
[Federal Register: July 16, 2010 (Volume 75, Number 136)]
[Notices]               
[Page 41565-41572]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16jy10-121]                         

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2010-0094]

 
Reports, Forms, and Record Keeping Requirements

AGENCY: National Highway Traffic Safety Administration, DOT.

ACTION: Request for public comment on proposed collection of 
information.

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SUMMARY: Before a Federal agency can collect certain information from 
the public, it must receive approval from the Office of Management and 
Budget (OMB). Under procedures established by the Paperwork Reduction 
Act of 1995, before seeking OMB approval, Federal agencies must solicit 
public comment on the proposed collection of information.
    This document describes a proposed collection of information under 
regulations in 49 CFR parts 591, 592, and 593 that pertain to the 
importation of motor vehicles and items of motor vehicle equipment that 
are subject to the Federal motor vehicle safety, bumper, and theft 
prevention standards.

DATES: Comments must be received on or before September 14, 2010.

ADDRESSES: You may submit comments [identified by DOT Docket No. NHTSA-
2010-0094] by any of the following methods:
     Federal eRulemaking Portal: Go to http://
www.regulations.gov. Follow the online instructions for submitting 
comments.
     Mail: Docket Management Facility: U.S. Department of 
Transportation, 1200 New Jersey Avenue, SE., West Building Ground 
Floor, Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: West Building Ground Floor, Room 
W12-140, 1200 New Jersey Avenue, SE., between 9 a.m. and 5 p.m. ET, 
Monday through Friday, except Federal holidays. Telephone: 1-800-647-
5527.
     Fax: 202-493-2251

Instructions: All submissions must include the agency name and docket 
number for this proposed collection of information. Note that all 
comments received will be posted without change to http://
www.regulations.gov, including any personal information provided. 
Please see the Privacy Act heading below.
    Privacy Act: Anyone is able to search the electronic form of all 
comments received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (65 FR 19477-78) or you may visit http://
DocketInfo.dot.gov.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov and follow the 
online instructions for assessing the dockets. Alternately, you may 
visit in person the Docket Management Facility at the street address 
listed above.

FOR FURTHER INFORMATION CONTACT: Coleman Sachs, Office of Vehicle 
Safety Compliance (NVS-223), National Highway Traffic Safety 
Administration, West Building--4th Floor--Room W43-481, 1200 New Jersey 
Avenue, SE., Washington, DC 20590. Mr. Sachs' telephone number is (202) 
366-3151. Please identify the relevant collection of information by 
referring to its OMB Control Number.

SUPPLEMENTARY INFORMATION:

Prior Approval

    On August 31, 2007, NHTSA submitted to OMB a request for the 
extension of the agency's approval (assigned OMB Control No. 2127-0002) 
of the information collection that is incident to NHTSA's 
administration of the vehicle importation regulations at 49 CFR Parts 
591, 592, and 593. On November 11, 2007, OMB notified NHTSA that it had 
approved this extension request through November 30, 2010. That 
approval was based on NHTSA submissions identifying information being 
collected on an annual basis from 63,818 respondents, expending 42,413 
hours of effort, at a cost of $1,039,756. NHTSA wishes to file with OMB 
a request for that agency to extend its approval for an additional 
three years.

Changes in Program

    Since the information collection associated with NHTSA's 
importation program was last approved by OMB, no significant changes 
have taken place that impact the information collection and the 
assessment of its burden on affected members of the public. The U.S. 
dollar has not gained sufficient strength against foreign currencies to 
significantly increase the volume of vehicle imports that are subject 
to NHTSA's scrutiny. The focus of NHTSA's importation program is on 
vehicles that were not originally manufactured to comply with all 
applicable Federal motor vehicle safety standards (FMVSS). These 
vehicles must be imported by a registered importer (RI) under bond to 
ensure that the vehicles are brought into compliance with applicable 
standards following importation. Nonconforming vehicles are entered 
under Box 3 on the HS-7 Declaration form. In calendar year 2002, 
212,210 nonconforming vehicles were imported under Box 3. Over 97 
percent of those vehicles were imported from Canada. In 2003, after the 
U.S. dollar began to weaken against the Canadian dollar, the volume of 
nonconforming vehicle imports under Box 3 was reduced by more than 
half, to 97,337 vehicles. The trend accelerated over the next five 
years, with 43,648 vehicles imported under Box 3 in 2004, 12,642 
imported in 2005, 10,953 imported in 2006, 7,470 imported in 2007, and 
6,311 imported in 2008. After the U.S. dollar had gained some strength 
against the Canadian dollar, the volume of imports under Box 3 
increased in 2009 to 10,752 vehicles.

[[Page 41566]]

    When NHTSA last requested OMB approval for the information 
collection associated with the vehicle importation program, the agency 
estimated that 11,000 nonconforming vehicles would be imported on an 
annual basis under Box 3, for which HS-7 Declaration forms and HS-474 
DOT Conformance bonds would have to be furnished. The agency estimated 
that it would take five minutes to complete each HS-7 Declaration form, 
and six minutes to complete each HS-474 DOT Conformance bond, for a 
total expenditure of 2,017 hours to complete these forms. Given the 
continued reduction in nonconforming vehicle imports under Box 3 in 
recent years, future projections should assume an average of 8,200 
vehicle imports per year. Relying on this figure, the hour burden 
associated with the completion of paperwork for these vehicles would be 
close to 1,503 hours (0.08333 hours to complete each HS-7 x 8,200 
vehicles = 683 hours; 0.1 hours to complete each HS-474 x 8,200 
vehicles = 820 hours; 683 + 820 = 1,503 hours). This represents 
approximately a 25 percent reduction in burden hours in comparison to 
the figures used when OMB approval was last obtained.

