37878 Federal Register / Vol. 64, No. 134 /Wednesday, July 14, 1999 /Rules and Regulations

manufacturing production per year is

approximately 15 to 15 and a half

million passenger cars and light trucks

per year. We do not believe small

businesses manufacture even 0.1

percent of total U.S. passenger car and

light truck production per year.

Further, small organizations and

governmental jurisdictions will not be

significantly affected as the price of

motor vehicles ought not to change as

the result of this rule. As explained

above, this action is limited to the

adoption of a statutory directive, and

has been determined to be not

‘‘significant’’ under the Department of

Transportation’s regulatory policies and

procedures.

Finally, this action will not affect our

civil penalty policy under the Small

Business Regulatory Enforcement

Fairness Act (62 FR 37115, July 10,

1997). We shall continue to consider the

appropriateness of the penalty to the

size of the business charged.

Paperwork Reduction Act

In accordance with the Paperwork

Reduction Act of 1980 (Public Law 96–

511), we state that there are no

requirements for information collection

associated with this rulemaking action.

National Environmental Policy Act

We have also analyzed this

rulemaking action under the National

Environmental Policy Act and

determined that it has no significant

impact on the human environment.

Executive Order 12612 (Federalism)

We have analyzed this rule in

accordance with the principles and

criteria contained in E.O. 12612, and

have determined that it has no

significant federalism implications to

warrant the preparation of a Federalism

Assessment.

Civil Justice Reform

This rule does not have a retroactive

or preemptive effect. Judicial review of

a rule may be obtained pursuant to 5

U.S.C. 702. That section does not

require that a petition for

reconsideration be filed prior to seeking

judicial review.

Unfunded Mandates Reform Act of 1995

The Unfunded Mandates Reform Act

of 1995 (Public Law 104–4) requires

agencies to prepare a written assessment

of the cost, benefits and other effects of

proposed or final rules that include a

Federal mandate likely to result in the

expenditure by State, local, or tribal

governments, in the aggregate, or by the

private sector, of more than $100

million annually. Because this rule will

not have a $100 million effect, no

Unfunded Mandates assessment will be

prepared.

List of Subjects in 49 CFR Part 578

Imports, Motor vehicle safety, Motor

vehicles, Rubber and rubber products,

Penalties, Tires.

In consideration of the foregoing, 49

CFR part 578 is amended as follows:

PART 578—CIVIL PENALTIES

1. The authority citation for 49 CFR

part 578 is revised to read as follows:

Authority: 49 U.S.C. 30165, 30505, 32308,

32309, 32507, 32709, 32710, 32912, and

33115; Pub. L. 101–410, 104 Stat. 890; Pub.

L. 104–134, 110 Stat. 1372; delegation of

authority at 49 CFR 1.50.

2. Section 578.6 is amended by

revising the last sentence in paragraphs

(a) and (d) and revising paragraphs (c)(2)

and (f)(2) to read as follows:

§ 578.6 Civil penalties for violations of

specified provisions of Title 49 of the United

States Code.

(a) Motor vehicle safety. * * * The

maximum civil penalty under this

paragraph for a related series of

violations is $925,000.

* * * * *

(c) Bumper standards. * * *

(2) The maximum civil penalty under

this paragraph (c) for a related series of

violations is $925,000.

(d) Consumer information regarding

crashworthiness and damage

susceptibility. * * * The maximum

penalty under this paragraph for a

related series of violations is $450,000.

* * * * *

(f) Odometer tampering and

disclosure. * * *

(2) A person that violates 49 U.S.C.

Chapter 327 or a regulation prescribed

or order issued thereunder, with intent

to defraud, is liable for three times the

actual damages or $2,000, whichever is

greater.

* * * * *

Issued on: July 8, 1999.

Ricardo Martinez,

Administrator.

[FR Doc. 99–17807 Filed 7–13–99; 8:45 am]

BILLING CODE 4910–59–P

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety

Administration

49 CFR Part 591

[Docket No. 99–NHTSA–5240; Notice 2]

RIN 2127–AH45

Importation of Vehicles and Equipment

Subject to Federal Safety, Bumper, and

Theft Prevention Standards

AGENCY: National Highway Traffic

Safety Administration (NHTSA), DOT.

ACTION: Final rule.

SUMMARY: This document amends

NHTSA’s importation regulations to

implement a 1998 statutory amendment

that adds ‘‘show or display’’ to the

special limited purposes for which

vehicles or equipment items may be

imported without having to comply

with the Federal motor vehicle safety

standards (FMVSS). Under the

amendments, a person who wants to

import a vehicle or equipment item for

‘‘show or display’’ must persuade us

that the vehicle or equipment item is of

such historical or technological

significance that it is worthy of being

shown or displayed in this country even

though it would be difficult or

impossible to be brought into

compliance with the FMVSS. We intend

this provision to accommodate

primarily individuals wishing to import

an example of a make or model of a

vehicle which its manufacturer never

sold in the United States and which

therefore has no counterpart that was

certified to conform to the FMVSS.

