Interpretation ID: nht88-3.86
TYPE: INTERPRETATION-NHTSA
DATE: 11/01/88
FROM: ERIKA Z. JONES -- NHTSA
TO: WILLIAM J. HENRICK -- GENERAL TIRE
TITLE: NONE
ATTACHMT: LETTER DATED 06/03/88 FROM WILLIAM HENRICK TO ERIKA Z JONES
TEXT: Dear Mr. Henrick:
This is in response to your letter of June 3, 1988, seeking an interpretation of Part 574, Tire Identification and Recordkeeping. Specifically, you stated that your company has reached an agreement with two foreign tire manufacturers to jointly produce a radial medium truck tire in one of your domestic facilities. You anticipate that all three entities will use the same "green" or "uncured" tires. Although your letter is not clear on this point, I am assuming that the sidewall on a given tire will con tain the name and the respective tire identification mark of only one company. You asked whether each of the three companies involved in this joint venture may secure its own identification mark required by Part 574 to identify its tires. The answer to your question is yes.
49 CFR @ 574.5 requires that "Each tire manufacturer shall conspicuously label on one sidewall of each tire it manufacturers . . . by permanently molding into or onto the sidewall, in the manner and location specified in Figure 1, a tire identification n umber containing the information set forth in paragraphs (a) through (d) of this section." The purpose of the tire identification number requirements is to facilitate the effective recall of tires from the public if the tires are found not to comply with the applicable safety standards or if the tires contain a safety related defect. To best effectuate the recall of noncomplying or defective tires, the agency recommends but cannot require each production plant to have its own tire identification number .
If the company that produced the tires in its molds (General in this case) wished to put its tire identification number on all of the tires produced for this joint venture, @ 574.5 would not prohibit it from doing so, since that company could certainly b e considered the manufacturer of all of the tires. However, if that company were to do so, it would be responsible for any recalls of these tires, including the tires sold by the other partners in the joint venture.
On the other hand, @ 574.5 does not prohibit each of the three partners in the joint venture from putting its own tire identification number on those tires produced for it by the joint venture. Each partner could be considered the "manufacturer," for pu rposes of @ 574.5, of those tires that it markets under its name. Each partner would then be responsible for any recalls of those tires produced by the joint venture on which its identification number appears.
I am enclosing 49 CFR Part 551 which requires all manufacturers headquartered outside of the United States to designate a permanent resident of the United States as the manufacturer's agent for service of process in this country. The agent may be either an individual or a business entity. Part 551 specifies that the designation of agent must contain the following six items of information:
1. A certification that the designation is valid in form and binding on the foreign company under the laws, corporate by-laws, or other requirements governing the making of the designation at the time and place where it is made;
2. The full legal name, principal place of business and mailing address of the foreign company;
3. Marks, trade names, or other designations of origin of any of the tires which do not bear the name of the foreign company.
4. A statement that the designation shall remain in effect until withdrawn or replaced by the foreign company;
5. A declaration of acceptance duly signed by the agent appointed by the foreign company, and the agent may be an individual, firm, or United States corporation; and
6. The full name and address of the designated agent.
I hope this information is helpful. If you have any further questions on this subject, please feel free to contact Marvin Shaw of my staff at this address or by telephone at (202) 366-2992.