Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices 27593

Street SW., Washington, DC. We

apologize for any inconvenience this

rescheduling may cause.

DATES: A public hearing will be held at

10 a.m. on June 29, 1995.

ADDRESSES: A public hearing will be

held in room 4436 of the Nassif

Building, 400 Seventh Street SW.,

Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Harold Morick, Motive Power &

Equipment Division, Office of Safety,

FRA, 400 Seventh Street SW.,

Washington, DC 20590 (telephone 202–

366–4094), or Mark Tessler, Trial

Attorney, Office of Chief Council, FRA,

400 Seventh Street SW., Washington,

DC 20590 (telephone 202–366–0628).

Issued in Washington, DC, on May 18,

1995.

E.R. English,

Director, Office of Safety Enforcement.

[FR Doc. 95–12663 Filed 5–23–95; 8:45 am]

BILLING CODE 4910–06–M

National Highway Traffic Safety

Administration

[Docket No. 94–107; Notice 2]

Excalibur Automobile Corp.; Grant of

Application for Decision of

Inconsequential Noncompliance

Excalibur Automobile Corporation

(Excalibur) of Milwaukee, Wisconsin,

determined that some of its vehicles

failed to comply with the automatic

restraint system requirements of 49 CFR

571.208, Federal Motor Vehicle Safety

Standard (FMVSS) No. 208, ‘‘Occupant

Crash Protection,’’ and filed an

appropriate report pursuant to 49 CFR

part 573, ‘‘Defect and Noncompliance

Reports.’’ Excalibur has also applied to

be exempted from the notification and

remedy requirements of 49 U.S.C.

Chapter 301—‘‘Motor Vehicle Safety’’

on the basis that the noncompliance is

inconsequential to motor vehicle safety.

Notice of receipt of the application

was published on January 5, 1995 (60

FR 1823). This notice grants the

application.

Paragraph S4.1.4 of FMVSS No. 208

requires that vehicles manufactured on

or after September 1, 1989, be equipped

with a restraint system at each front

outboard designated seating position

that meets the standard’s frontal crash

protection requirements by means that

require no action by vehicle occupants.

This type of system is referred to as an

automatic restraint system.

Excalibur manufactured 59 model

year 1993, 1994, and 1995 JAC 427

Cobras without automatic restraint

systems. These vehicles all contain

Type 2, three-point harness active

restraint systems. However, as Excalibur

noted in its part 573 Report filed

concurrently with the application under

consideration, ‘‘36 JAC 427 Cobras are

in dealers’ possession and 15 have been

acquired by ultimate purchasers. The

remaining automobiles remain in the

possession of Excalibur.’’ NHTSA

granted Excalibur’s application for

temporary exemption on March 6, 1995

(60 FR 12281), an agency action that

covers the 36 unsold cars in dealer stock

and in Excalibur’s possession.

Therefore, only the 15 cars that have

been sold remain subject to the

application under consideration.

Excalibur supported its application

for inconsequential noncompliance with

the following. The 15 JAC 427 Cobras all

contain Type 2, three-point harness

active restraint systems. Bringing these

vehicles into compliance with

paragraph S4.1.4 of FMVSS 208 would

be very difficult from an engineering

perspective, and whatever feasible

solutions may be available, would most

likely result in significant expense for

Excalibur, a small financially-strapped

company.

As set forth below, Excalibur argued

that the overall safety risk from

noncompliance with paragraph S4.1.4 of

FMVSS 208 is inconsequential because

of (1) the vehicle’s specialized and

limited use and small number and (2)

Excalibur’s belief that Cobra owners

have a relatively high level of safety belt

use and (3) Excalibur’s proposal to boost

further Cobra safety belt use by placing

a warning label in the vehicle.

1. The Overall Safety Risk From

Noncompliance of Excalibur’s (15) JAC 427

Cobras With FMVSS 208 Is Inconsequential

Given Their Specialized And Limited Use

And Small Number

The JAC 427 Cobra is not an ordinary

passenger automobile designed for daily use.

It is a classically-styled automobile viewed as

a collector’s item by automobile

purchasers. * * * The JAC 427 Cobra is a

convertible which seats two persons, and has

a small trunk. As a result, it is not designed

to be used as a family’s primary passenger

vehicle. Instead, the JAC 427 Cobra is

typically driven only short distances from an

owner’s home. Owners of these (sic) type of

automobiles generally drive these

automobiles no more than 4000 miles per

year.

