Interpretation ID: nokiantyres(4-7-05)

LaDonna Bowers
Manager, Customer Service--Distribution
Nokian Tyres, Inc.
339 Mason Road
La Vergne, TN 37086

RE: Interpretation of Foreign Defect Reporting

This is in reply to your E-mail letter of March 10, 2005, to Andrew DiMarsico of my staff requesting a clarification of the reporting of tires involved in a foreign recall. You present the following hypothetical to illustrate your concerns:

A tire, of a certain production week, has been manufactured in foreign country A and sent to retailers in foreign country A and foreign country B. None of these tires have been purchased by a consumer in either foreign countries A or B. Due to subsequent quality control by the manufacturer, the manufacturer will recall these tires from both foreign countries A and B (total quantity less than 40 tires).

You ask whether there is a need to report a recall of these tires which have not been sent to, or purchased in, the USA, but will likely be sent to, and sold in, the USA in the future in limited quantities and from subsequent production weeks?

The answer is no. The National Highway Traffic Safety Administrations (NHTSA) regulations concerning foreign defect reporting are located at 49 C.F.R. Part 579, Subpart B. Section 579.11 requires manufacturers to report to NHTSA within five days of determining to conduct a safety recall or other safety campaign in a foreign country covering a motor vehicle, item of motor vehicle equipment, or tire that is identical or substantially similar to a vehicle, item of equipment, or tire sold or offered for sale in the United States. With respect to the facts presented in your hypothetical, the tires have not been shipped to or offered for sale in the United States. Therefore, the manufacturer of the tire in your hypothetical would not have to report the recall determination to NHTSA at this time.

If you have any questions, you may phone Andrew DiMarsico of my staff at (202) 366-5263.

Sincerely,

Jacqueline Glassman
Chief Counsel

ref:579
d.4/19/05