[Federal Register Volume 85, Number 4 (Tuesday, January 7, 2020)]
[Proposed Rules]
[Pages 792-823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27211]
[[Page 791]]
Vol. 85
Tuesday,
No. 4
January 7, 2020
Part II
Department of Transportation
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National Highway Traffic Safety Administration
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49 CFR Parts 565, 566, 567, et al.
Replica Motor Vehicles; Vehicle Identification Number (VIN)
Requirements; Manufacturer Identification; Certification; Proposed Rule
Federal Register / Vol. 85 , No. 4 / Tuesday, January 7, 2020 /
Proposed Rules
[[Page 792]]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Parts 565, 566, 567, and 586
[Docket No. NHTSA-2019-0121]
RIN 2127-AL77
Replica Motor Vehicles; Vehicle Identification Number (VIN)
Requirements; Manufacturer Identification; Certification
AGENCY: National Highway Traffic Safety Administration (NHTSA);
Department of Transportation (DOT).
ACTION: Notice of proposed rulemaking.
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SUMMARY: Section 24405 of the Fixing America's Surface Transportation
Act (FAST Act) amended the National Traffic and Motor Vehicle Safety
Act (Safety Act) to direct the Secretary of Transportation (NHTSA by
delegation) to exempt annually a limited number of replica motor
vehicles manufactured or imported by low-volume manufacturers from
Federal motor vehicle safety standards (FMVSS) that apply to motor
vehicles, but not standards that apply to motor vehicle equipment. To
implement the exemption program and the procedural mandates of the FAST
Act, NHTSA is proposing, in a new Part 586, requirements for
registering as a replica manufacturer, submitting annual reports,
providing consumer disclosures, and labeling. NHTSA is proposing
procedures to exempt replica vehicles produced by registrants from all
the FMVSS that apply to new motor vehicles. This Notice of Proposed
Rulemaking (NPRM) also proposes changes to Part 565, to require
manufacturers to encode specific information into each replica
vehicle's VIN, and to Parts 566 and 567 for manufacturer identification
and vehicle certification, respectively.
DATES: You should submit your comments early enough to ensure that the
docket receives them not later than February 6, 2020. In compliance
with the Paperwork Reduction Act, NHTSA is also seeking comment on a
new information collection and revisions to existing information
collections. For additional information, see the Paperwork Reduction
Act section under the Regulatory Notices and Analyses section below.
All comments relating to the information collection requirements should
be submitted to NHTSA and to the Office of Management and Budget (OMB)
at the address listed in the ADDRESSES section on or before February 6,
2020.
ADDRESSES: You may submit comments to the docket number identified in
the heading of this document by any of the following methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
Mail: Docket Management Facility: U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
Hand Delivery or Courier: 1200 New Jersey Avenue SE, West
Building Ground Floor, Room W12-140, between 9 a.m. and 5 p.m. ET,
Monday through Friday, except Federal holidays.
Fax: 202-493-2251.
Regardless of how you submit your comments, please be sure to mention
the docket number of this document.
Comments on the proposed information collection requirements should
be submitted to: Office of Management and Budget, Office of Information
and Regulatory Affairs, Washington, DC 20503, Attn: Desk Officer for
NHTSA. It is requested that comments sent to the OMB also be sent to
the NHTSA rulemaking docket identified in the heading of this document.
Instructions: For detailed instructions on submitting comments and
additional information on the rulemaking process, see the Public
Participation section of this document. Note that all comments received
will be posted without change to http://www.regulations.gov, including
any personal information provided. Please see the Privacy Act heading
under Rulemaking Notices and Analyses regarding documents submitted to
the agency's dockets.
Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov or the street
address listed above. Follow the online instructions for accessing the
dockets.