Scope of Accounting for Burdens

    In this document, the agency has not focused exclusively on 
vehicles imported under the RI program, but has instead made a 
concerted effort to quantify the hour burden associated with the 
completion of paperwork for vehicles and equipment items imported in 
any legitimate way under NHTSA's regulations. As a consequence, we are 
providing particular information on the paperwork burden associated 
with the importation of conforming motor vehicles; the temporary 
importation of nonconforming vehicles for personal use by nonresidents 
and by foreign diplomatic and military personnel; the temporary 
importation of nonconforming vehicles for purposes of research, 
investigations, demonstrations or training, and other similar purposes; 
the importation of vehicles that are not primarily manufactured for on-
road use; and other entry categories permitted under the agency's 
regulations. In addition, we have attempted to account for all forms, 
whether required or optional, and other types of information 
solicitations associated with vehicle and equipment importation that 
appear on the agency's Web site and in newsletters and other 
informational media that we employ to inform RIs and others of our 
requirements. Accounting for all paperwork burdens in this manner, we 
project that a total of 40,764 hours will be expended each year to 
complete paperwork associated with all aspects of NHTSA's program that 
regulates the importation of motor vehicles and equipment items subject 
to the FMVSS.

Issues for Comments To Address

    Under the Paperwork Reduction Act of 1995 (PRA), before an agency 
submits a proposed collection of information to OMB for approval, it 
must publish a document in the Federal Register providing a 60-day 
comment period and otherwise consult with members of the public and 
affected agencies concerning each proposed collection of information. 
The OMB has promulgated regulations describing what must be included in 
such a document. Under OMB's regulations (at 5 CFR 1320.8(d)), an 
agency must ask for public comment on the following:
    (i) Whether the proposed collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (ii) The accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions;
    (iii) How to enhance the quality, utility, and clarity of the 
information to be collected; and
    (iv) How to minimize the burden of the collection of information on 
those who are to respond, including the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses.

Solicitation of Comments

    In compliance with these requirements, NHTSA is requesting public 
comment on the following proposed collection of information:
    Title: Importation of Vehicles and Equipment Subject to the Federal 
Motor Vehicle Safety, Bumper, and Theft Prevention Standards.
    Type of Request: Extension of a Currently Approved Collection.
    OMB Control Number: 2127-0002.
    Affected Public: Importers of vehicles and regulated items of motor 
vehicle equipment.
    Requested Expiration Date of Approval--November 30, 2013.
    Summary of Collection of Information--
    1. Declaration requirement for the importation of motor vehicles 
and regulated items of motor vehicle equipment: NHTSA's regulations at 
49 CFR part 591 provide that no person shall import a motor vehicle or 
regulated item of motor vehicle equipment (e.g., tires, rims, brake 
hoses, brake fluid, seat belt assemblies, lighting equipment, glazing, 
motorcycle helmets, child restraints, compressed natural gas 
containers, warning devices, rear impact guards, and platform lift 
systems) unless the importer files a declaration. See 49 CFR 591.5. 
This declaration is filed with U.S. Customs and Border Protection 
(Customs) on a paper copy of the HS-7 Declaration form, or, if the 
entry is made by a Customs House Broker, it can be made electronically 
using Customs' Automated Broker Interface (ABI) system. The HS-7 
Declaration form has 14 boxes, each of which identifies a lawful basis 
for the importation of a motor vehicle or equipment item into the 
United States.
    a. Importation of vehicles at least 25 years old or equipment not 
subject to the safety standards under Box 1: A motor vehicle at least 
25 years old can be lawfully imported without regard to its compliance 
with the FMVSS. So too can an equipment item manufactured on a date 
when no applicable FMVSS was in effect. These vehicles and equipment 
items are declared under Box 1 on the HS-7 Declaration form. In 
calendar year 2007, 10,736 vehicles were imported under Box 1. In 2008, 
2,734 vehicles were imported, and in 2009, the volume of imports 
increased to 8,980 vehicles. Based on an average of these figures, the 
agency projects that roughly 7,500 vehicles will be imported each year 
under Box 1 over the next three years. Assuming that an HS-7 
Declaration form is filed for each of these vehicles, and that it will 
take five minutes to complete each of these forms, the agency estimates 
the hour burden associated with completing the paperwork for these 
vehicles to be approximately 625 hours per year (0.083333 hours x 7,500 
= 625 hours).
    b. Importation of conforming vehicles and equipment under Box 2A: 
Vehicles and equipment that are originally manufactured to comply with 
all applicable Federal motor vehicle safety, bumper, and theft 
prevention standards, and that bear a label or tag certifying such 
compliance that is permanently affixed by the original manufacturer, 
are declared under Box 2A on the HS-7 Declaration form. In 2007, 
4,060,121 vehicles were imported under Box 2A. In 2008, the figure 
decreased to 3,717,910 vehicles, and decreased again in 2009, to 
3,222,043. Based on an average of these figures, the agency projects 
that roughly 3,700,000 vehicles will be imported each year under Box 2A 
for the next three years. The overwhelming majority of vehicles entered 
under Box 2A are imported by

[[Page 41567]]