Excalibur has never planned to produce

many JAC 427 Cobras due to the limited

capacity of its manufacturing facilities and

the nature of its manufacturing process. For

example, the highest monthly total of JAC

427 Cobra automobiles ever produced was

17. Only 59 of these automobiles were

produced for sale in the U.S. between

January 1993 and September 1994, a 21-

month period. In 1995, Excalibur’s total

planned production is only 100–180 JAC 427

Cobras for sale worldwide, or no more than

15 per month. Of the 100–180, only 60% of

the JAC 427 Cobras, or 60–108, are proposed

for sale in the U.S.

The collector’s nature of the JAC 427

Cobra, the low number of miles that these

types of vehicles are driven on any consistent

basis, and the small number of actual JAC

427 Cobras that do not comply with FMVSS

208 illustrate the overall reduced safety risk

of these vehicles, especially when compared

to the overall risk posed by the average use

of the standard family passenger vehicle.

Thus, the total effect of the existence of only

(15) JAC 427 noncomplying automobiles—

which are meant for weekend pleasure

driving—is inconsequential in relation to the

overall level of motor vehicle safety in the

U.S.

2. The Safety Risk From Noncompliance Of

Excalibur’s (15) JAC 427 Cobras With FMVSS

208 Is Inconsequential Due To Probable

Existing Cobra Safety Belt Use And To

Excalibur’s Proposal To Boost Cobra Safety

Belt Use

The use of safety belts has been shown to

significantly reduce injuries and fatalities in

automobile crashes. See generally NHTSA,

Evaluation of the Effectiveness of Occupant

Protection—FMVSS 208 Interim Report, June

1992 (hereinafter referred to as ‘‘Interim

Report’’). Use of safety belts has increased

dramatically since 1983 due to the enactment

of state mandatory safety belt laws and the

installation of automatic safety belt systems.

By May of 1992, 42 states plus the District

of Columbia and Puerto Rico had enacted

laws requiring the use of safety belts. Interim

Report at v. Safety belt use overall increased

nationwide to nearly 59% in late 1991,

ranging from 24% in Mississippi to 83% in

Hawaii. NHTSA, Effectiveness of Occupant

Protection Systems and Their Use—Report to

Congress, January 1993. Manual safety belt

use nationwide reached 56% in 1991, and

may be even higher today due to increased

safety awareness. See Interim Report at viii.

An informal survey of Excalibur

automobile owners, including those of the

JAC 427 Cobra, revealed that these owners on

average are 45 year-old males with greater

incomes and higher levels of education than

the general population. Unlike youthful

segments of the population who are more

prone to reckless driving, Excalibur

automobile owners are predominantly

established, responsible people who value

their personal safety and the quality and

uniqueness of their investment in an

Excalibur automobile. As a result, Excalibur

opines that the owners of the JAC 427 Cobras

are more likely to be wearing a safety belt

while driving than other segments of the

population, such as young single males.

To ensure even higher safety belt use in its

JAC 427 Cobras, and thereby increase the

safety of the driver and passenger, Excalibur

proposes reminding in the strongest terms

possible both the driver and passenger of the

consequences of not using their safety belts.

Excalibur would accomplish this by posting

a warning label plainly and clearly visible to

both the driver and passenger which states as

follows:
27594 Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices

WARNING: YOU MUST USE THE

SEATBELT PROVIDED IN THIS VEHICLE. IT

IS THE LAW. FAILURE TO USE THE

SEATBELT COULD RESULT IN SERIOUS

INJURY OR DEATH SINCE THIS CAR DOES

NOT HAVE AN AIRBAG OR AUTOMATIC

RESTRAINT SYSTEM.

Such a label should boost safety belt use

by the drivers and passengers of the 59 JAC

427 Cobras, making the safety risk

inconsequential by comparison to the safety

risk associated with automobiles having

automatic restraint systems.

No comments were received on the

application.

As noted, the agency has granted

Excalibur’s application for temporary

exemption, on grounds that immediate

compliance would cause it substantial

economic hardship. An additional

finding was that the exemption would

be consistent with the public interest

and motor vehicle safety. This finding

was reached in part on the limited

number of vehicles that will be covered

by the exemption during its life. Given

the fact that there are far fewer vehicles

covered by the application under

consideration, and that the

noncompliance apparently cannot be

remedied by repair, the agency wishes

to reach a decision that is consistent

with that reached in granting the

application for temporary exemption.

Given the fact that there are 15 vehicles

involved here, and that they comply

with the requirements of FMVSS No.

208 that were once in effect, Excalibur’s

noncompliance may be deemed

inconsequential to safety.

