[Federal Register Volume 68, Number 18 (Tuesday, January 28, 2003)]
[Rules and Regulations]
[Pages 4111-4113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1320]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 579

[Docket No. NHTSA 2001-10773; Notice 4]
RIN 2127-AJ04


Reporting of Information and Documents About Foreign Safety 
Recalls and Campaigns Related to Potential Defects

AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.

ACTION: Final rule.

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SUMMARY: This document responds to a petition for reconsideration of 
the final rule published on October 11, 2002, that implemented the 
foreign safety recall and safety campaign reporting provisions of the 
Transportation Recall Enhancement, Accountability, and Documentation 
(TREAD) Act. In response to the petition, we are correcting two 
provisions to correspond with statements made in the preamble to the 
final rule. We are also amending the date on which the first annual 
list of substantially similar vehicles must be submitted, and 
specifying how reports may be submitted electronically.

DATES: Effective Date: The effective date of this final rule is 
February 27, 2003.

FOR FURTHER INFORMATION CONTACT: For non-legal issues, contact Jonathan 
White, Office of Defects Investigation, NHTSA (phone: 202-366-5226). 
For legal issues, contact Taylor Vinson, Office of Chief Counsel, NHTSA 
(phone: 202-366-5263).

SUPPLEMENTARY INFORMATION:

I. Background

    On October 11, 2002, NHTSA published a final rule implementing the 
foreign safety recall and safety campaign reporting provisions of the 
Transportation Recall Enhancement, Accountability, and Documentation 
(TREAD) Act, established by 49 U.S.C. 30166(l) (67 FR 63295). See 49 
CFR part 579, particularly subpart B. The reader is referred to that 
document, and the prior Notice of Proposed Rulemaking (NPRM) (66 FR 
51907, October 11, 2001) for further information.
    A timely petition for reconsideration of the rule was filed by the 
Alliance of Automobile Manufacturers (the ``Alliance'').
    To address foreign defect reporting and other issues, the TREAD Act 
(Pub. L. 106-414) was enacted on November 1, 2000. Section 3(a) of the 
TREAD Act amended 49 U.S.C. 30166 to add a new subsection (l), which 
reads as follows:

    (l) Reporting of Defects in Motor Vehicles and Products in 
Foreign Countries--
    (1) Reporting of Defects, Manufacturer Determination.--Not later 
than 5 working days after determining to conduct a safety recall or 
other safety campaign in a foreign country on a motor vehicle or 
motor vehicle equipment that is identical or substantially similar 
to a motor vehicle or motor vehicle equipment offered for sale in 
the United States, the manufacturer shall report the determination 
to the Secretary.
    (2) Reporting of Defects, Foreign Government Determination.--Not 
later than 5 working days after receiving notification that the 
government of a foreign country has determined that a safety recall 
or other safety campaign must be conducted in the foreign country on 
a motor vehicle or motor vehicle equipment that is identical or 
substantially similar to a motor vehicle or motor vehicle equipment 
offered for sale in the United States, the manufacturer shall report 
the determination to the Secretary.
    (3) Reporting Requirements.--The Secretary shall prescribe the 
contents of the notification required by this subsection.

(emphasis supplied)
    The final rule adopted the following definition of ``other 
safety campaign:'
    Other safety campaign means an action in which a manufacturer 
communicates with owners and/or dealers in a foreign country with 
respect to conditions under which motor vehicles or equipment should 
be operated, repaired, or replaced that relate to safety (excluding 
promotional and marketing materials, customer satisfaction surveys, 
and operating instructions or owner's manuals that accompany the 
vehicle or child restraint system at the time of first sale); or 
advice or direction to a dealer or distributor to cease the delivery 
or sale of specified models of vehicles or equipment.

II. The Petition for Reconsideration

    The Alliance petitioned for reconsideration of the inclusion of 
``advice or direction to a dealer or distributor to cease the delivery 
or sale of specified models of vehicles or equipment'' in the 
definition of ``other safety campaign.'' It cited our comments in the 
preamble to the final rule (67 FR at 63299) regarding our definition of 
``customer satisfaction campaign * * *.'' in the early warning 
reporting final rule (67 FR 45822), in which we discussed our specific 
exclusion from that definition of ``advice or direction to a dealer or 
distributor to cease the delivery or sale of specified models of 
vehicles or equipment.'' At the end of this discussion, we stated ``We 
are adding the same exclusions to the definition of ``other safety 
campaign.'' We inadvertently omitted to do so by placing the closing 
parenthesis after ``sale'' rather than ``equipment.'' We are revising 
the definition of ``other safety campaign'' to expand the exclusion as 
we had originally intended. Thus, we grant the petition by the Alliance 
on this issue.
    The Alliance also pointed out another instance in which the 
regulatory text did not reflect a statement made in the preamble of the 
final rule. There, we stated our intention to exempt from reporting 
``any safety campaign involving substantially similar motor vehicle 
equipment that does not perform the same function in vehicles or 
equipment sold or offered for sale in the United States.'' 67 FR 63306. 
However, the regulatory text, at 49 CFR 579.11(d)(2), provides an 
exemption only if ``the component or system that gave rise to the 
foreign recall or other campaign does not perform the same function in 
any vehicles or equipment sold or offered for sale in the United

[[Page 4112]]

States.'' The Alliance asks that the phrase ``substantially similar'' 
be added before ``vehicles'' to reflect the preamble statement, and we 
are so doing.

