Interpretation ID: 3062yy
Container Enterprise
3900 Paris Road
P.O. Box 1098
Chalmette, LA 70044-1098
Dear Mr. Williams:
This responds to your letter that asked whether your company is permitted to assign its own Vehicle Identification Numbers (VINs) pursuant to Federal Motor Vehicle Safety Standard No. 115, Vehicle Identification Number--Basic Requirements (49 CFR 571.115) to trailers that it "remanufactures" from previously used trailers. The answer is that a company that performs the remanufacturing operations described in your letter may assign a new VIN to its remanufactured trailers. By doing so, however, the trailers would be treated as newly manufactured trailers for the purposes of this agency's safety standards and regulations. Among other things, this would mean that your company would be required to certify that the trailers comply with all applicable safety standards in effect as of the date of the remanufacturing operations, including the lighting, tire, and brake standards applicable to new trailers.
In a telephone conversation with Dorothy Nakama of my staff, you stated that your company, Container Enterprise, works on trailers that were used to carry cargo containers. You stated that approximately 90% of the trailers that Container Enterprise works on were originally built between 1974 and 1979. Container Enterprise takes used container chassis that are 23 feet long and removes the axles and half of the crossmembers on the original frame. Container Enterprise then manufactures a 12 foot subframe and reinstalls the used axles on this subframe. The subframe is then attached to the container chassis, extending its chassis length to 27 feet. The conversion allows the chassis to slide open or closed. You stated that upon completion of this process, Container Enterprise will issue "a new manufacturer plate with a new VIN number" and date of remanufacture.
The National Traffic and Motor Vehicle Safety Act (15 U.S.C. 1381 et seq.) authorizes this agency to issue safety standards applicable to new motor vehicles and new items of motor vehicle equipment. We have exercised this authority to establish Standard No. 115, which applies to all new vehicles. S4.1 of Standard No. 115 specifies that vehicles manufactured in one stage shall have a VIN assigned by the vehicle manufacturer and S4.5 specifies that the assigned VIN shall appear clearly and indelibly on the vehicle.
Thus, the only person that can assign a VIN to a vehicle is the vehicle's manufacturer. The question then is whether your company's "remanufacturing" operations are substantial enough that the remanufactured trailers should be considered to be new vehicles and the manufacturer of those vehicles would be your company, instead of the original manufacturer of the trailer.
NHTSA's regulations specifically address the question of when trailers produced by combining new components (the subframe fabricated by your company) and used components (the parts of the used container chassis) are considered to be new trailers. 49 CFR 571.7(f) states that when new and used components are used in trailer manufacture, the trailer will be considered "newly manufactured" unless the following three conditions are met. First, the trailer running gear assembly, which includes the axle(s), wheels, braking and suspension, is not new, and was taken from an existing trailer. Second, the existing trailer's identity is continued in the reassembled vehicle with respect to the Vehicle Identification Number. Third, the existing trailer is owned or leased by the user of the reassembled vehicle.
You have stated that your company would assign new VINs to the trailers it remanufactures. Upon doing so, the second condition in 571.7(f), continuing use of the original VIN, would not be met. Therefore, the trailers "remanufactured" by your company would be considered to be newly manufactured. Your company, as the manufacturer, must certify that these trailers comply with all applicable Federal motor vehicle safety standards in effect at the time of the remanufacture. This means that, in addition to complying with the 1991 requirements of Standard No. 115, your company would be required to certify that the trailers comply with the 1991 versions of the lighting standard (Standard No. 108), the tire and rim standard (Standard No. 120), and the air brake standard (Standard No. 121), to name a few examples of applicable standards. To assist you in making any such certifications, I am enclosing a brochure that briefly describes each of the safety standards and an information sheet for new manufacturers of motor vehicles that explains how to get copies of our standards and regulations.
Your letter also referred to U. S. Department of the Treasury Publication 510 on Excise Taxes. We can only tell you that your remanufactured trailers with new VINs would be considered new vehicles for the purposes of the Safety Act and the Federal motor vehicle safety standards. If you have any questions about the trailers for purposes of excise taxes, you should contact the Internal Revenue Service. Their District Office for Louisiana is located at 500 Camp Street, New Orleans, LA 70130.
I hope this information is helpful. If you have any additional questions, please feel free to contact Ms. Dorothy Nakama of my staff at this address or by telephone at (202) 366-2992.
Sincerely,
Paul Jackson Rice Chief Counsel
Enclosures
ref:571#115#VSA d:7/l2/9l