United States General Accounting Office

GAO Report to the Chairman, Subcommittee

on Surface Transportation, Committee

on Transportation and Infrastructure,

House of Representatives

August 1997 COMMERCIAL

PASSENGER VEHICLES

Safety Inspection of

Commercial Buses and

Vans Entering the United

States From Mexico

GAO/RCED-97-194

GAO United States

General Accounting Office

Washington, D.C. 20548

Resources, Community, and

Economic Development Division

B-275794 

August 8, 1997

The Honorable Thomas Petri

Chairman, Subcommittee on Surface Transportation

Committee on Transportation and Infrastructure

House of Representatives

Dear Mr. Chairman:

The North American Free Trade Agreement (NAFTA), among other things,

provided for the U.S.-Mexican border to be opened on January 1, 1997, to

nationwide, scheduled commercial passenger bus and van service from

Mexico. Prior to that date, only Mexican commercial passenger carriers

engaged in tour and charter service were allowed to travel beyond U.S.

commercial zones (designated areas extending several miles from the

northern limits of U.S. border towns). However, increased access for

commercial passenger vehicles providing scheduled service from Mexico

has not yet occurred because of continuing negotiations over commercial

motor vehicle safety measures to be implemented by Mexico.

In response to your concerns about whether commercial passenger

vehicles entering the United States from Mexico are meeting U.S. safety

standards, this report describes (1) the number and types of commercial

passenger vehicles entering U.S. border states from Mexico and (2) actions

taken by the U.S. Department of Transportation’s Federal Highway

Administration (FHWA) and U.S. border states to provide safety inspections

for commercial passenger vehicles arriving at the U.S.-Mexico border.

Results in Brief According to the U.S. Customs Service, there were about 218,000

commercial passenger vehicle crossings from Mexico to the United States

(a daily average of 598 crossings) from June 1996 though May 1997 (the

latest data available). About 85 percent of these crossings occurred at four

crossing points: two in California and two in Texas.1

 While Customs

records the number of vehicle crossings from Mexico into the United

States, many of these vehicles may cross the border several times a day

(e.g., airport shuttles) and each crossing is included in Customs’ vehicle

crossing count. Furthermore, Customs does not record the identity of

individual vehicles, the type of vehicle (e.g., motor coaches or vans), or

whether the vehicle is owned by either a U.S. or Mexican carrier. As a

1

Because Arizona and New Mexico receive less than 2 percent of the northbound commercial

passenger vehicle traffic, information on these states is not included in this report.

Page 1 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
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result, no reliable information exists either on the actual number of

Mexican-owned commercial passenger vehicles that enter the United

States or on how many of each type of vehicle enters the

country—information needed to assess the extent to which these vehicles

are safe and are operated safely.

FHWA2 and state inspectors have carried out few safety inspections of

commercial passenger vehicles entering the United States from Mexico

primarily because their emphasis has been on inspecting commercial

trucks. FHWA inspectors in Texas and state inspectors in California

conducted border safety inspections of 528 commercial passenger vehicles

from January through May 1997 out of an estimated 90,000 crossings.

About 22 percent of these commercial passenger vehicles were placed out

of service for serious safety violations, such as steering or brake problems.

FHWA inspectors in California and state inspectors in Texas had not

conducted any inspections as of May 1997. The dearth of safety

inspections, coupled with insufficient information on the number and

kinds of Mexican-owned commercial passenger vehicles entering the

United States, precludes any assessment of whether these commercial

passenger vehicles are safe and are being operated safely.

Background NAFTA, which was agreed to by Canada, Mexico, and the United States in

1992 and implemented in the United States through legislation in 1993,

contained a timetable for the phased removal of trade barriers for goods

and services among the three countries. Beginning on January 1, 1997,

Mexican passenger carriers that own and operate commercial buses and

vans were to have been permitted to apply for the authority to provide

scheduled service between Mexico and the United States. However, this

increased access has not occurred because U.S.-Mexico negotiations

concerning commercial motor vehicle safety measures to be implemented

by Mexico have not been completed. In contrast, the U.S.-Canada border

has been open to commercial passenger vehicles for many years.

Until expanded access is granted, only commercial passenger vehicles

from Mexico that are engaged in tour and charter service may travel

beyond the U.S. commercial zones along the border (generally areas

between 3 and 20 miles from the U.S. border towns’ northern limits,

depending on each town’s population). As of May 1997, only seven

Mexican companies had received FHWA operating authority to provide tour

2

FHWA does not routinely conduct roadside inspections at fixed locations but has approved 2-year

positions for several temporary safety inspectors who will inspect commercial trucks and, to a limited

extent, commercial passenger vehicles entering the United States from Mexico.