III. The Initial List of Substantially Similar Vehicles and Equipment 
for 2003 Must Be Submitted No Later Than 30 Days After Publication of 
This Rule

    Section 579.11(e) requires a manufacturer of motor vehicles to 
provide an annual list of vehicles that it sells or plans to sell in a 
foreign country that it believes are identical or substantially similar 
to motor vehicles it sells or offers for sale, or plans to sell, in the 
United States in the following year, which identifies each such 
identical or substantially similar vehicle sold or offered for sale in 
the United States. The list must be submitted to NHTSA not later than 
November 1 of each year, as we proposed in the NPRM. 66 FR at 51918.
    However, we were unable to complete and publish the foreign defect 
reporting final rule until October 11, 2002, and it was not effective 
until 30 days after publication, November 12, 2002. Thus, the first 
November 1 following publication of the rule was 2002, but the first 
November 1 following its effective date is 2003. Some vehicle 
manufacturers phoned during October 2002, after publication of the 
final rule, to confirm that they would not have a legal reporting 
obligation as of November 1, 2002, and we confirmed that 
interpretation. However, the purposes of 49 U.S.C. 30166(l) cannot be 
fully realized if we defer submission of the initial list of 
substantially similar vehicles until November 1, 2003. A representative 
of the Alliance has informed us that most if not all of its member 
companies have been putting together such a list and could provide it 
within 30 days of publication of a notice requiring it. Thus, we are 
revising Section 579.11(e) to add a new sentence at the end, to read as 
follows:

    Not later than 30 days after January 28, 2003, each manufacturer 
to which this paragraph applies shall submit an initial annual list 
of vehicles for calendar year 2003 that meets the requirements of 
this paragraph.

IV. Reports May Be Submitted Electronically

    In a telephone call, Michael Grossman asked on behalf of Automobili 
Lamborghini whether reports required by Section 579.11, Reporting 
responsibilities, could be submitted electronically. Section 579.6, 
Address for submitting reports and other information, contains both a 
general requirement that reports required by part 579 must be addressed 
to the Associate Administrator for Enforcement, and a specific 
requirement with respect to the information, documents, and reports 
that are to be submitted to NHTSA's early warning data depository under 
subpart C of part 579. However, it is silent on the manner in which 
reports are to be filed for purposes of foreign defect reporting.
    With one exception, reports of foreign recalls and safety campaigns 
do not include copies of materials related to the manufacturer's 
foreign campaign, and are a manufacturer's compilation of the 
information required by the regulation. There is no reason why such a 
report may not be filed by ordinary mail, or by facsimile transmission, 
or e-mail (``electronically''). However, when a foreign government has 
ordered a manufacturer to conduct a campaign, the manufacturer must 
file a copy of that order with its report, and a translation as well if 
the foreign government's order is in a language other than English. We 
would accept a scanned copy of the order and translation attached to an 
e-mail report (as well as a hard copy by mail or fax). Accordingly, we 
are amending Section 579.6 to provide guidance for the electronic 
submission of foreign defect reports, with appropriate fax and e-mail 
addresses. These are respectively (202) 366-7882, and [email protected]. e-mail submissions under Section 579.5 should be 
sent to [email protected].

V. Interpretation of ``Safety Guideline'

    Section 579.4(c) defines ``safety recall,'' in part, as involving a 
``failure to comply with an applicable safety standard or guideline.'' 
The Truck Manufacturers Association (TMA) asked for confirmation of its 
understanding that ``the agency incorporated the term guideline into 
this definition in order to accommodate any foreign country that may 
have applicable safety compliance rules that are not specifically 
identified as standards.''
    As we noted in the preamble to the final rule, ``We proposed to 
characterize a `safety recall' abroad as involving a determination * * 
* that there is a problem * * * that relates to motor vehicle safety 
(e.g., a defect or noncompliance with a local safety standard or 
governmental guideline) * * * (p. 63298). There were no comments about 
the term ``guideline'' in the comments submitted on the NPRM for 
foreign defect campaign reporting. ``Standard'' is a broad term and is 
used in various ways in the United States. Manufacturers are required 
to comply with Federal motor vehicle safety standards, but are not 
required to comply with a Society of Automotive Engineers (SAE) 
standard (assuming that standard has not been incorporated by reference 
into the FMVSS). In that sense, the SAE standard is a ``guideline.'' We 
view TMA as essentially correct in interpreting the term as 
``applicable safety compliance rules that are not specifically 
identified as standards.'' However, we do not find it necessary to 
define ``guideline'' because the important issue in this context is 
whether a campaign is being conducted because there has been a 
determination by the manufacturer or a foreign government that a safety 
guideline has not been met. The touchstone is the safety-relatedness of 
the problem to the standard or the guideline.

