Interpretation ID: 86-4.19

TYPE: INTERPRETATION-NHTSA

DATE: 07/23/86 EST

FROM: ERIKA Z. JONES -- CHIEF COUNSEL, NHTSA

TO: BENJAMIN R. JACKSON -- EXECUTIVE DIRECTOR AUTOMOBILE IMPORTERS COMPLIANCE ASSOCIATION

TITLE: NONE

ATTACHMT: LETTER DATED 05/07/86 TO BRIAN MCLAUGHLIN, FROM BENJAMIN R JACKSON

TEXT: Dear Mr. Jackson:

This responds to your letter to Mr. Brian McLaughlin of our Rulemaking division, in which you requested an interpretation of 49 CFR Part 541, Federal Motor Vehicle Theft Prevention Standard. Specifically, you asked for a written confirmation of Mr. McLaughlin's statement that only lines listed in Appendix A of Part 541 must be marked in compliance with Part 541. Mr. McLaughlin's statement was correct.

Your concern appears to arise from the fact that direct importers sometimes import car lines not offered for sale in the United States by the original manufacturer. Such lines may have a majority of major parts interchangeable with the major parts of a car line offered for sale in the United States and listed in Appendix A of Part 541 as a high theft line subject to the theft prevention standard. Section 603(a)(1)(C) of the Motor Vehicle Information and Cost Savings Act (the Cost Savings Act; 15 U.S.C. 2023(a)(1)(C) specifies that lines that have a majority of major parts interchangeable with the major parts of a high theft line are themselves high theft lines for the purposes of the theft prevention standard. Accordingly, you were concerned that the direct importers might be statutorily required to make determinations of interchangeability with the listed in Appendix A, and mark those lines that had a majority of major parts interchangeable with those of a listed high theft line. This is not the case.

Section 603(a)(2) of the Cost Savings Act specifies: "The specific lines ... which are to be subject to the standard may be selected by agreement between that manufacturer and [NHTSA]. If the manufacturer and [NHTSA] disagree as to such selection, [NHTSA] shall select such lines ..." The agency followed these procedures and arrived at the selections of high

theft lines listed in Appendix A. All lines not listed in Appendix A are not required to be marked in accordance with Part 541, because they have not been selected as high theft lines in accordance with section 603(a)(2) of the Cost Savings Act.

Sincerely,