FOR FURTHER INFORMATION CONTACT: For technical issues and information
concerning the information collections, you may contact Ms. Mary
Versailles, Office of Rulemaking, by telephone at 202-366-2057. For
legal issues, you may contact Ms. Callie Roach, Office of the Chief
Counsel, by telephone at 202-366-2992. The mailing address of both
officials is: National Highway Traffic Safety Administration, 1200 New
Jersey Avenue SE, West Building, Washington, DC 20590.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Executive Summary
II. Background--Summary of Significant FAST Act Provisions
III. NHTSA's Proposed Replica Vehicle Program--Basics
a. Overview
b. Number of Exempted Vehicles Permitted
c. Low-Volume Manufacturer Requirement
d. Vehicles Built in Two or More Stages
IV. Relevant Definitions
a. Low-Volume Manufacturer
b. Replica Motor Vehicle
1. Requirement To Resemble the Replicated Vehicle
2. Requirement To Manufacture Under License Agreement for
Intellectual Property Rights
V. Safety Requirements
a. Equipment FMVSS
b. Considered Requirements
c. Safety-Related Defects
VI. Registration Requirements
VII. Other Administrative Requirements
a. Manufacturer Identification Requirements (49 CFR Part 566)
b. Manufacturer Identifier
c. Vehicle Identification Number (VIN)
d. Certification
e. Importation
VIII. Labels and Other Consumer Disclosures
a. Permanent Label
b. Written Notice to Dealers and First Purchasers
c. Temporary Label
IX. Reporting
X. Revocation of Registrations
XI. Overview of Benefits and Costs
XII. Effective Date
XIII. Regulatory Notices and Analyses
XIV. Public Participation
I. Executive Summary
The National Traffic and Motor Vehicle Safety Act (``Safety Act'')
(49 U.S.C. Chapter 301, Motor Vehicle Safety (49 U.S.C. 30101 et seq.))
authorizes and directs the Secretary of Transportation (NHTSA by
delegation) to prescribe Federal motor vehicle safety standards (FMVSS)
to reduce traffic accidents and deaths and injuries resulting
therefrom.\1\ Under section 30112(a) of the Safety Act, a person may
not manufacture for sale, sell, offer for sale, introduce or deliver
for introduction into interstate commerce, or import into the United
States, any new motor vehicle or motor vehicle equipment unless the
vehicle or equipment complies with all applicable FMVSS in effect on
the date of manufacture.
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\1\ The Secretary of Transportation has delegated the
responsibility to promulgate regulations under 49 U.S.C. Chapter
301, Motor Vehicle Safety (49 U.S.C. 30101 et seq.) to NHTSA. See,
49 CFR 1.95.
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Pursuant to the Safety Act, NHTSA has issued FMVSS to protect the
public against unreasonable risk of crashes occurring because of the
design, construction, or performance of a vehicle and against
unreasonable risk of death or injury in a crash. Some of the
[[Page 793]]
FMVSS are ``vehicle'' standards that apply only to new completed
vehicles as a unit and not to aftermarket components, some are
``equipment'' standards that apply to original and aftermarket items of
equipment, and a few are both vehicle and equipment standards. Section
30115 of the Safety Act requires that the manufacturer or distributor
of a motor vehicle or motor vehicle equipment subject to the FMVSS
certify at delivery that the vehicle or equipment complies with all
applicable FMVSS.
The Safety Act provides limited authority to NHTSA to exempt motor
vehicles from section 30112(a). Section 30113 authorizes NHTSA to
exempt motor vehicles from a motor vehicle safety standard on a
temporary basis and under tightly defined circumstances. Section 30114
sets forth ``special exemptions'' for motor vehicles and motor vehicle
equipment from section 30112(a). Until the Fixing America's Surface
Transportation Act (FAST Act), exemptions under section 30114 were
limited to those necessary for research, investigations,
demonstrations, training, competitive racing events, show, or display.
On December 4, 2015, Congress enacted the FAST Act (Pub. L. 114-
94). Section 24405 of the FAST Act amended section 30114 of the Safety
Act by, among other things, adding a subsection (b)(1)(A) that directs
NHTSA by delegation to ``exempt from section 30112(a) of this title not
more than 325 replica motor vehicles per year that are manufactured or
imported by a low-volume manufacturer.'' Section 30114(b)(1)(B) states
that exemptions are available from FMVSS for motor vehicles (i.e.,
vehicle standards), but not from FMVSS for motor vehicle equipment
(i.e., equipment standards).\2\
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\2\ Using the above example, the FAST Act exempts the vehicle
from meeting the FMVSS in effect on January 1, 2018 applying to
passenger cars that are ``vehicle'' standards, such as the standards
for braking systems, advanced frontal air bags, side impact head
protection, ejection mitigation, roof crush resistance, fuel system
crash integrity, and electronic stability control. The equipment
used in the manufacture of a replica vehicle would still need to
meet any applicable ``equipment'' standards in effect when the
equipment was manufactured, such as those for lamps, glazing
materials, and tires.
