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Frequently Encountered Problems by the Trade Filing NHTSA-Related Commodities in ACE
May 5, 2016
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Contents NHTSA Business Rules ................................................................................................................................... 3
HS-7 Declarations: ..................................................................................................................................... 3
July 2015 NHTSA IG Clarification ............................................................................................................... 3
Box 2A – Incorrect Program Code Errors ...................................................................................................... 3
Harmonized Tariff Schedule Numbers Flagged DT1 or DT2 ......................................................................... 3
DT1 ............................................................................................................................................................ 3
DT2 ............................................................................................................................................................ 4
No HTS Flagging ........................................................................................................................................ 4
PG22 Record Mandatory ............................................................................................................................... 4
Agency Records Missing – PG01 and PG10 Records ..................................................................................... 5
PG07 Record – Missing Manufacturer Name or Mode ................................................................................. 5
REI – Tires and Glazing Requirements .......................................................................................................... 5
REI & OEI - Lighting Equipment ..................................................................................................................... 6
Federal Motor Vehicle Theft Prevention Standard (Agency Code TPE) ........................................................ 9
Used Engines and TPE? ............................................................................................................................. 9
Box 7 Temporary Importations ................................................................................................................... 10
Box 8 - Vehicle / Equipment ........................................................................................................................ 10
Used Tire Casings Imported for Retreading ................................................................................................ 10
Requirement for the Paper HS-7 Declaration form .................................................................................... 11
Questions .................................................................................................................................................... 12
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NHTSA Business Rules ACE business rules for NHTSA are programmed to issue both warnings and rejects. Since the NHTSA pilot began in August 2015, about 1/3 of the entries that violated business rules were rejected while 2/3 of the entries were accepted with warning messages. By issuing more warnings than rejects, filers were able to learn about NHTSA data set requirements and to make changes as needed. NHTSA also gained valuable experience identifying recurring problems and assisting filers with corrections. NHTSA notes that many ACE-related errors involve incorrect HS-7 declarations associated with the corresponding agency codes that identify the commodities (e.g., Regulated Equipment Item (REI), Other Equipment Item (OEI)). A quick reference to help reduce errors is shown below.
HS-7 Declarations: MVS Only Boxes 1, 2A, 2B, 3, 4, 5, 6, 7, 9, 10, 12 & 13 REI Only Boxes 2A & 7 OEI Only Boxes 1 & 9 TPE Only Box 11 OFF Only Box 8
July 2015 NHTSA IG Clarification NHTSA takes the position that incomplete equipment is not REI, but rather OEI because it is not subject to the Federal motor vehicle safety standards (as it is incomplete). This has been clarified in the updated, February 1, 2016 NHTSA IG, which has been forwarded for approval. So Box 9 equipment is OEI -- REI is only for Boxes 2A or 7.
Box 2A – Incorrect Program Code Errors Box 2A is only acceptable for 13 equipment items subject to the Federal motor vehicle safety standards (FMVSS) and entered under agency code REI and motor vehicles under agency code MVS. Do not use Box 2A with TPE, OEI, or OFF agency codes. For example, air bags are not equipment items subject to the FMVSS and should be entered under OEI. Do not declare these under Box 2A. Instead, declare them under Box 1. A Box 1 declaration is for vehicles at least 25 years old and for equipment manufactured on a date when no FMVSS or theft prevention standard covering that equipment are in effect.
Harmonized Tariff Schedule Numbers Flagged DT1 or DT2
DT1 DT1 means that the HS-7 may or may not be needed. If the commodity is not regulated by NHTSA, meaning it is not a motor vehicle or motor vehicle equipment, you may use agency code OFF and disclaim filing under code A. If you may disclaim filing, please ensure that the OI commercial description clearly indicates that the commodities are outside NHTSA’s jurisdiction
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e.g., Off-Road ATV, CNG container not for motor vehicles, Forklift Parts, etc. The remaining Record is the PG01, which will contain NHTSA agency code OFF and the disclaim filing code A. Only use Disclaim filing code A, which means that the product is not regulated by NHTSA.
