admitted, and for which a CBP bond is required,
are as follows:
(i) Repairs or alterations (see 40 CFR 1068.325(a)).
(ii) Testing (see 40 CFR 1068.325(b)).
(iii) Display (see 40 CFR 1068.325(c)).
(iv) Export (see 40 CFR 1068.325(d)).
(v) Diplomatic or military (see 40 CFR 1068.325(e)).
(vi) Delegated assembly (see 40 CFR 1068.325(f)).
(vii) Partially complete engines, vehicles, or equipment (see 40
CFR 1068.325(g)).
(d) Notice of inadmissibility or detention. If an engine is found
to be inadmissible either before or after release from CBP custody, the
importer or consignee will be notified in writing of the
inadmissibility determination and/or redelivery requirement. If the
inadmissibility is due to the fact that the importer or consignee did
not file the EPA Declaration Form 3520-21 at the time of entry, or when
filing a weekly entry from an FTZ in accordance with Sec. 146.63(c)(1)
of this chapter at the time of entry summary, the port director may
hold the subject engine in detention at the importer's risk and expense
for up to 30 days from the entry filing date. The port director may
grant the importer's request for a 30-day extension for good cause. The
port director will issue a notice of inadmissibility if documentation
is still incomplete after this deadline, which must not exceed 60 days
from the filing date for importation.
* * * * *
R. Gil Kerlikowske,
Commissioner, U.S. Customs and Border Protection.
Approved: December 20, 2016.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2016-31050 Filed 12-23-16; 8:45 am]
BILLING CODE 9111-14-P