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Under the delegation in 49 CFR 1.95 and pursuant to section 24405
of the FAST Act, NHTSA is proposing to adopt a regulation, 49 CFR part
586, and amend others to implement the low-volume manufacturer replica
vehicle program. The FAST Act contains specific procedural requirements
for the registration of low-volume manufacturers, labeling of replica
vehicles, reporting, and other matters related to the exemption
program. To implement the program and the procedural mandates of the
FAST Act, NHTSA is proposing a new Part 586 to set forth requirements
for registration, labeling, providing consumer disclosures, submitting
annual reports, and other requirements needed for the administration of
the program. This NPRM also proposes changes to Part 565 to require
manufacturers to encode specific information into each replica
vehicle's VIN, and to Parts 566 and 567 for manufacturer identification
and vehicle certification, respectively.
NHTSA highlights the following aspects of the replica vehicle
exemption program.
1. Low-volume manufacturers registering for this program would be
conditionally exempt from section 30112(a)'s prohibitions on
manufacturing, selling, and importing noncomplying motor vehicles for
325 replica motor vehicles per year (``covered replica vehicles'') per
manufacturer. The exemption for replica vehicles would be conditioned
on the manufacturer complying with all requirements of the program.\3\
The covered replica vehicles would be exempt from complying with the
``vehicle'' standards in effect on the date of manufacture of the
replica that apply to new vehicles of the replica's type (e.g.,
passenger car, multipurpose passenger vehicle) and configuration, but
would not be exempt from the ``equipment'' standards. That is, any
equipment to which equipment standards apply that is installed on the
covered replica vehicles would need to meet all applicable equipment
standards in effect on the equipment's date of manufacture.
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\3\ If a manufacturer produces vehicles that do not qualify as
replica vehicles, the vehicles would be non-exempt vehicles and
would be required to comply with all applicable FMVSS. For example,
NHTSA is proposing requirements to ensure that replica vehicles
resemble the original vehicle. If a manufacturer submits design
plans and NHTSA approves the registration, a deviation from those
plans that results in vehicles that do not resemble the original
would render those vehicles non-exempt.
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2. NHTSA emphasizes that a replica vehicle manufacturer's obtaining
of an exemption from the FMVSS applicable to vehicles would have no
effect on the manufacturer's obligation under the Safety Act to recall
and remedy its vehicles if they are found by the manufacturer or NHTSA
to contain a defect that creates an unreasonable risk to safety.
Further, in such instance, manufacturers of covered replica vehicles
must comply with the requirements of 49 U.S.C. 30116 through 30120A
relating to defect reporting and notification.\4\ In addition, the FAST
Act specifies that a low-volume manufacturer's registration in the
program may be revoked if the manufacturer fails to comply with
requirements or if its vehicles are found to contain a safety-related
defect or if the manufacturer engages in unlawful conduct that poses a
significant safety risk.\5\
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\4\ 49 U.S.C. 30114(b)(8).
\5\ 49 U.S.C. 30114(b)(5).
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II. Background--Summary of Significant FAST Act Provisions
On December 4, 2015, Congress enacted the FAST Act. Section 24405,
``Treatment of Low-Volume Manufacturers,'' provides a framework to
exempt replica vehicles manufactured by low-volume manufacturers from
certain vehicle safety standards. Section 24405 amends 49 U.S.C. 30114
by adding a new subsection.\6\
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\6\ The FAST Act replica motor vehicle provision is not self-
executing, i.e., the Secretary must take steps to implement it. The
provision states that the Secretary (NHTSA by delegation) ``shall
exempt'' the vehicles. Further, the provision requires low-volume
manufacturers to ``register with the Secretary at such time, in such
manner, and under such terms that the Secretary determines
appropriate'' in order ``[t]o qualify for an exemption.'' NHTSA is
proposing to establish 49 CFR part 586 to set forth those
determinations in order to implement the program.
