Interpretation ID: 21472limitprodtireneb

Mr. James H. Johnson
Falken Technical Services
Falken Tire Corp.
10404 Sixth Street
Rancho Cucamonga, CA 91730

Dear Mr. Johnson:

This responds to your letter requesting an opinion concerning the Uniform Tire Quality Grading Standards (UTQGS).

You state in your letter that Falken Tire is planning to import a limited number of tires in six sizes for use by weekend club racers whose rules require that their tires be DOT numbered and "street legal". With regard to these tires, your parent company, Ohtsu Tire and Rubber, questions whether they can be considered "limited production" as defined in 49 CFR 575.104(c), so that the testing and assignment of UTQG ratings is not required although, as you state, the tires would otherwise meet all DOT requirements including markings. Specifically you ask for an interpretation as to (1) whether a limited production tire must meet all criteria listed in 49 CFR 575.104(c)(2), and (2) whether 49 CFR 575.104(c)(c)(2)(iii) "applies to a tire manufacturer or is aimed at the vehicle manufacturer who imports less than 10,000 vehicles". As discussed below, the answer to your first question is yes, a limited production tire must meet all the criteria listed in 49 CFR 575.104(c)(2), and the answer to your second question is that paragraph (c)(2)(iii) applies to Falken Tire, as the tire manufacturer, in this instance.

By way of background information, the National Highway Traffic Administration (NHTSA) has the statutory authority to issue Federal motor vehicle safety standards (FMVSS) applicable to new motor vehicles and new items of motor vehicle equipment, which includes tires. Federal law establishes a self-certification system under which motor vehicle and equipment manufacturers themselves certify that their products comply with all applicable standards. For that reason, NHTSA neither tests, approves, disapproves, endorses, nor grants letters of approval of products prior to their introduction into the retail market. Rather, we enforce compliance with the standards by purchasing vehicles and equipment and testing them. We also investigate safety-related defects.

Our statute at 49 U.S.C. 30123 directs the Secretary to prescribe a uniform quality grading system (UTQGS) for motor vehicle tires. The UTQGS may be found at 49 CFR 575.104.

The penalties for violation of the UTQGS are set forth in 49 CFR 578.6 which provides civil penalties of up to $1,100 for each violation of our statute. In addition, 49 U.S.C. 30163 gives U.S. district courts the jurisdiction to restrain any violation of Chapter 301, or any rule, regulation, or order issued thereunder, which include the UTQGS.

Turning now to your first question, 49 CFR 575.104(c) provides that the UTQGS apply to new pneumatic passenger car tires. The standards do not apply, however, to deep tread, winter type snow tires, space-saver or temporary use spare tires, tires with nominal rims diameters of 10 to 12 inches, or "limited production" tires. In order to qualify as a limited production tire, section 575.104(c)(2) establishes four criteria, all of which the tires must meet:

(i) The manufacturer's annual domestic production or importation into the U.S. of tires of the same size and design as the tire does not exceed 15,000;

(ii) The annual domestic purchase or importation by a brand name owner into the U.S. of tires of the same size and design as the tire does not exceed 15,000 tires;

(iii) The tire's size was not listed as a vehicle manufacturer's recommended tire size designation for a new motor vehicle produced in or imported into the U.S. in quantities greater than 10,000 during the calendar year preceding the year of the tire's manufacture; and

(iv) The total annual production or importation into the U.S. by the manufacturer or, if the tire is marketed under a brand name, the total annual domestic purchase or purchase for importation into the U.S. by the tire's brand name owner, of tires meeting the criteria of (i), (ii), and (iii) above, does not exceed 35,000 tires.

Section 575.104(c) also states that "tire design" is "the combination of general structural characteristics, materials, and tread pattern, but does include cosmetic, identifying or other minor variations among tires."

With regard to your second question, section 575.104(a) "requires motor vehicle and tire manufacturers and tire brand name owners to provide information...". Therefore, paragraph (c)(2)(iii) applies to you, as the tire manufacturer, in this instance. In order for Falken Tire to ascertain whether the subject tires meet all of the criteria for limited production tires, you must determine the motor vehicles for which the stated sizes were designated as recommended tire sizes during the calendar year preceding the year of the tire's manufacture, and the domestic production or importation of each of those vehicles for that calendar year.

For your additional information, because paragraph (c)(2)(iii) refers to "a vehicle manufacturer's recommended tire size designation (emphasis added)" and "a new motor vehicle (emphasis added), the 10,000 vehicle limitation refers to the production or importation of particular vehicle models, rather than the total of all models for which the tire size is recommended. Thus, if a tire's size is recommended for use on several vehicle models, none of which is produced in or imported into the United States in quantities greater than 10,000 during the calendar year preceding the year of the tire's manufacture, the tire would meet the criterion of paragraph (c)(2)(iii).

I am enclosing a copy of 45 FR 23442, dated April 7, 1980, the final rule which initially exempted limited production tires from the UTQGS. That notice explains the rationale for exempting limited production tires and other background information you may find helpful.

I hope this information is helpful. If you have any questions or need additional information, feel free to contact Nancy Bell of my staff of (202) 366-2992.

Sincerely,
Frank Seales, Jr.
Enclosure
ref:575
d.5/26/00