Interpretation ID: 21068.ztv

Mr. Seymour Hanks
Rt. 1 Box 144
Medora, IL 62063

Dear Mr. Hanks:

This is in reply to your letter of December 10, 1999, asking for our views on the issues that you raise.

In the first case that concerns you, Sun International Racing Corp. is reported as importing and certifying for sale in the United States niche cars otherwise unavailable, such as the Renault Sport Spider and Lotus Elise. You have asked whether either car can "be disassembled overseas imported into the U.S. and re-assembled by Sun Int'l as a complete vehicle?"

The Renault and Lotus have never been certified by their original manufacturers as complying with the U.S. Federal motor vehicle safety standards (FMVSS). Nevertheless, uncertified vehicles may be imported for resale under certain conditions specified by 49 U.S.C. 30141 and 49 CFR Part 593. These vehicles may be imported if, as is the case here, "there is no substantially similar United States motor vehicle [and the National Highway Traffic Safety Administration (NHTSA) decides that] the safety features of the vehicle comply with or are capable of being altered to comply with" the FMVSS (49 U.S.C. 30146(a)(1)(B), and "the vehicle is imported by a registered importer" (Section 30146(a)(2)). We make these decisions either on our own initiative, or upon the petition of the manufacturer or a "registered importer" (RI). RIs are entities that we have recognized as being capable of performing conformance work and are the only entities permitted to import nonconforming vehicles for resale after conformance to the FMVSS.

Thus, a RI could import nonconforming vehicles (either assembled or disassembled), provided they are covered by a NHTSA conformance capability decision, and provided that the RI conforms and certifies conformance of the vehicles before sale to a member of the public. However, we have made no such conformance capability decision with respect to either the Renault or the Lotus, and thus a RI could not legally import either the Renault or the Lotus for resale. The vehicles, however, could be imported temporarily, as provided by 49 CFR Part 591, for purposes other than resale, such as for participation in competitive racing events.

In the second case, you refer to an article listing Ameritech as the manufacturer of a U.S. version of the McLaren F1. You have asked if your understanding is correct, that the vehicle must be imported through DOT's RI program and EPA's independent commercial importer (ICI) program.

As I explained in my answer to your first question, a non-conforming vehicle imported for resale must have been the subject of a conformance capability decision, imported by a RI, and then be brought into conformity with our standards by the RI. Ameritech, which was not a RI, entered several McLaren F1s into a "foreign trade zone," modified and certified them to U.S. standards, and entered them as "Ameritech" vehicles. All these actions took place before we were aware of them. Properly, the vehicles should not have been imported in the absence of a conformance capability determination under Part 593, and then only through the RI program. We have directed Ameritech to cease such importations and have advised the U.S. Customs Service that it should not allow them.

You have asked "who is the manufacturer of the vehicles in Case 1 and Case 2."

A "manufacturer" of motor vehicles is defined by 49 U.S.C. 30102(a)(5) both as a person manufacturing or assembling motor vehicles, as well as a person who imports motor vehicles for resale. In both cases, the vehicles were originally manufactured in one stage. Therefore, we consider the entity that assembled these vehicles to be the manufacturer, that is to say, Lotus, Renault, and McLaren. I note also that any person importing these motor vehicles for resale is also a "manufacturer" for Federal safety purposes.

I would like to note here that the vehicle import laws have been amended since the articles that concern you were written. We are now authorized to allow permanent entry of nonconforming vehicles for "show or display." Under regulations we adopted in mid-1999, an importer for "show or display" must demonstrate that the vehicle is of technological or historical interest. If we approve an entry on this basis, the vehicle may not accumulate more than 2,500 miles a year on its odometer until it is 25 years old.

Your final question is whether "a completed motor vehicle [can] be disassembled then shipped into the U.S. as parts, and then re-assembled here in the U.S. as a motor vehicle listing a different manufacturer than the original manufacturer."

A disassembled vehicle that was not certified by its original manufacturer as being in compliance with our standards is subject to the same import restrictions as an assembled one; i.e., it must have been the subject of a conformance capability determination, and be imported, reassembled, and brought into compliance by a RI, which must certify its conformance with our standards. In this event, there are two manufacturers of the vehicle, the original manufacturer whose marque name should appear on the vehicle, and the RI, which, under 49

U.S.C. 30102(a)(5), is a "manufacturer" for purposes of notification and remedy in the event that a safety-related defect or noncompliance with a Federal motor vehicle safety standard is determined to exist in the reassembled vehicle.

If you have further questions, you may phone Taylor Vinson of this Office (202)-366-5263.

Sincerely,
Frank Seales, Jr.
Chief Counsel
ref:571
d.2/22/2000