Imported Vehicle Safety Compliance Act of 1988
PL 100-562 (H.R.2628), enacted 10/31/1988

102 STAT. 2818 
PUBLIC LAW 100-562—OCT. 31, 1988 
Public Law 100-562 
100th Congress 
An Act 
Oct. 31, 1988 
[H.R. 2628] 
Imported 
Vehicle Safety 
Compliance Act 
of 1988. 
15 u s e 1381 
note. 
Exports. 
To amend the National Traffic and Motor Vehicle Safety Act of 1966 respecting the 
importation of motor vehicles in anticipation of compliance with safety standards 
under such Act. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, REFERENCE. 
(a) SHORT TITLE.—This Act may be cited as the "Imported Vehicle 
Safety Compliance Act of 1988". 
(b) REFERENCE.—Whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or 
other provision, the reference shall be considered to be made to a 
section or other provision of the National Traffic and Motor Vehicle 
Safety Act of 1966. 
SEC. 2. CONTROL OF IMPORTATION OF CERTAIN VEHICLES TO ENSURE 
COMPLIANCE WITH SAFETY STANDARDS. 
(a) REPEAL OF GENERAL AUTHORITY FOR IMPORTATION IN ANTICIPA-
TION OF COMPUANCE.—Section 108(b) (15 U.S.C. 1397(b)) is amended 
by striking out paragraphs (3) and (4) and by redesignating para-
graph (5) as paragraph (3). 
(b) LIMITED AUTHORIZATION FOR IMPORTATION IN ANTICIPATION OF 
COMPLIANCE.—Section 108 (15 U.S.C. 1397) is amended by re-
designating subsection (c) as subsection (k) and by inserting after 
subsection (b) the following new subsections: 
"(c)(1) Except as provided in this subsection and subsections (e), (f), 
(g), (h), (i), and (j) a motor vehicle offered for importation in violation 
of subsection (a)(lXA) shall be refused entry into the United States. 
"(2) In the case of any motor vehicle imported under paragraph 
(3), the person importing the motor vehicle shall furnish to the 
Secretary of the Treasury (acting on behalf of the Secretary) an 
appropriate bond and shall comply with such terms and conditions 
as it appears to the Secretary appropriate to ensure that any such 
motor vehicle— 
"(A) will be brought into conformity with all applicable Fed-
eral motor vehicle safety standards prescribed under this title 
within a reasonable time after such importation, as specified by 
the Secretary, or 
"(B) will be exported (at no cost to the United States) by the 
Secretary of the Treasury or abandoned to the United States. 
The amount of the bond furnished under this paragraph shall not be 
less than the dutiable value, as determined by the Secretary of the 
Treasury, of the motor vehicle with respect to which the bond was 
furnished, except that the amount of such bond may not exceed 150 
percent of such value. 
"(3)(A) Subsection (a)(1)(A) and paragraph (1) of this subsection 
shall not apply to any motor vehicle if— 
PUBLIC LAW 100-562—OCT. 31, 1988 
102 STAT. 2819 
"(iXD the motor vehicle is determined to be substantially 
similar to a motor vehicle originally manufactured for importa-
tion into and sale in the United States, certified under section 
114, and of the same model year (as defined by regulation by the 
Secretary) as the model of the motor vehicle to be compared, and 
is capable of being readily modified to conform to all appUcable 
Federal motor vehicle safety standards; or 
"(II) where there is no substantially similar United States 
motor vehicle, the Secretary determines that the safety features 
of the vehicle comply with or are capable of being modified to 
comply with all applicable Federal motor vehicle safety stand-
ards based on destructive test data or such other evidence as the 
Secretary determines to be adequate, 
"(ii) the motor vehicle is imported by an importer registered 
under subparagraph (D), and 
"(iii) the registered importer pays (I) such annual fee as the 
Secretary establishes to cover the cost of administering the 
r^istration program, and (II) such other annual fee or fees as 
the Secretary reasonably establishes to cover the cost of process-
ing the bond furnished to the Secretary of the Treasury under 
paragraph (2) and making the determinations under this 
section. 
"(B) The amount or rate of fees under subparagraph (AXiii) shall 
be reviewed and, if appropriate, adjusted by the Secretary at least 
every 2 years. The fee applicable in any fiscal year shall be estab-
lished by the Secretary before the beginning of such year. All fees 
collected shall be available until expended, without fiscal year limit, 
to the extent provided in advance by appropriation Acts, solely for 
use by the Secretary— 
"(i) in the administration of all of the requirements of this 
subsection (other than subparagraph (EXiv)) and subsection 
(dX2), and 
"(ii) to advance to the Secretary of the Treasury amounts for 
costs that will be incurred under this subsection and to re-
imburse the Secretary of the Treasury for such costs. 
