Proposed Reporting Rule Change Could Affect Auto Recyclers

A proposed rule change to the National Stolen Passenger Motor Vehicle Information Systems (NSPMVIS) could place a financial burden on automotive recyclers, according to the Automotive Recyclers Association (ARA).

The ARA's Government Affairs Committee is urging all fellow auto recyclers to contact federal governmental representatives to insist on "major" changes to the proposed parts checking rule recently released by the United States Department of Justice. These proposed regulatory requirements could have a significant financial impact on all auto recyclers.

According to the committee, the overhead cost to accomplish these regulatory mandates will be considerable, not to mention a logistical nightmare to keep track of the information for each motor vehicle part and properly reporting the status of that motor vehicle part to customers. This proposal would require significant changes to the way auto recycling businesses are run.

The proposed changes include:

•Auto recyclers will be required to check the theft status for each major component (a minimum 15 part types, defined as major components per vehicle) sold through a national database. There are some limited exceptions for exempt vehicles and one can rely on insurer checks for a limited period of time for vehicles bought from some insurers.

•Auto recyclers must forward proof of authorization code verifying each auto theft check to customers for each part sold. Authorization can take up to 48 hours.

•To check the theft status, an auto recycler must first identify all the VIN numbers (hidden numbers will be on frames and body panels) through a detailed inspection process and learn how to identify OEM replacement parts and aftermarket parts since they are not reportable.

•There are different statuses a part might have. For example, a part might have been from a stolen vehicle that was subsequently recovered and cleared, and that status must be reported to your customer. Therefore, an auto recycler would have to find a way to keep track of that information and supply it with each part sold.

•Finally, if an auto recycler reports a part to the federal database and it is listed as stolen, then the part is no longer sellable. Therefore, the auto recycler loses the investment in that part!

Concerns should be sent to: Thomas E. Bush, III, Section Chief - Programs Development Section, Criminal Justice Information Services Division, U.S. Federal Bureau of Investigation, Clarksburg, WV 26306, Fax: 304-625-3875.

Further information on NSPMVIS can be found at http://autorecyc.org.