Interpretation ID: 8280
Ross & Hardies
65 East 55th Street
New York, NY 10022-3219
Re: Request for a Legal Interpretation New Flyer Industries, Ltd.
Dear Mr. Kaplan:
This is in reply to your letter of January 29, 1993, requesting an interpretation of 49 CFR 591.5(e) as it relates to the products of your client, New Flyer Industries, Ltd.
Section 591.5(e) permits the importation into the United States of a motor vehicle or item of motor vehicle equipment that is not in compliance with the Federal motor vehicle safety standards upon the declaration of the importer that "[t]he vehicle or equipment item requires further manufacturing operations to perform its intended function other than the addition of readily attachable equipment items . . . ." New Flyer exports "bus shells" to the United States, which have been painted and equipped with tires and rims. You have informed us that the shells are completed as buses in the United States by the addition of "bumpers, engine and oil filter (or propulsion system), power plant, starter system, cooling system, fuel system, interior lighting, electric system, destination signs, seating and stanchions, heating and air conditioning system, chair lift (except on low floor buses) and various option packages." Approximately 300 hours are required to finish the shells after their arrival. You ask for confirmation that the bus shells may be imported pursuant to section 591.5(e), without the necessity for bonding.
From our review of this matter, we have concluded that a New Flyer bus shell lacking its intended motive power is neither a "motor vehicle," as defined by l5 U.S.C. 102(3), nor an "incomplete vehicle" as defined by 49 CFR 568.3. Instead, as systems or parts of a motor vehicle, the bus shell is an assemblage of "motor vehicle equipment", as defined by 15 U.S.C. 102(4). It is manifest from your description that the assemblage requires further manufacturing operations to perform its intended function, and that these operations involve more than the addition of readily attachable equipment items such as wheel covers and windshield wipers. Therefore, it is permissible for a New Flyer bus shell assemblage to be imported pursuant to the declaration of 49 CFR 591.5(e). As you have affirmed, each declaration will be accompanied by a written statement in accordance with 49 CFR 591.6(b)(2). We confirm that entries under 49 CFR 591.5(e) are not subject to the bonding requirements of this agency. However, they may be subject to those of the U.S. Customs Service.
You should be aware that certain Federal motor vehicle safety standards apply directly to equipment items (as contrasted with applying to completed motor vehicles), and if the bus shell assemblage includes those items, they must comply at the time of importation. Thus, the tires and rims on the assemblage must conform, and be certified as conforming, with Federal Motor Vehicle Safety Standards Nos. 119 and 120. If the shell contains window glazing, it must meet Standard No. 205.
Finally, we note your remark that "[w]ith regard to the documentation requirements of 49 C.F.R. 568.4 applicable to incomplete vehicles, the information required will be furnished when the completed buses are sold and delivered." As we have commented, the bus shell is not an incomplete vehicle, and the statement required by section 591.6(b)(2) is all the documentation that is required under the facts as you have related them to us. The bus shell will not become an "incomplete vehicle" until its power train is added, and the documentation specified by section 568.4 is not required to be furnished unless the bus is completed by a different manufacturer. All that is required to "be furnished when the completed buses are sold and delivered" is the permanently affixed certification of conformance with all applicable Federal motor vehicle safety standards (Part 567).
If you have any further questions, Taylor Vinson of this Office will be pleased to answer them (202-366-5263).
Sincerely,
John Womack Acting Chief Counsel
NCC-20 ZTVinson:mar:2/3/93:OCC 8280:62992 cc: NCC-0l Subj/Chron Interps. Part 591; Part 568, Redbook (4) 8280; ztv; U:\ncc20\interp\591\8280.ztv