DT2 DT2 means mandatory HS-7 reporting, so you may not disclaim. If the commodity is regulated by NHTSA, meaning it is a motor vehicle or motor vehicle equipment, you must file the NHTSA data set and you cannot use agency code OFF. If the commodity is not regulated by NHTSA, meaning it is not a motor vehicle or motor vehicle equipment, you must file the NHTSA data set and use agency code OFF, declaring the commodity under Box 8 in the PG22 Record. If you are filing NHTSA data because the HTS is flagged DT2, you should provide data shown in the Box 8 sample of the NHTSA IG. At a minimum, you need OI, PG01, PG02, PG07, PG10, and PG19 Records, along with two (2) PG22 Records, one of which has code 946 for the HS-7 and Box 8. The second PG22 Record must have code 871 for the importer’s substantiating statement that the vehicle or equipment is not regulated by NHTSA. We do not collect the 871 form via DIS, but an entity must certify that it is on file.
No HTS Flagging Not all motor vehicle equipment items are flagged requiring NHTSA data. Examples are seats for motor vehicles, carpet, replacement knobs for various systems. The HTSUS classification structure is not granular enough to adequately identify individual commodities that may be regulated by the agency. NHTSA has been asked: “Is the importer obligated to file NHTSA data, even if there are no DT1 or DT2 flags?” Currently, the HTS that are identified by NHTSA for ACE are intended to be the only ones that will require the NHTSA data set. At this time, there are no plans to expand the list of HTS Numbers flagged by NHTSA. However, ACE will accept NHTSA’s data set even when no HTS flagging is used. As you may know, there may also be an occasion to ask the Trade to file the HS-7 data for a commodity that was not initially flagged, but this is typically done to clarify an individual entry where CBP or NHTSA require additional data to determine admissibility. NHTSA’s list identifying the HTS that are flagged is available at www.cbp.gov.
PG22 Record Mandatory You must always have at least one PG22 Record unless you are Disclaim Filing. Why? Because all entries flagged for NHTSA-related data require the DOT HS-7 declaration, which is electronically filed in the PG22 Record (code 946). One PG22 Record is always required because it must contain among other things the code 946 (HS-7) and the Box Number corresponding to the Conformance Declaration. In some entries a second PG22 Record is needed, e.g., a Box 8 declaration requires code 871, which is the “importer’s substantiating
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statement” that the vehicle or equipment is not a motor vehicle or motor vehicle equipment. We don’t collect the 871 “importer’s substantiating statement” via DIS, but we require that an entity certify the statement is in file in the second PG22 Record.
Agency Records Missing – PG01 and PG10 Records CBP’s CATAIR made PGA agency codes mandatory. Working with the Trade, NHTSA identified five codes: MVS (motor vehicles); REI (13 regulated equipment items – regulated by the FMVSS); TPE (theft prevention equipment); OEI (other equipment items i.e., those not regulated by FMVSS or theft prevention); and OFF (commodities not regulated by NHTSA including vehicles not defined as motor vehicles and equipment not intended for fitment on motor vehicles). Therefore, your PG01 Record must have one of the five agency codes. Additionally, all entries (except disclaimed filings) must have a PG10 Record which requires further description of the commodities such as REI1 for tires, REI2 for rims, etc.
PG07 Record – Missing Manufacturer Name or Model The PG07 Record must be present and show the NHTSA-required ‘make’ of a motor vehicle and the fabricating manufacturer (and brand name, where applicable) for the 13 equipment items that are subject to the FMVSS.
REI – Tires and Glazing Requirements NHTSA assigns codes to manufacturers of Tires and Glazing (glass). These codes must appear on the commodities as part of the manufacturers’ certification that the commodities comply with the requirements of the FMVSS. When entering Tires and Glazing, use agency code REI for the PG01 Record, include a PG10 Record further defining the commodity e.g., REI1 (tires) or REI7 (glazing). In the PG19 Record(s), identify the Fabricating Manufacturer using code FM, and add codes TMC or GMC, along with the NHTSA-assigned code. Errors that we are seeing include forgetting to insert code TMC or GMC or forgetting the NHTSA-assigned codes, adding characters to the codes or mistakenly using an “O” in lieu of a Zero. In advance of filing the entry, we recommend that you check the TMC or GMC code at NHTSA’s web site because these codes are validated against a database of NHTSA-assigned plant codes. NHTSA maintains a web-based Manufacturer's Information Database (MID) search tool: http://vpic.nhtsa.dot.gov/mid/. You may search by name or code. To search by name, you may use the wildcard % in front of the name (e.g., %acme). Then select ‘Search’. To search by code, select ‘Equipment Plants’; under equipment type use the pull down menu to select ‘glazing’; enter the glazing code; then select ‘Search’.