VI. Rulemaking Analyses

    Executive Order 12866 and DOT Regulatory Policies and Procedures. 
This document was not reviewed under Executive Order 12866. It has been 
determined that the rulemaking action is not significant under 
Department of Transportation regulatory policies and procedures. See 67 
FR 63309 for discussion of final rule.
    Regulatory Flexibility Act. We have also considered the impacts of 
this rulemaking action in relation to the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.). I certify that this rulemaking action does not 
have a significant economic impact upon a substantial number of small 
entities. See 67 FR 63309 for discussion of final rule.
    Executive Order 13132 (Federalism). This final rule regulates the 
manufacturers of motor vehicles and motor vehicle equipment, will not 
have substantial direct effect on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in E.O. 13132.
    Civil Justice Reform. This final rule will not have a retroactive 
or preemptive effect, and judicial review of it may be obtained 
pursuant to 5 U.S.C. 702. That section does not require that a petition 
for reconsideration be filed prior to seeking judicial review.

List of Subjects in 49 CFR Part 579

    Imports, Motor vehicle safety, Motor vehicles, Reporting and 
recordkeeping requirements.

    For the reasons set out in the preamble, 49 CFR part 579 is amended 
as follows:

[[Page 4113]]

PART 579--REPORTING OF INFORMATION AND COMMUNICATIONS ABOUT 
POTENTIAL DEFECTS

    1. The authority citation for part 579 continues to read as 
follows:

    Authority: Sec. 3, Pub. L. 106-414, 114 Stat. 1800 (49 U.S.C. 
30102-103, 30112, 30117-121, 30166-167); delegation of authority at 
49 CFR 1.50

    2. Section 579.4 is revised by amending the term ``other safety 
campaign'' to read as follows:


Sec.  579.4  Terminology.

* * * * *
    (c) Other terms. * * *
* * * * *
    Other safety campaign means an action in which a manufacturer 
communicates with owners and/or dealers in a foreign country with 
respect to conditions under which motor vehicles or equipment should be 
operated, repaired, or replaced that relate to safety (excluding 
promotional and marketing materials, customer satisfaction surveys, and 
operating instructions or owner's manuals that accompany the vehicle or 
child restraint system at the time of first sale; or advice or 
direction to a dealer or distributor to cease the delivery or sale of 
specified models of vehicles or equipment).
* * * * *

    3. Section 579.6 is revised to read as follows:


Sec.  579.6  Address for submitting reports and other information.

    (a) Except as provided by paragraph (b) of this section, 
information, reports, and documents required to be submitted to NHTSA 
pursuant to this part may be submitted by mail, by facsimile, or by e-
mail. If submitted by mail, they must be addressed to the Associate 
Administrator for Enforcement, National Highway Traffic Safety 
Administration (NHTSA), 400 7th Street, SW., Washington, DC 20590. If 
submitted by facsimile, they must be addressed to the Associate 
Administrator for Enforcement and transmitted to (202) 366-7882. If 
submitted by e-mail, submissions under subpart B of this part must be 
submitted to [email protected] and submissions under Sec.  
579.5 must be submitted to [email protected].
    (b) Information, documents and reports that are submitted to 
NHTSA's early warning data repository must be submitted in accordance 
with Sec.  579.29 of this part. Submissions must be made by a means 
that permits the sender to verify that the report was in fact received 
by NHTSA and the day it was received by NHTSA.

    4. Section 579.11(d)(2) is revised and paragraph (e) is amended by 
adding a sentence at the end thereof. The revision and amendment read 
as follows:


Sec.  579.11  Reporting responsibilities.

* * * * *
    (d) Exemptions from reporting. * * *
* * * * *
    (2) The component or system that gave rise to the foreign recall or 
other campaign does not perform the same function in any substantially 
similar vehicles or equipment sold or offered for sale in the United 
States; or
* * * * *
    (e) Annual list of substantially similar vehicles. * * * Not later 
than 30 days after January 28, 2003, each manufacturer to which this 
paragraph applies shall submit an initial annual list of vehicles for 
calendar year 2003 that meets the requirements of this paragraph.

    Issued on: January 16, 2003.
Jeffrey W. Runge,
Administrator.
[FR Doc. 03-1320 Filed 1-27-03; 8:45 am]
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