Interpretation ID: 8027
Group Vice President
Chrysler Corporation
38111 Van Dyke Avenue
Sterling Heights, MI 48312
Dear Mr. Smorra:
This responds to your letter of November 12 to the Administrator asking for a variance from the Federal motor vehicle safety standards for vehicles that Chrysler Corporation would like to sell to foreign nationals for their use on vacation in the United States. You have inquired whether additional information is required.
The agency would be willing to consider Chrysler's request through the medium of a petition for temporary exemption from one or more specific Federal motor vehicle safety standards. The temporary exemption, two years in duration, permits a manufacturer to sell up to 2,500 exempted vehicles in any 12- month period during the term of the exemption, subject to such terms and conditions as the agency deems appropriate. These exemptions are renewable. Indeed, NHTSA has already provided exemptions to General Motors for the same purpose as Chrysler's, pursuant to 49 CFR 555.5 and 555.6(d). For your guidance, I enclose a copy of the Federal Register notice that granted GM's original petition in 1988. Because of the necessity to afford the public an opportunity to comment, a petitioner should anticipate an elapsed time of approximately four months between the agency's receipt of its petition and a determination on it. Should you have questions on the exemption process, Taylor Vinson of this office will be pleased to answer them (202-366-5263).
You have also asked "[i]f, upon expiration of the variance, the vehicle has not left the U.S. who is responsible for the delinquency?" This is an interesting question. The exemption is not provided directly to the purchaser. Instead, it is provided to a manufacturer to allow it to sell nonconforming vehicles to foreign nationals without violating the National Traffic and Motor Vehicle Safety Act, subject to the purchaser's agreement to export the vehicle when (s)he leaves this country. Should a manufacturer sell an exempted vehicle to a foreign national knowing, or in the exercise of due care having reason to know, that the purchaser did not intend to export it, the manufacturer would have violated the Safety Act's prohibition against sale of nonconforming vehicles, notwithstanding the fact that the vehicle had been exempted. Moreover, if the manufacturer did not take appropriate steps to assure that the purchaser honored his or her commitment to export the vehicle, the agency could find that continuation of the exemption was no longer in the public interest, and cancel it. However, if the manufacturer did not know or in the exercise of due care have any reason to know that its exempted vehicles would not be exported, it would appear to have incurred no liability under the Act.
As for a foreign national purchaser who fails to export a vehicle in conformity with the terms of the condition imposed by the manufacturer under the exemption, it appears that the purchaser could be deemed to have violated the Safety Act's prohibition against introduction into interstate commerce of a nonconforming vehicle, notwithstanding the fact that the manufacturer had received an exemption for the manufacture and sale of the vehicle. Finally, depending on the safety standards from which the vehicle had been excused, the owner of the vehicle might find it difficult to register it in a State without bringing it into full compliance with the safety standards.
You have also asked, "[I]n the unlikely event that this vehicle has an accident in which it is deemed undriveable, who is responsible for its disposition." The answer to this question would appear to turn on the ownership of the vehicle. Since Chrysler does not intend to lease the exempted vehicles, we assume that it will transfer all right, title, and interest in them to the foreign national purchasers, and we assume that those owners will be responsible for the disposition of wrecked vehicles deemed undriveable.
Sincerely,
John Womack Acting Chief Counsel Enclosure ref.555 d:2/9/93