We will allow limited use on the

public roads of vehicles imported for

‘‘show or display.’’ Before entry, an

importer must describe the intended onroad use of the vehicle and submit a

copy of an insurance contract

containing the condition that the

maximum annual mileage of the vehicle

shall not exceed 2,500 miles.

Pursuant to the 1998 statutory

amendment, we are also allowing

owners of vehicles already imported

into the United States under other

exemptions to apply to us for a change

in the terms and conditions under

which we permitted their vehicles to be

imported. The opportunity to apply for

such a change is statutorily limited to

the period of 6 months after the effective

date of the final rule.

DATES: Effective date: The final rule is

effective August 13, 1999

FOR FURTHER INFORMATION CONTACT:

Taylor Vinson, Office of Chief Counsel,

NHTSA (202–366–5263).
Federal Register / Vol. 64, No. 134 /Wednesday, July 14, 1999 /Rules and Regulations 37879

SUPPLEMENTARY INFORMATION: We

discussed at some length the

background of this rulemaking action in

our notice of proposed rulemaking,

published on March 22, 1999 (64 FR

13757). Given the fact that we received

only one comment by the end of the 45-

day comment period, May 6, 1999, we

are not repeating this discussion, and

interested persons may read the earlier

document for background information.

That comment, from the Special Vehicle

Coalition, supported the proposed rule,

with a recommended change in the

mileage permissible for on-road use. We

discuss this at an appropriate place in

the notice. Except for the annual

mileage and verification statements, we

are adopting a final rule as we proposed

it.

1. The 1998 Amendment to the Import

Regulations

Sec. 7107(a) of Pub. L. 105–178,

which was enacted on June 9, 1998,

amended 49 U.S.C. 30114 by adding

‘‘show, or display’’ to the special

purposes set forth in that section. As the

Conference Report on the

Transportation Equity Act for the 21st

Century explained:

Section 7107 reinstates NHTSA’s authority

to exempt certain motor vehicles imported

for the purpose of show or display from

certain applicable motor vehicle safety

standards. Such authority was

unintentionally deleted when title 49, United

States Code was recodified in 1988.

(H. Report 105–550, p. 523)

(We note that the deletion of ‘‘show’’

resulted from the 1988 amendments to

the importation authority, rather than

from the 1994 recodification, which

deleted ‘‘studies’’).

2. Amendments to 49 CFR Part 591

That Implement Congress’ Amendment

of Sec. 30114

A. Sec. 591.5, Declarations Required for

Importation

As amended, sec. 30114 now reads:

The Secretary of Transportation may

exempt a motor vehicle or item of motor

vehicle equipment from section 30112(a) of

this title on terms the Secretary decides are

necessary for research, investigations,

demonstrations, training, competitive racing

events, show or display.

Currently, 49 CFR 591.5(j)(1)

implements 49 U.S.C. 30114 by

specifying requirements for importation

of nonconforming vehicles or

equipment for purposes of research,

investigations, studies, demonstrations

or training, and competitive racing

events. In view of the intent of Congress

at the time of recodification to include

the word ‘‘studies’’ in the word

‘‘research,’’ as previously discussed, we

are revising Sec. 591.5(j)(1)(iii) to

substitute the term ‘‘show or display’’

for ‘‘studies.’’ We deem the term

‘‘studies’’ covered by the word

‘‘research’’ and subject to the same

terms and conditions imposed on

vehicles imported for purposes of

‘‘research.’’

B. Sec. 591.6, Documents

Accompanying Declarations

We recognize two types of importers

under sec. 591.5(j): one that has

received written permission from us to

import a vehicle under its provisions

(sec. 591.5(j)(2)(i)); and one that is an

original manufacturer of motor vehicles

(or its wholly-owned subsidiary) and

that certifies that its products comply

with the Federal motor vehicle safety

standards (sec. 591.5(j)(2)(ii)).

Sec. 591.6(f) specifies the procedure

for an importer who wishes to obtain

written permission from us to import a

vehicle or equipment item under sec.

591.5(j)(2)(i). Sec. 591.6(f)(1) requires all

such requests to contain information

sufficient to identify the vehicle or

equipment and the specific purpose of

importation, which must include a

discussion of the use to be made of the

vehicle or equipment. With respect to

any such vehicle to be imported for

research, investigations, demonstrations

or training (but not for studies), if use

on the public roads is to be an integral

part of the purpose of importation, the

statement must request permission for

use on the public roads, describing the

purpose that makes such use necessary

and stating the estimated period of time

during which use of the public roads is

necessary. The request must also state

the intended means of final disposition

(and disposition date) of the vehicle or

equipment after completion of the

purpose for which it is imported.

After review, we have decided that it

is appropriate to retain this requirement

in implementing the new statutory

provision but we will amend sec.

