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The amber portion is on the reflector only. If you cover it up, the turn signal will still work. The Euro headlights have a white reflector, instead of Amber.
In the USA, amber refletors are required by NHTSA and DOT regulations. In theory, your car could get ticketed or even impounded for not complying, however most agancies have no active enforcement. You could make the car legal by placing alternate amber reflectors somewhere else on the front, similar to what BMW has done on the new X6. The 1 series has the reflector integrated into the light assembly.
Euro spec headlights are allowed in Canada under a special exemption.
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