original manufacturers. As a rule, manufacturers do not file a separate 
HS-7 Declaration form for each conforming vehicle they import under Box 
2A. Instead, the manufacturers furnish NHTSA with a single declaration 
form, on a monthly basis, to which they attach a list of all vehicles, 
identified by make, model, model year, and vehicle identification 
number (VIN), that were imported under Box 2A during that month. In 
this manner, it is not unusual for a single HS-7 Declaration form to be 
filed with the agency to cover the entry of many thousands of vehicles. 
Assuming that manufacturers account for 90 percent of the vehicles 
imported under Box 2A, and that a manufacturer will, on average, report 
the entry of 5,000 vehicles on a single Declaration form, and that all 
other vehicles imported under Box 2A are declared individually, the 
agency projects the hour burden associated with completing the 
paperwork for the entry of these vehicles to be 30,832 hours per year 
(3,700,000 vehicles x .9 = 3,330,000 vehicles imported by original 
manufacturers; 3,330,000 vehicles / 5,000 vehicles per declaration 
forms filed = 666 declaration forms being filed per year by 
manufacturers; assuming that a separate declaration is filed for each 
other vehicle imported under Box 2A yields 370,000 declarations being 
filed per year for these vehicles; 370,000 + 666 = 370,666 declarations 
per year; 0.08333 hours to complete each declaration x 370,666 
declarations = 30,832 hours).
    c. Importation of conforming Canadian-market vehicles for personal 
use under Box 2B: A motor vehicle that is certified by its original 
manufacturer as complying with all applicable Canadian motor vehicle 
safety standards can be imported by an individual for personal use 
under Box 2B. To accomplish the entry, the importer must furnish 
Customs with a letter from the vehicle's original manufacturer 
confirming that the vehicle conforms to all applicable U.S. Federal 
motor vehicle safety, bumper, and theft prevention standards, or that 
it conforms to all such standards except for the labeling requirements 
of Standard Nos. 101 Controls and Displays and 110 or 120 Tire 
Selection and Rims, and/or the requirements of Standard No. 108 Lamps, 
Reflective Devices, and Associated Equipment relating to daytime 
running lamps. NHTSA received from Customs a total of 1,452 HS-7 
Declaration forms for vehicles imported under Box 2B in calendar year 
2007. In addition, declarations were filed electronically for 753 
vehicles imported under Box 2B in 2007. Combining these figures yields 
a total of 2,205 vehicles imported under Box 2B in that calendar year. 
NHTSA received from Customs a total of 653 HS-7 Declaration forms for 
vehicles imported under Box 2B in 2008. In addition, electronic entries 
were made for 538 vehicles imported under Box 2B in that calendar year. 
Combining these figures yields a total of 1,189 vehicles imported under 
Box 2B in 2008. NHTSA received from Customs a total of 1,170 HS-7 
Declaration forms for vehicles imported under Box 2B in 2009. In 
addition, electronic entries were made for 421 vehicles imported under 
Box 2B in that calendar year. Combining these figures yields a total of 
1,591 vehicles imported under Box 2B in 2008. Assuming these figures 
represent a fair approximation of the volume of vehicles imported under 
Box 2B in those three calendar years, the agency projects that roughly 
1,675 vehicles will be imported under Box 2B in each of the next three 
calendar years. Assuming that a separate HS-7 Declaration form is filed 
for each of these vehicles, the hour burden associated with the 
completing the paperwork for the entry of these vehicles will be 140 
hours per year (1,675 vehicles x 0.08333 hours per entry = 140 hours).
    d. Importation of nonconforming vehicles by registered importers 
under Box 3:

Statutory and Regulatory Background

    Section 30112(a) of Title 49, U.S. Code prohibits, with certain 
exceptions, the importation into the United States of a motor vehicle 
manufactured after the date an applicable Federal motor vehicle safety 
standard (FMVSS) takes effect, unless the motor vehicle was 
manufactured in compliance with the standard and was so certified by 
its original manufacturer. Under one of the exceptions to this 
prohibition, found at 49 U.S.C. 30141, a nonconforming vehicle can be 
imported into the United States provided (1) NHTSA decides that the 
vehicle is eligible for importation, based on its capability of being 
modified to conform to all applicable FMVSS, and (2) it is imported by 
a registered importer (RI), or by a person who has a contract with an 
RI to bring the vehicle into conformity with all applicable standards 
following importation. Regulations implementing this statute are found 
at 49 CFR parts 591 and 592.

HS-7 Declaration Form

    The regulations require a declaration to be filed (on the HS-7 
Declaration Form) at the time a vehicle is imported that identifies, 
among other things, whether the vehicle was originally manufactured to 
conform to all applicable FMVSS, and if it was not, to state the basis 
for the importation of the vehicle.
    A nonconforming vehicle that NHTSA has decided to be eligible for 
importation can be imported by an RI, or by a person who has a contract 
with an RI to modify the vehicle so that it conforms to all applicable 
FMVSS, under Box 3 on the HS-7 Declaration form. As previously noted, 
the volume of imports under Box 3 initially declined and then slightly 
increased in recent years. In 2007, 7,740 vehicles were imported under 
Box 3, in 2008, 6,311 vehicles were imported, and in 2009, 10,572 
vehicles were imported. Based on these figures, the agency projects 
that 8,200 vehicles will be imported each year under Box 3. Assuming 
that volume, the hour burden associated with the completion of the HS-7 
Declaration form for these vehicles will be 683 hours (0.08333 hours to 
complete each HS-7 x 8,200 vehicles = 683 hours).

HS-474 Conformance Bond

    NHTSA's regulations also require an RI, among other things, to 
furnish a bond (on the HS-474 Conformance Bond form) at the time of 
entry for each nonconforming vehicle it imports, to ensure that the 
vehicle will be brought into conformity with all applicable safety and 
bumper standards within 120 days of entry or will be exported from, or 
abandoned to, the United States. A HS-474 Conformance Bond has to be 
furnished for each nonconforming vehicle imported under Box 3. Assuming 
an importation volume of 8,200 vehicles per year, the hour burden 
associated with the completion of the HS-474 will be 820 hours (0.1 
hours to complete each HS-474 x 8,200 vehicles = 820 hours).

Conformity Statement

    After modifying the vehicle to conform to all applicable standards, 
the RI submits a statement of conformity (on a suggested form) to 
NHTSA, which will then issue a letter permitting the bond to be 
released if the agency is satisfied that the vehicle has been modified 
in the manner stated by the RI. The statement of conformity contains a 
check off list on which the RI identifies the FMVSS and other agency 
requirements to which the vehicle conforms as originally manufactured 
and the FMVSS and other requirements to which the vehicle was modified 
to conform. The RI also attaches to the statement of conformity 
documentary and photographic evidence of the

[[Page 41568]]