591.6(f)(1) to clarify that it pertains to

importations other than those for show

or display, which will now be covered

by sec. 591.6(f)(2).

Currently, if a sec. 591.5(j)(2)(i)

importer wishes to import a vehicle or

equipment for ‘‘studies,’’ the importer’s

written request:

shall explain why the vehicle or equipment

item is of historical or technological interest,

and describe the studies for which

importation is sought. The importer, if other

than the National Museum of History and

Technology, Smithsonian Institution, shall

also provide a copy of the Determination

Letter from the Internal Revenue Service

approving the importer’s status as a taxexempt corporation or foundation under

section 501(c)(3) or section 509, respectively,

of the Internal Revenue Code. The time

between the date of the Letter and the date

of the importer’s written request to the

Administrator shall be not less than 5 years.

The importer shall also provide a statement

that it shall not sell, or transfer possession of,

or title to, the vehicle, or license it for use,

or operate it on the public roads, until the

vehicle is not less than 25 years old.

We have concluded that the statutory

amendment providing authority to

admit vehicles or equipment for show or

display, without any qualification on

the eligibility of the importer, means

that tax-exempt entities as well as

individual importers may import

vehicles for show or display. For this

reason, there is no further need to

maintain an exemption for studies.

Accordingly, we are amending the

regulation to delete the provisions

expressly relating to importations for

studies. As noted, importations for

‘‘studies’’ are essentially those of

importations for ‘‘research.’’

One of the terms and conditions of the

allowance of importation for ‘‘studies’’

was that the vehicle not be licensed for

use or operated on the public roads. We

have reviewed this restriction in view of

our new authority to allow importation

for ‘‘show or display,’’ and have

concluded that limited on-road use

should be allowed, pursuant to our

permission. We believe that the

historical and technological significance

of a vehicle may be maintained by its

limited use of the public roads on an

occasional basis in order to ensure that

its engine, braking, lighting, and other

dynamic systems remain in good

working order, in short, so that it may

be preserved. Another appropriate use

of such a vehicle on the public roads

would be to allow it to travel to and

from nearby displays of automobiles of

similar significance, so that its

significance could be appreciated by a

greater number of people than were it

restricted to off-road use. We proposed

that on-road use of these nonconforming

vehicles should be limited to a

maximum of 500 miles per year. For the

reasons discussed below, this proposed

restriction has been modified.

Consistent with the previous

exemption for ‘‘studies,’’ we have

decided that a person who wishes to

import a vehicle for show or display

ought to establish that the vehicle is one

of historical or technological interest.

This criterion has existed for many

years, beginning with the previous

‘‘show’’ exemption, and continuing with

the one for ‘‘studies.’’

Our most detailed discussion of the

criterion of historical and technical
37880 Federal Register / Vol. 64, No. 134 /Wednesday, July 14, 1999 /Rules and Regulations

interest was contained in a letter of July

12, 1983, to Richard London, and it is

worth repeating here. Mr. London asked

about the acceptability of importing a

Mercedes-Benz 280SL which would be

trailered to various auto meets, and

which would not be licensed for use or

used on the public roads. We advised

Mr. London that:

The agency considers several factors in

determining whether to accept a declaration

that a vehicle is imported solely for ‘‘show.’’

One of these is the nature of the vehicle

itself. If it is a unique machine generally

considered to be of technological or historical

significance, it is more likely to be admitted

under the exception than if it were a massproduced vehicle similar to many that were

manufactured to conform to the Federal

motor vehicle safety standards. The smaller

the production run, the greater the likelihood

that it will be considered to be unique.

Mechanical components that differ

substantially from those commonly in use at

the time of manufacturer are evidence of its

technological significance. Association with

historical personages that would create a

desire in the public to see the car is also

considered relevant in the agency’s

interpretation of the word ‘‘show.’’

Examples of vehicles that might

qualify under this exemption are high

technology vehicles such as the

McLaren F1, or certain types of Porsches

or Ferraris that were never, in the first

instance, sold in the United States. We

might consider a vehicle owned by the

Pope, the Queen of England, or some

other important figure to be a vehicle of

historical significance.

We went on to explain to Mr. London

that

In interpreting the word ‘‘show’’ and

thereby exercising its discretion whether to

allow importation of nonconforming motor

vehicles for this purpose, the agency must

balance the harm to the public likely to occur

through use of the vehicle on the public

roads, with the benefit to the public of

importation of nonconforming vehicle for

show purposes. * * * [t]he agency believes

it is less likely that a rare or unique vehicle,

part of a collection available to the public

will be sold for use on the public roads than

a vehicle such as the 1968–72 Mercedes

280SL that has been imported in numerous

quantities as a conforming motor vehicle.

This explanation clearly

demonstrated our view that

nonconforming analogues of certified

vehicles sold in the United States were

not very likely to be considered of

historical or technological significance.