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Section 30114(b)(1)(A) directs NHTSA to exempt ``325 replica motor
vehicles per year that are manufactured or imported by a low-volume
manufacturer'' from 49 U.S.C. 30112(a). Under 49 U.S.C. 30112(a), a
person may not manufacture for sale, sell, offer for sale, introduce or
deliver for introduction in interstate commerce, or import into the
United States, any motor vehicle or motor vehicle equipment
manufactured on or after the date an applicable motor vehicle safety
standard prescribed under this chapter takes effect unless the vehicle
or equipment complies with the standard and is covered by a
certification issued under section 30115 of this title. The exemption,
as provided in section 30114(b)(1)(B), is limited to the ``Federal
Motor Vehicle Safety Standards applicable to motor vehicles and not
motor vehicle equipment.''
The FAST Act defines ``low-volume manufacturer'' at 49 U.S.C.
30114(b)(7)(A) as a manufacturer ``whose annual worldwide production,
including by a parent or subsidiary of the manufacturer, if applicable,
is not more than 5,000 motor vehicles.'' The definition also
specifically excludes persons who are registered as importers under 49
U.S.C. 30141.
[[Page 794]]
The Act defines ``replica motor vehicle'' at section 30114(b)(7)(B)
as a motor vehicle produced by a low-volume manufacturer that ``is
intended to resemble the body of another motor vehicle that was
manufactured not less than 25 years before the manufacture of the
replica motor vehicle'' and further specifies that the replica motor
vehicle must be ``manufactured under a license for the product
configuration, trade dress, trademark, or patent, for the motor vehicle
that is intended to be replicated from the original manufacturer, its
successors or assignees, or current owner of such product
configuration, trade dress, trademark, or patent rights.''
To obtain an exemption, the FAST Act requires that a low-volume
manufacturer, pursuant to section 30114(b)(2), ``register with [NHTSA]
at such time, in such manner, and under such terms that [NHTSA]
determines appropriate'' and requires that NHTSA establish terms to
``ensure that no person may register as a low-volume manufacturer if
the person is registered as an importer under 49 U.S.C. 30141.''
Under section 30114(b)(5), NHTSA has 90 days to review and approve
or deny a low-volume manufacturer's registration. If the agency
determines that any such registration is incomplete, the agency has an
additional 30 days for review. Any registration not approved or denied
within 90 days after initial submission, or 120 days if the
registration submission is incomplete, is deemed approved. Under
section 30114(b)(5), NHTSA is authorized to revoke an existing
registration based on a failure to comply with the requirements or a
finding by the agency of a safety-related defect or unlawful conduct
under this chapter that poses a significant safety risk. NHTSA must
provide the registrant a reasonable opportunity to correct all
deficiencies, if deemed correctable, at the sole discretion of NHTSA.
An exemption granted by NHTSA may not be transferred to any other
person, and expires at the end of the calendar year in which it was
granted with respect to any volume authorized by the exemption that was
not produced by the low-volume manufacturer. The Act directs NHTSA to
maintain an up-to-date list of registrants and a list of the make and
model of motor vehicles exempted on at least an annual basis and
publish such list in the Federal Register or on a website operated by
NHTSA.
The FAST Act requires, at section 30114(b)(3), that NHTSA require
low-volume manufacturers to affix permanent labels to the exempted
motor vehicles that identify the specified standards and regulations
for which such vehicle is exempt from section 30112(a), state that the
vehicle is a replica, and designate the model year such vehicle
replicates. The provision also provides an option, under section
30114(b)(3)(B), for the agency to require low-volume manufacturers to
deliver written notice of the exemption to the dealer and the first
purchaser of the motor vehicle if the first purchaser is not an
individual that purchases the motor vehicle for resale.
Further, under section 30114(b)(3)(C), low-volume manufacturers
``shall annually submit a report to [NHTSA] including the number and
description of the motor vehicles exempted'' under the exemption for
replica vehicles and the list of exemptions described on the required
label.
Section 24405 of the FAST Act also exempts replica motor vehicles
from 49 U.S.C. 32304, 32502, and 32902 and from section 3 of the
Automobile Information Disclosure Act (15 U.S.C. 1232). That is,
replica motor vehicles will be exempt from passenger motor vehicle
country of origin labeling requirements, bumper standards, average fuel
economy standards, and vehicle labeling and safety rating disclosure
requirements.