modifications that it made to the vehicle to achieve conformity with 
applicable standards. Collectively, these documents are referred to as 
a ``conformity package.''
    A conformity package must be submitted for each nonconforming 
vehicle imported under Box 3. Because the Canadian motor vehicle safety 
standards are identical in most respects to the FMVSS, there are 
relatively few modifications that need to be performed on a Canadian-
certified vehicle to conform it to the FMVSS and the conformity 
packages that are submitted on these vehicles are considerably less 
comprehensive than those submitted for vehicles from Europe, Japan, and 
other foreign markets. The agency estimates that it would take the 
average RI no more than 30 minutes to collect information for, and 
assemble, a conformity package for a Canadian-certified vehicle.
    Generally, more modifications are needed to conform a non-Canadian 
vehicle to the FMVSS. To properly document these modifications, more 
information must be included in the conformity package for a non-
Canadian vehicle than is required for a Canadian-certified vehicle. The 
agency estimates that it would take an RI approximately twice as long, 
or roughly one hour, to compile information for, and assemble, a 
conformity package for a typical non-Canadian vehicle.
    Of the 7,794 nonconforming vehicles imported under Box 3 in 2007, 
7,434, or over 95 percent, were Canadian market and 360, or under five 
percent, were from markets other than Canada. Of the 6,311 
nonconforming vehicles imported under Box 3 in 2008, 5,775, or roughly 
91.5 percent, were Canadian market and 536, or roughly 8.5 percent, 
were from markets other than Canada. Of the 10,751 nonconforming 
vehicles imported under Box 3 in 2009, 10.259, or over 95 percent, were 
Canadian market and 492, or less than five percent, were from markets 
other than Canada. Assuming this trend continues in future years, the 
agency estimates the hour burden associated with the submission of 
conformity packages on Canadian-certified vehicles to be 3,895 hours 
per year (8,200 vehicles x 95 percent or 0.95 = 7,790 vehicles; 7,790 
vehicles x 0.5 hours per vehicle = 3,895 hours). The agency estimates 
the hour burden associated with the submission of conformity packages 
for non-Canadian vehicles to be 410 hours per year (8,200 vehicles x 5 
percent or 0.05 = 410 vehicles; 410 vehicles x 1.0 hours per vehicle = 
410 hours). Adding these figures yields an estimated burden of 4,305 
hours per year for the entire RI industry to compile and submit 
conformity packages to NHTSA on nonconforming vehicles imported under 
Box 3 (3,895 hours + 410 hours = 4,305 hours).

Import Eligibility Petition

    As previously noted, a motor vehicle that was not originally 
manufactured to comply with all applicable FMVSS cannot be lawfully 
imported into the United States on a permanent basis unless NHTSA 
decides that the vehicle is eligible for importation, based on its 
capability of being modified to conform to those standards. Under 49 
U.S.C. 30141, the eligibility decision can be based on the 
nonconforming vehicle's substantial similarity to a vehicle of the same 
make, model, and model year that was manufactured for importation into, 
and sale in the United States, and certified as complying with all 
applicable FMVSS by its original manufacturer. Where there is no 
substantially similar U.S.-certified vehicle, the eligibility decision 
must be predicated on the vehicle having safety features that are 
capable of being modified to conform to the FMVSS, based on destructive 
crash test data or such other evidence that the agency may deem 
adequate. The agency makes import eligibility decisions either on its 
own initiative, or in response to petitions filed by RIs. Only a small 
number of RIs (currently about 13 out of the 70 RIs registered with the 
agency) ever submit import eligibility petitions. Many of these 
businesses have, over, the years, submitted multiple petitions to the 
agency. The agency estimates that it would take the typical RI that 
petitions the agency roughly two hours to complete the paperwork 
associated with the submission of a petition for a vehicle that has a 
substantially similar U.S.-certified counterpart, and roughly twice as 
long, or four hours, to complete the paperwork associated with the 
submission of a petition for a vehicle that lacks a substantially 
similar U.S.-certified counterpart. In 2007, 22 import eligibility 
petitions were submitted to the agency. Of these, 17, or 77 percent, 
were for vehicles with substantially similar U.S.-certified 
counterparts and 5, or 23 percent, were for vehicles for which there 
were no substantially similar U.S. certified counterparts. In 2008, 15 
import eligibility petitions were submitted to the agency. Of these, 
14, or 93 percent, were for vehicles with substantially similar U.S.-
certified counterparts, and 1, or 7 percent, were for vehicles for 
which there were no substantially similar U.S.-certified counterparts. 
In 2009, 12 import eligibility petitions were submitted to the agency. 
Of these, 9, or 75 percent, were for vehicles with substantially 
similar U.S.-certified counterparts, and 3, or 25 percent, were for 
vehicles for which there were no substantially similar U.S.-certified 
counterparts. Assuming this trend continues in future years, the agency 
estimates that roughly 13 import eligibility petitions will be 
submitted each year, 80 percent of which, or 10 petitions, will be for 
vehicles with substantially similar U.S.-certified counterparts, and 20 
percent of which, or 3 petitions, will be for vehicles lacking 
substantially similar U.S.-certified counterparts. Based on these 
figures, the agency estimates that the hour burden for the paperwork 
associated with the submission of import eligibility petitions to be 32 
hours per year (10 petitions x 2 hours per petition = 20 hours; 3 
petitions x 4 hours per petition = 12 hours; 20 hours + 12 hours = 32 
hours). The agency is considering an amendment to its regulations that 
would require an import eligibility petition to include the type 
classification (e.g., passenger car, multipurpose passenger vehicle, 
truck, bus, motorcycle, trailer) of the vehicle for which import 
eligibility is sought and the gross vehicle weight rating or ``GVWR'' 
of the vehicle. If this amendment were to be adopted, it would have no 
appreciable effect on the burden hour estimate provided above.
    e. Importation of vehicles or equipment intended solely for export 
under Box 4: A nonconforming vehicle or equipment item that is intended 
solely for export, and bears a tag or label to that effect, can be 
entered under Box 4 on the HS-7 Declaration form. The majority of 
vehicles imported for export only under Box 4 are imported by original 
manufacturers that do not file individual declaration forms with the 
agency for each vehicle imported, but instead include those vehicles in 
the monthly count supplied to the agency along with conforming vehicles 
imported under Box 2A. The agency received only 39 HS-7 Declaration 
forms for vehicles imported under Box 4 in 2009. Assuming this 
represents the share of vehicles imported under Box 4 by parties other 
than original manufacturers, the agency projects that HS-7 Declaration 
forms will be filed for no more than one percent of the vehicles 
imported under Box 4 in future years. Averaging the volume of vehicles 
imported for export only under Box 4 over the past three years yields 
an estimate of roughly 40,000 vehicles being imported on an annual 
basis in the next three years, and 400 HS-7 Declaration forms being 
filed in each of

