Interpretation ID: nht94-4.90

TYPE: INTERPRETATION-NHTSA

DATE: November 29, 1994

FROM: Michael Love -- Manager, Compliance, Porsche Cars North America, Inc.

TO: Chief Counsel, NHTSA

TITLE: Re: Request for Interpretation - 49 CFR 591

ATTACHMT: ATTACHED TO LETTER DATED 12/22/94 FROM PHILIP R. RECHT TO MICHAEL LOVE (A42; PART 591; PART 592; PART 593)

TEXT: Porsche Cars North America, Inc. ("Porsche Cars N.A.") is the authorized importer and distributor of Porsche vehicles in the United States. Effective 1/1/95, Porsche Cars N.A. will become the authorized importer and distributor of Porsche vehicles in Ca nada. All Porsche vehicles for Canada are built as close as possible to U.S. specification vehicles, while still complying with Canadian law, resulting in only minor (if any) differences on the various models due to the similarity of the laws in both co untries.

Currently Porsche Cars N.A. imports all U.S. vehicles into Charleston, South Carolina, where they are processed at its Pre-Delivery Inspection (PDI) facility. The processing consists of removing the protective shipping material, cleaning the vehicle, in specting for proper operation of all systems and making any repairs. Porsche believes it is permissible to also import all the vehicles for the Canadian market into the U.S. and process them at the PDI facility in Charleston before exporting them to Can ada under the provision of 49 CFR 591.5(c), which states:

(c) The vehicle or equipment item does not comply with all applicable Federal motor vehicle safety, bumper, and theft prevention standards, but is intended solely for export, and the vehicle or equipment item, and the outside of the container of the e quipment item, if any, bears a label or tag to that effect.

Does NHTSA agree with this?

Due to the small volume of vehicles sold by Porsche Cars N.A. in the U.S. and Canada and the large number of options available on the vehicles, we foresee the possibility that a Canadian vehicle with a unique combination of options might be sought by a U .S. customer. Porsche Cars N.A. would like to be able to convert such a Canadian specification car to U.S. specification before it has been retail sold. This would include conversion of all equipment and labels so that the vehicle would be in complianc e with all applicable U.S. requirements before it was released from Porsche Cars N.A.'s control.

Porsche Cars N.A. believes this would be permissible for cars imported under provision of 49 CFR 591.5(c) (as discussed above) and still in the U.S. under Porsche Cars N.A. control. Does NHTSA agree with this? Similarly, Porsche Cars N.A. believes it w ould be possible to bring a Canadian vehicle back from Canada (once it has already been processed in the U.S. and exported to Canada) into the U.S. and convert it to U.S. specification, as long as it has not been retail sold and has remained under Porsch e Cars N.A. control. Does NHTSA also agree with this?

If NHTSA does not agree with Porsche Cars N.A. interpretations as stated above, what does NHTSA see as the options available to Porsche Cars N.A. to import and process Canadian specification cars in the U.S.?

Since Porsche Cars N.A. will assume responsibility for importing Canadian vehicles as of January 1, 1995, we would appreciate an answer from NHTSA on these questions as soon as possible.