New vs. used vehicle determinations for certification

From an NTEA member We are an upfitter and know that certification applies to new vehicles, but we have many different scenarios of building vehicles with both new and used bodies and chassis, including rebuilding heavier chassis in some cases. Is there a straightforward way to determine which vehicles require us to certify them? As you correctly note, the certification process applies to new vehicles, and conversely, you would not certify used vehicles. So, it comes down to determining what constitutes a “new” vehicle. The certification process applies to all stages of new vehicle manufacturing, up to the point where it has been both certified as complete and licensed/titled in a given U.S. state or delivered to a purchaser at the first retail level in a Canadian province or territory. This covers all operations from manufacture of a chassis (i.e., incomplete vehicle) up through final-stage manufacturing (completing a vehicle from an incomplete one) and including any altered-stage manufacturing (performed on completed vehicles, prior to the first retail sale). Following this milestone and after the vehicle is licensed/titled, the certification process effectively ends, which includes labeling. Following are two helpful considerations: There’s technically no such thing as manufacturing a used vehicle, so certification applies to vehicles as they are newly manufactured. Focus on the chassis – is it new or used? The bodies you install on the chassis don’t actually factor into whether the vehicle is considered new or used. Sometimes this clouds these determinations, but you can keep the consideration to the chassis. New chassis equals new vehicle, and used chassis equals used vehicle, regardless of whether the body being installed is new or not. With the variety of vehicles you build, these simple principles can help you determine where certification applies in the majority of your business. In operations where you may be rebuilding larger gross vehicle weight rating (GVWR) vehicles (typically done with glider kits) to extend their useful life, referring to an operative section of the Code of Federal Regulations [49 CFR 571.7(e)] provides guidance on whether a vehicle built from a combination of new and used components is considered to be new. This section states that “[w]hen a new cab is used in the assembly of a truck, the truck will be considered newly manufactured for purposes of paragraph (a) of this section, the application of the requirements of this chapter, and the Act, unless the engine, transmission, and drive axle(s) (as a minimum) of the assembled vehicle are not new, and at least two of these components were taken from the same vehicle.” This means that when using a new cab as part of rebuilding a vehicle (which can many times be part of a glider kit rebuild), the vehicle is considered newly manufactured for certification purposes — unless at least the engine, transmission and drive axle(s) of the assembled chassis are not new and at least two of these components were taken from the same used vehicle. In other words, assume the chassis will be considered new for certification purposes when rebuilding a chassis with a new cab, unless you can firmly substantiate that the exception for the minimum amount of used content is met, along with the condition of the minimal, required portion of it being from the same, used donor chassis. If these conditions are met, the vehicle is considered used and does not require final-stage certification; however, as a business, your company is required to maintain compliance with the applicable safety standards of the used, donor vehicle identity being carried over when completing the refurbishment. Reviewing applicable safety standards and assuring the vehicle still complies is your company’s responsibility. As the manufacturer/upfitter, be sure to review the complete project scope up front in these scenarios to fully understand your vehicle certification responsibilities when rebuilding used vehicles. If the two-part conditions as noted are not met, the chassis would be considered new, leading back to the previous principle of new chassis equals new vehicle for certification purposes. As with any new vehicle, it would require assurance that all applicable motor vehicle safety and emission standards are met, including labeling, when completed with either a new or used body. Additionally, it’s important to note there can be some strong implications for rebuilding vehicles utilizing a glider, so make sure to get an incomplete vehicle document from the manufacturer with proper statements of conformity for all required Federal/Canadian Motor Vehicle Safety Standards. Otherwise, you will not have pass through compliance and become fully responsible for them when you complete and certify and vehicle. It’s also extremely important to consider potential Federal Excise Tax (FET) implications in situations like this, as the typical weight range for such rebuilds can involve a vehicle being considered new for FET purposes. If you have additional questions, contact NTEA’s Technical Services Department (248-489-7090/info@ntea.com).

New vs. used vehicle determinations for certification

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