[[Page 41569]]

those years. Based on that figure, the hour burden associated with the 
completion of the HS-7 Declaration form for these vehicles will be 
under 34 hours (0.08333 hours to complete each HS-7 x 400 vehicles = 
33.33 hours).
    f. Temporary importation of nonconforming vehicles by nonresidents 
of the United States under Box 5: Under an international convention to 
which the United States is a signatory, a nonresident of the United 
States can import a nonconforming vehicle for personal use, for a 
period of up to one year, provided the vehicle is not sold while in the 
United States and is exported no later than one year from its date of 
entry. These vehicles are entered under Box 5 on the HS-7 Declaration 
form. To enter a vehicle under Box 5, the importer must also furnish 
Customs with the importer's passport number and the name of the country 
that issued the passport. In 2007, a total of 264 vehicles were 
imported under Box 5. In 2008, 334 vehicles were imported under that 
box. In 2009, 358 were imported. Based on these figures, the agency 
estimates that roughly 320 vehicles will be imported under Box 5 in 
each of the next three years. Assuming that volume, the hour burden 
associated with the completion of the HS-7 Declaration form for these 
vehicles will be under 27 hours (0.08333 hours to complete each HS-7 x 
4320 vehicles = 26.6666 hours).
    g. Temporary importation of nonconforming vehicles by foreign 
diplomat under Box 6: A member of a foreign government on assignment in 
the United States, or a member of the secretariat of a public 
international organization so designated under the International 
Organizations Immunities Act, and within the class of persons for whom 
free entry of motor vehicles has been authorized by the Department of 
State, can temporarily import a nonconforming vehicle for personal use 
while in the United States. These vehicles are entered under Box 6 on 
the HS-7 Declaration form. The importer must attach to the declaration 
a copy of the importer's official orders and supply Customs with the 
name of the embassy to which the importer is attached. In 2007, a total 
of 26 vehicles were imported under Box 6. In 2008, 3 vehicles were 
imported under that box. In 2009, 25 were imported. Based on these 
figures, the agency estimates that roughly 25 vehicles will be imported 
under Box 6 in each of the next three years. Assuming that volume, the 
hour burden associated with the completion of the HS-7 Declaration form 
for these vehicles will be roughly 2 hours (0.08333 hours to complete 
each HS-7 x 25 vehicles = 2.08 hours).
    h. Temporary importation of nonconforming vehicles and equipment 
under Box 7: Under 49 U.S.C. 30114, NHTSA is authorized to exempt a 
motor vehicle or item of motor vehicle equipment from the importation 
restriction in 49 U.S.C. 30112(a), on such terms the agency decides are 
necessary, for purposes of research, investigations, demonstrations, 
training, competitive racing events, show, or display. Regulations 
implementing this provision are found at 49 CFR part 591. Under those 
regulations, written permission from NHTSA is needed to temporarily 
import a nonconforming motor vehicle or equipment item for one of the 
specified purposes unless the importer is a manufacturer of motor 
vehicles that are certified to the FMVSS. An application form that can 
be used to obtain the letter of permission is posted to the agency's 
Web site at http://www.nhtsa.gov/cars/rules/import. If NHTSA grants it 
permission, the nonconforming motor vehicle or equipment item can be 
temporarily imported under Box 7 on the HS-7 Declaration form. In 2007, 
4,741 vehicles were imported under Box 7. In 2008, 5,860 vehicles were 
imported under that box. In 2009, 4,090 were imported. Permission 
letters were requested from NHTSA for 222 of the vehicles imported in 
2007, 302 of the vehicles imported in 2008, and 254 of the vehicles 
imported in 2009, representing roughly 5 percent of the total number of 
vehicles imported under Box 7 in those years. The remaining vehicles 
were imported by original manufacturers of vehicles that are certified 
to the FMVSS, who can temporarily import nonconforming vehicles for any 
of the specified purposes under Box 7 without the need for a NHTSA 
permission letter. Averaging the volume of imports over the past two 
years, the agency projects that roughly 5,000 vehicles will be imported 
under Box 7 in each of the next three years. Assuming that applications 
for NHTSA permission letters will be submitted for ten percent of those 
vehicles, and that a single application will be filed for each vehicle, 
the agency estimates that 500 applications will be filed in each of the 
next three years. Based on the estimate that it will take roughly five 
minutes to complete each of those applications, the agency projects 
that under 42 hours will be expended on an annual basis to submit 
applications for permission from NHTSA to import vehicles under Box 7 
(0.0833 hours per application x 500 applications = 41.66 hours). 
Assuming that a single HS-7 Declaration form is filed for each vehicle 
imported under Box 7, the agency projects that under 420 hours will be 
expended on an annual basis in completing the declaration for vehicles 
imported under Box 7 (0.0833 hours per declaration x 5000 vehicles = 
416.66 hours).
    i. Importation of off-road vehicles under Box 8: NHTSA regulates 
the importation of ``motor vehicles,'' which are defined (at 49 U.S.C. 
30102) as vehicles that are driven or drawn by mechanical power and 
manufactured primarily for use on public streets, roads, and highways. 
Vehicles that are not primarily manufactured for on-road use do not 
qualify as ``motor vehicles'' under this definition, and may therefore 
be imported without regard to their compliance with the FMVSS. These 
vehicles are entered under Box 8 on the HS-7 Declaration form. Vehicles 
that can be entered in this fashion include those that are originally 
manufactured for closed circuit racing. Although approval from NHTSA is 
not needed to import a vehicle that was originally manufactured for 
racing purposes, the agency will issue a letter recognizing a 
particular vehicle as having been so manufactured if the importer 
requests the agency to do so. An application form that can be used to 
obtain such a letter is also posted to the agency's Web site at http://
www.nhtsa.gov/cars/rules/import. In 2007, applications were submitted 
to NHTSA for 78 vehicles imported under Box 8. In 2008, 66 applications 
were filed. In 2009, 62 were filed. Based on these figures, the agency 
projects that 70 applications to import vehicles for racing purposes 
under Box 8 will be submitted in each of the next three years. Assuming 
that it will take five minutes to complete each of these applications, 
the agency estimates that under 6 hours will be expended in completing 
these applications (0.08333 hours x 70 applications = 5.83 hours).
    In 2007, a total of 122,960 vehicles were imported under Box 8. In 
2008, 175,282 vehicles were imported under that box. In 2009, 99,524 
were imported. Averaging those figures, the agency projects that 
roughly 135,000 vehicles will be imported under Box 8 in each of the 
next three years. The vast majority of these vehicles were off-road 
motorbikes or all-terrain vehicles that were imported in bulk shipments 
for which a single declaration was filed. NHTSA received only 57 HS-7 
Declaration forms for vehicles imported under Box 8 in 2007, 16 for 
vehicles imported in 2008, and 15 for those imported in 2009. The 
remainder of the entries were made electronically. Based on the 
assumption that each entry

