Interpretation ID: aiam3006
Oestreicher
Sternberg & Manes
Suite 402
Wolf Ledges Professional Bldg.
411 Wolf Ledges Parkway
Akron
OH 44311;
Dear Mr. Manes: This is in response to your letter of March 13, 1979, asking whethe your client, a tire brand name owner, is permitted to bill its dealers and distributors directly for the costs of supplying Uniform Tire Quality Grading (UTQG) information pursuant to 49 CFR 575.104 and maintaining records of tire sales pursuant to 49 CFR 574.7.; The UTQG regulation requires that tire manufacturers and brand nam owners 'provide' grading information for each of their tires (49 CFR 575.104(d)(1)(i)). Similarly, the Tire Identification and Record Keeping regulation requires these parties to 'provide' upon request tire registration forms to dealers and distributors (49 CFR 575.7(a)) and directs tire manufacturers and brand name owners to maintain or have maintained for them records of the information acquired on these registration forms (49 CFR 574.7(b)).; A billing arrangement of the type your client suggests would in effec make the tire manufacturer or brand name owner the agent of the dealer or distributor for purposes of grading and registering tires. Such a practice would run counter to the intention of the agency that manufacturers and brand name owners bear primary responsibility for implementation of tire grading and registration. The National Highway Traffic Safety Administration (NHTSA) will take whatever action is necessary, including possible revision of the regulations, to prevent manipulation of the tire regulations in this manner.; Apart from the legal implications of your client's proposal, NHTS would question the soundness, from a business standpoint, of a plan for direct billing of UTQG and tire recordkeeping costs. Your client's proposed course of action appears to have the aim of generating dissatisfaction with Federal tire regulations among dealers and distributors, and could, by lessening cooperation at the retail level, interfere with your client's ability to fulfill its obligations under the regulations.; Sincerely, Frank Berndt, Acting Chief Counsel