Reports, Forms, and Record Keeping Requirements |
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Jeffrey M. Giuseppe
National Highway Traffic Safety Administration
4 January 2017
[Federal Register Volume 82, Number 2 (Wednesday, January 4, 2017)]
[Notices]
[Pages 901-908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31887]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
[Docket No. NHTSA-2016-0132]
Reports, Forms, and Record Keeping 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 March 6, 2017.
ADDRESSES: You may submit comments identified by DOT Docket No. NHTSA-
2016-0132 by any of the following methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
Mail: Docket Management Facility: U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001
Hand Delivery or Courier: West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE., between 9 a.m. and 5 p.m. ET,
Monday through Friday, except Federal holidays. Telephone: 1-800-647-
5527.
Fax: 202-493-2251
Instructions: All submissions must include the agency name and
docket number for this proposed collection of information. Note that
all comments received will be posted without change to http://www.regulations.gov, including any personal information provided.
Please see the Privacy Act heading below.
Privacy Act: 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 (65 FR 19477-78) or you may visit http://DocketInfo.dot.gov.
Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov and follow the
online instructions for assessing the dockets. Alternately, you may
visit in person the Docket Management Facility at the street address
listed above.
FOR FURTHER INFORMATION CONTACT: Coleman Sachs, Office of Vehicle
Safety Compliance (NEF-230), National Highway Traffic Safety
Administration, West Building--4th Floor--Room W45-205, 1200 New Jersey
Avenue SE., Washington, DC 20590. Mr. Sachs' telephone number is (202)
366-3151. Please identify the relevant collection of information by
referring to its OMB Control Number.
SUPPLEMENTARY INFORMATION:
Prior Approval
On December 19, 2013, NHTSA submitted to OMB a request for the
extension of the agency's approval (assigned OMB Control 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 April 13, 2014, OMB notified NHTSA that it had
approved this extension request through April 30, 2017. That approval
was based on NHTSA submissions identifying information being collected
on an annual basis from 63,818 respondents, expending 61,882 hours of
effort, at a cost of $1,454,120. 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, significant changes have
taken place that impact the information collection and the assessment
of its burden on affected members of the public. These have resulted,
in part, from the increasing strength of the U.S. Dollar against
foreign currencies, particularly the Canadian dollar, which has led to
a significant increase in the volume of vehicles imported from Canada.
Another factor that has impacted the information collection is the
transitioning in the filing of NHTSA-required import data from U.S.
Customs and Border Protection's (CBP's) legacy Automated Commercial
System (ACS) to the new Automated Commercial Environment/International
Trade Data System (ACE/ITDS). With its integration into ACE, which
began on August 1, 2015 and was completed by July 28, 2016, NHTSA is
receiving more accurate and complete information on the importation of
the commodities it regulates. As a consequence, the volume of entries,
in some instances, has greatly increased from the volume received in
prior years. For example, the volume of entries for vehicles at least
25 years old that can be imported without regard to their compliance
with the Federal motor vehicle safety standards (FMVSS) and equipment
items manufactured prior to the date that any applicable standard has
taken effect, both of which are declared under Box 1 on the HS-7
Declaration form, has increased by a factor of nearly two hundred, from
roughly 13,000 entries in 2012 to nearly 2.5 million entries in 2015.
There has been a 25 percent increase in the volume of vehicles
conforming to the
[[Page 902]]
FMVSS that are imported under Box 2A, from 5.6 million in 2012 to
nearly 7 million in 2015. The volume of vehicles not originally
manufactured to the FMVSS that are imported by registered importers
under Box 3 has increased more than sevenfold, from roughly 30,000
vehicles in 2012, to over 216,000 vehicles in 2015. More than 99
percent of these vehicles are imported from Canada, whose dollar, as
previously indicated, has significantly weakened against the U.S.
dollar. Perhaps influenced by the same factors, there has been nearly a
doubling in the volume of Canadian-certified vehicles imported by
individuals for personal use under box 2B, from 1,275 in 2012 to nearly
2,400 in 2015. There has been a fourfold increase in the volume of
vehicles imported for export only under Box 4, from roughly 20,000
vehicles in 2012 to slightly more than 83,000 in 2015. The volume of
nonconforming vehicles temporarily imported for research or
demonstration purposes under Box 7 has increased by nearly 25 percent,
from 6,000 vehicles in 2012 to 7,319 in 2015. Finally, the volume of
vehicles not originally manufactured for use on public roads that are
declared as off-road vehicles not subject to the FMVSS under Box 8 has
increased by nearly one third, from 326,000 in 2012 to 421,526.
