[Federal Register: June 17, 2004 (Volume 69, Number 116)]
[Rules and Regulations]
[Page 33858-33860]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17jn04-12]
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DEPARTMENT OF HOMELAND SECURITY
Coast Guard
33 CFR Part 181
[USCG-2003-14272]
[RIN 1625-AA53]
Country of Origin Codes and Revision of Regulations on Hull
Identification Numbers
AGENCY: Coast Guard, DHS.
ACTION: Final rule.
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SUMMARY: The Coast Guard is revising its regulations to allow U.S.
manufacturers of recreational boats to display a 2-character country of
origin code before the 12-character hull identification number (HIN)
without separating the two by means of borders or on a separate label.
This removal of our previous restriction will allow U.S. manufactures
to comply with the International Organization for Standardization (ISO)
HIN standard, without changing the information collected by States on
undocumented vessels that they register because the U.S. HIN remains
only 12 characters.
DATES: This final rule is effective August 16, 2004.
ADDRESSES: Comments and material received from the public, as well as
documents mentioned in this preamble as being available in the docket,
are part of docket USCG-2003-14272 and are available for inspection or
copying at room PL-401 on the Plaza level of the Nassif Building, 400
Seventh Street SW., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays. You may also find this docket
on the Internet at http://dms.dot.gov.
FOR FURTHER INFORMATION CONTACT: If you have questions on this final
rule, call Mr. Alston Colihan, Office of Boating Safety, Coast Guard,
telephone 202-267-0984. If you have questions on viewing or submitting
material to the docket, call Andrea M. Jenkins, Program Manager, Docket
Operations, telephone 202-366-0271.
SUPPLEMENTARY INFORMATION:
Regulatory History
On June 20, 2003, we published in the Federal Register (68 FR
36957) a notice of proposed rulemaking (NPRM) entitled ``Country of
Origin Codes and Revision of Regulations on Hull Identification
Numbers.'' We received six letters commenting on the proposed rule. No
public hearing was requested and none was held.
Background and Purpose
In 1995, the International Organization for Standardization (ISO)
finalized a hull identification number standard (ISO 10087:1995(E))
consisting of the existing Coast Guard 12-character HIN format preceded
by a 2-character country code and a hyphen. Boat manufacturers in the
United States that export to Europe started using the ISO HIN standard
beginning with the 1996 model year.
The ISO standard states that ``A HIN shall consist of 14
consecutive characters plus a hyphen * * *'' But 33 CFR 181.27 of our
HIN standard states, ``If additional information is displayed on the
boat within two inches of the [12-character] hull identification
number, that information must be separated from the hull identification
number by means of borders or must be on a separate label so that it
will not be interpreted as part of the hull identification number.''
While the ISO HIN standard includes a paragraph, ISO 10087:1995(E)(6)
entitled ``Additional information,'' that contains language nearly
identical to that in Sec. 181.27, the ISO additional information
requirements do not apply to the country code and hyphen, which are
part of the 14-character, international HIN.
The American Boat and Yacht Council (ABYC) develops voluntary
consensus safety standards for the design, construction, equipage,
maintenance, and repair of small craft. An ABYC Technical Committee
studying the ISO HIN standard and our HIN standard concluded that the
differing requirements are a problem for U.S. builders exporting to
Europe. One large U.S. manufacturer that exports to Europe pointed out
that use of a separate tape to create the border required by our HIN
standard often results in misalignment and other flaws that may be
confused with attempts to alter an HIN.
This proposal was discussed at the October 29, 2001 meeting of the
National Boating Safety Advisory Council (66 FR 49445, September 27,
2001) and there were no objections stated by State boating law
administrators in attendance at the meeting. The NBSAC passed a
resolution requesting the Coast Guard to immediately pursue rulemaking
for an exception to current regulations to allow the U.S. HIN system to
conform to the ISO HIN standard while not requiring the states to
include the country code in their registration process.
Discussion of Comments
By the close of the comment period on September 18, 2003, we
received six comments from the following categories: one individual,
one State boating official, one boat manufacturer, and three
associations.
Rule Beneficial to Import-Export Community
The individual supported the rule because it removes the
limitations of the separate label requirement and will be beneficial to
the import-export community.
