New Regulations for Auto Recyclers Likely

Fairfax, VA - Under the Anti-Car Theft Act of 1992, the U.S. Attorney General was required to issue regulations directing "junk yard" and "salvage yard" operators and insurance carriers to file monthly reports with the operator of the National Motor Vehicle Title Information System (NMVTIS) concerning vehicles in their possession.

After some 10 years, this regulatory initiative is likely to occur in 2003. In the semi-annual agenda published in the Federal Register on December 9, 2002, the Department of Justice's (DOJ) indicated that the "Notice of Proposed Rulemaking" (NPRM) was slated for December 2002. The Automotive Recyclers Association (ARA) has contacted DOJ and they indicate that the rule has been delayed. Based on what ARA knows at this point, the NPRM will re-quire auto recyclers "salvage yards" to provide the vehicle identification numbers, the date on which the vehicle was obtained, and the name of the individual or entity from whom the vehicle was obtained. "Salvage" and "junk yard operators" will also be required to provide a statement of whether the automobile was crushed or disposed of for sale or other purposes.

ARA has submitted a meeting request to discuss the rule prior to publication and is hopeful that this will occur in the coming weeks. ARA will provide written comments to the U.S. Department of Justice on the proposed regulations once the rule is published. The ARA is working to protect the professional automotive recycling indus-try from unfair and burdensome regulations from Capitol Hill and the various federal regulatory agencies.