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REI & OEI - Lighting Equipment Federal motor vehicle safety standard (FMVSS) No. 108 specifies requirements for original and replacement lamps, reflective devices, and associated equipment. Table 1 identifies lighting equipment items that are subject to FMVSS No. 108, a definition of each item, whether each item has marking requirements under FMVSS No. 108 (e.g., among other things the “DOT” symbol), and the ACE NHTSA program/category codes that are applicable to an equipment item that was manufactured to comply with FMVSS No. 108. Table 1 - Lighting Equipment Subject to FMVSS No. 108 Lighting Equipment
Definition Subject to FMVSS
No. 108?
FMVSS No. 108
Marking Require-ments?
ACE NHTSA Program/ Category
Codes
Ballast A device that regulates electric current to the headlamp bulb. The ballast supplies adequate current to initially light the bulb and then adjusts the current for proper light output.
Yes Yes REI/REI6
Clearance lamps Lamps which show to the front or rear of the vehicle, mounted on the permanent structure of the vehicle as near as practicable to the upper left and right extreme edges to indicate the overall width and height of the vehicle
Yes No REI/REI6
Conspicuity Reflex Reflectors
Devices used on vehicles to give an indication to approaching drivers using reflected light from the lamps of the approaching vehicle
Yes Yes REI/REI6
Daytime running lamps (DRLs)
Steady burning lamps that are used to improve the conspicuity of a vehicle from the front and front sides when the regular headlamps are not required for driving
Yes Yes REI/REI6
Headlamp A lighting device providing an upper and/or a lower beam used for providing illumination forward of the vehicle
Yes Yes REI/REI6
High-mounted stop lamp
A lamp mounted high and possibly forward of the tail, stop, and rear turn signal lamps intended to give a steady stop warning through intervening vehicles to operators of following vehicles
Yes No REI/REI6
Identification lamps
Lamps used in groups of three, in a horizontal row, which show to the front or rear or both…mounted on the permanent
Yes No REI/REI6
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Lighting Equipment
Definition Subject to FMVSS
No. 108?
FMVSS No. 108
Marking Require-ments?
ACE NHTSA Program/ Category
Codes
structure as near as practicable to the vertical centerline and the top of the vehicle to identify certain types of vehicles.
Integral beam headlamp
A headlamp other than a standardized sealed beam headlamp…or a replaceable bulb headlamp…comprising an integral and indivisible optical assembly including lens, reflector, and light source…
Yes Yes REI/REI6
License plate lamp
A lamp used to illuminate the license plate on the rear of a vehicle.
Yes No REI/REI6
Motorcycle Replaceable Bulb Headlamps
A replaceable bulb headlamp that is designed for motorcycles
Yes Yes REI/REI6
Parking lamps Lamps on both the left and right of the vehicle which show to the front and are intended to mark the vehicle when parked or serve as a reserve front position indicating system in the event of headlamp failure
Yes No REI/REI6
Reflex reflectors Devices used on vehicles to give an indication to approaching drivers using reflected light from the lamps of the approaching vehicle
Yes No REI/REI6
Replaceable bulb headlamp
A headlamp comprising a bonded lens and reflector assembly and one or two replaceable light sources…
Yes Yes REI/REI6
Replaceable light source (bulb)
An assembly of a capsule, base, and terminals that is designed to conform to the requirements of Appendix A or Appendix B of 49 CFR Part 564
Yes Yes REI/REI6
Retroreflective Sheeting
A smooth, flat, transparent exterior film with retroreflective elements embedded or suspended beneath the film so as to form a non-exposed retroreflective optical system
Yes Yes REI/REI6
School bus signal lamps
Alternately flashing lamps mounted horizontally both front and rear, intended to identify a vehicle as a school bus and to inform other users of the highway that such vehicle is stopped on the highway to take on or discharge school children
Yes No REI/REI6
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Lighting Equipment
Definition Subject to FMVSS
No. 108?
FMVSS No. 108
Marking Require-ments?