Section 30114(b)(8) provides that aside from the express exemptions
provided, manufacturers of replica motor vehicles ``shall be considered
a motor vehicle manufacturer for purposes of parts A and C of subtitle
VI'' of title 49. The FAST Act also expressly states that ``[n]othing
shall be construed to exempt a registrant from complying with the
requirements under sections 30116 through 30120A.'' Sections 30116
through 30120A provide the requirements for defects and noncompliance
reporting, notification and remedies.
Section 30114(b)(9) states that nothing in section 30114(b) ``shall
be construed to preempt, affect, or supersede any State titling or
registration law or regulation for a replica motor vehicle, or exempt a
person from complying with such law or regulation.''
Further, section 24405(b) of the FAST Act amends the Clean Air Act
to provide a framework for replica motor vehicles (referred to as
exempted specially produced motor vehicles) to be exempt from vehicle
certification testing and vehicle emission control inspection and
maintenance requirement.\7\ Among other requirements, the FAST Act
directs manufacturers of replica motor vehicles to register with the
Administrator of the Environmental Protection Agency and provides
requirements for installing engines in exempted replica vehicles.
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\7\ The exemption program is limited to light-duty vehicles and
light-duty trucks. 42 U.S.C. 7525(a)(5)(H)(i).
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III. NHTSA's Proposed Replica Vehicle Program--Basics
a. Overview
NHTSA proposes the following provisions to implement the low-volume
manufacturer replica vehicle program. Comments are requested on all
aspects of the proposal.
The FAST Act contains specific definitions pertinent to the program
and has numerous substantive and procedural requirements related to the
exemption program. To implement the program and the procedural mandates
of the FAST Act, we propose to establish Part 586 to specify
definitions, procedural requirements for registration, labeling,
consumer disclosures, submitting annual reports, and other matters
needed for the administration of the program. This NPRM also proposes
changes to Part 565 to require manufacturers to encode specific
information into each replica vehicle's VIN, and to Parts 566 and 567
for manufacturer identification and vehicle certification,
respectively.
b. Number of Exempted Vehicles Permitted
Under the FAST Act, the exemption program is limited to ``not more
than 325 replica motor vehicles per year that are manufactured or
imported by a low-volume manufacturer'' that registers with NHTSA.\8\
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\8\ See section 30114(b)(1) and (2).
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NHTSA has interpreted the FAST Act to allow NHTSA to grant each
registered low-volume manufacturer exemptions to produce up to 325
replica vehicles per calendar year.
c. Low-Volume Manufacturer Requirement
Congress specified that replica vehicles must be ``manufactured or
imported by a low-volume manufacturer.'' NHTSA interprets this to mean
that the vehicles must be produced by a ``low-volume manufacturer,''
and that replica vehicles may only be imported by their fabricating
low-volume manufacturer.\9\ This means that replica vehicles
[[Page 795]]
fabricated by a foreign low-volume manufacturer may only be imported by
that specific registered low-volume manufacturer (and each low-volume
manufacturer would be limited to importing 325 replica vehicles per
year, regardless of the calendar year of manufacture).\10\
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\9\ Interpreting the statute to allow replicas to be produced by
foreign manufacturers that do not qualify as low-volume
manufacturers and then imported by low-volume manufacturers is
contrary to Congress's intent to create an exemption program
designed to address the unique financial challenges small
manufacturers face.
\10\ A low-volume manufacturer would not be permitted to import
326 replica vehicles into the U.S. in a single calendar year,
regardless of whether those vehicles were fabricated over the course
of two calendar years.
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NHTSA interprets the FAST Act provision in the same way NHTSA has
interpreted the hardship exemption provision in 49 U.S.C. 30113, i.e.,
as not authorizing the agency to grant hardship exemptions to entities
that seek to import vehicles they did not produce.\11\ NHTSA believes
interpreting section 24405 of the FAST Act in the same manner is
appropriate because both provisions recognize that small manufacturers
are faced with unique financial challenges in meeting the FMVSS and
provide exemptions to alleviate this burden.
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\11\ See letter to Mr. Bill Cox (March 24, 1997) available at
https://isearch.nhtsa.gov/files/kill.ztv.html.