[[Page 41570]]

covers 100 vehicles, the agency estimates that approximately 13,500 Box 
8 entries will be made on an annual basis over the next three years. 
Relying on this assumption, the agency projects that slightly less than 
1,125 hours will be expended on an annual basis in completing the 
declaration for vehicles imported under Box 8 (0.0833 hours per 
declaration x 13,500 vehicles = 1,124.99 hours).
    j. Importation of vehicles or equipment requiring further 
manufacturing operations under Box 9: A motor vehicle or equipment item 
that requires further manufacturing operations to perform its intended 
function, other than the addition of readily attachable components such 
as mirrors or wipers, or minor finishing operations such as painting, 
can be entered under Box 9 on the HS-7 Declaration form. Documents from 
the manufacturer must be furnished for these entries. In 2007, 8,943 
vehicles were imported under Box 9. In 2008, 9,307 vehicles were 
imported under that box. In 2009, 7,570 were imported. Averaging those 
figures, the agency projects that roughly 8,600 vehicles will be 
imported under Box 9 in each of the next three years. Assuming that a 
separate HS-7 Declaration form is filed for each of those vehicles, the 
agency projects that approximately 717 hours will be expended on an 
annual basis in completing the declaration for vehicles imported under 
Box 9 (0.0833 hours per declaration x 8,600 vehicles = 716.66).
    k. Importation of vehicles for show or display under Box 10: 
Vehicles that are deemed by NHTSA to have sufficient technological or 
historical significance that they would be worthy of being exhibited in 
car shows if they were brought to the United States are eligible for 
importation for purposes of show or display under Box 10 on the HS-7 
Declaration form. Written permission from NHTSA is also needed to 
import a vehicle for that purpose. An application form that can be used 
to request the agency to decide that a particular make, model, and 
model year vehicle is eligible for importation for purposes of show or 
display is posted to the agency's Web site at http://www.nhtsa.gov/
cars/rules/import. In 2007, the agency received 18 applications to 
determine vehicles eligible for importation for purposes of show or 
display. In 2008, the agency received 22 such applications. In 2009, 
the agency received 8. Averaging these figures, the agency projects 
that it will receive 16 applications to determine vehicles eligible for 
importation for purposes of show or display in each of the next three 
years. Assuming that it will take the typical applicant up to ten hours 
to compile and assemble the materials needed to support each 
application, the agency estimates that up to 160 hours will be expended 
in this activity in each of those years.
    Also on the agency's Web site is an application form that can be 
used to request NHTSA to permit a particular vehicle to be imported for 
purposes of show or display once the agency has decided that the 
vehicle is of a make, model, and model year that is eligible for 
importation for those purposes. Certain restrictions apply to vehicles 
that are imported for purposes of show or display. Among those is a 
requirement that the vehicle not be driven in excess of 2,500 miles per 
year. The application specifies the terms of the importation and makes 
provision for the applicant to agree to those terms. In 2007, the 
agency received 15 applications to import specific vehicles for 
purposes of show or display. In 2008, the agency received 13 such 
applications. In 2009, the agency received 8. Averaging those figures, 
the agency estimates that it will receive roughly 12 applications in 
each of the next three years. Assuming that it will take the typical 
applicant up to one hour to compile and assemble the materials needed 
to support each application, the agency estimates that up to 12 hours 
will be expended in this activity in each of those years.
    l. Importation of equipment subject to the Theft Prevention 
Standard under Box 11: Items of motor vehicle equipment that are marked 
in accordance with the Theft Prevention Standard in 49 CFR part 541 are 
entered under Box 11 on the HS-7 Declaration form. In 2007, there were 
3,557 entries under Box 11. In 2008, there were 1,747 such entries. In 
2009 there were 1,684. Averaging these figures, the agency estimates 
that 2,350 entries will be made under Box 11 in each of the next three 
years. Virtually all of these entries are made electronically. This is 
evidenced by the fact that the agency received only 37 HS-7 Declaration 
forms for Box 11 entries made in 2009. Assuming that it will take five 
minutes to complete each of these entries, the agency projects that 
under 196 hours will be expended on an annual basis in making these 
entries for equipment imported under Box 11 (0.0833 hours per 
declaration x 2,350 equipment items = 195.83 hours).
    m. Temporary importation of nonconforming vehicles by foreign 
military personnel under Box 12: A member of the armed forces of a 
foreign country on assignment in the United States can temporarily 
import a nonconforming vehicle for personal use during the member's 
tour of duty under Box 12 on the HS-7 Declaration form. In 2007, a 
total of 219 vehicles were imported under Box 12. In 2008, 69 such 
vehicles were imported. In 2009, 26 were imported. Averaging these 
figures, the agency projects that roughly 105 vehicles will be imported 
under Box 12 in each of the next three years. Assuming that volume, the 
hour burden associated with the completion of the HS-7 Declaration form 
for these vehicles will be under 9 hours (0.08333 hours to complete 
each HS-7 x 105 vehicles = 8.75 hours).
    n. Importation of vehicles to prepare import eligibility petitions 
under Box 13: A nonconforming vehicle imported by an RI for the purpose 
of preparing a petition for NHTSA to decide that a particular make, 
model, and model year vehicle is eligible for importation is entered 
under Box 13 on the HS-7 Declaration form. A letter from NHTSA granting 
the importer permission to import the vehicle for that purpose must be 
filed with the declaration. NHTSA has issued guidance to inform RIs 
that it will permit no more than two vehicles to be imported for the 
purpose of preparing an import eligibility petition. Box 13 was 
incorporated into the HS-7 Declaration form when that form was last 
revised in May, 2006. Since that time, the agency has received requests 
to permit the importation of 12 vehicles under Box 13 in 2007, 15 in 
2008, and 28 in 2009. As previously noted, the agency projects that 
roughly 13 import eligibility petitions will be submitted in each of 
the next three years. The agency permits an RI to import up to two 
vehicles for the purpose of preparing an import eligibility petition. 
Assuming that each petitioning RI imports two vehicles, the agency 
estimates that it will receive up to 26 requests per year for letters 
permitting those vehicles to be imported under Box 13. Estimating that 
it will take five minutes to complete each of those requests, the hour 
burden associated with this activity will be roughly 1 hour (0.08333 
hours to complete each request x 26 vehicles = 1.08 hours).
    2. Information collected from applicants for RI status and existing 
RIs seeking to renew their registrations: Under 49 U.S.C. 30141, a 
motor vehicle that was not originally manufactured to comply with all 
applicable FMVSS cannot be lawfully imported into the United States on 
a permanent basis unless (1) NHTSA decides it is eligible for 
importation, based on its capability of being modified to conform to 
all applicable FMVSS and (2) it is imported by an RI or by a person who 
has a