"(CXi) The Secretary shall make the determination under 
paragraph (3XAXi)— 
"(I) on the petition of any registered importer or any manu-
facturer, or 
"(II) on the Secretary's own initiative, 
"(ii) The Secretary shall establish by regulation (I) the informa- Regulations. 
tion required to be provided by the petitioner to clearly show that 
the vehicle is capable of being brought into compliance with all 
applicable Federal motor vehicle safety standards and (II) the proce-
dures for considering such petitions. In establishing such proce-
dures, the Secretary shall provide for a minimum period for public 
notice and written comment consistent with ensuring expeditious, 
but full, consideration of the petition and avoiding delay by any 
person. In considering any petition under this subparagraph, the 
Secretary shall give due consideration to any test data or other 
information available to the Secretary, including any information 
provided by the manufacturer (whether or not confidential). If the 
Secretary makes a n^ative determination, another petition may 
not be considered for the same model of motor vehicles until the end 
of 3 calendar months after such negative determination. 
"(iii) The Secretary shall establish by regulation the procedures Regulations. 
for determinations made on the Secretary's initiative. Such proce-
dures shall include a minimum period for public notice and written 
102 STAT. 2820 
PUBLIC LAW 100-562—OCT. 31, 1988 
Federal 
Register, 
publication. 
Regulations. 
Records. 
comment consistent with ensuring expeditious, but full, consider-
ation and avoiding delay by any person. In making a determination 
under such procedures, the Secretary shall give due consideration to 
any test data or other information available to the Secretary, includ-
ing any information provided by the manufacturer (whether or not 
confidential). If the Secretary makes a negative determination, the 
Secretary may not make another determination for the same model 
of motor vehicle until the end of 3 calendar months after such 
negative determination. 
"(iv) The Secretary shall annually publish in the Federal Register 
a list of all determinations under this subparagraph. Each deter-
mination published in the Federal Register shall apply to the same 
model of motor vehicle with respect to which the determination was 
made. A positive determination shall be sufficient authority for any 
other registered importer to import a vehicle of the same model 
under this subsection provided such registered importer complies 
with all the terms and conditions of such determination. 
"(D)(i) The Secretary shall establish procedures under which the 
Secretary shall register any person who complies with the require-
ments of clause (ii) and who has not previously had a registration 
revoked under clause (iii). The Secretary may deny registration to 
any person who is or was, directly or indirectly, owned or controlled 
by, or under common ownership or control with, a person who has 
had a registration revoked under clause (iii). 
"(ii) In order to acquire and maintain registration under clause (i), 
an importer shall comply with all requirements which the Secretary 
shall prescribe by regulation. Such regulation shall include, as a 
minimum, requirements for recordkeeping, inspection of records 
and facilities relating to the motor vehicles which such person has 
imported, modified, or both, and provision for ensuring that the 
importer (or any successor in interest) will be able technically and 
financially to carry out the importer's responsibilities under part B 
of this title (relating to discovery, notification, and remedy of 
defects). 
"(iii) The Secretary shall establish procedures for (I) the revoca-
tion or suspension of a registration issued under clause (i) for failure 
to comply with any requirement of this section or the regulations 
issued under this section, (II) automatic suspensions of registrations 
for failure to pay any fee referred to in subparagraph (A)(iii) in a 
timely manner or for knowingly filing a false or misleading certifi-
cation under subparagraph (E), and (III) reinstatement of suspended 
registrations. 
"(E)(i) A registered importer shall not release custody of any 
motor vehicle— 
"(I) imported by the registered importer, or 
"(II) imported by an individual referred to in subsection (f) 
and which the registered importer is modifying to meet Federal 
motor vehicle safety standards, 
to any person for license or registration for use on public roads, 
streets, or highways or license or register an imported motor vehicle 
for use on public roads, streets, or highways until 30 calendar days 
after the registered importer certifies to the Secretary, in such form 
as the Secretary shall require, that such motor vehicle complies 
with each Federal motor vehicle safety standard which was pre-
scribed under this title in the year that vehicle was manufactured 
and which applies in such year to such vehicle, except that no such 
release shall be permitted if the Secretary gives written notice. 
