Interpretation ID: 2702y
President
SportsCar America, Inc.
400 South Elliott Road
Chapel Hill, N.C. 27514
Dear Mr. Rogers:
We have received the (unsigned) petition of SportsCar America, Inc., for a temporary exemption from Motor Vehicle Safety Standard No. 208, on grounds of substantial economic hardship, and are returning all copies to you for the reasons stated below.
SportsCar America wishes to undertake the importation and sale of passenger cars produced in Brazil. Pursuant to an "Exclusive Distribution Agreement" ("the Agreement") with Alfa Metais Veiculos Ltda. of Brazil, which you enclosed, it has imported a prototype vehicle for study, with reference to its status of conformance with the U.S. vehicle safety and emission standards.
The proper petitioner for this exemption is Alfa Metais Veiculos Ltda., identified in the Agreement that you attached as the "Manufacturer." Under Section l of the Agreement, SportsCar America is to return the prototype to the Manufacturer with "those modifications necessary in order to meet the emission and safety standards necessary for the importation" of the cars, and the Manufacturer will then use it as a model for the production of vehicles for sale in the United States. Under 49 CFR Part 567, the Manufacturer must also attach its certification of compliance to the completed vehicle before its shipment to the United States. Part 555 restricts petitions for temporary exemptions to Manufacturers of motor vehicles.
Although you identify SportsCar America as the "distribution agent", we have no record that the Manufacturer has filed the designation of agent pursuant to 49 CFR 551.45 that is required of Manufacturers offering their products for importation and sale in the United States. Presumably Alfa Metais would wish to appoint SportsCar America as its agent. Once it has done so, SportsCar America may submit the petition on behalf of the Manufacturer. The production and financial data (in dollars, please) must be those of the Manufacturer. However, we regard as relevant to conformance arguments the efforts that SportsCar America intends to make during the time a possible exemption is in effect, as outlined in your petition.
Noting your requests for confidential treatment of information, we are returning all copies of your petition, with our comments. Generally, the agency does not like to accord confidential treatment to all financial data submitted. At a minimum, it would like to include in its notice asking comments from the public a dollar amount of the cumulative net profit or loss experienced by the Manufacturer in the three years preceding the filing of the petition. Similarly, it would like to publish a dollar figure in discussing the effects of a denial of the petition on the petitioner. The purpose of this is our policy that if the public is to make an informed comment on the issue of whether compliance would cause a Manufacturer substantial economic hardship, the public should have access to much the same data as is available to the agency in its determination.
If you would like clarification of any of these matters, Taylor Vinson of this Office (202-366-5263) will be happy to provide them.
Sincerely,
Paul Jackson Rice Chief Counsel
Enclosures ref:555 d:l0/9/90