The focus of NHTSA's importation program has traditionally been on
vehicles that were not originally manufactured to comply with all
applicable 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 five years, with 43,648 vehicles imported
under Box 3 in 2004, 12,642 imported in 2005, 10,953 imported in 2006,
7,470 imported in 2007, and 6,311 imported in 2008. After the U.S.
dollar had gained some strength against the Canadian dollar, the volume
of imports under Box 3 increased to 10,752 vehicles in 2009, and
continued to increase to 18,010 vehicles in 2010, 22,733 vehicles in
2011, and 30,138 in 2012. In 2013, 36,292 vehicles were imported under
Box 3. With the increasing strength of the U.S. dollar against the
Canadian dollar, this figure more than doubled in 2014, when 73,814
vehicles were imported, and then tripled in 2015, when a record 216,814
were imported.
When NHTSA last requested OMB approval for the information
collection associated with the vehicle importation program, the agency
estimated that 23,600 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 4,327 hours to complete these forms. Given the
significant rise in nonconforming vehicle imports under Box 3 in recent
years, future projections should assume an average of 109,000 vehicle
imports per year. Relying on this figure, the hour burden associated
with the completion of paperwork for these vehicles would be close to
19,873 hours (0.08333 hours to complete each HS-7 x 109,000 vehicles =
9,083 hours; 0.1 hours to complete each HS-474 x 109,000 vehicles =
10,900 hours; 9,083 + 10,900 = 19,983 hours). This represents nearly a
462 percent increase in burden hours associated with these entries when
compared to the figures used when OMB approval was last obtained.
Cumulatively, the changes in the vehicle importation program
detailed above have produced more than a four-fold increase in the hour
burden associated with all aspects of the program, from an estimated
61,882 hours when OMB approval was last sought in 2013, to an estimated
252,263 hours in this document, as specified more fully below.
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 (49 CFR parts 591, 592,
and 593). As a consequence, we are providing particular information 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 manner, we project that a total of 252,263 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. As described above, this represents more
than a four-fold increase over the 61,882 burden hours that were
estimated when OMB approval was last sought in 2013.
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.
[[Page 903]]
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: April 30, 2020.
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
(i.e., windshield and window glass), motorcycle helmets, child
restraints, compressed natural gas containers (used as part of a
vehicle fuel system and not for the purpose of transporting natural
gas), reflective triangular warning devices, rear impact guards for
trailers, and platform lift systems for the mobility impaired) 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 2013, 15,419 entries were made for vehicles and equipment
items imported under Box 1. In 2014, 633,115 entries were made, and in
2009, the volume of entries increased to 2,487,196. Based on an average
of these figures, the agency projects that roughly 1,045,243 entries
will be made under Box 1 over the next three years (15,419 + 633,115 +
2,487,196 = 3,135,730; 3,135,730 / 3 = 1,045,243). Assuming that an HS-
7 Declaration form is filed for each of these entries, 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
entries to be approximately 87,100 hours per year (0.08333 hours x
1,045,243 = 87,100 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 2013,
5,823,028 vehicles were imported under Box 2A. In 2014, the figure
increased to 6,508,918 vehicles, and increased again in 2015, to
6,909,140. Based on an average of these figures, the agency projects
that roughly 6,413,695 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 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 53,541 hours per year (6,413,695 vehicles x .9 =
5,772,325 vehicles imported by original manufacturers; 5,772,325
vehicles / 5,000 vehicles per declaration forms filed = 1,154
declaration forms being filed per year by manufacturers; assuming that
a separate declaration is filed for each other vehicle imported under
Box 2A yields 641,370 declarations being filed per year for these
vehicles; 641,370 + 1,154 = 642,524 declarations per year; 0.08333
hours to complete each declaration x 642,524 declarations = 53,541
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. A total of 1,246 vehicles were declared under Box 2B in
2013. In 2014, a total of 1,245 vehicles were declared under Box 2B and
in 2015, 2,396 vehicles were declared under that box. Assuming these
figures represent a fair approximation of the volume of vehicles
imported under Box 2B in those three calendar years, the agency
projects that roughly 1,629 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 the completing the paperwork for the entry of these
vehicles will be 136 hours per year (1,629 vehicles x 0.08333 hours per
entry = 136 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 on or 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 the
vehicle is eligible for importation, based on its capability of being
modified
[[Page 904]]
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 greatly increased in recent
years. In 2013, 36,266 vehicles were imported under Box 3; in 2014,
73,809 vehicles were imported; and in 2015, 216,812 vehicles were
imported. Based on these figures, the agency projects that 109,000
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 9,083 (0.08333 hours to complete each
HS-7 x 109,000 vehicles = 9,083 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 109,000 vehicles per year, the hour burden
associated with the completion of the HS-474 will be 10,900 hours (0.1
hours to complete each HS-474 x 109,000 vehicles = 10,900 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 will then issue 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 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 36,266 nonconforming vehicles imported under Box 3 in 2013,
