[Code of Federal Regulations]
[Title 40, Volume 15]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR85.1513]

[Page 556-558]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 85--CONTROL OF AIR POLLUTION FROM MOBILE SOURCES--Table of Contents
 
   Subpart P--Importation of Motor Vehicles and Motor Vehicle Engines
 
Sec. 85.1513  Prohibited acts; penalties.

    (a) The importation of a motor vehicle or motor vehicle engine which 
is not covered by a certificate of conformity other than in accordance 
with this subpart and the entry regulations of the U.S. Customs Service 
at 19 CFR

[[Page 557]]

12.73 is prohibited. Failure to comply with this section is a violation 
of section 203(a)(1) of the Act.
    (b) Unless otherwise permitted by this subpart, during a period of 
conditional admission, the importer of a vehicle shall not:
    (1) Operate the vehicle on streets or highways,
    (2) Sell or offer the vehicle or engine for sale, or
    (3) Store the vehicle on the premises of a dealer.
    (c) Any vehicle or engine conditionally admitted pursuant to 
Secs. 85.1504, 85.1511 or 85.1512, and not granted final admission 
within 120 days of such conditional admission, or within such additional 
time as the U.S. Customs Service may allow, shall be deemed to be 
unlawfully imported into the United States in violation of section 
203(a)(1) of the Act, unless such vehicle or engine shall have been 
delivered to the U.S. Customs Service for export or other disposition 
under applicable Customs laws and regulations. Any vehicles or engines 
not so delivered shall be subject to seizure by the U.S. Customs 
Service.
    (d) Any importer who violates section 203(a)(1) of the Act is 
subject to a civil penalty under section 205 of the Act of not more than 
$10,000 for each vehicle or engine subject to the violation. In addition 
to the penalty provided in the Act, where applicable, under the 
exemption provisions of Sec. 85.1511(b), or under Sec. 85.1512, any 
person or entity who fails to deliver such vehicle or engine to the U.S. 
Customs Service is liable for liquidated damages in the amount of the 
bond required by applicable Customs laws and regulations.
    (e) (1) A certificate holder whose vehicles or engines imported 
under Sec. 85.1505 or Sec. 85.1509 fail to conform to Federal emission 
requirements after modification and/or testing under the Federal Test 
Procedure (FTP) or who fails to comply with applicable provisions of 
this subpart, may, in addition to any other applicable sanctions and 
penalties, be subject to any, or all, of the following sanctions:
    (i) The certificate holder's currently held certificates of 
conformity may be revoked or suspended;
    (ii) The certificate holder may be deemed ineligible to apply for 
new certificates for up to 3 years; and
    (iii) The certificate holder may be deemed ineligible to import 
vehicles or engines under Sec. 85.1509 in the future and be placed on a 
list of certificate holders ineligible to import vehicles or engines 
under the provisions of Sec. 85.1509.
    (2) Grounds for the actions described in paragraph (e)(1) of this 
section shall include, but not be limited to, the following:
    (i) Action or inaction by the certificate holder or the laboratory 
performing the FTP on behalf of the certificate holder which results in 
fraudulent, deceitful or grossly inaccurate representation of any fact 
or condition which affects a vehicle's or engine's eligibility for 
admission to the U.S. under this subpart;
    (ii) Failure of a significant number of vehicles or engines imported 
to comply with Federal emission requirements upon EPA inspection or 
retest; or
    (iii) Failure by a certificate holder to comply with requirements of 
this subpart.
    (3) The following procedures govern any decision to suspend, revoke, 
or refuse to issue certificates under this subpart:
    (i) When grounds appear to exist for the actions described in 
paragraph (e)(1) of this section, the Administrator shall notify the 
certificate holder in writing of any intended suspension or revocation 
of a certificate, proposed ineligibility to apply for new certificates, 
or intended suspension of eligibility to conduct modification/testing 
under Sec. 85.1509, and the grounds for such action.
    (ii) Except as provided by paragraph (e)(3)(iv) of this section, the 
certificate holder must take the following actions before the 
Administrator will consider withdrawing notice of intent to suspend or 
revoke the certificate holder's certificate or the certificate holder's 
eligibility to perform modification/testing under Sec. 85.1509:
    (A) Submit a written report to the Administrator which identifies 
the reason for the noncompliance of the vehicle or engines, describes 
the proposed remedy, including a description of any proposed quality 
control and/or quality

[[Page 558]]

assurance measures to be taken by the certificate holder to prevent the 
future occurrence of the problem, and states the date on which the 
remedies will be implemented; or
    (B) Demonstrate that the vehicles or engines do in fact comply with 
applicable regulations in this chapter by retesting such vehicles or 
engines in accordance with the FTP.
    (iii) A certificate holder may request within 15 calendar days of 
the Administrator's notice of intent to suspend or revoke a certificate 
holder's eligibility to perform modification/testing or certificate that 
the Administrator grant such certificate holder a hearing:
    (A) As to whether the tests have been properly conducted,
    (B) As to any substantial factual issue raised by the 
Administrator's proposed action.
    (iv) If, after the Administrator notifies a certificate holder of 
his/her intent to suspend or revoke a certificate holder's certificate 
of conformity or its eligibility to perform modification/testing under 
Sec. 85.1509 and prior to any final suspension or revocation, the 
certificate holder demonstrates to the Administrator's satisfaction that 
the decision to initiate suspension or revocation of the certificate or 
eligibility to perform modification/testing under Sec. 85.1509 was based 
on erroneous information, the Administrator will withdraw the notice of 
intent.
    (4) Hearings on suspensions and revocations of certificates of 
conformity or of eligibility to perform modification/testing under 
Sec. 85.1509 shall be held in accordance with the following:
    (i) Applicability. The procedures prescribed by this section shall 
apply whenever a certificate holder requests a hearing pursuant to 
subsection (e)(3)(iii).
    (ii) Hearing under paragraph (e)(3)(iii) of this section shall be 
held in accordance with the procedures outlined in Sec. 88.613, where 
applicable, provided that where Sec. 86.612 is referred to in 
Sec. 86.613: Section 86.612(a) is replaced by Sec. 85.1513(d)(2); and 
Sec. 86.612(i) is replaced by Sec. 85.1513(d)(3)(iii).
    (5) When a hearing is requested under this paragraph and it clearly 
appears from the data or other information contained in the request for 
a hearing, or submitted at the hearing, that there is no genuine and 
substantial question of fact with respect to the issue of whether the 
certificate holder failed to comply with this subpart, the Administrator 
will enter an order denying the request for a hearing, or terminating 
the hearing, and suspending or revoking the certificate of conformity or 
the certificate holder's eligibility to perform modification/testing 
under Sec. 85.1509.
    (6) In lieu of requesting a hearing under paragraph (e)(3)(iii) of 
this section, a certificate holder may respond in writing to EPA's 
charges in the notice of intent to suspend or revoke. Such a written 
response must be received by EPA within 30 days of the date of EPA's 
notice of intent. No final decision to suspend or revoke will be made 
before that time.