Page 2 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
B-275794 

and charter services beyond the commercial zones. However, these and

other Mexican commercial passenger vehicles may operate to any

destination within the commercial zones. Commercial passenger vehicles

entering the United States from Mexico include motor coaches, minibuses,

school-bus-type vehicles, and vans (see fig. 1).

Figure 1: Types of Commercial Passenger Vehicles Providing Cross-Border Service From Mexico

Although there are 29 locations where commercial passenger vehicles

from Mexico may enter the United States, about 85 percent of the

Page 3 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
B-275794 

commercial passenger vehicles enter at 4 major crossings: 2 in California

(San Diego3

 and Otay Mesa) and 2 in Texas (Hidalgo and Laredo).

(See fig. 2.)

Figure 2: Locations and Numbers of

Commercial Passenger Vehicle

Crossing Points

Otay Mesa

Laredo

Hidalgo

California (5)

Arizona (6) New Mexico (2)

Texas (16) San Diego

Major border crossing

Source: Based on information from the U.S. Customs Service.

Commercial passenger vehicles enter the United States through the U.S.

Customs Service’s passenger vehicle ports of entry, which are physically

separate from the crossings that commercial trucks use to enter the

United States. Customs usually has one lane of passenger vehicle traffic

dedicated to commercial passenger vehicles, which facilitates the

processing of passengers through both the Customs and Immigration and

Naturalization Service inspection points.

3

The San Diego crossing is also known as San Ysidro.

Page 4 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
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To encourage safer commercial motor vehicle operation in the United

States and to help achieve uniformity in commercial motor vehicle

standards throughout the nation, FHWA has issued regulations on vehicle

safety standards (e.g., tires, lights, brakes) and financial and operating

standards (e.g., registration, insurance, commercial driver’s license, and

hours of service requirements). FHWA’s safety regulations on commercial

motor vehicles apply to, among other things, all vehicles designed to

transport more than 15 passengers, including the driver, that operate

within the United States.4

 For the most part, the states have adopted the

federal standards. FHWA maintains a presence in all states to promote

commercial vehicle safety and ensures that state laws and regulations are

compatible with federal commercial vehicle safety regulations. FHWA also

provides policy direction and supports state-developed enforcement

strategies through a motor carrier safety grant program.

Although each commercial vehicle involved in interstate commerce on

U.S. roads must meet all federal vehicle, operator, and financial standards,

Canada, Mexico, and the United States have adopted roadside inspection

procedures that focus on the most critical safety items. These inspection

procedures, developed by the Commercial Vehicle Safety Alliance (CVSA),5

focus on those standards that, if not met, would lead to a commercial

vehicle being placed out of service for serious safety violations.6 FHWA and

state safety inspectors use these procedures when inspecting commercial

passenger vehicles entering the United States from Mexico. Commercial

passenger vehicles that are placed out of service are halted until needed

repairs are made. Safety inspectors who are qualified to conduct

inspections of commercial trucks are also qualified to inspect commercial

passenger vehicles.

There are two CVSA procedures that have been used to inspect commercial

passenger vehicles entering the United States from Mexico: level-1 and

level-2 inspections. The level-1 inspection is the most rigorous—a full

inspection of both the driver and the vehicle. The driver inspection

includes ensuring that the driver has a valid commercial driver’s license, is

medically qualified, and has an updated log showing the driver’s hours of

4

Commercial passenger vehicles designed to transport 15 or fewer passengers are not subject to FHWA

vehicle safety standards; however, they generally still must meet FHWA financial and operating

standards.

5

CVSA is a not-for-profit association of state, provincial, and federal officials formed to improve

commercial vehicle safety. CVSA pursues this goal, in part, through working with state, federal, and

provincial governments to achieve uniformity, compatibility, and reciprocity among regulatory and

enforcement agencies.

6

Financial and other penalties may be imposed for other violations of federal requirements.

Page 5 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
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service. The vehicle inspection includes a visual inspection and an

extensive undercarriage inspection that covers the brakes, frame, and

suspension. The level-2 inspection is similar to the level-1 inspection,

except that it does not include an extensive undercarriage inspection.

Limited Information

Exists on Commercial

Passenger Vehicles

Entering the United

States From Mexico

Customs data show that, from June 1996 through May 1997 (the latest data

available), there were an average of about 598 northbound commercial

passenger vehicle crossings each day along the U.S.-Mexico border (see

table 1). However, counting practices vary somewhat among the ports of

entry and, as a result, the traffic levels reported by Customs are

understated by an unknown amount. At the San Diego and Otay Mesa,

California, crossings, all commercial passenger vehicles, regardless of the

vehicle capacity, are funneled through a single lane for commercial

passenger vehicles. However, in Texas, Customs agents require

commercial vans to use the lanes provided for private passenger vehicles.