NHTSA concurs with Excalibur’s plan

to provide a warning label, but points

out to Excalibur that not all States have

mandatory seatbelt laws. Further, the

label implies that it is not important to

use the seatbelt if a vehicle does not

have an airbag or other automatic

restraint system. It is important to use

the seatbelts regardless of whether there

is an automatic restraint system. The

agency calls this to the manufacturer’s

attention with the expectation that the

label provided will be modified to

reflect these comments.

In consideration of the foregoing, it is

hereby found that the applicant has met

its burden of persuasion that the

noncompliance herein described is

inconsequential to safety. Accordingly,

its application is granted, and the

applicant is exempted from providing

the notification of the noncompliance

that is required by 49 U.S.C. 30118, and

from remedying the noncompliance, as

required by 49 U.S.C. 30120.

(15 U.S.C. 1417; delegations of authority at

49 CFR 1.50 and 501.8)

Issued on: May 18, 1995.

Barry Felrice,

Associate Administrator for Safety

Performance Standards.

[FR Doc. 95–12664 Filed 5–23–95; 8:45 am]

BILLING CODE 4910–59–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

Tax on Certain Imported Substances

(Polybutylene, et. al); Notice of

Determinations

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice.

SUMMARY: This notice announces

determinations, under Notice 89–61,

that the list of taxable substances in

section 4672(a)(3) will be modified to

include polybutylene and polybutylene/

ethylene.

EFFECTIVE DATE: This modification is

effective July 1, 1990.

FOR FURTHER INFORMATION CONTACT:

Ruth Hoffman, Office of Assistant Chief

Counsel (Passthroughs and Special

Industries), (202) 622–3130 (not a tollfree number).

SUPPLEMENTARY INFORMATION:

Background

Under section 4672(a), an importer or

exporter of any substance may request

that the Secretary determine whether

the substance should be listed as a

taxable substance. The Secretary shall

add the substance to the list of taxable

substances in section 4672(a)(3) if the

Secretary determines that taxable

chemicals constitute more than 50

percent of the weight, or more than 50

percent of the value, of the materials

used to produce the substance. This

determination is to be made on the basis

of the predominant method of

production. Notice 89–61, 1989–1 C.B.

717, sets forth the rules relating to the

determination process.

Determination

On May 16, 1995, the Secretary

determined that polybutylene and

polybutylene/ethylene should be added

to the list of taxable substances in

section 4672(a)(3), effective July 1, 1990.

The rate of tax prescribed for

polybutylene, under section 4671(b)(3),

is $4.70 per ton. This is based upon a

conversion factor for butylene of 0.966.

The rate of tax prescribed for

polybutylene/ethylene, under section

4671(b)(3), is $4.86 per ton. This is

based upon a combined conversion

factor for butylene and ethylene of

0.999.

The petitioner is Pecten Chemicals, a

manufacturer and exporter of these

substances. No material comments were

received on these petitions. The

following information is the basis for

the determinations.

Polybutylene

HTS number: 3902.90.00.10

CAS number: 25036–29–7

Polybutylene is derived from the

taxable chemical butylene. Polybutylene

is a solid produced predominantly by

the Zeigler-Nata Catalyzed, Bulk,

Polymerization Process.

The stoichiometric material

consumption formula for polybutylene

is:

n (C4H8) (butylene) ——> (C4H8)n

(polybutylene)

Polybutylene has been determined to

be a taxable substance because a review

of its stoichiometric material

consumption formula shows that, based

on the predominant method of

production, taxable chemicals constitute

100 percent by weight of the materials

used in its production.

Polybutylene/Ethylene

HTS number: 3902.90.00.10

CAS number: 54570–68–2

Polybutylene/ethylene is derived from

the taxable chemicals butylene and

ethylene. Polybutylene/ethylene is a

solid produced predominantly by the

Zeigler-Nata Catalyzed, Bulk,

Polymerization Process.

The stoichiometric material

consumption formula for polybutylene/

ethylene is:

n (C4H8) (butylene) + m (C2H4)

(ethylene) ——> (C4H8)n(C2H4)m

(polybutylene/ethylene)

Polybutylene/ethylene has been

determined to be a taxable substance

because a review of its stoichiometric

material consumption formula shows

that, based on the predominant method

of production, taxable chemicals

constitute 100 percent by weight of the

materials used in its production.

Dale D. Goode,

Federal Register Liaison Officer, Assistant

Chief Counsel (Corporate).

[FR Doc. 95–12765 Filed 5–23–95; 8:45 am]

BILLING CODE 4830–01–U

Tax on Certain Imported Substances;

Definition of Substance

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice.