[Federal Register Volume 63, Number 130 (Wednesday, July 8, 1998)]
[Notices]
[Page 36989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18095]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration
[Docket No. NHTSA-98-3848; Notice 2]


Beall Trailers of Washington, Inc.; Grant of Application for 
Temporary Exemption From Federal Motor Vehicle Safety Standard No. 224

    This notice grants the application by Beall Trailers of Washington, 
Inc., of Kent, Washington, (``Beall''), a wholly-owned subsidiary of 
Beall Corporation, for a one-year temporary exemption from Motor 
Vehicle Safety Standard No. 224 Rear Impact Protection. The basis of 
the application was that compliance would cause substantial economic 
hardship to a manufacturer that has tried in good faith to comply with 
the standard.
    Notice of receipt of the application was published on May 19, 1998, 
and an opportunity afforded for comment (63 FR 27618).
    Beall manufactures and sells dump body trailers. It produced a 
total of 311 trailers in 1997, of which 124 were dump body types. 
Standard No. 224 requires, effective January 26, 1998, that all 
trailers with a GVWR of 4536 Kg or more, including dump body types, be 
fitted with a rear impact guard that conforms to Standard No. 223 Rear 
impact guards. In its application, Beall stated that ``alterations may 
have to be made to the trailer chassis or even raising the dump box to 
provide space for the retractable guard,'' indicating that a guard that 
retracts when the dump body is in operation is the solution it is 
seeking in order to comply. According to Beall, the company has 
``placed significant resources (time and money) towards the design of 
an acceptable guard. We have involved Montana State University 
professors from their Mechanical Engineering department. We have 
conducted Finite Element Analysis and traditional methods of design 
arriving at a plastically deforming guard that meets the standard, for 
nonasphalt carrying applications.'' The deforming guard does not 
retract, thus cannot be used on dump body trailers. Beall believed that 
its problem is similar to that experienced by other manufacturers 
manufacturing dump trailers. The company stated that ``devices used in 
other countries do not meet FMVSS 224.'' It continues to study 
``hinged/retractable devices'' but must overcome lack of space for a 
retracted device. The company said that it would strive to develop a 
device that would comply with Federal requirements while an exemption 
is in effect.
    If an exemption is not granted, the company argued that substantial 
economic hardship will result. First, it would lose a trailer that 
accounts for 40 percent of its overall production. In addition, ``some 
percentage of the remaining 60% would be lost since our customers 
typically purchase matching truck mounted dump bodies which may also be 
lost.'' Beall also believed that 31 of its 63 employees would have to 
be laid off if its application is denied. Maintenance of full 
employment would be in the public interest it argues. Beall's net 
income was $39,317 in 1995 and $72,213 in 1996. In the first 10 months 
of 1997, its net income before income taxes was $697,040. If the 
application is denied, it foresees a net loss of $71,445 for 1998.
    No comments were received on the application.
    NHTSA has analyzed the economic and regulatory situation that 
confronts Beall. The configuration of the company's dump trailer has 
presented it with an engineering problem that it was unable to resolve 
by the effective date of the standard, even though the company has 
studied devices used in other countries. Beall anticipates arriving at 
a solution within the year that its exemption would be in effect, and 
the company did not ask for the three full year exemption permitted 
under the hardship authority. Although a denial would not create an 
untenable economic situation, it would result in the company having a 
net loss for 1998. More ominously, a denial might also have the effect 
of eroding the market for the trailers that Beall could continue to 
produce ``since our customers typically purchase matching truck mounted 
dump bodies.''
    NHTSA agrees that maintenance of full employment is in the public 
interest. The very low volume of the trailers that will be covered by 
an exemption limits the effect on safety of the trailers that will be 
produced under the exemption without a rear underride guard.
    In consideration of the foregoing, it is hereby found that 
compliance with Standard No. 224 would cause substantial economic 
hardship to a manufacturer that has tried in good faith to comply with 
the standard, and that an exemption would be in the public interest and 
consistent with motor vehicle safety. Accordingly, Beall Trailers of 
Washington, Inc., is hereby granted NHTSA Temporary Exemption No. 98-5 
from Federal Motor Vehicle Safety Standard No. 224 Rear Impact 
Protection, 49 CFR 571.224, expiring July 1, 1999.

    Authority: 49 U.S.C. 30113; delegation of authority at 49 CFR 
1.50.

    Issued on: June 29, 1998.
Ricardo Martinez,
Administrator.
[FR Doc. 98-18095 Filed 7-7-98; 8:45 am]
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