If you can get it straightened out with the EPA then you should be able to get it in. I wish I knew the name of the person who helped me. Don't even try with the regular teller at your local office until the person in Sac has dealt with it. It will be a waste of time. The referee might be a runaround as well, but it is worth a shot. Mine is an 82 so that could be the difference. 92 definitely had more smog stuff, even for a diesel. After she worked mine in, all I had to do was a VIN check. They definitely have not lowered the smog year for diesels.
It is not 79. All cars "must" be compliant, but no one checks diesels because there is no test designed for them. If they started checking everyone's diesels to see if modifications have been done, a lot of cars would be scrapped.
The reason they want to bug you, is because they California has no EPA record for the vehicle. If there never was one, the person who imported that vehicle failed in that aspect. There may be a door sticker or plate naming the importer. If not, that is a sign of something improper with the original documentation. All vehicles imported into the US must meet EPA requirements by law. Some slip through lax states that are not enforcers. That is the reason cars are more $$ here in Ca . The Euro specifications can make it very hard if not impossible to register. Its a real pain. You are not the first to go through this.

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Chris
84 280sl
82 300d euro