35,973, or roughly 99.1 percent, were Canadian market and 293, or
roughly 0.9 percent, were from markets other than Canada. Of the 73,809
nonconforming vehicles imported under Box 3 in 2014, 73,467, or roughly
99.5 percent, were Canadian market and 342, or roughly 0.5 percent,
were from markets other than Canada. Of the 216,812 nonconforming
vehicles imported under Box 3 in 2016, 216,445 or roughly 99.8 percent,
were Canadian market and 357, or roughly 0.2 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 54,200 hours
per year (109,000 vehicles x 99.45 percent or 0.9945 = 108,400
vehicles; 108,400 vehicles x 0.5 hours per vehicle = 54,200 hours). The
agency estimates the hour burden associated with the submission of
conformity packages for non-Canadian vehicles to be 600 hours per year
(109,000 vehicles x .55 percent or 0.0055 = 600 vehicles; 600 vehicles
x 1.0 hours per vehicle = 600 hours. Adding these figures yields an
estimated burden of 54,800 hours per year for the entire RI industry to
compile and submit conformity packages to NHTSA on nonconforming
vehicles imported under Box 3 (54,200 hours + 600 hours = 54,800
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 16 out of the 87 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 2013, 28 import eligibility
petitions were submitted to the agency. Of these, 20, or 71 percent,
were for vehicles with substantially
[[Page 905]]
similar U.S.-certified counterparts and 8, or 29 percent, were for
vehicles for which there were no substantially similar U.S. certified
counterparts. In 2014, 10 import eligibility petitions were submitted
to the agency. Of these, 9, or 90 percent, were for vehicles with
substantially similar U.S.-certified counterparts, and 1, or 10
percent, were for vehicles for which there were no substantially
similar U.S.-certified counterparts. In 2015, 15 import eligibility
petitions were submitted to the agency. Of these, 14, or 93 percent,
were for vehicles with substantially similar U.S.-certified
counterparts, and 1, or 7 percent, were for vehicles for which there
were no substantially similar U.S.-certified counterparts. Assuming
this trend continues in future years, the agency estimates that roughly
18 import eligibility petitions will be submitted each year, 85 percent
of which, or 15 petitions, will be for vehicles with substantially
similar U.S.-certified counterparts, and 15 percent of which, or 3
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 42 hours per year (15 petitions x
2 hours per petition = 30 hours; 3 petitions x 4 hours per petition =
12 hours; 30 hours + 12 hours = 42 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 2013, 45,509
vehicles were imported under Box 4. In 2014, 52,485 were imported and
in 2015, the volume of Box 4 entries increased to 83,349. Based on
these figures, the agency projects that an average of 63,447 vehicles
will be imported under Box 4 in each of the next three years. Based on
that figure, the hour burden associated with the completion of the HS-7
Declaration form for these vehicles will be under 5,287 hours (0.08333
hours to complete each HS-7 x 63,447 vehicles = 5,287 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 2013, a total of 322 vehicles were
imported under Box 5. In 2014, 382 vehicles were imported under that
box. In 2015, 193 were imported. Based on these figures, the agency
estimates that roughly 300 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 25 hours (0.08333 hours to complete each HS-7 x
300 vehicles = 24.99 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 the importer's official orders and supply Customs with the
name of the embassy to which the importer is attached. In 2013, a total
of 16 vehicles were imported under Box 6. In 2014, 11 vehicles were
imported under that box. In 2015, 16 were again imported. Based on
these figures, the agency estimates that roughly 14 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 roughly 1 hour (0.08333
hours to complete each HS-7 x 14 vehicles = 1.16 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 2013,
8,309 entries were made under Box 7. In 2014, 6,558 entries were made.
In 2015, 7,319 were made. Permission letters were requested from NHTSA
for 236 of the entries made in 2013, 312 of the entries made in 2014,
and 336 of the entries made in 2015, representing roughly 4 percent of
the total number of entries made under Box 7 in those years. The
remaining entries were for vehicles and equipment imported by original
manufacturers of vehicles that are certified to the FMVSS, who can
temporarily import nonconforming vehicles and equipment 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 three years, the
agency projects that roughly 7,395 entries will be made under Box 7 in
each of the next three years. Assuming that applications for NHTSA
permission letters will be submitted for 4 percent of those entries,
and that a single application will be filed for each entry, the agency
estimates that 295 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 25
hours will be expended on an annual basis to submit applications for
permission from NHTSA to import vehicles and motor vehicle equipment
under Box 7 (0.0833 hours per application x 295 applications = 24.58
hours). Assuming that a single HS-7 Declaration form is filed for each
vehicle imported under Box 7, the agency projects that under 617 hours
will be expended on an annual basis in completing the declaration for
vehicles imported under Box 7 (0.0833 hours per declaration x 7,395
vehicles = 616.23 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
[[Page 906]]
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 2013, applications were submitted
to NHTSA for 1 vehicle imported under Box 8. In 2014, 13 applications
were filed. In 2015, 25 were filed. Based on these figures, the agency
projects that 13 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 slightly more than 1 hour will be expended in
completing these applications (0.08333 hours x 13 applications = 1.08
hours).
