Interpretation ID: nht94-8.46

DATE: January 21, 1994

FROM: John Womack -- Acting Chief Counsel, NHTSA

TO: Terry Karas -- T. K. Auto Inc.

TITLE: None

ATTACHMT: Attached to letter dated 11/5/93 from Terry Karas to John Womack

TEXT:

This responds to your FAX of November 5, 1993.

You have asked whether a Canadian car that was accompanied by a Canadian manufacturer's letter stating that the vehicle complies with U.S. safety standards can be imported as a conforming vehicle under Box 2.

Box 2 on the HS-7 importation form is the importer's declaration under 49 CFR 591.5(b) that the motor vehicle to be imported complies with all applicable U.S. Federal motor vehicle safety standards, and bears a certification label or tag to that effect, affixed by the original manufacturer of the vehicle. Because some Canadian vehicles may be virtually identical to those manufactured in the United States, and hence may comply with U.S. safety standards even if not bearing a specific certification to U.S. safety standards, the National Highway Traffic Safety Administration has accepted, in lieu of specific certification to U.S. safety standards, a letter from the Canadian manufacturer stating that the vehicle to be imported was manufactured to comply with the U.S. safety standards.

If a manufacturer's compliance letter accompanies a vehicle manufactured for sale in Canada at the time such vehicle is offered for importation into the United States, the vehicle may be entered under Box 2 as a conforming vehicle, without the intervention of a registered importer or the issuance of a bond. However, the manufacturer's compliance letter must contain the VIN of the specific vehicle that is to be imported, and an unqualified statement that the vehicle, as manufactured, complied with all applicable U.S. Federal motor vehicle safety standards.

Customs will then forward the HS-7 form and manufacturer's letter to this agency. However, if customs wishes us to review the manufacturer's letter, it is the prerogative of Customs to defer entry of the vehicle until it has received our views as to whether entry under Box 2 is appropriate.

You have also asked whether it makes "a difference if it is being imported for commercial or private purposes." Any Canadian vehicle that is accompanied by an acceptable manufacturer's letter of compliance is eligible for entry as a conforming vehicle under Box 2, regardless of whether the intent of importation is the commercial sale of the vehicle, or the retention of the vehicle for private use. However, if the letter is not an acceptable statement of compliance and the importation is for commercial purposes, the vehicle may only be imported under bond by a registered importer who must satisfy NHTSA that the vehicle complies, or has been brought into compliance, with the U.S. safety standards. Even though the registered importer's compliance work may be minimal, it is important to remember that the registered importer is also the person

responsible by statute for implementing notification and remedy campaigns in the event that noncompliances of the original manufacturer or safety related defects are discovered in the Canadian vehicle.