VES-3-02-OT:RR:BSTC:CCR HQ H294386 SWM
Mr. James Weyand
Part Time Hobby Sales
22106 Military Road
So. Seatac, Washington 98198
Re: Exportation of used self-propelled vehicles; 13 U.S.C. § 303; 19 U.S.C. §§ 66, 1624, 1627a, 1646c; 19 C.F.R. § 192.2
Dear Mr. Weyand:
This letter is in response to your ruling request dated February 7, 2018, regarding the exportation of two titled, used self-propelled motor vehicles by Part Time Hobby Sales, L.L.C. (“PTHS”). Our decision follows.
FACTS
In your submission, you submit the following facts and circumstances. PTHS is scheduled to export two titled Honda CB750 motorcycles with Vehicle Identification Numbers (“VIN”) [ ] (Motorcycle 1) and [ ] (Motorcycle 2). PTHS contracted to purchase Motorcycle 1 on behalf of [ ] (OMS), a Japanese entity, by email dated June 12, 2017, and purchased it from private sellers in Illinois by Bill of Sale also dated June 12, 2017. PTHS contracted to purchase Motorcycle 2, also on behalf of OMS, by email dated July 17, 2017, and purchased it from a private seller in Minnesota by Bill of Sale dated July 27, 2017. PTHS now wants to export the motorcycles to [ ] for delivery to OMS. The date of the scheduled export is [ ], and the place of export is [ ]. You assert that the titles for both motorcycles list incorrect VIN numbers due to “clerical error.” In support of this assertion, you provided copies of the titles for both motorcycles and pictures of the VIN numbers stamped on the frames of the motorcycles. The title for Motorcycle 1 lists the VIN as [ ] instead of the correct [ ]. The title for Motorcycle 2 lists the VIN as [ ] instead of the correct [ ].
You assert that previously, U.S. Customs and Border Protection (“CBP”) Officers at the Port [ ] have allowed you to export used self-propelled vehicles with “clerical error” VINs listed on the titles by inputting the incorrect VIN in the ACE/AES Direct’s Electronic Export Information system and then notifying the CBP Officer of the actual VIN during the title validation and verification process. You have recently been told that CBP Officers at that Port will no longer accept “clerical error” titles and advised that you must re-title the vehicles with incorrect VINs on the titles to the actual VIN of the vehicle prior to export. You seek clarification as to the correct method of export for a used, self-propelled vehicle with an incorrect VIN listed on the title for the vehicle. Specifically, you would like to list both the correct and incorrect VINs in ACE and submit the title with incorrect VIN for export because re-titling the vehicles with the correct VIN numbers is too costly and time-consuming for your business.
ISSUES
Whether a title that lists the incorrect VIN for a used, self-propelled vehicle is sufficient documentation to meet the requirements for exportation set forth in 19 C.F.R. § 192.2.
LAW AND ANALYSIS
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 controls the exportation of used self-propelled vehicles. The amendments addressed the nature of the documentation that established ownership of a vehicle bound for exportation and the presentation of that documentation to Customs. Promulgated pursuant to 13 U.S.C. § 303 and 19 U.S.C. §§ 66, 1624, 1627a, and 1646c, 19 C.F.R. § 192.2 regulates the requirements for exportation of used, self-propelled vehicles and provides as follows:
(a) Basic requirements. A person attempting to export a used self-propelled vehicle shall present to Customs, at the port of exportation, both the vehicle and the required documentation describing the vehicle, which includes the Vehicle Identification Number or, if the vehicle does not have a Vehicle Identification Number, the product identification number. Exportation of a vehicle will be permitted only upon compliance with these requirements, unless the vehicle was entered into the United States under an in-bond procedure, or under a carnet or Temporary Importation Bond; a vehicle entered under an in-bond procedure, or under a carnet or Temporary Importation Bond is exempt from these requirements. The person attempting to export the vehicle may employ an agent for the exportation of the vehicle.
(b) Documentation required. -- (1) For U.S.-titled vehicles. -- (i) Vehicles issued an original certificate of title. For used, self-propelled vehicles issued, by any jurisdiction in the United States, a Certificate of Title or a Salvage Title that remains in force, the owner must provide to Customs, at the time and place specified in this section, the original Certificate of Title or a certified copy of the Certificate of Title and two complete copies of the original Certificate of Title or certified copy of the original.
19 C.F.R. § 192.2(e) further provides:
(e) Authentication of documentation. Customs will determine the authenticity of the documents submitted. Once the authenticity of the documents is established, Customs will mark the documents. In most cases the original document(s) will be returned to the exporter. In those cases where the original title document was presented to and retained by Customs and cannot be found prior to the vehicle's export, the exporter's authenticated copy of the original documentation serves as evidence of compliance with the reporting requirements.
Additionally, the Tariff Act of 1930, specifically 19 U.S.C. § 1627a provides, in relevant part:
(b) Regulations; violations; penalties. A person attempting to export a used self-propelled vehicle shall present, pursuant to regulations prescribed by the Secretary, to the appropriate customs officer both the vehicle and a document describing such vehicle which includes the vehicle identification number, before lading if the vehicle is to be transported by vessel or aircraft, or before export if the vehicle is to be transported by rail, highway, or under its own power. Failure to comply with the regulations of the Secretary shall subject such person to a civil penalty of not more than $ 500 for each violation.
Thus, exporters of used, self-propelled vehicles are statutorily required to present documentation describing the vehicle, including the VIN, prior to export and the regulations provide specifically that for such vehicles with a title in force, the Certificate of Title must be presented to CBP for export. CBP has the authority to “determine the authenticity of the documents submitted.” Therefore, it is within CBP’s discretion to require a title in which the VIN matches the VIN of the vehicle to be exported. Given that these documentation requirements were implemented pursuant to the Anti-Car Theft Act, it is not only within CBP’s discretion but also eminently reasonable to require that a title presented for proof of ownership for export of a vehicle list the correct VIN number so that CBP can verify that the correct corresponding vehicle is exported with the proper documentation.
You argue that the incorrect VINs are due to “clerical error” which you attribute either to common typo errors by clerks at state Departments of Motor Vehicles or by incorrectly listing the engine number of a vehicle as the VIN number. You further assert that these clerical error VIN mistakes are common and that re-titling the vehicles to the actual VIN of the vehicle causes a “significant time and cost burden to [your] business.” The regulations are clear that where a Certificate of Title is in force for a vehicle, it must be presented to CBP for export, and that CBP determines the authenticity of such documentation. Accordingly in this case, a Certificate of Title listing an incorrect VIN that does not match the VIN stamped on a vehicle’s frame is insufficient documentation to meet the requirements for export set forth in 19 C.F.R. § 192.2. Moreover, listing two VINs in ACE and explaining the error to CBP at the time of export is insufficient to cure the defect in the VIN listed on the Certificate of Title.
HOLDING
Pursuant to 19 U.S.C. § 1627a and 19 C.F.R. § 192.2, a Certificate of Title listing an incorrect VIN for a used, self-propelled vehicle is insufficient documentation for export and listing the correct and incorrect VINs in the automated export system does not cure the deficiency. CBP may require, in accordance with 19 U.S.C. § 1627a and 19 C.F.R. § 192.2, that an exporter re-title such a vehicle so that the correct VIN number is listed on the title prior to export.
Sincerely,
Lisa L. Burley
Supervisory Attorney-Advisor/Chief
Cargo Security, Carriers and Restricted Merchandise Branch
Office of Trade, Regulations and Rulings
U.S. Customs and Border Protection