[[Page 41571]]

contract with an RI to modify the vehicle so that it complies with all 
applicable FMVSS following importation. NHTSA is authorized by 49 
U.S.C. 30141(c) to establish, by regulation, procedures for registering 
RIs. Those regulations are found in 49 CFR part 592.
    a. Information collected from applicants: Under the terms of the 
regulations in part 592, an applicant for RI status must submit to the 
agency information that identifies the applicant, specifies the manner 
in which the applicant's business is organized (i.e., sole 
proprietorship, partnership, or corporation), and, depending on the 
form of organization, identifies the principals of the business. The 
application must also state that the applicant has never had a 
registration revoked and identify any principal previously affiliated 
with another RI. The application must also provide the street address 
and telephone number in the United States of each facility for the 
conformance, storage, and repair of vehicles that the applicant will 
use to fulfill its duties as an RI, including records maintenance, and 
the street address in the United States that it designates as its 
mailing address. The applicant must also furnish a business license or 
other similar document issued by a State or local authority authorizing 
it to do business as an importer, seller, or modifier of motor 
vehicles, or a statement that it has made a bona fide inquiry and is 
not required by any State or local authority to maintain such a 
license. The application must also set forth sufficient information to 
allow the Administrator to conclude that the applicant (1) is 
technically able to modify nonconforming vehicles to conform to 
applicable Federal motor vehicle safety and bumper standards, (2) owns 
or leases one or more facilities sufficient in nature and size to 
repair, conform, and store the vehicles for which it furnishes 
statements of conformity to NHTSA, (3) is financially and technically 
able to provide notification of and a remedy for a noncompliance with 
an FMVSS or a defect related to motor vehicle safety determined to 
exist in the vehicles it imports, and (4) is able to acquire and 
maintain information on the vehicles that it imports and the owners of 
those vehicles so that it can notify the owners if a safety-related 
defect or noncompliance is determined to exist in such vehicles. The 
application must also contain a statement that the applicant will abide 
by the duties of an RI and attesting to the truthfulness and 
correctness of the information provided in the application. A brochure 
containing sample documents that an applicant may use in applying to 
become an RI is posted to the agency's Web site at http://
www.nhtsa.gov/cars/rules/import. In 2007, NHTSA received 7 applications 
for RI status. In 2008, the agency received 6 applications of this 
kind. In 2009, the agency received 11. Based on these figures, the 
agency anticipates that it will receive 8 applications for RI status in 
each of the next three years. Assuming that it will take up to ten 
hours to compile and assemble the material needed to support a single 
application, the agency estimates that 80 hours will be expended in 
this activity for each of the next three years (8 applications x 10 
hours = 80 hours). The agency is considering an amendment to its 
regulations that would require an applicant for RI status to disclose 
whether the applicant has been convicted of a crime related to the 
importation, purchase, or sale of a motor vehicle or motor vehicle 
equipment. If this amendment were to be adopted, it would have no 
appreciable effect on the burden hour estimate provided above.
    b. Information collected from existing RIs: To maintain its 
registration, an RI must file an annual statement affirming that all 
information it has on file with the agency remains correct and that it 
continues to comply with the requirements for being an RI. Formats that 
existing RIs may use to renew their registrations are included in a 
newsletter sent electronically to each RI before the renewal is due and 
posted to the agency's Web site at http://www.nhtsa.gov/cars/rules/
import. The number of RI renewals declined in recent years on account 
of the weakening of the U.S. dollar against the Canadian dollar, and 
the concomitant reduction in the volume of vehicles imported from 
Canada. In 2007, NHTSA received renewal packages from 64 RIs. In 2008, 
the agency received 63 renewal packages. In 2009, the number of renewal 
packages submitted increased to 70. Based on these figures, the agency 
anticipates that it will receive an average of 65 renewal packages in 
each of the next three years. Assuming that it will take up to two 
hours to compile and assemble the material needed to support a single 
application for renewal, the agency estimates that 130 hours will be 
expended in this activity for each of the next three years (65 renewal 
applications x 2 hours = 130 hours). The agency is considering an 
amendment to its regulations that would require an RI seeking to renew 
its registration to disclose whether the RI has been convicted of a 
crime related to the importation, purchase, or sale of a motor vehicle 
or motor vehicle equipment. If this amendment were to be adopted, it 
would have no appreciable effect on the burden hour estimate provided 
above.
    3. Information to be retained by RIs: The agency's regulations at 
49 CFR 592.6(b) require an RI to maintain and retain certain specified 
records for each motor vehicle for which it furnishes a certificate of 
conformity to NHTSA, for a period of 10 years from the vehicle's date 
of entry. As described in the regulations, those records must consist 
of ``correspondence and other documents relating to the importation, 
modification, and substantiation of certification of conformity to the 
Administrator.'' The regulations further specify that the records to be 
retained must include (1) a copy of the HS-7 Declaration Form furnished 
for the vehicle at the time of importation, (2) all vehicle or 
equipment purchase or sales orders or agreements, conformance 
agreements with importers other than RIs, and correspondence between 
the RI and the owner or purchaser of each vehicle for which the RI 
furnishes a certificate of conformity to NHTSA, (3) the last known name 
and address of the owner or purchaser of each vehicle for which the RI 
furnishes a certificate of conformity, and the vehicle identification 
number (VIN) of the vehicle, and (4) records, both photographic and 
documentary, reflecting the modifications made by the RI, which were 
submitted to NHTSA to obtain release of the conformance bond furnished 
for the vehicle at the time of importation. See 49 CFR 592.6(b)(1) 
through (b)(4).
    The latter records are referred to as a ``conformity package.'' 
Most conformity packages submitted to the agency covering vehicles 
imported from Canada are comprised of approximately six sheets of paper 
(including a check-off sheet identifying the vehicle and the standards 
that it was originally manufactured to conform to and those that it was 
modified to conform to, a statement identifying the recall history of 
the vehicle, a copy of the HS-474 conformance bond covering the 
vehicle, and a copy of the mandatory service insurance policy obtained 
by the RI to cover its recall obligations for the vehicle). In 
addition, most conformity packages include photographs of the vehicle, 
components that were modified or replaced to conform the vehicle to 
applicable standards, and the certification labels affixed to the 
vehicle.
    Approximately 120 conformity packages can be stored in a cubic foot

