The 'general' consensus for engineering is that the car the engine is going into must have the same or older ADR emissions rulings of the car the engine originally came out of... but to do otherwise is still allowed provided it meets the relevent ADR emissions rules.
i.e. The VR4 and CC Lancer etc fall under the ADR emissions rule 37/00. This covers all cars manufactured between 1/1/86 to 1/1/97. Some CE's were built in 1996 so you can legally throw in a VR4 or EVO engine into a 1996 built CE as its under the same ADR 37/00 emisisons laws.
BUT, from 1/1/97 ADR 37/01 came into effect which brought with it tougher emissions standards, with several ADR changes over the years to the current ADR 79/01 (Euro 3) for cars from 2005+. See pic of the tougher emissions as the years go by...
Technically, you CAN have an engine older than the vehicle provided that the engine meets the emissions standards of the newer vehicle (it goes by the year of manufacture of the car or year the engine was made available in a production car, whichever is newer.)
In this case the CE Lancer falls under ADR 37/01 as it was manufactured in 1998. For the VR4 engine to meet the more stringent emissions levels of 37/01 he would have to retain all the factory pollution gear and computer etc and prove that it meets the 37/01 emissions levels by having an IM240 emissions test done as proof. Now once he starts modding that engine it can easily make the gasseous emissions levels of Nox etc rise above the ADR 37/01 requirements and fail the emissions test.
Generally, if you see a modded old engine in a newer car then there's no chance in hell it will pass the emissions standards as its hard enough to get it to pass with the stock pollution and OEM equipment attached, let alone with some mods done to it. Just by looking at whats done to that car its gonna FAIL no question about it.
Hope that makes sense to you guys