ACE NHTSA Program/ Category
Codes
Sealed beam headlamp
An integral and indivisible optical assembly including the light source with “SEALED BEAM” molded in the lens
Yes Yes REI/REI6
Side marker lamps
Lamps which show to the side of the vehicle, mounted on the permanent structure of the vehicle as near as practicable to the front and rear edges to indicate the overall length of the vehicle
Yes No REI/REI6
Stop lamps Lamps giving a steady light to the rear of a vehicle to indicate a vehicle is stopping or diminishing speed by braking
Yes No REI/REI6
Taillamps Steady burning low intensity lamps used to designate the rear of a vehicle.
Yes No REI/REI6
Turn signal lamps Signaling element of a turn signal system which indicates the intention to turn or change direction by giving a flashing light on the side toward which the turn will be made
Yes No REI/REI6
Turn signal flasher
A device which causes a turn signal lamp to flash as long as it is turned on
Yes No REI/REI6
Vehicular hazard warning signal flasher
A device which, as long as it is turned on, causes all the required turn signal lamps to flash
Yes No REI/REI6
Table 2 provides examples of auxiliary lighting, which is not subject at the time of importation to FMVSS No. 108. Auxiliary lighting may be added to a vehicle, but is not required by FMVSS No. 108. This means that NHTSA has not established specifications for auxiliary lamps. Unlike headlamps, for example, FMVSS No. 108 does not require auxiliary lamps to be original equipment on motor vehicles. Table 2 - Examples of Auxiliary Lamps – Lighting Not Required by FMVSS No. 108 for Motor Vehicles Lighting Equipment
Definition Subject to
FMVSS No.
108?
FMVSS No. 108 Marking Require-ments?
ACE NHTSA Program/ Category
Codes
Front Fog Lamp A lighting device mounted to provide illumination forward of the vehicle which may be used with the lower beam headlamps to provide road illumination under conditions of rain, snow, dust, or fog
No No OEI/OEI1
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Lighting Equipment
Definition Subject to
FMVSS No.
108?
FMVSS No. 108 Marking Require-ments?
ACE NHTSA Program/ Category
Codes
Rear Fog Lamp A lamp that provides rearward illumination under conditions of rain, snow, dust, or fog
No No OEI/OEI1
Cornering Lamps Steady burning lamps used in conjunction with the turn signal system to supplement the headlamps by providing additional illumination in the direction of the turn.
No No OEI/OEI1
Emergency Warning Device
Intense warning lights used by authorized emergency vehicles
No No OEI/OEI1
Warning Lamps for Service Workers
Intense warning lights used by service vehicles
No No OEI/OEI1
Spot Lights Lights used by police to illuminate house numbers
No No OEI/OEI1
Accent or Decorative
Lights not required by FMVSS No. 108 that are added to a motor vehicle to accent or decorate the vehicle
No No OEI/OEI1
Federal Motor Vehicle Theft Prevention Standard (Agency Code TPE) 18 replacement equipment items that are subject to the Federal Motor Vehicle Theft Prevention Standard (FMVTPS) are: engines; transmissions; right and left front fenders; hood; right and left front and rear doors; sliding or cargo doors; front and rear bumpers; right and left rear quarter panels (passenger cars); right-side and left-side assembly (MPVs); pickup boxes and/or cargo boxes; rear doors (both doors in case of double doors); decklids; tailgates; or hatchbacks. TPE replacement items must be identified using TPE in the PG01 Record and TPE1 in the PG10 Record. All commodities entered using TPE must be declared under Box 11. If you use any other declaration (including Box 2A) ACE will issue an error. NHTSA has been asked “If I am entering a replacement equipment item subject to the theft prevention standard that is not flagged for PGA data, what should I do?” You may enter PGA data in ACE even though the HTS is not flagged for NHTSA data.
Used Engines and TPE? You asked whether used engines presented for importation must be declared under agency code TPE or OEI. The definitions within the Theft Prevention Statute (49 U.S.C. § 33101) under Paragraph (6) states that “major part” does include engines. However, Paragraph (7) (B) defines a major replacement part as a major part that is…not installed in or on a motor vehicle at the
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time of its delivery to the first purchaser and the equitable or legal title to the vehicle has not been transferred to a first purchaser. This means that an engine once installed in and subsequently removed from a vehicle that was owned by the first purchaser (i.e., a “used vehicle”) is not a major part subject to the theft prevention standard. You should therefore import used engines under agency code OEI and declare Box 1 on the HS-7.
