Interpretation ID: nht76-5.66

DATE: 03/18/76

FROM: R. L. CARTER FOR J. B. GREGORY -- NHTSA

TO: Richard Nolan; House of Representatives

TITLE: FMVSR INTERPRETATION

TEXT: This is in reply to your letter of February 17, 1976, in which you ask six questions pertaining to tire identification and recordkeeping, and to defects notification and recall. The statutory basis for and regulations governing this subject are set forth in the National Traffic and Motor Vehicle Safety Act of 1966, 15 U.S.C. 1391, et seq., and 49 CFR Part 574. I have enclosed copies for your reference. Specific answers to your questions follow in the sequence asked:

1. Manufacturers are required to retain tire registration information for three years. (49 CFR 574.7(d)).

2. As in all defect recall campaigns under our Act, the tire manufacturer, not the Department of Transportation, traces and notifies individuals of defective tires. There have been approximately 2,526,480 tires subject to recall in 119 recall campaigns.

3. The number of persons employed by industry to process this information has not been reported, but the filling systems are highly automated by the use of computer processing techniques. The cost of storage of this information during the three-year period is minimal. The recording of information at the time of purchase, however, is manually performed at the retail level, usually by the salesman, and has been estimated by dealers to cost anywhere from 5 or 10 cents per tire up to $ 2.5C per tire. The substantial difference in cost estimates is to a large part due to whether or not one assumes the salesman who completes the forms and the clerk who mails them would not be employed but for the tire registration process. The National Highway Traffic Safety Administration (NHTSA) takes the position, which has yet to be refuted, that additional personnel are not needed to carry out the program on the retail level and consequently the costis at the lower end of the scale. Simplification of the process has been achieved with the adoption of a standardized report form on which towrite the name and address of the purchaser. A copy is enclosed.

4. There is no cost incurred by the Federal government attributable to the tire registration and recordkeeping procedure except (Illegible Word) in that the regular staff, as one of their functions, assigns and maintains a manufacturer's identification code list and monitors the program of defects recalls and regulation enforcement. The cost of this work has been determined to be about $ 34,000 annually.

5. The NHTSA has undertaken no proscution of dealers or manufacturers for violation of the tire information and recordkeeping regulation. Fourteen civil penalties have been assesed for violation of the regulation, although these all occurred shortly after the regulation became effective.

6. We do not presently anticipate a major revision of the regulation. However, as with all our standards and regulations, it is regularly reviewed and revised to increase its effectiveness while lowering its cost to the industry and the consumer. Further, dealers, manufacturers, and others are free at any time to petition the NHTSA to amend the regulations. These procedures, which are found in 49 CFR, Part 552, require that we act on positions within 120 days.

At the present time, this program is also being analyzed by the National Motor Vehicle Safety Advisory Council as part of its study of "Safety Defects and Recalls" requested by Secretary William T. Coleman. The Council's report will also guide us in revising and improving the regulation.

Congress of the United States House of Representatives

February 17, 1976

Congressional Liaison Department of Transportation

Would you please provide me with background information regarding the registration of tire serial numbers. I am especially interested in:

1. How long is this information kept on file?

2. How often has the Department of Transportation used this information to trace and notify individuals of defective tires?

3. Approximately how many persons are involved in processing this information?

4. What is the approximate cost of this procedure to the federal government?

5. How often have violators of this regulation been prosecuted?

6. Does the Department foresee any revision of this regulation in the near future?

Thank you for your assistance in this matter.

Richard Nolan Member of Congress