The boat manufacturer supported the rule because separation of the
2-character country of origin code from the HIN by means of borders or
on a separate label is burdensome and costly due to the necessity to
maintain two different HIN labeling systems: One for boats sold
domestically and a second one for boats exported for sale overseas.
Removal of the requirement for borders or a separate label around the
country of origin code will allow U.S. manufacturers to comply with the
ISO HIN standard, without changing the information collected by the
States on undocumented vessels they register.
This manufacturer stated that one of the challenges the company
faces as an exporter is being cost-effective while
[[Page 33859]]
maintaining compliance with regulations in different countries or
regions. The more the company can streamline production to meet global
market standards, according to the manufacturer, the greater the
company's effectiveness as global marketing competitors. As these views
are consistent with our proposed rule, we made no changes in the rule
based on these two comments.
Importance of Manufacturers and State Officials Being Aware That
Country of Origin Codes Are Not Part of U.S. HINs
The State boating official was not opposed to the hyphen between
the country of origin and the HIN. According to the official, one issue
that may arise would be the entering of stolen boats into State and
National Crime Information systems. If the country of origin is
included as part of the HIN on a theft entry, that entry would not
produce a ``hit'' if someone looking to see if a vessel was stolen
simply uses the 12-digit HIN which does not include a country code.
Therefore, the official suggests that it be made clear to manufacturers
and state titling authorities that manufacturer's statements of origin
and state titles only include the 12-digit HIN.
The Coast Guard agrees. Consistent with the NBSAC resolution, our
rule brings the U.S. HIN system into conformity to the ISO HIN standard
and does not require the states to include the country code in their
registration process. The manufacturer's statements of origin and state
titles are State paperwork and ownership issues. Publication of the
state official's concerns here in the Federal Register, however, should
help ensure that manufacturers and State officials take note of this
concern. In addition, we are revising our final rule to expressly
include a reference in Sec. 181.27, that the HIN is 12 characters
long.
Advocates for Changing to 17-Character HIN
An association representing auto theft investigators opposed the
proposed rule, because, according to the association, the addition of
two new HIN characters would only serve to complicate and confuse the
law enforcement and insurance communities, as well as various state
registration departments and the general public. Also according to the
comment, any HIN modification should result in the adoption of a 17-
character HIN format as approved and submitted to the Coast Guard by
the association representing auto theft investigators, the American
Boat and Yacht Council (ABYC) and the National Association of State
Boating Law Administrators (NASBLA).
Since the Coast Guard published the HIN regulations in 1972, boat
manufacturers have had the option of including additional characters
near the HIN, provided the additional characters were distinctly
separate--by a hyphen from 1972 to 1984 and by means of borders or on a
separate label from August 1, 1984 (48 FR 40716, September 9, 1983) to
the present. United States manufacturers exporting overseas have been
using the ISO HIN standards since 1996. In addition, the 17-character
HIN format to which the comment refers is beyond the scope of this
rulemaking.
An association representing State Boating Law Administrators as
well as an association representing investigators of boat thefts also
opposed the proposed rule and instead, supported adoption of the 17-
character HIN format. Again, U.S. manufacturers exporting overseas have
been using the ISO HIN standards since 1996; however, they have had to
separate the country of origin code from the 12-character HIN by means
of borders or with a separate label. This rule simply makes the U.S.
HIN regulations more compatible with the ISO HIN Standard. In addition,
the 17-character HIN format to which the associations refer is beyond
the scope of this rulemaking that does not call for States to adjust
for the addition of any characters to the HIN.
All three associations indicated we were creating a 14-character
HIN. We are not. The country of origin code is separated by a hyphen
and is not part of the U.S. HIN. As noted above, we have revised our
final rule to reflect that our HIN remains 12 characters.
Discussion of Rule
We did not change the final rule from the rule we proposed in 2003
(68 FR 36957, June 20, 2003) with the exception of inserting a
reference to the length of the HIN, 12 characters, in Sec. 181.27.
This final rule will relieve manufacturers of recreational boats who
sell both internationally and domestically of the burden of the
requirement to separate the country of origin code for the United
States, ``U.S.-'', from the 12-character HIN by means of borders or a
separate label. Any other information would still have to be separated
from the 12-character HIN by means of borders or a separate label.