PUBLIC LAW 100-562—OCT. 31, 1988 
102 STAT. 2821 
before the expiration of such 30 days, that an inspection will be 
required under clause (iii). If the Secretary gives such notice, such 
release shall be permitted at any time but only upon the completion 
of the inspection showing no failure to comply with applicable 
Federal motor vehicle safety standards for which the inspection was 
made and the release by the Secretary. The Secretary and the 
Secretary of the Treasury shall by rule establish procedures to 
ensure the release of a motor vehicle and bond at the expiration of 
such 30 days unless the notice under this clause or clause (vi) is 
issued. Such rule shall provide that, if such notice is issued, the 
motor vehicle and bond shall be promptly released after the comple-
tion of the inspection showing no such failure to comply. 
"(ii) In making a certification under clause (i) with respect to Records, 
safety features of a motor vehicle, the registered importer may rely 
on the manufacturer's certification for the model for which the 
motor vehicle involved is substantially similar if the importer cer-
tifies that any modification undertaken by the importer did not 
affect the compliance of the motor vehicle's safety features and the 
importer retains records verifying such certification for such period 
as the Secretary shall prescribe. 
"(iii) The Secretary may require that such certification be accom-
panied by such evidence of compliance as the Secretary considers 
appropriate or that the certified motor vehicle be inspected by the 
Secretary, or both. 
"(iv) The Secretary shall periodically inspect a representative 
number of motor vehicles for which certifications have been filed 
under clause (i). In conducting any program under this title for the 
testing of motor vehicles, the Secretary shall include a representa-
tive number of vehicles for which certifications have been filed 
under clause (i). 
"(v) Any release of a bond required under paragraph (2) shall 
constitute acceptance of any certification or completion of an inspec-
tion but not a determination by the Secretary under section 152 of 
compliance with all applicable Federal motor vehicle safety 
standards. 
"(vi) Notwithstanding clause (i), no motor vehicle or bond may be Fraud. 
released if the Secretary believes or has reason to believe that a 
certification made under clause (i) is false or contains any misrepre-
sentation and the Secretary gives written notice of such belief or 
reason to believe to the registered importer before the expiration of 
30 days after the date such certification is received by the Secretary. 
If such notice is provided, the motor vehicle involved and the bond 
required for the motor vehicle involved may not be released until 
the Secretary is satisfied with the certification and any modification 
thereof. 
"(vii) Each registered importer shall include on each motor ve-
hicle released by it under this subsection a label, in such form £is the 
Secretary may prescribe, on which the registered importer is identi-
fied and which states that the vehicle has been modified by such 
importer to comply with all applicable Federal motor vehicle safety 
standards for that model. 
"(dXD For purposes of part B of this title (relating to discovery, 
notification, and remedy of motor vehicle defects)— 
"(A) in the case of any defect or failure to comply with any 
applicable Federal motor vehicle safety standard in, or regard-
ing, any motor vehicle which was originally manufactured for 
importation to the United States, any imported motor vehicle 
102 STAT. 2822 
PUBLIC LAW 100-562—OCT. 31, 1988 
Federal 
Register, 
publication. 
Regulations. 
Contracts. 
that has a valid certification under subsection (c)(3)(E) and that 
is determined to be substantially similar to such motor vehicle 
shall be treated as having the same defect or failure unless the 
manufacturer or registered importer demonstrates otherwise to 
the Secretary, 
"(B) the Secretary shall publish in the Federal Register notice 
of the defect or failure referred to in subparagraph (A), and 
"(C) the registered importer shall be treated as the manufac-
turer with respect to any motor vehicle that it— 
"(i) imports, or 
"(ii) brings into conformity with applicable Federal motor 
vehicle safety standards on behalf of an individual under 
subsection (f). 
"(2) The Secretary shall, by regulation, require each registered 
importer (and any successor in interest) to provide and maintain 
evidence, satisfactory to the Secretary, of sufficient financial respon-
sibility to meet its obligations under part B of this title (relating to 
discovery, notification, and remedy of motor vehicle defects). 
"(e) Subsections (a)(1)(A) and (c)(1) shall not apply to any motor 
vehicle or item of motor vehicle equipment i
f
— 
"(1) the motor vehicle or item of equipment requires further 
manufacturing to perform its intended function (as determined 
under regulations prescribed by the Secretary), and 
"(2) it is accompanied at the time of entry by a written 
statement which is issued by the manufacturer of the incom-
plete motor vehicle or item of equipment which indicates the 
applicable Federal motor vehicle safety standard with which 
such motor vehicle or item is not in compliance. 