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Although the Safety Act includes importers in the definition of
manufacturer,\12\ importers are not always treated the same as
fabricating manufacturers. For example, fabricating manufacturers bear
the primary responsibility for meeting the FMVSS and certifying to
those standards. For this reason, NHTSA does not believe limiting the
exemption to fabricating manufacturers is contrary to the statute.
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\12\ 49 U.S.C. 30102.
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This proposed requirement would mean that an entity seeking to
import replica motor vehicles could not register as a low-volume
manufacturer of replica vehicles unless it is also the entity
fabricating the replica vehicles. NHTSA's interpretation ensures that
small importers are not permitted to import replica vehicles that are
manufactured by large foreign manufacturers.
NHTSA requests comment on NHTSA's interpretation.
d. Vehicles Built in Two or More Stages
NHTSA requests comment on whether the replica vehicle program
should exclude vehicles manufactured in two or more stages. As
discussed below, some of the requirements that NHTSA is proposing may
be impossible to meet unless the replica vehicle is manufactured in a
single stage. This exclusion would provide clarity to manufacturers and
ensure that incomplete, intermediate, and final-stage manufacturers do
not attempt to become low-volume manufacturers of replica vehicles and
later, after expending resources, realize they cannot comply with all
the procedural requirements.
NHTSA seeks comment on excluding vehicles manufactured in two or
more stages from the exemption program for the following reasons.
First, NHTSA wishes to ensure replica vehicles are properly
identified as replicas in their VINs, which could be a problem with
replica vehicles manufactured in two or more stages. NHTSA's proposed
VIN requirements would stipulate that each replica vehicle must have
the identification of its low-volume manufacturer and a designation
that the vehicle is a replica encoded in its VIN. The VIN would also be
required to indicate the make, model, and model year of the replicated
vehicle. Those requirements could not be met by vehicles produced in
two or more stages because under NHTSA's VIN regulation, each vehicle
manufactured in two or more stages has a VIN assigned by the incomplete
vehicle manufacturer.\13\ The VIN of an incomplete vehicle may not be
able to meet the proposed VIN requirements because the incomplete
manufacturer may not know the make, model, and model year of the
vehicle being replicated.
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\13\ 49 CFR 565.13(a). See also 49 CFR 567.3 for definitions of
``incomplete vehicle,'' ``incomplete vehicle manufacturer,''
``final-stage manufacturer,'' and other terms relevant to this
discussion.
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NHTSA is proposing a requirement that replica vehicle VINs
designate the vehicle as a replica, what year it was manufactured, what
vehicle it intends to replicate, the year of the original vehicle, and
the identification of the manufacturer responsible for certifying the
vehicle's compliance. Although that information may be provided on the
certification label, including the information within the VIN provides
an easier and more reliable way of verifying the characteristics of the
vehicle. Including this information in the VIN and would also allow
NHTSA to search its databases for crashes involving replica vehicles
and better evaluate the safety of replica vehicles.
Second, NHTSA does not believe that the replica program is
conducive to the multi-stage manufacture of replica vehicles as a
practical matter. The FAST Act emphasizes that the replica vehicle
exemption program is designed for ``low-volume manufacturers.'' The
program is set forth in section 24405 of the FAST Act, which is
entitled, ``Treatment of Low-Volume Manufacturers.'' The statute
repeatedly describes the ``exemption'' as one for ``low-volume
manufacturers'' and specifically exempts replica motor vehicles ``that
are manufactured or imported by a low-volume manufacturer.'' NHTSA
interprets this language to mean that if we were to permit the
manufacture of replica vehicles produced in two or stages, each of the
manufacturers, at all stages, would need to be a low-volume
manufacturer. To our knowledge, incomplete vehicle manufacturers are
typically not low-volume manufacturers. As a practical matter,
therefore, it is likely that vehicles made in two or more stages would
not qualify for the program because of the size of their
manufacturer(s).\14\
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\14\ NHTSA believes problems with program administration could
also result if incomplete vehicle manufacturers do not need to be
low-volume manufacturers. NHTSA's VIN regulation requires vehicles
manufactured in one stage to have the type of vehicle and bus body
information encoded into the VIN. For vehicles manufactured in two
or more stages, the VIN only identifies the incomplete vehicle
manufacturer. If the incomplete vehicle manufacturer were not a low-
volume manufacturer and the vehicle was completed as a replica motor
vehicle by a final-stage manufacturer which was registered as a low-
volume manufacturer of replica vehicles, the replica vehicle's VIN
would not be encoded to identify the vehicle as a replica vehicle.