Regulatory Evaluation
This rule is not a ``significant regulatory action'' under section
3(f) of Executive Order 12866, Regulatory Planning and Review, and does
not require an assessment of potential costs and benefits under section
6(a)(3) of that Order. The Office of Management and Budget has not
reviewed it under that Order. It is not ``significant'' under the
regulatory policies and procedures of the Department of Homeland
Security (DHS).
We expect the economic impact of this rule to be so minimal that a
full Regulatory Evaluation under the regulatory policies and procedures
of DHS is unnecessary. Allowing manufacturers following the ISO HIN
format to separate the country of origin code without the use of
borders or a separate label would relieve a burden and thereby reduce
the costs of complying with the HIN display requirement.
Small Entities
Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this rule would have a significant economic impact
on a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000.
The Small Business Administration (SBA) has size standards for each
industry and has established codes under the North American Industry
Classification System (NAICS). Each NAICS code identifies an industry,
and has a corresponding revenue- or employee-based small business size
standard. The only type of small entity that this rule would affect
would be small businesses.
There were 4,420 U.S. manufacturers of recreational boats in 2002,
an estimated 80 percent of which qualify as small businesses by the
size standards of the SBA. However, we have observed that the
businesses we have identified as small manufacture fewer numbers of
boats than their larger competitors. In addition, most of the
businesses we have identified as small do not export to the European
market and therefore would not follow the ISO HIN format.
Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that
this rule would not have a significant economic impact on a substantial
number of small entities.
Assistance for Small Entities
Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we have offered to assist small
entities in understanding this final rule so that they can better
evaluate its effect on
[[Page 33860]]
them and participate in the rulemaking. If the rule affects your small
business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
contact Mr. Alston Colihan, Project Manager, Office of Boating Safety,
by telephone at (202) 267-0984 or by e-mail at acolihan@comdt.uscg.mil.
Small businesses may also send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247).
Collection of Information
This final rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).
Federalism
A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this final rule
under that Order and have determined that it does not have implications
for federalism.
Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 or more in any
one year. This final rule would not impose an unfunded mandate.
Taking of Private Property
This rule would not affect a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.
Civil Justice Reform
This final rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.
Protection of Children
We have analyzed this rule under Executive Order 13045, Protection
of Children from Environmental Health Risks and Safety Risks. This rule
is not an economically significant rule and would not create an
environmental risk to health or risk to safety that might
disproportionately affect children.
Indian Tribal Governments
This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it would not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.
Energy Effects
We have analyzed this rule under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.
Environment
We have analyzed this rule under Commandant Instruction M16475.lD,
which guides the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and
have concluded that there are no factors in this case that would limit
the use of a categorical exclusion under section 2.B.2 of the
Instruction. Therefore, this rule is categorically excluded, under
figure 2-1, paragraph (34)(d), of the Instruction, from further
environmental documentation. The proposed rule to remove the
requirement to separate the 2-character country of origin code from the
12-character HIN by means of borders or on a separate label relates to
the documentation of vessels and is not expected to have any
environmental impact. An ``Environmental Analysis Checklist'' and a
``Categorical Exclusion Determination'' are available in the docket
where indicated under ADDRESSES.
List of Subjects in 33 CFR Part 181
Labeling, Marine safety, Reporting and recordkeeping requirements.
0
For the reasons set out in the preamble, the Coast Guard amends 33 CFR
part 181 as follows:
PART 181--MANUFACTURER REQUIREMENTS
0
1. The authority citation for part 181 is revised to read as follows:
Authority: 46 U.S.C. 4302.
0
2. Revise Sec. 181.27 to read as follows:
Sec. 181.27 Information displayed near hull identification number.
With the exception of the characters ``US-'', which constitute the
country of origin code for the United States, if information is
displayed on the boat within 2 inches of the 12-character hull
identification number (HIN), that information must be separated from
the HIN by means of borders or must be on a separate label, so that it
will not be interpreted as part of the hull identification number.
Dated: May 10, 2004.
David S. Belz,
Rear Admiral, U.S. Coast Guard, Director of Operations.
[FR Doc. 04-13609 Filed 6-16-04; 8:45 am]
BILLING CODE 4910-15-P