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B-217842 1 (1986-07-02)

handle is hein.gao/gaobablfk0001 and id is 1 raw text is: STO LZ -[AJ -3 &/Z 6-, COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON D.C. 26 DELAYED DISTRrBUTION B-217842 July 2, 1986 141147 The Honorable John D. Dingell Chairman, Subcommittee on Oversight and Investigations Committee on Energy and Commerce House of Representatives Dear Mr. Chairman: In your letter of January 2, 1985, you asked that we examine a number of issues concerning the importation into the United States of nonconforming motor vehicles, cars that are not in conformity with the applicable emission requirements of the Clean Air Act or the safety requirements of the National Traffic and Motor Vehicle Safety Act of 1966. We agreed to examine and report on these issues and, as we have advised your staff, that work will culminate in a report shortly. Because we have completed that portion of the work necessary to answer the legal questions you asked, we are providing those answers in advance of the report. The major legal issues concern, first, exemptions from federal reqwirements for immigrants who import vehicles for personal use and for residents who import older cars for per- sonal use, and second, the legal status of commercial importers of nonconforming vehicles as manufacturers. With regard to the first issue, you asked what legal basis supports the Environmental Protection Agency's (EPA) policy to exempt individual and immigrant importers from con- forming their vehicles to meet federal emission requirements and the legal basis for the Customs Service (Customs) to per- mit importation of nonconforming vehicles by releasing the importation bond which is required of importers of such vehicles. We found that both EPA's and Custom's actions are authorized as exercises of enforcement discretion granted by applicable law. This is discussed in part I of the enclosure to this letter. The second issue concerned EPA's legal basis for desig- nating independent commercial importers of nonconforming vehicles as manufacturers and giving them small-volume manu- facturer status, and the legal basis for treating these

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