In any event, use on the public roads

will not be a matter of right for vehicles

imported for ‘‘show or display,’’ but

subject to such terms and conditions as

may be established at the time of entry.

In some cases where there are safety

concerns, we may refuse to authorize

on-road use of a particular vehicle. In

order to ensure that any on-road use is

limited, the prospective importer, in his

or her request letter, must describe the

purposes for which on-road use is

deemed required.

We proposed that the request be

accompanied with an affirmation that

the vehicle will not be driven on the

public roads more than 500 miles in any

12-month period beginning as of the

date of its importation, and that the

affirmation be confirmed by the

importer’s submittal of an annual

notarized mileage statement for the

vehicle on the anniversary date of its

importation, for the first five years after

it is imported. We have been requested

by the one commenter on the proposal,

the Special Vehicle Coalition (the

‘‘Coalition’’), to increase the permissible

annual mileage to 2,500 miles.

Describing itself as ‘‘a group of vehicle

collectors who own limited-production

high-performance vehicles,’’ the

Coalition asserted that ‘‘restricting

mileage to 500 miles per year will

prohibit participation in many civic and

charitable events designed to benefit,

entertain, and inspire the American

public.’’ More persuasively, the

Coalition argued that an annual

odometer reading might not accurately

reflect actual on-road usage, since it

would include mileage attributable to

any use of the vehicle off the public

roads as well. It brings to our attention

that ‘‘a 2,500 mile allotment is

consistent with current practice for

these kind of vehicles, including normal

on-road usage of much older collector

vehicles that, because of their age, will

not meet Federal motor vehicle safety

standards.’’ This comment was

accompanied by a footnote saying that

‘‘Insurance policies for classic cars and

vehicles of special interest typically set

a maximum mileage allowance of 2,500

miles per year.’’

We have reconsidered our proposal in

light of the Coalition’s comments. In

proposing a 500-mile limitation, we had

not focused on the fact that other

vehicles not subject to the Federal motor

vehicle safety standards have been

permitted to use the public roads under

insurance policies that limit their

mileage allowance to 2,500 miles per

year. While the Coalition did not

discuss the kind of insurance policy that

would be obtained by importers for

show and display, we assume that all

vehicles imported for show and display

will, in fact, be insured, and that the

policy would not deviate materially

from those that cover classic and special

interest vehicles. Furthermore, the

mileage limitation imposed as a

condition of insurance appears to

remove the need for the importer to

submit an annual mileage statement to

us. However, we believe that we ought

to be able to inspect the vehicle if we

wish to verify that the accumulated

mileage of the vehicle is not more than

2,500 miles in any 12-month period.

Accordingly, our final rule requires the

prospective importer to submit with its

request the current mileage of the

vehicle and a copy of an insurance

contract covering the car, which

contains as a condition the restriction of

annual mileage to a maximum of 2,500

miles (this limitation refers to all

mileage, not merely on-road mileage). In

addition, the prospective importer must

state that (s)he will allow us to inspect

the vehicle upon our request. As

proposed, the prospective importer will

also have to state that the vehicle will

not be used on the public roads unless

it complies with the requirements of the

Environmental Protection Agency.

Moreover, as indicated above, we may

impose additional requirements or

limitations in particular instances when

we find such requirements are

appropriate.

We have substituted the conditions

for an insurance policy and its

maintenance until the vehicle is 25

years old for the notarized mileage

statement submitted for 5 years after

importation which we originally

proposed. Under 49 U.S.C. 30112(b)(9),

a noncomplying motor vehicle may be

imported with no Federal legal

requirement to conform it if it is at least

25 years old. Our new provision, thus,

serves to release the importer or owner

from the restrictions imposed on show

or display importations when the

vehicle reaches 25 years of age. We

retain the right to inspect it for mileage

verification until that point.

The current regulation also restricts

sale and transfer of possession of a

vehicle imported for ‘‘studies’’ until it is

25 years old. While this restriction

might not be burdensome to a museum,

the agency recognizes that there are

circumstances such as the death of an

importer where a sale or transfer of a

vehicle imported for ‘‘show or display’’

must occur before it is 25 years old. To

fully implement its new authority to

allow importation for ‘‘show or

display,’’ the agency is modifying this

restriction, and allow sale or transfer of

a vehicle imported for ‘‘show or

display’’ upon approval by the

Administrator.

Accordingly, we are revising sec.

591.6(f)(2) to require that a prospective

importer:

shall explain why the vehicle or equipment

item is of historical or technological interest.

