EXP-1-RR:IT:EC 115528 LLO
William Coleman
Caribbean Transport Line
P.O. Box 267396
Weston, Florida 33326
RE: 19 C.F.R. §192.2; Export Control; Used Self-Propelled Motor
Vehicles
Dear Mr. Coleman:
We received your letter dated October 24, 2001 requesting a ruling on the interpretation of 19 C.F.R. §192.2(b)(3)(iv). Our ruling on the matter is set forth below.
FACTS:
You indicate that Caribbean Transport Line (CTL) has engaged in the transportation of vehicles for exportation from the ports of Boston, New York, and Port Everglades to Haiti and the Caribbean for the past 4 years. Exporters have always been required to provide proof of ownership and absence of lien to Customs and Caribbean Transport Line, in the form of a title, salvage certificate, or bill of sale in the absence of a title. You indicate that a salvage certificate or bill of sale is documentation that is sometimes necessary since some states will not issue a title for vehicles that are over 10 years old.
You go on to explain, that one port has begun to reject a large number of your clients’ vehicle documentation, such as a bill of sale. Instead, the port is requiring the vehicles to be re-titled in their State prior to exportation.
LAW AND ANALYSIS:
Title 19, Code of Federal Regulations, §192.2(b)(3)(iv) concerns vehicles issued a title or certificate that is not in force or are otherwise not registered, and reads as follows:
For used, self propelled vehicles that were issued, by any jurisdiction of the U.S., a title or certificate that is no longer in force, or that are not required to be titled or registered, and for which a Manufacturer’s Statement of Origin (MSO) was not issued, the owner must establish that the jurisdiction from where the vehicle comes does not have any ownership documentation requirements regarding such vehicles and provide to Customs, at the time and place specified in this section, the original document that shows his basis for ownership or right of possession, such as a bill of sale, and 2 complete copies of that original document. Further, the owner must certify in writing to Customs that the procurement of the vehicle was a bona fide transaction, and that the vehicle presented for export is not stolen.
The facts presented indicate that CTL and Customs have traditionally accepted a title or salvage certificate and/or a bill of sale as proof of ownership, in the absence of title. Recently, at least one Customs port has begun to reject a bill of sale as proof of ownership, requiring instead that the vehicles be re-titled in their State prior to exportation. Title 19 C.F.R. §192.2(b)(3)(iv) provides for the manner in which vehicles issued a junk or scrap certificate are to be documented for exportation. Acceptable forms of documentation include a junk/scrap certificate, title, MSO, or a bill of sale. In certain instances, the owner is required to establish that the jurisdiction from where the vehicle comes does not have any ownership documentation requirements regarding such vehicles.
Treasury Decision 99-34, dated May 6, 1999, amended the Customs regulations to implement title IV of the Anti-Car Theft Act of 1992, which concerns the exportation of used self-propelled vehicles. The amendments concerned the nature of the documentation that established ownership of a vehicle bound for exportation and the presentment of that documentation to Customs. T.D. 99-34 specifically addresses the very situation in which CTL finds itself involved. With regard to vehicles exported in salvage, junk or scrap condition, the rule addresses the various situations that could possibly arise, and the documentation required in each:
[I]n those cases where the vehicle was issued an original certificate of title or a salvage title which remains in force, Customs will require presentation of that original title document pursuant to the provisions of §192.2(b)(1). Also, in those cases where the vehicle was issued a junk or scrap certificate by a government authority that remains in force, Customs will require presentation of that original document pursuant to the provisions of §192.2(b)(3)(iv). But, in those cases where the vehicle was not issued a Certificate of Title, Salvage Title, or a junk or scrap certificate is no longer in force, Customs will accept such documents as a bill of sale as establishing ownership pursuant to the provisions of §192.2(b)(3)(iv), provided: (1) the owner certifies to Customs in writing that the government –issuing authority for the jurisdiction has no registration/certification requirements for such vehicles, and (2) the owner attests in writing to the bona fides of the sale and that the vehicle presented for export is not stolen.
Accordingly, any port from which used vehicles are exported which have been issued a title or certificate that is not in force or are otherwise not registered should only require that the owner establish that the jurisdiction from where the vehicle comes does not have any ownership documentation requirements regarding such vehicles. As noted above, ownership can be established by various means. Once the required documentation is provided in accordance with 19 C.F.R. §192.2, and no problems arise based upon Customs investigation of the vehicle identification number in the National Crime Information Center database, ownership is established. According to T.D. 99-34, “[p]roof of a jurisdiction’s titling practices/requirements requires merely a letter from the government agency responsible for titling vehicles that applicable regulations exist or do not exist.” The exporter should provide such a letter to Customs if the vehicle lacks a certificate of title, or if a salvage title or a junk or scrap certificate is no longer in force, in accordance with 19 C.F.R. §192.2(b)(3)(iv). Title 19 C.F.R. §192.2(b)(3)(iv) goes on to require that once the jurisdiction’s rules are established the original document demonstrating the basis for ownership be provided along with two certified copies to Customs and a written certification to Customs that the procurement of the vehicle was a bona fide transaction and that the vehicle presented for export is not stolen. Once these 3-4 documents have been provided, the exportation of the vehicle should be permitted, pending the outcome of Customs investigation of the vehicle identification number in the National Crime Information Center database.
If there has been an assignment of vehicle ownership with the back of the original title showing a proper transfer of the vehicle from one party to another, a new Certificate of Title is unnecessary. The original title will be accepted by Customs, if complete copies of the original title are submitted for documentation. The requirement that vehicles be re-titled in a State prior to export should only be imposed if the jurisdiction from which the vehicle comes has such an ownership documentation requirement. Short of such a requirement from the original jurisdiction of the vehicle, such a requirement is unnecessary according to Customs regulations and should not be imposed. Further, it should be noted that T.D. 99-34 clearly states that, “…requiring an exporter of an assigned vehicle to re-title the used vehicle in his name prior to export would create an undue time and cost burden.” This being the case, any requirements imposed upon your clients to have vehicles re-titled in the State from which you are to export the vehicles are at odds with the regulations, and the original intent of the regulations as outlined in T.D. 99-34, unless the jurisdictions from which the vehicles originate have such ownership documentation requirements.
Finally, it should be noted that copies of invoices and/or bills of sale that are certified by an auto auction business do not meet the documentation requirements of Customs regulations for purposes of exporting a vehicle.
HOLDING:
In accordance with 19 C.F.R. 192.2 (b)(3)(iv), the documentation required for exportation of used self-propelled vehicles from the U.S., which no longer have a title or certificate in force, that are not required to be titled or registered, and have not been issued a Manufacturer’s Statement of Origin include the following:
a letter from the government-issuing authority of the jurisdiction from which the vehicle originates stating the ownership documentation requirements for vehicles lacking registration/certification, and;
a written statement attesting to the bona fides of the sale of the vehicle and that the vehicle is not stolen, and;
a bill of sale or other document deemed appropriate by the jurisdiction from which a vehicle originates establishing ownership.
If you have any further questions or concerns regarding this matter, please feel free to contact us at (202) 927-2320.
Sincerely,
Larry L. Burton
Chief
Entry Procedures and Carriers Branch