They told us that they do not always attempt to determine whether the

vans are commercial or private passenger vans, which results in some

commercial vans being counted as private passenger vehicles.

Table 1: Northbound Commercial

Passenger Vehicle Crossings at the

Four Busiest Border Crossing

Locations, From June 1996 Through

May 1997

Border location

Number of

crossings

Percentage of

total crossings Daily average

San Diego, Calif. 99,782 46 273

Otay Mesa, Calif. 19,646 9 54

Hidalgo, Tex. 40,338 18 111

Laredo, Tex. 24,782 11 68

Subtotal 184,548 85 506

All others 33,845 15 93

Total 218,393 100 598

Note: As described in the text, the number of crossings may be understated somewhat. Columns

may not add to totals because of rounding.

Source: Based on U.S. Customs Service data.

Customs officials in Texas told us that the traffic counts are used primarily

to determine the level of staffing that is needed at each crossing point.

They also told us that they permit commercial passenger vans to enter the

United States through private passenger lanes because, given their smaller

size, the vans do not require as much inspection as motor coaches do.

Also, according to a Customs official, it is difficult for Customs agents to

Page 6 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
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identify whether some vans are carrying paying passengers or private

passengers.

While Customs records the number of crossings, it does not keep records

on the number or type of individual commercial passenger vehicles that

cross the border.7

 Customs, FHWA, and state officials told us that they

believe that most of the northbound cross-border commercial passenger

traffic is of a repeat nature, such as airport and shopping center shuttle

services. Thus, while Customs’ records show an average of 598 crossings

daily, the number of individual commercial vehicles is smaller, but, again,

to an unknown degree.

In California, federal and state officials told us that most traffic at the San

Diego crossing consists of motor coaches and school-bus-type vehicles

providing shuttle service to destinations such as bus terminals, grocery

stores, and parking lots just inside the U.S. border. Federal officials stated

that few commercial vans enter the country at the San Diego crossing.

Rather, most vans, such as those providing shuttle service to the San Diego

airport, enter at the Otay Mesa crossing. Officials told us that some

commercial passenger vehicles at both crossings may enter the United

States up to 10 times a day.

In Texas, federal officials told us that most of the Laredo cross-border

traffic consists of U.S.-based carriers providing scheduled service to Dallas

and Houston. A Customs official in Laredo estimated that while only 4 or 5

commercial passenger vans cross the border on weekdays, approximately

50 or 60 vans cross the border during the weekend. According to one

Customs official, most commercial passenger vehicles at the Hidalgo,

Texas, crossing are motor coaches; an estimated 90 percent of these

vehicles travel to destinations within the commercial zone to the nearby

border city of McAllen.

7

According to U.S. Customs officials, the U.S. Customs Service is not required by statute or regulation

to count vehicles that enter the United States from Mexico.

Page 7 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
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FHWA and States

Have Conducted Few

Safety Inspections,

Citing Higher

Priorities

Relatively few safety inspections of commercial passenger vehicles have

taken place in the past year.8 FHWA inspectors in Texas and state

inspectors in California conducted border safety inspections of 528

commercial passenger vehicles from January through May 1997 out of an

estimated 90,000 border crossings during that period. (Because many

commercial passenger vehicles may enter the United States several times a

day, inspectors would not typically inspect the same vehicle each time it

crossed the border.) About 22 percent of the vehicles inspected were

placed out of service. Some of these were vehicles owned and operated by

U.S. carriers. In comparison, the out-of-service rate for the 10,000 U.S.

commercial passenger vehicles inspected on the nation’s roads from

October 1996 through June 1997 was about 10 percent. FHWA inspectors in

California and state inspectors in Texas had not conducted any

inspections as of May 1997. The dearth of safety inspections, coupled with

insufficient information on the number and kinds of Mexican commercial

passenger vehicles entering the United States, precludes any assessment

of whether these commercial passenger vehicles are safe and are being

operated safely.9

FHWA and state officials told us that because many more commercial

trucks enter the United States from Mexico than do commercial passenger

vehicles, they spend most of their time inspecting commercial trucks.