The importer shall also provide a statement

that, until the vehicle is not less than 25
Federal Register / Vol. 64, No. 134 /Wednesday, July 14, 1999 /Rules and Regulations 37881

years old, (s)he shall not sell, or transfer

possession of, or title to, the vehicle, and

shall not license it for use, or operate it on

the public roads, except under such terms

and conditions as the Administrator may

authorize. If the importer wishes to operate

the vehicle on the public roads, the request

to the Administrator shall include a

description of the purposes for which (s)he

wishes to use it on the public roads, a copy

of an insurance policy or a contract to

acquire an insurance policy, which contains

as a condition thereof that the vehicle will

not accumulate mileage of more than 2,500

miles in any 12-month period and a

statement that the importer shall maintain

such policy in effect until the vehicle is not

less than 25 years old, a statement that the

importer will allow the Administrator to

inspect the vehicle at any time after its

importation to verify that the accumulated

mileage of the vehicle is not more than 2,500

miles in any 12-month period, and a

statement that the vehicle will not be used

on the public roads unless it is in compliance

with the regulations of the Environmental

Protection Agency.

Failure to allow a mileage inspection or

to maintain a policy with an

accumulated mileage limitation or the

accumulation of more than 2,500 miles

in any 12-month period will be regarded

as a violation of the terms of entry.

C. Sec. 591.7, Restrictions on

Importations

Until now, all importations under sec.

591.5(j)(1) have been ‘‘for a temporary

period,’’ requiring a U.S. Customs

Service Temporary Importation Bond

(TIB). Under sec. 591.7(a), the TIB

requires that vehicles which it covers

shall not remain in the United States for

a period that exceeds 3 years from the

date of entry. However, under sec.

591.7(b), if the importer decides to

liquidate the bond, it may apply to us

for permission to keep the vehicle in the

country for an additional period of time

not to exceed 5 years from the date of

entry, unless further written permission

has been obtained from us. Such written

permission, after 5 years, can result in

an ‘‘importation for a temporary period’’

becoming a permanent one. This

regulatory scheme has caused

uncertainty as to whether we permit

permanent importations under sec.

591.5(j).

Because we do permit permanent

importations under sec. 591.5(j), we

believe that we should clarify this point

and simplify this process to allow a

permanent importation ab initio, if an

importer chooses to pay duty upon

entry of the vehicle, rather than treating

the entry as a ‘‘temporary’’ one,

requiring a TIB and subsequent letters of

permission. Amendments of this nature

will not affect the existing right under

sec. 591.5(j)(1) to import vehicles on a

temporary basis with a TIB for those

importers who wish to choose this

option.

Another restriction is imposed by sec.

591.7(c). If the importer has brought a

vehicle into the United States pursuant

to sec. 591.5(j)(2)(i), sec. 591.7(c)

requires the importer to retain title to

and possession of it, forbids its leasing,

and allows its use on the public roads

only if written permission has been

granted by the Administrator pursuant

to sec. 591.6(f)(1) (covering importations

for research, investigations,

demonstrations or training, but not

studies or competitive racing events).

The restriction of sec. 591.7(c)

implements the statement that an

importer is required to make as part of

the request letter. Given the fact that

limited on-road use is being permitted

for importations for ‘‘show or display,’’

we are amending sec. 591.7(c) to allow

limited on-road use of all vehicles

imported under sec. 591.5(j)(2)(i)

‘‘under such terms and conditions as the

Administrator may authorize in

writing.’’ We are also amending the first

sentence of sec. 591.7(c) to conform to

the statement that an importer gives

under sec. 591.6(f)(2), and imposing

affirmative obligations not to sell or

transfer the vehicle, or license it or

operate it on the public roads except

upon written approval by the

Administrator in place of the presently

existing absolute prohibition.

Sec. 591.7(d) specifically provides

that any violation of a term or condition

that we impose ‘‘in a letter authorizing

importation or on-road use under sec.

591.5(j) shall be considered a violation’’

of the Safety Act for which a civil

penalty may be imposed. We note that

this language could possibly be read as

suggesting that a civil penalty would be

the only consequence of a violation of

a condition imposed as part of an

exemption from sec. 30112(a).

Therefore, we are modifying sec.

591.7(d) to make it clear that such a

violation of a term or condition in an

exemption authorization will void the

authorization and require exportation of

the vehicle. In addition, the statutory

reference in sec. 591.7(d) to 15 U.S.C.

1397(a)(1)(A) is changed to 49 U.S.C.

30112(a) to reflect the recodification of

the Safety Act into Chapter 301.

Sec. 591.7(e) prohibits the

importation for ‘‘studies’’ by any person

not recognized as a tax-exempt entity by

the Internal Revenue Service for not less

than 5 years before the date of its

written request. Because we are

incorporating the ‘‘studies’’ exemption

into the exemption for ‘‘research’’ where

this restriction does not exist, this

section is moot. Sec. 591.7(e), therefore,

is being removed. A new subsection (e)

will replace it, to implement the

statutory directive of section 7107(b) of

Pub. L. 105–178 discussed below.

3. Seeking Exemptions Under Sec.

30114 for Vehicles in the United States

at the Time the Amendment Was

Enacted

Section 7107(b) of Pub. L. 105–178

provides that:

(b) TRANSITION RULE—A person who is

the owner of a motor vehicle located in the

United States on the date of enactment of this

Act may seek an exemption under section

30114 of title 49, United States Code, as

amended by subsection (a) of this section, for

a period of 6 months after the date

regulations of the Secretary of Transportation

promulgated in response to such amendment

take effect.

