Cross Border Sales Policy for 2004
and Later Model Year Vehicles
Why is the Cross-Border Sales Policy still necessary for 2004 and later model
years?
Under federal law, vehicles introduced into commerce in the U.S. must be certified
to meet all applicable federal emission requirements. Vehicles certified to California-
only requirements ("California vehicle") are not necessarily meeting each and every
federal requirement. Historically, EPA's Cross Border Sales (CBS) Policy has been
developed to address two issues:
(1) allow manufacturers to introduce into commerce "California vehicles" in Cal-
ifornia and the "Section 177 states" (states that have adopted and placed into
effect California requirements under authority of Section 177 of the Clear Air
Act.) Manufac-turers and their dealers located in California and any "Section
177 state" may sell "California vehicles" to any person from any state,
(2) take no enforcement action to against dealers located in the states that are
contiguous to California and any "Section 177 states" if they sell "California
vehicles" to people from any state". Without the CBS policy, dealers in those
contiguous states would only be allowed to sell "California vehicles" to a
resident from California or a "Section 177 state", while dealers located across
the border in California and the "Section 177 states" may sell "California
vehicles" to anyone.
The Federal Tier 2 emission standards, which will take effect in the 2004 MY, do not
remove all of the differences between the federal and California programs; there are
California requirements which are less stringent than comparable federal require-
ments. Because 2004 and later model year "California vehicles" do not necessarily
meet each and every federal emission requirement (which would be necessary to allow
the sale of the California certified vehicles everywhere), manufacturers must follow
EPA's CBS policy to direct their sales of "California vehicles" for 2004 and later MY.
Due to possible changes in both federal and California emission requirements in the
future, EPA may revise this policy whenever it is necessary.
SEPA
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
EPA-420-F-13-019
March 2013
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Automotive manufacturers may choose to certify their vehicles to meet both federal and Cali'
fornia requirements to avoid the issues addressed by this policy. The vehicles which meet both
federal and California requirements are called "50 states vehicles," such
vehicles are allowed to be delivered and sold to anyone in any state.
You may visit the 1993-1995 CBS Policy (wwwepa.gov/otaq/consumer.htm#CrossborderSales)
to read more about the history of the CBS policy.
In which areas do the differences between federal and California requirements exist during
and after 2004 model year?
Examples of federal standards that are more stringent or different than comparable California
ones during and after 2004 model year include: Supplemental Federal Test Procedure (SFTP)
standards, cold temperature testing requirements, altitude testing requirements, some tailpipe
standards and evaporative standards, fleet average requirements, fuel controls and the standards
applicable to different vehicle weight classes, etc,
Which states have adopted and placed in effect California standards?
See Table: Section 177 States Vehicle Emissions Control Requirements - Status on California
Rules Adoption (www.epa.gov/otaq/consumer.htm#CrossborderSales)
What does a consumer need to know before buying a "California Vehicle"?
Although federal regulations do not prohibit a consumer, whose home state is not California or
one of the "Section 177 states", to buy "California vehicles", an individual is advised to find out
if a "California vehicle" can be registered with his/her home state before buying.
What language will appear on the certificates of conformity issued to manufacturers?
The certificate language for the 2004 and later model years "California vehicles" will appear
identical as for 2003 model year:
Pursuant to Section 206 of the Clean Air Act (42 U.S.C. 7525), this certificate of
conformity is hereby issued to the above-named manufacturer for the test group and
evaporative/refueling family listed above, as approved by the California Air resources
Board. This certificate covers only those new motor vehicles which: (1) conform, in all
material respects, to the design specifications that applied to those vehicles described in
the application submitted to the California Air Resources Board; (2) are covered by said
executive order; (3) are only introduced into commerce in the State of California or a
J State contiguous to California or in a state that, under the authority of Section 177 of
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the Clean Air Act, has adopted and placed into effect the California standards to which
this test group has been certified or a state contiguous to such a state; and (4) are labeled
as belonging to said test group and evaporative/refueling family.
What is restricted?
Manufacturers may not introduce into commerce new "California vehicles" in states that have
not adopted and placed into effect California standards or are not contiguous to such states.
