Date: 1988-10-12
Speaker: THOMAS A. LUKEN (democrat)
Chamber: H

Mr. Speaker. I yield myself as much time as I may consume. Last December the House passed by voice vote the Imported Vehicle Safety Compliance Act of 1987. H.R. 2628. Last week the Senate passed ILR. 2628 with a few minor amendments. This bill addresses the problem of ensuring the safety of foreign motor vehicles that are designed to be used in foreign countries but are. in fact. imported for use into this country. These vehicles. because they are designed for use in foreign countries. do not meet all the safety and emissions standards of our Government and are commonly called "gray market" vehicles. The ranking Minority member of our subcommittee. Mr. WHITTAKER. has worked long and hard for several years to enact legislation in this area. and I want to commend him for his efforts as we appear to be reaching the end of our legislative journey. The bill requires the Secretary of Transportation to establish procedures for registering importers of gray market vehicles. A registered importer is prohibited from releasing custody of any motor vehicle for use until 30 days after the registered importer certifies that the vehicle complies with all applicable Federal safety standards. The importer will have to post a bond. Registered importers will have to attach a label to the gray market vehicle identifying the importer and indicating that the vehicle is a gray market vehicle. and the registered importer is responsible for any subsequent notification or remedy of a defect in the vehicle. The Secretary must periodically inspect a representative number of gray market vehicles that have been certifled to ensure that in fact the vehicles comply with NHTSAs safety standards. The Secretary is empowered to revoke the registration of ary importer who fails to comply with the law. Mr. Speaker. one portion of the Senate amendment clarifies the vehicle covered by the bill. the other portions of the Senate amendment are of a technical nature. The substantive part of the Senate amendment makes it clear that the law will cover imported cars for which there is no comparable U.S:. model. The Senate amendment is acceptable to me. and I urge my colleagues to pass this legislation to help prevent unsafe gray market vehicles from being driven on our highways. The amendments provide that an importer petitioning to Import a gray market vehicle will have to choose whether to claim that the vhicle is "substantially similar" to a certified vehicle or to demonstrate by test data or other information that the vehicle can be modified to comply with all applicable Federal safety standards. If he chooses to claim substantial similarity. the importer will have the burden of establishing the vehicles similarity in a public proceeding. In accordance with regulations to be issued by the Secretary of Transportation. The record of this proceeding and other information available to the Secretary will be the basis for the Secretarys determination that the vehicle is substantially similar and that it can be readily modified to conform to Federal safety standards. If the importer elects not to claim substantial similarity. he may submit data from destructive testing. or such other data as the Secretary may specify. to establish that the vehicle can be modified to conform to Federal safety standards. A positive determination by the Secretary will permit the importation of the vehicle model in question. both by the petitioning importer and by other importers. The permission would relate only to the vehicle model. which may be described in the terms and conditions of the Secretarys determination. For example. if the Secretary wishes to limit the "substantial similarity" determination to a particular engine or transmission option within a model designation. he could place such a condition on his determination. If the vehicle meets any such terms and conditions. an importer would be able to import it and to modify it in any appropriate manner that enables him to certify its conformity with the applicable Federal safety standards. This process is consistent with the intent of the Vehicle Safety Act that manufacturers and importers certify the compliance of their vehicles. Mr. Speaker. it is my view that these amendments carry out the intent of the bill and that they should be adopted. At the same time. I want to be assured that the rulemaking effort under this bill will not slow other rulemaking at NHTSA. I am aware that NHTSA has a small rulemaking staff and that it is engaged in other safety rulemaking. such as side impact rulemaking. This committee and the Appropriations Committee wants NHTSA to continue that work according to schedule and not let this bill interfere with that. I expect NHISA to inform us if a problem occurs. Mr. Speaker. I reserve the balance of my time.