We interpret sec. 7017(b) as

authorizing owners of vehicles imported

under sec. 591.5(j) before June 9, 1998,

to apply to the Administrator for a

change in the terms and conditions

under which the vehicle was admitted

so that engaging in an act contrary to

those original terms and conditions will

not be held to be a violation. If the

change requested is to reclassify the

vehicle as one imported for show or

display, we proposed that the request

also include a statement that the owner

will provide the annual mileage

statement required of de novo importers

for show or display by sec. 591.6(f)(2).

However, the final rule for change-ofstatus importers is modified to reflect

the changes we are adopting in sec.

591.6(f)(2) relating to an increase in

maximum mileage subject to insurance

limitations, and the right to inspect the

vehicle to verify its accumulated

mileage. Therefore, we are revising sec.

591.7(d) and (e) to read as follows:

(d) Any violation of a term or condition

imposed by the Administrator in a letter

authorizing importation or on-road use under

§ 591.5(j), or a change of status under

paragraph (e) of this section, including a

failure to allow inspection upon request to

verify that the accumulated mileage of the

vehicle is not more than 2,500 miles in any

12-month period, shall be considered a

violation of 49 U.S.C. 30112(a) for which a

civil penalty may be imposed. Such a

violation will also act to void the

authorization and require the exportation of

the vehicle. With respect to importations

under § 591.6(f)(2) or a change of status to an

importation for show or display as provided

under paragraph (e) of this section, if the

Administrator has reason to believe that a

violation has occurred, the Administrator

may tentatively conclude that a term of entry

has been violated but shall make no final

conclusion until the importer or owner has

been afforded an opportunity to present data,

views, and arguments as to why there is no
37882 Federal Register / Vol. 64, No. 134 /Wednesday, July 14, 1999 /Rules and Regulations

violation or why a penalty should not be

imposed.

(e) The owner of a vehicle located in the

United States on June 9, 1998, which the

owner had imported pursuant to § 591.5(j),

may apply to the Administrator on or before

February 14, 2000, for a change in any such

term or condition contained in the

Administrator’s letter. If the owner requests

a change to importation for show or display,

the request to the Administrator shall contain

the information and statements required

under § 591.6(f)(2) for a new importation for

show or display. All requests for change shall

be sent to the Director, Office of Vehicle

Safety Compliance (NSA–32), National

Highway Traffic Safety Administration,

Room 6111, 400 Seventh Street, SW,

Washington, DC 20590.

4. Effective Date

The final rule is effective 30 days after

its publication in the Federal Register.

5. Rulemaking Analyses and Notices

A. Executive Order 12866 (Federal

Regulation) and DOT Regulatory

Policies and Procedures

This rule has not been reviewed

under E.O. 12866. After considering the

impacts of this rulemaking action,

NHTSA has determined that the action

is not significant within the meaning of

the Department of Transportation

regulatory policies and procedures. The

only substantive change that this rule

makes is to add an additional

justification for importing motor

vehicles without the need to comply

with the Federal motor vehicle safety

standards, and to require their importers

to submit substantiating information

similar to that already required for

similar importations (see discussion

below on Paperwork Reduction Act).

The impacts are so minimal as not to

warrant the preparation of a full

regulatory evaluation.

B. Regulatory Flexibility Act

The agency has also considered the

effects of this action in relation to the

Regulatory Flexibility Act. For the

reasons discussed above under E.O.

12866 and the DOT Policies and

Procedures, I certify that this action

does not have a significant economic

impact upon ‘‘a substantial number of

small entities.’’ The addition of an

option to import a vehicle for ‘‘show or

display’’ without the need to conform it

relieves a previously existing restriction.

Because the agency has permitted

manufacturers of motor vehicles to

import vehicles for purposes similar to

‘‘show or display’’ in the past, NHTSA

believes that virtually all who wish to

import a vehicle for ‘‘show or display’’

will be individuals. Individuals are not

‘‘small entities.’’ Governmental

jurisdictions will be affected only to the

extent that they must decide whether

local laws permit the operation on local

public roads of motor vehicles imported

for show or display that do not conform

to all applicable Federal motor vehicle

safety standards, and this decision will

not have a significant economic impact.

C. Executive Order 12612 (Federalism)

The agency has analyzed this action

in accordance with the principles and

criteria contained in Executive Order

12612 ‘‘Federalism’’ and determined

that the action does not have sufficient

federalism implications to warrant the

preparation of a Federalism Assessment.

D. National Environmental Policy Act

NHTSA has analyzed this action for

purposes of the National Environmental

Policy Act. The action will not have a

significant effect upon the environment

because it is anticipated that the annual

volume of motor vehicles imported will

not vary significantly from that existing

before the promulgation of this rule.

