NHTSA Finalizes Its "Best Practices" for Importers of Motor Vehicles/Equipment
The National Highway Traffic Safety Administration has issued a notice of its final recommended best importer practices to enhance the safety of imported motor vehicles and motor vehicle equipment. The recommended practices seek to reduce the likelihood of importing products that contain defects related to motor vehicle safety or do not comply with applicable federal motor vehicle safety standards (FMVSS).
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According to NHTSA, this notice issues in final form, with some changes, the proposed best practices of its July 2008 notice. (See ITT's Online Archives or 07/22/08 news, 08072220, for BP summary of that notice.)
Best Practices Are Informational, Not Binding
NHTSA is issuing this final notice for informative purposes. NHTSA states it is not establishing a binding set of rules on best practices or suggesting that a single set of best practices would apply in all situations. Moreover, these recommended practices do not establish defenses to any violations of the statutes and regulations that it administers.1
(Note that NHTSA will also post the recommended practices on its Web site.)
Highlights of NHTSA's Recommended Best Importer Practices
The following are highlights of NHTSA's recommended best importer practices:
Understand importer obligations, statutes, regulations. Before importing motor vehicles or motor vehicle equipment into the U.S., it is essential that the importer understand its obligations under Federal statutes and regulations governing vehicle safety.
Exercise great care in selecting foreign manufacturers. Selecting a capable and responsible overseas business partner is one of the best ways to minimize risks. Before selecting a business partner in another country, it is wise to investigate the fabricating manufacturer's reputation using readily available public information, checking a government agency's public records for useful information on the company's history of recalls and regulatory compliance, etc.
Inspect foreign manufacturing facilities. Before entering into a written contract, NHTSA suggests that the U.S. importer personally visit the fabricating manufacturer's facility and determine whether the manufacturer is properly licensed by the appropriate government agencies. To reduce the potential for fraud, it is preferable to deal directly with the fabricating manufacturer and to avoid dealing with representatives (such as trade groups) that claim to represent a manufacturer. (See notice for further details on assuring quality control, protecting intellectual property, etc.)
Inspect goods. NHTSA states that importers may wish to carefully consider instituting a quality control program at the outset and makes several recommendations for sampling, inspecting, and testing products. In addition, NHTSA recommends to not terminate quality control measures at the port but to consider instituting quality control measures at storage locations and throughout the domestic distribution process.
Product identification and marking. It is generally required that an imported product be properly marked with its country of origin. In addition, items of motor vehicle equipment that are subject to the FMVSS must, as originally manufactured, conform to the applicable standard and be so certified. FMVSS for regulated safety equipment is evidenced by the symbol ''DOT'' either inscribed on the equipment item in a prescribed location, or placed on the outside of the container in which the equipment item is shipped.
Voluntary marking of manufacturer, importer. As a result of comments received on voluntary markings, NHTSA has also included a recommendation that the legitimate manufacturer (and where feasible, the importer) be clearly identified on the product or its packaging. NHTSA states that readily apparent markings on the item itself are preferable, because after the item is in service, its packaging will usually not be available for reference purposes.
(NHTSA's notice also includes recommendations on establishing a consumer service program; consumer education; product service; recordkeeping; safety recall plans; intervention; notification; business process monitoring; etc.)
1Under the Vehicle Safety Act, manufacturers and importers of motor vehicles and motor vehicle equipment are responsible for the safety of their products that they manufacture for sale in or import into the U.S. NHTSA has a standard setting and oversight/enforcement role and may issue guidance that provides valuable information to affected industries.
NHTSA contact - Clint Lindsay (202) 366-5288
NHTSA notice (D/N 2008-0113 Notice 2, FR Pub 12/24/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-30603.pdf