About 12,000 commercial truck crossings occur along the border each day

compared with about 598 commercial passenger vehicle crossings (a

20-to-1 ratio). Moreover, about 45 percent of the 25,000 trucks inspected

upon entering the United States from Mexico were placed out of service

for serious safety violations in calendar year 1996.10

Safety Inspections in

California

FHWA is not conducting safety inspections of commercial passenger

vehicles entering California from Mexico. According to an FHWA official in

California, the two federal inspectors assigned to the California border are

focusing all of their inspection efforts on the commercial trucks entering

8

These inspections cover the most critical safety standards; they do not include manufacturing vehicle

safety standards and other safety standards, such as those governing seat flammability, that are under

the jurisdiction of the Department of Transportation’s National Highway Traffic Safety Administration.

9

In May 1997, FHWA completed a study of the Mexican safety and regulatory processes that govern the

Mexican scheduled service bus industry entitled Mexican Regular Route Bus Industry Study. Among

other things, the study provides a broad description of the industry, safety and regulatory requirements

and processes, and Mexican government oversight of the industry. It does not provide information on

the safety fitness of buses operated in Mexico or address the extent to which Mexican safety

regulations are enforced.

10Commercial Trucking: Safety Concerns About Mexican Trucks Remain Even as Inspection Activity

Increases (GAO/RCED-97-68, Apr. 9, 1997).

Page 8 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
B-275794 

the United States from Mexico because (1) these trucks continue to

display serious violations of insurance and operating authority

requirements and (2) congestion at the border crossings does not allow

adequate space for vehicle inspections to be conducted.11

California state safety inspections of commercial passenger vehicles

entering the United States from Mexico have been limited to two 1-day

strike force efforts (see fig. 3). In total, the California Highway Patrol

conducted level-1 inspections of 144 vehicles and placed 37 (26 percent)

vehicles out of service for serious safety violations, such as steering or

brake problems.

11Inspection of commercial passenger vehicles requires adequate space and distance from traffic to

provide for the inspectors’ and passengers’ safety. In addition, sufficient space is needed to park

out-of-service vehicles until they can be repaired or towed. Finally, passengers must be provided

access to shelter, water, and relief stations.

Page 9 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
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Figure 3: Commercial Passenger Vehicle Inspection Activities in California

During the first strike force effort on April 20, 1997, safety inspectors

inspected vehicles near the passenger vehicle border crossings at San

Diego and Otay Mesa. At the San Diego crossing, state officials directed

commercial passenger vehicles to stop at a curbside about 1 mile from the

border crossing for inspection because space was insufficient to conduct

vehicle inspections at the Customs border crossing (see fig. 3). For

vehicles crossing at Otay Mesa, state officials diverted commercial

passenger vehicle traffic from the passenger crossing to the state truck

Page 10 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
B-275794 

inspection facility about 1 mile away. The second strike force took place at

two federal Immigration and Naturalization Service border patrol posts

just north of San Diego on April 26, 1997. A California Highway Patrol

official stated that future border inspections of commercial passenger

vehicles will depend on funding increases because current staffing levels

are not sufficient for increased inspection activity.

Safety Inspections in Texas FHWA inspectors primarily conducted level-2 safety inspections of

commercial passenger vehicles in Texas from January through May 1997

(see fig. 4). They also have conducted several strike forces. In total, FHWA

inspectors inspected 384 commercial passenger vehicles and placed 80 (21

percent) of them out-of-service for serious safety violations. The eight

FHWA safety inspectors assigned to the Texas border are responsible for

inspecting both commercial trucks and commercial passenger vehicles

that enter the United States from Mexico. They have devoted about

one-eighth of their time to commercial passenger vehicle inspections.12

12In fiscal year 1996, there were about 2 million commercial truck crossings into Texas. During this

same period, there were about 92,000 commercial passenger vehicle crossings, according to Customs.

Page 11 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
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Figure 4: Commercial Passenger Vehicle Inspection Activities in Texas

Page 12 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
B-275794 

Over a 2-week period in February 1997 at the Hidalgo and Pharr crossings,

the first FHWA strike force conducted level-2 safety inspections of 132

vehicles arriving from Mexico. Twenty-eight (21 percent) of these vehicles

were placed out of service for serious safety violations, such as

inoperative brakes or air suspension problems. Of these 28 vehicles, 24

were owned and operated by U.S. carriers, 17 of them by a single U.S.

company.