E. Civil Justice Reform

This final rule does not have any

retroactive effect.

F. Paperwork Reduction Act

The procedures in this rule to permit

importation of motor vehicles and

equipment not originally manufactured

for the U.S. market include information

collection requirements as that term is

defined by the Office of Management

and Budget (OMB) in 5 CFR Part 1320.

The original information collection

requirements of Part 591 were approved

by the OMB pursuant to the

requirements of the Paperwork

Reduction Act (44 U.S.C. Sec. 3501 et

seq.). NHTSA believes that the existing

clearance covers a final rule that is

based on implementing a statutory

amendment, and has not sought a new

or expanded clearance. This collection

of information has been assigned OMB

Control No. 2127–0002 (‘‘Motor Vehicle

Information’’).

G. Unfunded Mandates Reform Act of

1995

The Unfunded Mandates Reform Act

of 1995 (Pub. L. 104–4) requires

agencies to prepare a written assessment

of the cost, benefits, and other effects of

proposed or final rules that include a

Federal mandate likely to result in the

expenditure by state, local, or tribal

governments, in the aggregate, or by the

private sector, of more than $100

million annually. Because this final rule

will not have an effect of $100 million,

no Unfunded Mandates assessment has

been prepared.

List of Subjects in 49 CFR Part 591

Imports, Motor vehicle safety, Motor

vehicles, Reporting and recordkeeping

requirements.

In consideration of the foregoing, 49

CFR part 591 is amended as follows:

PART 591—IMPORTATION OF

VEHICLES AND EQUIPMENT SUBJECT

TO FEDERAL SAFETY, BUMPER AND

THEFT PREVENTION STANDARDS

1. The authority citation for part 591

is revised to read as follows:

Authority: 49 U.S.C. 322(a), 30114; Pub. L.

100–562, 102 Stat. 2824; Pub. L. 105–178,

112 Stat. 469; delegations of authority at 49

CFR 1.50 and 501.8.

2. Section 591.5 is amended by

revising paragraph (j)(1) to read as

follows:

§ 591.5 Declarations required for

importation.

* * * * *

(j)(1) The vehicle or equipment item

does not conform with all applicable

Federal motor vehicle safety and

bumper standards, but is being imported

solely for the purpose of:

(i) Research;

(ii) Investigations;

(iii) Show or display;

(iv) Demonstrations or training; or

(v) Competitive racing events;

* * * * *

3. Section 591.6(f)(1) and (f)(2) are

revised to read as follows:

§ 591.6 Documents accompanying

declarations.

* * * * *

(f) * * *

(1) A declaration made pursuant to

§ 591.5(j)(1)(i), (ii), (iv), or (v) and

(j)(2)(i) shall be accompanied by a letter

from the Administrator authorizing

importation pursuant to § 591.5(j)(1)(i),

(ii), (iv), or (v) and (j)(2)(i). Any person

seeking to import a motor vehicle or

motor vehicle equipment pursuant to

these sections shall submit, in advance

of such importation, a written request to

the Administrator containing a full and

complete statement identifying the

vehicle or equipment, its make, model,

model year or date of manufacture, VIN

if a motor vehicle, and the specific

purpose(s) of importation. The

discussion of purpose(s) shall include a

description of the use to be made of the

vehicle or equipment. If use on the

public roads is an integral part of the

purpose for which the vehicle or

equipment is imported, the statement

shall request permission for use on the

public roads, describing the purpose

which makes such use necessary, and

stating the estimated period of time
Federal Register / Vol. 64, No. 134 /Wednesday, July 14, 1999 /Rules and Regulations 37883

during which use of the vehicle or

equipment on the public roads is

necessary. The request shall also state

the intended means of final disposition,

and disposition date, of the vehicle or

equipment after completion of the

purposes for which it is imported. The

request shall be addressed to Director,

Office of Vehicle Safety Compliance

(NSA–32), National Highway Traffic

Safety Administration, Room 6111, 400

Seventh Street, SW, Washington, DC

20590.

(2) A declaration made pursuant to

§ 591.5(j)(1)(iii) and (j)(2)(i) shall be

accompanied by a letter from the

Administrator authorizing importation

pursuant to § 591.5(j)(1)(iii) and (j)(2)(i).