"(fKD Subsections (aXlXA) and (cXD shall not apply to any motor 
vehicle that is imported— 
"(A) after the effective date of the regulations initially issued 
to implement the amendments made to this section by the 
Imported Vehicle Safety Compliance Act of 1988, and 
"(B) for personal use, and not for purposes of resale, 
by any individual (other than an individual described in subsections 
(g) and (h)), if that individual takes the actions required by para-
graph (2). 
"(2) To receive an exemption under paragraph (1) an individual 
shall— 
"(A) furnish to the Secretary of the Treasury (acting on behalf 
of the Secretary)— 
"(i) an appropriate bond in an amount determined under 
subsection (cX2), 
"(ii) a copy of a contract or other agreement with an 
importer registered under subsection (c) for bringing such 
vehicle into conformity with applicable Federal motor ve-
hicle safety standards, and 
"(iii) a certification that such vehicle meets the require-
ment set forth in clause (i) (I) or (II) of subsection (cX3)(A), 
and 
"(B) comply with such terms and conditions as the Secretary 
shall impose as being appropriate to ensure that such motor 
vehicle— 
"(i) will be brought into conformity with all applicable 
Federal motor vehicle safety standards within a reasonable 
time, as specified by the Secretary, after such importation, 
or 
PUBLIC LAW 100-562—OCT. 31, 1988 
102 STAT. 2823 
"(ii) will be exported (at no cost to the United States) by Exports. 
the Secretary of the Treasury or abandoned to the United 
States. 
The Secretary, for good cause shown, may allow an individual 
additional time, but not more than 30 days after the day on which 
the motor vehicle is offered for importation, to comply with subpara-
graph (A)(ii). 
"(g) Subsections (a)(1)(A) and (c)(1) shall not apply to any motor 
vehicle if the motor vehicle is imported for personal use, and not for 
purposes of resale, by any individual (including any member of the 
uniformed services)— 
"(1) whose assigned place of employment is outside the United 
States as of the date of the enactment of the Imported Vehicle 
Safety Compliance Act of 1988, and who has not had an as-
signed place of employment in the United States between that 
date and the date of entry of such motor vehicle, 
"(2) who has not previously imported a motor vehicle into the 
United States under the authority of this subsection (or subsec-
tion (bX3) with respect to periods before the date of the enact-
ment of the Imported Vehicle Safety Compliance Act of 1988), 
"(3) who had acquired (or had entered into a binding contract 
to acquire) such motor vehicle before the date of enactment of 
this subsection, 
"(4) who enters such motor vehicle not later than 4 years 
after such date of enactment, and 
"(5) who meets the terms, conditions, and other requirements 
in effect under subsection Ot))(3) on the day before the date of the 
enactment of this subsection. 
Paragraphs (1) through (5) shall be carried out by certification in 
such form as either the Secretary or the Secretary of the Treasury 
may prescribe. As used in this subsection, the term 'assigned place 
of employment' means the principal location at which an individual 
is permanently or indefinitely assigned to work. In the case of a 
member of the uniformed services, such term means the individual's 
permanent duty station. 
"(h) Subsections (a)(1)(A) and (cXD shall not apply to any motor 
vehicle if the motor vehicle is imported on a temporary basis for 
personal use by any individual— 
"(1) who is (A) a member of the personnel of a foreign 
government on assignment in the United States or a member of 
the Secretariat of a public international organization so des-
ignated under the International Organization Immunities Act, 
and (B) within the class of persons for whom free entry of motor 
vehicles has been authorized by the Secretary of State, or 
"(2) who is a member of the armed forces of a foreign country 
on assignment in the United States. 
The Secretary or the Secretary of the Treasury may require such 
verification of such status as the Secretary considers appropriate. 
The Secretary shall ensure that any motor vehicle entered under Exports. 
this subsection will be exported (at no cost to the United States) or 
abandoned to the United States when the individual involved ceases 
to reside in the United States and hold such status. No motor 
vehicle imported under this subsection may be sold while within the 
United States. 
"(i) Subsections (aXlXA) and (cXD shall not apply to any motor 
vehicle that is 25 or more years old. 
102 STAT. 2824 
PUBLIC LAW 100-562—OCT. 31, 1988 
Research and 
"(j) The Secretary may exempt any motor vehicle or item of motor 
^velopment. 
vehicle equipment from subsections (a)(1)(A) and (c)(1) upon such 
""^' 
terms and conditions as the Secretary may find necessary solely for 
the purpose of research, investigations, studies, demonstrations or 
training, or competitive racing events.". 
(c) 
MANUFACTURER'S 
CERTIFICATION 
REQUIRED.—Section 
108(a)(1)(A) (15 U.S.C. 1397(a)(1)(A)) is amended by inserting after 
"conformity with such standard" the following: "and is covered by a 
certification issued under section 114,". 