FHWA conducted two other strike forces in Laredo, one to identify

commercial passenger van traffic patterns and another to address U.S.

carrier complaints about alleged illegal van operators. The strike forces

conducted document checks (e.g., proof of vehicle registration, operator’s

license, and insurance) of vans entering the United States. A 3-day effort

beginning on Good Friday and ending Easter Sunday, a holiday weekend

that FHWA officials believed would see an increase in cross-border van

activity, proved uneventful. Traffic was extremely light, and FHWA

inspectors found only two violations. During a 3-week strike force in April

and May 1997, FHWA inspectors cited 11 van operators with 22 violations

for lack of proof of insurance or registration. All of the vans cited were

owned and operated by U.S. carriers. FHWA investigators discovered that

these vehicles were operating without proper insurance coverage or

Department of Transportation operating authority. FHWA assessed these

van operators a total of $32,000 in penalties for these violations. As a result

of these findings, FHWA has directed its inspectors at the border crossings

to increase their focus on both domestic and Mexican vans, as opposed to

larger commercial passenger vehicles, when conducting their commercial

passenger vehicle inspections.

Texas safety inspectors are not inspecting commercial passenger vehicles

arriving from Mexico because (1) their priority is to inspect commercial

trucks entering the United States from Mexico, (2) FHWA is currently

inspecting commercial passenger vehicles at the border, and (3) they need

a budget for these activities from the state legislature and inspection

locations that provide for passenger safety while inspections are taking

place.

FHWA’s Investigation and

Education Activities

FHWA also investigates foreign and domestic commercial passenger

carriers for violations of federal regulations, such as operating authority

requirements, in response to complaints filed by U.S. carriers. In Texas,

FHWA officials are addressing five commercial passenger carriers alleged to

be Mexican carriers operating beyond U.S. commercial zones without

Page 13 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
B-275794 

federal operating authority. According to the FHWA official responsible for

following up on these allegations, FHWA has determined that all of these

companies are U.S. companies. An FHWA official in California told us that

no complaints about alleged illegal Mexican carriers have been filed with

the agency in that state.

FHWA has provided Mexican officials with guidance on operating and safety

requirements for commercial passenger vehicles. For example, an FHWA

official in Arizona told us that on several occasions he spoke to the

Mexican Consulate in Nogales in response to requests for information on

the requirements and regulations applicable to a tour and charter operator

that wanted to transport a group to Disneyland. The FHWA official told us

he sent the Consulate a package of information on obtaining proper

operating authority, applicable safety regulations, and other requirements.

In Texas, an FHWA official prepared a bilingual packet of information

containing operating and safety requirements for Mexican commercial

vehicles and presented it to Mexican officials from the state of

Tamaulipas.

Agency Comments

and Our Evaluation

We provided the Department of Transportation with a draft of this report

for review and comment. We met with officials including the national

motor coach program coordinator in FHWA’s Office of Motor Carriers, the

special assistant to the associate administrator in the Office of Motor

Carriers, and a senior analyst in the Office of the Secretary. DOT generally

agreed with the contents of the draft report. DOT also offered several

technical and clarifying comments, which we incorporated where

appropriate.

Scope and

Methodology

To achieve our first objective, we obtained the U.S. Customs Service’s

commercial passenger vehicle traffic data for the period from June 1996

through May 1997. We also visited seven border crossings, where almost

90 percent of the commercial passenger vehicles from Mexico enter the

United States. We discussed the nature of cross-border commercial

passenger vehicle traffic with Customs, Immigration and Naturalization

Service, Department of Transportation, and state commercial vehicle

enforcement officials in Arizona, California, New Mexico, and Texas. We

also discussed cross-border traffic with university researchers.

To achieve our second objective, we discussed inspection practices with

Department of Transportation officials and state enforcement officials in

Page 14 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
B-275794 

Arizona, California, New Mexico, and Texas. We observed federal

commercial passenger vehicle inspection activity in Texas and state

commercial passenger vehicle inspection activity in California. We

obtained commercial passenger vehicle inspection reports from

Department of Transportation and California Highway Patrol officials. We

also met with the Texas Bus Association, the American Bus Association,

and several U.S. bus company officials to discuss cross-border safety

issues involving commercial passenger vehicles.

With the exception of not verifying Customs’ cross-border crossing data

and inspection results reported by FHWA and California, we performed this

work in accordance with generally accepted government auditing

standards. We performed our work from January 1997 through July 1997.

We are sending copies of this report to congressional committees with

responsibilities for transportation issues; the Secretaries of Transportation

and the Treasury; the Administrator, FHWA; the Director, Office of

Management and Budget; and the Commissioner, U.S. Customs Service.

We will also make copies available to others.

If you or your staff have any questions about this report, please contact me

at (202) 512-3650. Major contributors to this report were Marion Chastain,

Paul Lacey, James Ratzenberger, Deena Richart, and Angel Sharma.

Sincerely yours,

Phyllis F. Scheinberg

Associate Director, Transportation Issues

(342931) Page 15 GAO/RCED-97-194 Safety Inspection of Mexican Buses and Vans
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