In 2013, a total of 207,112 off-road vehicles and equipment items
were imported under Box 8. In 2014, 335,281 off-road vehicles and
equipment items were imported under that box. In 2015, 421,546 were
imported. Averaging those figures, the agency projects that roughly
321,323 off-road vehicles and equipment items will be imported under
Box 8 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 and equipment items will be 26,776 hours (0.08333 hours
to complete each HS-7 x 321,323 entries = 26,776).
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 2013, 27,604
vehicles were imported under Box 9. In 2014, 45,905 vehicles were
imported under that box. In 2015, 38,737 were imported. Averaging those
figures, the agency projects that roughly 37,415 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 approximately 3,118 hours will be expended on an
annual basis in completing the declaration for vehicles imported under
Box 9 (0.0833 hours per declaration x 37,415 vehicles = 3,118).
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 2013, the agency received zero applications to determine
vehicles eligible for importation for purposes of show or display. In
2014, the agency received 2 such applications. In 2015, the agency
again received zero applications. Averaging these figures, the agency
projects that it will receive one application to determine 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 10 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 2013, the
agency received 23 applications to import specific vehicles for
purposes of show or display. In 2014, the agency received 56 such
applications. In 2015, the agency received 25. Averaging those figures,
the agency estimates that it will receive roughly 35 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 35 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 2013, there were
7,513 entries under Box 11. In 2014, there were 8,675 such entries. In
2015 there were 4,509. Averaging these figures, the agency estimates
that 6,899 entries will be made under Box 11 in each of the next three
years. Assuming that it will take five minutes to complete each of
these entries, the agency projects that under 575 hours will be
expended on an annual basis in making these entries for equipment
imported under Box 11 (0.0833 hours per declaration x 6,899
declarations = 574.89 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 2013, a
total of 33 vehicles were imported under Box 12. In 2014, 21 such
vehicles were imported. In 2015, 51 were imported. Averaging these
figures, the agency projects that roughly 35 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 3 hours (0.08333 hours to complete
each HS-7 x 35 vehicles = 2.92 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. The agency received requests to permit the
[[Page 907]]
importation of 26 vehicles under Box 13 in 2013, 9 in 2014, and 14 in
2015. Averaging these figures, the agency projects that roughly 16
vehicles will be imported under Box 13 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 2 hours
(0.08333 hours to complete each HS-7 x 16 vehicles = 1.33 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 attest to the truthfulness and correctness
of the information provided in the application. A brochure 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 2013, NHTSA received 4 applications for RI status. In 2014, the
agency received 5 applications of this kind. In 2015, the agency
received 10. Based on these figures, the agency anticipates that it
will receive 6 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 60 hours will be expended in this activity for
each of the next three years (6 applications x 10 hours = 60 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 increased in recent years on account of the
strengthening of the U.S. dollar against the Canadian dollar, and the
concomitant increase in the volume of vehicles imported from Canada. In
2013, NHTSA received renewal packages from 62 RIs. In 2014, the agency
received 66 renewal packages. In 2012, the agency received 65. Based on
these figures, the agency anticipates that it will receive an average
of 64 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 128 hours will be expended in this activity for each of
the next three years (64 renewal applications x 2 hours = 128 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.
[[Page 908]]
Approximately 120 conformity packages can be stored in a cubic foot
of space. Based on projected imports of 109,000 nonconforming vehicles
per year, 908.33 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 $18,167 per year.
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 2010, 17,645 ABI entries were made for
nonconforming vehicles imported into the United States under Box 3, and
only 365 paper HS-7 Declaration Forms (representing just two 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 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 87 RIs who are currently registered with NHTSA and
import nonconforming vehicles under Boxes 3 and 13;
the roughly 1,629 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-- Adding together the burden hours
detailed above yields a total of 252,263 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 the
$18,167 cost to the industry, per year for the storage 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).
Jeffrey M. Giuseppe,
Director, Office of Vehicle Safety Compliance.
[FR Doc. 2016-31887 Filed 1-3-17; 8:45 am]
BILLING CODE 4910-59-P