[[Page 41572]]

of space. Based on projected imports of 8,200 nonconforming vehicles 
per year, 68.3 cubic feet of space will be needed on an industry-wide 
basis to store one year's worth of conformity packages. Assuming an 
annual cost of $20 per cubic foot to store the information, NHTSA 
estimates the aggregate cost to industry for storing a year's worth of 
conformity packages to be $1,366 per year. Over a ten-year retention 
period, a member of the industry would be required to retain 55 annual 
units of records (assuming that one annual unit was stored in the first 
year, two annual units in the second year, and so on). The aggregate 
cost to industry of the ten-year record retention requirement will 
therefore be $75,130 (55 x $1,366).
    RIs are also required under 49 CFR 592.6(b) to retain a copy of the 
HS-7 Declaration Form furnished to Customs at the time of entry for 
each nonconforming vehicle for which they submit a conformity package 
to NHTSA. Paper HS-7 Declaration Forms are only filed for a small 
fraction of the nonconforming vehicles imported into the United States. 
Customs brokers file entries for most nonconforming vehicles 
electronically by using the Automated Broker Interface (ABI) system. 
For example, in Calendar year 2006, 10,953 ABI entries were made for 
nonconforming vehicles imported into the United States under Box 3, and 
only 440 paper HS-7 Declaration Forms (representing less than four 
percent of the total) were filed for such vehicles. Because HS-7 
Declaration Forms are filed for only a small fraction of the 
nonconforming vehicles that are imported by RIs, the storage 
requirement for those records can have no more than a negligible cost 
impact on the industry. Because the remaining records that RIs are 
required to retain under 49 CFR 592.6(b) may be stored electronically, 
the costs incident to the storage of those records should also be 
negligible.
    RIs who conduct recall campaigns to remedy a safety-related defect 
or a noncompliance with an FMVSS determined to exist in a vehicle they 
import must report the progress of those campaigns to NHTSA. The agency 
estimates that it should take each RI that is required to conduct a 
safety recall campaign approximately one hour to compile information 
for and prepare each of the two reports it would be required to submit 
to the agency detailing the progress of the recall campaign. Since 
vehicle manufacturers in most cases include vehicles imported by RIs in 
their own recall campaigns, it is likely that very few of these reports 
would have to be prepared or submitted by RIs.
    Description of the Need for the Information and Proposed Use of the 
Information--The information collection detailed above is necessary to 
ensure that motor vehicles and items of motor vehicle equipment subject 
to the Federal motor vehicle safety, bumper and theft prevention 
standards are lawfully imported into the United States. To be lawfully 
imported, the vehicle or equipment item must be covered by one of the 
boxes on the HS-7 Declaration form and the importer must declare, 
subject to penalty for making false statements, that the vehicle or 
equipment item is entitled to entry under the conditions specified on 
the form, including the provision of any supporting information or 
materials that may be required.
    NHTSA relies on the information provided by RIs and applicants for 
RI status to obtain and renew their registrations so that it can better 
ensure that RIs are meeting their obligations under the statutes and 
regulations governing the importation of nonconforming vehicles and can 
make more informed decisions in conferring RI status on applicants and 
in permitting RI status to be retained by those currently holding 
registrations. In this manner, those lacking the capability to 
responsibly provide RI services, or who have committed or are 
associated with those who have committed past violations of the vehicle 
importation laws, can be more readily denied registration as an RI, or 
if they already hold such a registration, have that registration 
suspended or revoked when circumstances warrant such action.
    Description of the Likely Respondents (Including Estimated Number 
and Proposed Frequency of Responses to the Collection of Information)--
With regard to the HS-7 Declaration form, likely respondents include 
any private individual or commercial entity importing into the United 
States a vehicle or item of motor vehicle equipment subject to the 
Federal motor vehicle safety standards. It is difficult to estimate, 
with reliability, the absolute number of such respondents; however, 
that number would include:
     The 70 RIs who are currently registered with NHTSA and 
import nonconforming vehicles under Boxes 3 and 13;
     The roughly 1,650 individuals who import each year 
Canadian-certified vehicles for personal use under Box 2B;
     The several hundred original manufacturers who import 
conforming motor vehicles and equipment items under Box 2a; 
nonconforming vehicles or equipment intended for export under Box 4; 
nonconforming vehicles and equipment on a temporary basis for purposes 
of research, investigations, or other reasons specified under Box 7; 
vehicles and equipment requiring further manufacturing operations under 
Box 9; and equipment subject to the Theft Prevention Standard under Box 
11.
     The several hundred dealers, distributors, and individuals 
who import off-road vehicles such as dirt bikes and all-terrain 
vehicles or ATVs, as well as other vehicles that are not primarily 
manufactured for on-road use under Box 8.
     The several hundred nonresidents of the United States and 
foreign diplomatic and military personnel who temporarily import 
nonconforming vehicles for personal use under Boxes 5, 6, and 12.
    Estimate of the Total Annual Reporting and Recordkeeping Burden of 
the Collection of Information--Adding together the burden hours 
detailed above yields a total of 40,764 hours expended on an annual 
basis for all paperwork associated with the filing of the HS-7 
Declaration form and other aspects of the vehicle importation program.
    Estimate of the Total Annual Costs of the Collection of 
Information--Other than the cost of the burden hours, the only 
additional costs associated with this information collection are those 
incident to the storage, for a period of ten years, of records 
pertaining to the nonconforming vehicles that each RI imports into the 
United States.

    Authority:  44 U.S.C. 3506(c); delegation of authority at 49 CFR 
1.50 and 501.8(f).

    Issued on: July 12, 2010.
Jeffrey Giuseppe,
Acting Director, Office of Vehicle Safety Compliance.
[FR Doc. 2010-17364 Filed 7-15-10; 8:45 am]
BILLING CODE 4910-59-P