Any person seeking to import a motor

vehicle or motor vehicle equipment

pursuant to those sections shall submit,

in advance of such importation, a

written request to the Administrator

containing a full and complete

statement identifying the equipment

item or the vehicle and its make, model,

model year or date of manufacture, VIN,

and mileage at the time the request is

made. The importer’s written request to

the Administrator shall explain why the

vehicle or equipment item is of

historical or technological interest. The

importer shall also provide a statement

that, until the vehicle is not less than 25

years old, (s)he shall not sell, or transfer

possession of, or title to, the vehicle,

and shall not license it for use, or

operate it on the public roads, except

under such terms and conditions as the

Administrator may authorize. If the

importer wishes to operate the vehicle

on the public roads, the request to the

Administrator shall include a

description of the purposes for which

(s)he wishes to use it on the public

roads, a copy of an insurance policy or

a contract to acquire an insurance

policy, which contains as a condition

thereof that the vehicle will not

accumulate mileage of more than 2,500

miles in any 12-month period and a

statement that the importer shall

maintain such policy in effect until the

vehicle is not less than 25 years old, a

statement that the importer will allow

the Administrator to inspect the vehicle

at any time after its importation to verify

that the accumulated mileage of the

vehicle is not more than 2,500 miles in

any 12-month period, and a statement

that the vehicle will not be used on the

public roads unless it is in compliance

with the regulations of the

Environmental Protection Agency.

* * * * *

4. Section 591.7 is amended by

revising the first sentence of paragraph

(c) and by revising paragraphs (d) and

(e) to read as follows:

§ 591.7 Restrictions on importations.

* * * * *

(c) An importer of a vehicle which has

entered the United States under a

declaration made pursuant to

§ 591.5(j)(2)(i) shall not sell, or transfer

possession of, or title to, the vehicle,

and shall not license it for use, or

operate it on the public roads, except

under such terms and conditions as the

Administrator may authorize in writing.

* * *

(d) Any violation of a term or

condition imposed by the Administrator

in a letter authorizing importation for

on-road use under § 591.5(j), or a change

of status under paragraph (e) of this

section, including a failure to allow

inspection upon request to verify that

the accumulated mileage of the vehicle

is not more than 2,500 miles in any 12-

month period, shall be considered a

violation of 49 U.S.C. 30112(a) for

which a civil penalty may be imposed.

Such a violation will also act to void the

authorization and require the

exportation of the vehicle. With respect

to importations under § 591.6(f)(2) or a

change of status to an importation for

show or display as provided under

paragraph (e) of this section, if the

Administrator has reason to believe that

a violation has occurred, the

Administrator may tentatively conclude

that a term of entry has been violated,

but shall make no final conclusion until

the importer or owner has been afforded

an opportunity to present data, views,

and arguments as to why there is no

violation or why a penalty should not be

imposed.

(e) The owner of a vehicle located in

the United States on June 9, 1998,

which the owner had imported pursuant

to § 591.5(j), may apply to the

Administrator on or before February 14,

2000 for a change in any such term or

condition contained in the

Administrator’s letter. If the owner

requests a change to importation for

show or display, the request to the

Administrator shall contain the

information and statements required

under § 591.6(f)(2) for a new

importation for show or display. All

requests for change shall be sent to the

Director, Office of Vehicle Safety

Compliance (NSA–32), National

Highway Traffic Safety Administration,

Room 6111, 400 Seventh Street, SW,

Washington, DC 20590.

Issued on: July 8, 1999.

Kathleen C. DeMeter,

Acting Associate Administrator for Safety

Assurance.

[FR Doc. 99–17806 Filed 7–13–99; 8:45 am]

BILLING CODE 4910–59–P

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric

Administration

50 CFR Part 635

[I.D. 052499C]

Atlantic Highly Migratory Species

(HMS) Fisheries; Large Coastal Shark

Species; Commercial Fishery Closure

Change

AGENCY: National Marine Fisheries

Service (NMFS), National Oceanic and

Atmospheric Administration (NOAA),

Commerce.

ACTION: Closure change.

SUMMARY: NMFS changes the closure of

the large coastal shark (LCS) commercial

fishery in the Atlantic Ocean, including

the Gulf of Mexico and Caribbean Sea.

On June 7, 1999, NMFS announced in

the Federal Register a closure date of

July 12, 1999, for non-ridgeback LCS

and a closure date of August 8, 1999, for

ridgeback LCS. In a court order by Judge

Stephen D. Merryday, the new

regulations governing catch quotas and

fish counting methods are enjoined

until further order of the court.

Therefore, based on 1997 and 1998

catch rates, NMFS has determined that

the second semiannual subquota for

LCS will be reached on or before July

28, 1999.

DATES: This postponement action is

effective July 9, 1999. The closure for

the commercial LCS fishery is changed

to 11:30 p.m., local time, July 28, 1999,

and will be in effect through December

31, 1999.

FOR FURTHER INFORMATION CONTACT:

Margo Schulze or Karyl Brewster-Geisz,

301–713–2347; fax 301–713–1917.

SUPPLEMENTARY INFORMATION: The

Atlantic shark fishery is managed under

the Fishery Management Plan for

Atlantic Tunas, Swordfish, and Sharks

(HMS FMP), and its implementing

regulations found at 50 CFR part 635

issued under authority of the

Magnuson-Stevens Fishery

Conservation and Management Act (16

U.S.C. 1801 et seq.).

On June 30, 1999, the NMFS received

a Court Order from Judge Steven D.

Merryday relative to the May, 1997

lawsuit challenging commercial harvest