Box 7 Temporary Importations Nonconforming motor vehicles or equipment temporarily imported for under Box 7 for the purposes of research, investigations, demonstrations or training, or competitive racing events, may be imported with a NHTSA permission letter. The PG14 Record must include the valid NHTSA permission letter number. An importer that meets the definition of an Original Vehicle Manufacturer or OVM, (i.e., an importer who is an original manufacturer of motor vehicles (or a wholly owned subsidiary thereof) that certifies motor vehicles as complying with all applicable Federal motor vehicle safety standards) may import the nonconforming equipment without first obtaining NHTSA’s permission. Among other things, a PG19 Record must identify the code OVM and the OVM’s name and information. A 2nd PG22 Record with code 871 (i.e., the importer’s substantiating statement) must be included in the entry. The importer’s substantiating statement does not need to be uploaded to DIS. We only require that an entity identified in the 2nd PG22 Record certify that the statement is on file.
Box 8 - Vehicle / Equipment If you are filing the NHTSA data set in ACE for a commodity that is not regulated by NHTSA, meaning it is not a motor vehicle or motor vehicle equipment, use agency code OFF and declare the commodity under Box 8 in the PG22 Record. A 2nd PG22 Record with code 871 (i.e., the importer’s substantiating statement that the commodity is not a motor vehicle or item of motor vehicle equipment) must be included in the entry. The importer’s substantiating statement does not need to be uploaded to DIS. We only require that an entity identified in the 2nd PG22 Record certify that the statement is on file.
Used Tire Casings Imported for Retreading NHTSA has stated that used tire casings with less than 2/32 inch tread depth imported for retreading are not motor vehicle equipment subject to the FMVSS. Therefore, use agency code OFF (meaning not motor vehicle equipment) and either disclaim filing using code A or declare under Box 8. When you disclaim under OFF, you don’t need tire brand, FM, TMC etc. Please ensure that the OI Commercial Description identifies the commodities as “Used Tire Casings for Retreading”.
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Requirement for the Paper HS-7 Declaration form With the transition to ACE and the PGA message set initiative, CBP is moving to a paperless environment. So a reasonable question is whether the importer is required to prepare a paper copy of the HS-7 declaration form for each import (in addition to transmitting the same data through the PGA message set – PG22 Record)? NHTSA wants assurance that the basis for making the electronic HS-7 declaration is valid. Whether the Customs broker will rely on a documented telephone call, email, letter or paper copy of an HS-7 is the broker’s decision. NHTSA provides the following example: During the course of a criminal trial, the defendant who was charged with among other things, false declarations to the government claimed that he did not complete and sign the DOT HS-7 declaration forms. The Customs broker took the witness stand and produced copies of HS-7 forms that were completed for the entries. Under oath, the broker testified that she completed the HS-7 forms with the exception of the Box number, signature, and date. She then faxed the forms to the defendant and requested that he select the appropriate block on the form, then sign and date the forms, and fax them back to her. According to her testimony, the defendant did so. She used these forms as the basis for the electronic HS-7 declarations in ACS and then filed the paper HS-7 forms. The defendant was convicted. The broker’s office procedures “saved the day”. The ACE ABI CATAIR Partner Government Agencies document and Appendix PGA document provide guidance. Under the PG19 Record, the “Entity Role Code” identifies the role of the entity. Certifying Individual (CI) is defined in Appendix PGA as the “Individual who is certifying the shipment.” Under the PG22 Record, the Entity Role Code identifies the entity making the “declaration certification” i.e., for the NHTSA message set, Code 946 (for HS-7 conformance declaration) and Box number. If the importer has completed the HS-7 declaration and presented it to the broker, then Code IM in the PG22 Record shows that the importer is making the HS-7 declaration certification. Alternately, the Customs broker likely has power of attorney to act on behalf of the importer. If the broker is knowledgeable about the importer’s vehicle or equipment item and is willing to personally take responsibility of for filing the HS-7 declaration certifying to the government the lawful basis for the commodity’s importation, then NHTSA has no reason to prohibit such a practice. The Customs broker (Code CB) is an entity defined by the CATAIR as “Agent, representative, or a professional Customs clearing agent who deals directly with Customs on behalf of the importer or exporter.” The individual Customs broker’s name, address, and contact information could be entered in the PG19, 20, 21 Records. Code CB in the PG 22 Record shows that the importer is making/certifying the [code 946 and box number] HS-7 declaration certification.
