Interpretation ID: 1983-3.4

TYPE: INTERPRETATION-NHTSA

DATE: 09/06/83

FROM: AUTHOR UNAVAILABLE; Frank Berndt; NHTSA

TO: National Automobile Dealers Association

TITLE: FMVSR INTERPRETATION

TEXT:

NOA-30

Ms. Pamela Cox NADA Management Education National Automobile Dealers Association 8400 Westpark Drive McLean, Virginia 22102

Dear Ms. Cox:

This responds to your request to Mr. Stephen Kratzke of my staff to verify the record retention checklist your organization plans to distribute to its members. The checklist indicates that automobile dealers must maintain records of "New and retread tires, name, address of purchaser, tire seller and identification number," and "Tires on each vehicle sold." This is not an accurate description of the recordkeeping requirements imposed on automobile dealers with respect to tire sales.

For your information, I have enclosed a copy of 49 CFR Part 574, Tire Identification and Recordkeeping. The tire registration requirements applicable to motor vehicle dealers are set forth in section 574.9. Motor vehicle dealers are not required to register the tires on each vehicle sold; they are only required to register tires in two instances. First, if the dealer is selling a new vehicle, the tires must be registered by that dealer only if the vehicle is equipped with tires other than those installed on the vehicle or furnished with it by the vehicle manufacturer. In the far more common situation where the dealer delivers a new vehicle with the original equipment tires installed on or furnished by the vehicle manufacturer, the vehicle dealer has no registration responsibility for those tires.

Second, if the motor vehicle dealer is selling a used vehicle or leasing a vehicle for more than 60 days, the dealer must register the tires on that vehicle only if he has installed new tires on it. Again, it is more usual for a used vehicle to be equipped with the used tires already on it, and, in that case, the vehicle dealer is not required to register the tires. Moreover, tire registration is not required for any dealer when a vehicle is equipped with retreaded tires, even if the dealer installed the retreaded tires on the vehicle.

Even when motor vehicle dealers are required to register tires, they are only required to record tne purchaser's name and address if the dealer's business is owned or controlled by a tire company. I presume this would be a very unusual situation. This agency published an interim final rule establishing voluntary tire registration requirements for "independent" dealers in the Federal Register of May 19, 1983 (copy enclosed). "Independent" dealers means those whose business is not owned or controlled by a tire manufacturer. When one of your members is required to register tires and qualifies as an independent dealer, he must simply record the tire identification number(s) of the tire(s) sold on a registration form provided by the tire manufacturer, together with the dealer's name and address, and give the form to the tire purchaser. It is up to the purchaser to fill in his or her name and address on the form and return it to the manufacturer. The dealer is not required to retain any record of this. Even if the motor vehicle dealer were owned or controlled by a tire manufacturer, that dealer would simply be required to complete the entire registration form and return it to the tire manufacturer, and the tire manufacturer would be required to retain a record of the registration form for three years.

I trust that this information will help you in your efforts to educate your members about their responsibilities under Federal laws. If you need any further assistance in those efforts; please contact Mr. Kratzke at this address or at (202) 426-2992.

Sincerely,

Frank Berndt Chief Counsel

Enclosures

August 8, 1983

Mr. Steven Kratsky Office of Chief Counsel NHTSA 400 7th Street, S.W. Room 5219 Washington, D. C. 20590

Dear Mr. Kratsky:

Thank you for taking the time to speak with me over the phone in April regarding retention of tire and retread records. As I said, we are in the process of compiling a Federal Records Retention Checklist for our members. I have enclosed a copy of it and would appreciate your verifying our infomation by initialing beside the appropriate records and returning it to me in the postage paid envelope by September 1st.

Thanking you in advance, I remain

Sincerely,

Pamela Cox NADA Management Education

Enclosures

RETENTION OF RECORDS

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