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Gray Market Vehicle Program: Extension Warranted, but Improvements in Vehicle Identification are Needed

1994

/ by U.S. General Accounting Office

/ United States. General Accounting Office

https://www.gao.gov/assets/rced-94-22.pdf

4.3 MB

Hard copy + Online document,

1 volume (60 pages)

This report evaluates the program established by the Imported Vehicle Safety Compliance Act of 1988 (P.L. 100-562). The purpose of the act is to ensure compliance with applicable U.S. vehicle safety requirements for all vehicles imported into the United States--including noncomplying vehicles imported by persons other than the original manufacturers, commonly referred to as "gray market" vehicles. In general, the act requires gray market vehicles that are permanently imported to be converted to meet U.S. safety standards. Temporary gray market imports are excluded from the conversion requirement so long as they are eventually exported. The Department of Transportation's (DOT's) National Highway Traffic Safety Administration (NHTSA) is principally responsible for administering and enforcing the gray market program. As directed by the act, the General Accounting Office (GAO) reviewed NHTSA's administration and enforcement of the gray market program. GAO focused particular attention on (1) the extent to which the program ensures that permanent gray market vehicles are brought into full compliance with applicable federal motor vehicle safety standards, (2) whether adequate controls exist for identifying and enforcing requirements for temporary gray market vehicles, and (3) whether safety considerations warrant continuation of the program. Briefly, GAO found the following: NHTSA does a good job of verifying that vehicles Customs identifies as permanent gray market imports have been modified to meet U.S. safety standards. NHTSA has not established user fees to cover the cost of the registered importer program, and registered importers have not recalled gray market vehicles when similar vehicles have been recalled by manufacturers. NHTSA's program does not ensure that gray market vehicles identified by Customs as temporary imports ultimately either leave this country or are converted to meet U.S. standards. In spite of these limitations, safety considerations favor the program's being continued. Several options are identified for improving controls over temporary imports and other vehicles that, by avoiding identification, bypass the gray market vehicle program.

"January 1994"

United States. General Accounting Office

Washington, DC

Subject(s)

Administration
Automobile industry
Compliance
Exhaust gases
Imports
Inspection
Law enforcement
Regulations
Safety
Vehicle safety

United States. General Accounting Office