National Highway Traffic Safety Administration
Office of Vehicle Safety Compliance
REGISTERED IMPORTER NEWSLETTER No. 4
June 30, 1994
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ULTIMATE RESPONSIBILITY
The normal responsibility of an RI to certify, insure and obtain a DOT bond release for a nonconforming vehicle within 120 days after importation appears to be well known. However, your responsibilities in the event that commitments are not satisfied are not always recognized. Failure to obtain timely bond release can result from any number of events such as your inability to certify compliance within the allowed time, failure to submit required fees or other required attachments, and denial or dismissal of your eligibility petition. The agency does make allowance for petition processing time, but this is not without limit. Remember, whether you import your own vehicle or undertake to certify an imported vehicle under contract, you are responsible to abandon the vehicle to the U.S. or deliver the vehicle, or cause the vehicle to be delivered to, the Secretary of the Treasury (U.S. Customs) for export [Sections 591.8(d)(vi) and 592.6(a) and (j)] if a bond release is not obtained in a reasonable time. Although the agency has not seen fit to exercise them to date, Part 592 does include several provisions for revocation and suspension of your registration. ANOTHER ELIGIBILITY UPDATE The then current list of import eligibility determinations was distributed with RI Bulletin No. 3 on May 27, 1994. Since that time several new eligibility determinations have been published in the Federal Register based on petitions submitted by RIs. The attached update, dated June 21, 1994, should be added to your 2nd ANNUAL ELIGIBILITY LIST in lieu of the previously distributed attachment which contained only 11 eligibility number assignments. As you know, additional eligibility determinations are issued at irregular intervals. IMPORTING FOR RESALE After all the experience of those involved in the RI program, some confusion remains about this subject. The following information is repeated so there can be no doubt about the limits of your authority as an RI. By way of background, you must understand that the original National Traffic & Motor Vehicle Safety Act of 1966 which established this agency states in Section 108, subsection (a)(1)(A), that NO PERSON SHALL... IMPORT ANY MOTOR VEHICLE ... MANUFACTURED AFTER THE DATE ANY APPLICABLE FEDERAL MOTOR VEHICLE SAFETY STANDARD TAKES EFFECT UNLESS IT IS IN CONFORMITY WITH SUCH STANDARD (and certified by its manufacturer), EXCEPT AS PROVIDED IN THIS SECTION. Amendments to the act contain the following provisions paraphrased: SUBSECTION (a)(1)(A) SHALL NOT APPLY IF THE VEHICLE IS IMPORTED BY A REGISTERED IMPORTER, and SUBSECTION (a)(1)(A) SHALL NOT APPLY TO A VEHICLE THAT IS IMPORTED FOR PERSONAL USE, AND NOT FOR RESALE, BY ANY INDIVIDUAL IF THAT INDIVIDUAL FURNISHES A COPY OF A CONTRACT WITH A REGISTERED IMPORTER FOR BRINGING SUCH VEHICLE INTO CONFORMITY You can see that the terms "individual" and "not for resale" mean that you may NOT contract with any dealer, sales broker, agent or anyone else to import any amount of vehicles for purposes of resale. In this context the prohibition includes sale and lease. If a customer asks for your contract with the intention of importing vehicles for resale you should advise him to submit an application to become a RI just like you did. |
FEE SUBMISSION METHODS NEED IMPROVEMENT Some RIs have created confusion and brought undue delays upon their bond releases by lack of attention to detail in submitting checks for applicable fee payments. For example, large checks intended for 40 or more multiple entries transmitted in several envelopes have been received without any explanation. The agency cannot continue to cope with such ambiguity. If it is not practicable to submit individual checks or money orders for each vehicle, you are requested to place small quantities of vehicles into rational groups of 10 or less when submitting Statements of Conformity simultaneously. In such cases you should attach a legible note to your check to identify the make, model, VIN and Customs Entry Number for the vehicles applicable and enclose enough copies for each vehicle in the group. Please do not split up groups of vehicles imported under a common Customs Entry Number in the event that multiple vehicles are combined in one Customs Entry. Unnecessary delays are created whenever insufficient information is submitted. EXPEDITE PROCESSING We are requesting that each RI send their Box 3's with file folders in the following format: 1. On the left hand side, HS-7 form, Bond and Insurance Policy, (HS-7 Form must be on top and all forms must be stapled to the file folder on the left hand side). ALL FORMS MUST BE SIGNED AND DATED! 2. On the right hand side, Photographs, Statement of Conformity, and any other additional information (Photographs must be on top and all forms must be stapled to the file folder on the right hand side). PHOTOGRAPHS MUST BE CLEAR. PLEASE MAKE SURE THAT ALL FORMS AND PHOTOGRAPHS ARE CONSISTENT (i.e., VIN identification) 3. Errors of submission will result in the folder being returned to the RI and the record keeping/release process will be terminated for those vehicles. WHY AUTOMAKERS OPPOSE "BOOTLEG" EXPORTS We reproduce, without further comment, the following as reported in the June 6 issue of the "Automotive News". . . . They're unfair to authorized dealers in other countries Warranties may not be valid Difficult to issue recalls Contribute to shortages in the local market Vehicle may not meet export market's safety rules All questions concerning this newsletter should be directed to George Entwistle, 202-366-5306. |