Exceptions will be made, however, if the vehicle being purchased is to be titled, registered,
or principally used in a "Section 177 state" or California. This is the same exception that has
existed with respect to California for the last decade. It allows an individual who is moving to a
" Section 177 state" from Minnesota, for example, and who needs a new vehicle to get there, to
buy a California vehicle in Minnesota,
Does this policy only apply to new vehicles?
Basically, manufacturers only deliver new vehicles to dealers. Under the Clean Air Act, a new
vehicle is any vehicle that has not been sold to a final purchaser.
What about medium-duty vehicles certified to California standards?
The California Air Resources Board defines a medium-duty vehicle for purposes of California
emissions requirements as any vehicle having a manufacturer's gross vehicle weight rating
(GVW) of 8,500 to 14,000 pounds*. New York, Vermont Maine and Massachusetts have
adopted California standards for medium-duty vehicles at this time. Consequently, these vehicles
are permitted to be introduced into commerce in California, New York, Vermont Maine and
Massachusetts, and EPA will take no action if manufacturers sell MDVs in the contiguous states
of those states. (* Vehicles certified to the LEV I California emission standards are defined as a
medium duty vehicle if they are between 6000 and 14000# GVWR.)
What are the contiguous states?
O
State Name
California
Massachusetts
Maine
Vermont
New York
Contiguous States
Oregon, Nevada and Arizona
Rhode Island, Connecticut, New York, Vermont, New
Hampshire, and Maine
New Hampshire and Massachusetts
New Hampshire, Massachusetts and New York
New Jersey, Connecticut, Massachusetts, Vermont and
Pennsylvania
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May manufacturers deliver "California vehicles" to these contiguous states?
EPA will take no action to prevent manufacturers from delivering California vehicles to these
contiguous state dealers. The objective of the policy is to allow dealers on both sides of Cali-
fornia and the "Section 177 states" borders to continue to engage in cross border transactions
without the requirement of dual inventories. Dealers, of course, may elect to maintain dual
inventories to satisfy customer demands.
Will EPA act if a dealer located in California, the "Section 177 states" or their contiguous
states sell a "California vehicle" to a resident of a different state, say Iowa?
EPA will take no action to prevent the dealers located in California, the "Section 177 states" or
their contiguous states from selling a "California vehicle" to purchasers from any state.
What about "drop shipments"?
EPA considers a "drop shipment" to be a type of sale in which a dealer will accept an order for a
vehicle from an out-of-state customer, and the vehicle will be shipped directly to the customer
via a local delivering dealer without the vehicle ever physically being in the selling dealer's
inventory.
According to the language of EPA's Cross Border Sales policy, dealers located in California, a
Section 177 state, or any of their contiguous states can sell California vehicles to purchasers
from any state. With respect to the Cross Border Sales policy, we consider a "drop shipment" to
be equivalent to a sale. Therefore, dealers located in the above states can "drop ship" California
vehicles to purchasers from any state.
Can manufacturers deliver and/or sell federal vehicles to California or the states that adopted
California standards?
Federal regulations do not prohibit manufacturers from delivering and/or selling federal vehicles
in California or any Section 177 states. However, individual states may prevent the registration
of vehicles that do not meet California standards.
How does the CBS policy affect warranty requirements?
State motor vehicle emissions warranty provisions are in addition to and do not void or eliminate,
(1 ^ the federal emissions warranties under §207 of the Act. A vehicle that is within the federal
warranty period and subject to regulations issued under §202 of the Act is therefore covered by
the federal emissions warranties, not withstanding valid adoption by the state of separate
J warranties. Under this situation the Federal and California warranty provisions are concurrent,
and all vehicles, even those sold in California, have Federal warranty provisions.
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Are there any records keeping requirements?
There are no record keeping requirements for cross-border sales themselves. Manufacturers are
responsible for all information and record keeping regarding California vehicles as described in
Advisory Circular 86,
Where can I get further information regarding the 2004 and Later Model Years Cross Border
Sales Policy?
You may visit our web site at:
www.epa.gov/otaq/consumer.htm#CrossborderSales
or, contact us by Email:
omscfeis@epa.gov
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