(d) TECHNICAL AMENDMENTS.—Section 108(a)(1)(A) (15 U.S.C. 
1397(a)(1)(A)) is amended by striking out "subsection (b) of. 
15 use 1397 
(e) EFFECTIVE DATE, NOTICE, REVIEW, REPORT.— 
note. 
(1) EFFECTIVE DATE.— 
(A) GENERAL RULE.— 
(i) Except as provided in clause (ii), the amendments 
made by this section shall take effect upon the expira-
tion of 15 months after the date of the enactment of 
this Act, except that the Secretary of Transportation 
may after the effective date of regulations promulgated 
under subparagraph (B)— 
(I) register persons under section 108(c)(3)(D) of 
the National Traffic and Motor Vehicle Safety Act 
of 1966, as added by subsection (b) of this section, 
and 
(II) receive petitions and make determinations of 
motor vehicle similarity under section 108(c)(3)(C) 
of the National Traffic and Motor Vehicle Safety 
Act of 1966, as added by subsection (b) of this 
section. 
(ii) The amendments made by this section shall take 
effect upon the expiration of 12 months after the date 
of the enactment of this Act if the Secretary of 
Transportation does not issue a notice of proposed rule-
making under subparagraph (B) within 6 months of 
the date of enactment of this Act. 
(B) REGULATIONS.—Not later than 12 months after the 
date of the enactment of this Act, the Secretary of 
Transportation shall promulgate and place in effect regula-
tions to implement subsections (c) through (j) of section 108 
of the National Traffic and Motor Vehicle Safety Act of 
1966, as added by subsection (b) of this section. 
(C) REVIEW.—If upon judicial review of the regulations of 
the Secretary promulgated under subparagraph (B) the 
court stays the regulations, the amendments made by this 
section shall not take effect for any person— 
(i) during such stay, or 
(ii) until such regulations become final. 
(2) NOTICE.—As soon as possible after the date of the enact-
ment of this Act, the Secretary of Transportation shall take 
reasonable steps designed to encourage notification to the 
extent feasible regarding the provisions of subsections (f), (g), 
and (h) of section 108 of such Act (as added by this section) to be 
promptly made to individuals who may be affected by such 
amendments. 
(3) GAO REVIEW.—The Comptroller General of the United 
States shall conduct a review of the program authorized by the 
amendments made by this section. The review shall be based on 
PUBLIC LAW 100-562—OCT. 31, 1988 
102 STAT. 2825 
not more than 3 years of experience under the program and 
shall consider all aspects of the program with emphasis on— 
(A) the extent to which motor vehicles imported under 
the program are fully in compliance with applicable Fed-
eral motor vehicle safety standards when released to oper-
ate on public roads, streets, and highways, 
(B) whether safety considerations warrant extension of 
the prc^am, and 
(C) the administration and enforcement of the program 
(including actions relating to discovery, notification, and 
remedy of defects required by such program and the ade-
quacy of the fees) by the Secretary of Transportation. 
Promptly upon the completion of the review the Comptroller Reports. 
General shall submit a report on the review to Congress. 
(4) REPORT.—Not later than 18 months after the initial regula-
tions required after this section are promulgated, the Secretary 
shall provide to Congress a report of the actions taken under 
this section and the effectiveness of such actions, including the 
results of any testing by the Secretary under this section. 
Thereafter, the Secretary shall report by July of each year on 
such actions, 
(f) E^XEMPnoNS PROHIBITED.—Notwithstanding any provision of 
15 USC 1397 
law authorizing exemptions from energy conservation requirements 
^°^-
for manufacturers of fewer than 10,000 motor vehicles, a roistered 
importer under section 108(c) of the National Traffic and Motor 
Vehicle Safety Act of 1966 shall not be treated as such a manufac-
turer for purpose of such exemptions with respect to any motor 
vehicle that it— 
(1) imports, or 
(2) brings into conformity with applicable Federal motor ve-
hicle safety standards on behalf of an individual under section 
108(0 of such Act. 
Approved October 31, 1988. 
LEGISLATIVE HISTORY—H.R. 2628: 
HOUSE REPORTS: No. 100-431 (Comm. on Energy and Commerce). 
CONGRESSIONAL RECORD: 
Vol. 133 (1987): Dec. 14, considered and passed House. 
Vol. 134 (1988): Oct. 5, considered and passed Senate, amended. 
Oct. 12, House concurred in Senate amendments.