This would be a problem because, as noted above, the replica vehicle
information included in the VIN identifies what standards are
applicable to the vehicle.
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As an alternative to excluding multi-stage manufacturing from the
exemption program, NHTSA is considering allowing joint registration
submissions from two or more manufacturers wishing to manufacture
replica vehicles. This would allow an incomplete vehicle manufacturer,
a final-stage manufacturer, and any intermediate-stage manufacturers to
jointly manufacture up to 325 replica vehicles annually. As a
condition, however, any manufacturer with a joint registration would
not be permitted to participate in the manufacture of any replica
vehicles not covered by that registration. Under a joint registration
program, the incomplete vehicle manufacturers would be required to code
the information about the finished replica vehicle into its VIN. At the
onset of manufacturing, the incomplete vehicle would know, as specified
in the registration submission, the make, model, and model year of the
vehicle the replica resembles.
NHTSA requests comment on whether the replica vehicle exemption
program should exclude vehicles made in two or more stages or allow
those vehicles to be manufactured under joint registrations from the
incomplete
[[Page 796]]
vehicle manufacturer, final-stage manufacturer and any intermediate
manufacturers. Although NHTSA has concerns about administering the
program to allow multi-stage manufacturing, NHTSA believes either
proposals will ensure that Congress's goal of limiting the exemption to
325 vehicles per manufacturer per year is not circumvented.
IV. Relevant Definitions
a. Low-Volume Manufacturer
Section 30114(b)(7)(A) defines ``low-volume manufacturer'' as: ``a
motor vehicle manufacturer, other than a person who is registered as an
importer under section 30141 of this title, whose annual worldwide
production, including by a parent or subsidiary of the manufacturer, if
applicable, is not more than 5,000 motor vehicles.'' NHTSA is proposing
to use the term ``replica motor vehicle manufacturer'' in the proposed
Part 586 rather than ``low-volume manufacturer'' to identify the
manufacturers exempted by Part 586 because the latter term is used and
defined differently in several other NHTSA regulations. For example,
``low-volume manufacturer'' is defined in the VIN regulation (Part 565)
as a manufacturer of fewer than 1,000 vehicles of a given type.
For proposed Part 586, the term ``replica motor vehicle
manufacturer'' would be defined as a low-volume manufacturer that is
registered as a replica motor vehicle manufacturer pursuant to the
requirements in Part 586. The regulation would specify that ``low-
volume manufacturer'' is defined in 49 U.S.C. 30114(b)(7). (Hereinafter
in this NPRM, NHTSA will use the terms ``replica motor vehicle
manufacturer,'' ``replica manufacturer,'' and ``registrant'' to mean a
low-volume manufacturer that is registered under Part 586.)
b. Replica Motor Vehicle
Section 30114(b)(7)(B) defines ``replica motor vehicle'' as
follows: A motor vehicle produced by a low-volume manufacturer that (i)
is intended to resemble the body of another motor vehicle that was
manufactured not less than 25 years before the manufacture of the
replica motor vehicle; and (ii) is manufactured under a license for the
product configuration, trade dress, trademark, or patent, for the motor
vehicle that is intended to be replicated from the original
manufacturer, its successors or assignees, or current owner of such
product configuration, trade dress, trademark, or patent rights.
NHTSA is proposing requirements that would provide clarifications
to the definition. First, ``replica motor vehicle'' would be defined,
in part, as a motor vehicle that is produced by a manufacturer meeting
the definition of replica motor vehicle manufacturer under Part 586
that has not yet manufactured 325 replica motor vehicles in that
calendar year. This emphasizes the limit of 325 vehicles. Second, we
propose requirements that will ensure that a replica vehicle meets the
requirement that it be intended to resemble the original vehicle.
Third, we address the provision about the manufacture of the vehicle
pursuant to certain agreements for the intellectual property rights
associated with the original vehicle that is being replicated. The
second and third aspects are discussed below.
1. Requirement To Resemble the Replicated Vehicle
The FAST Act states that a replica vehicle is a vehicle that is
``intended to resemble the body'' of another motor vehicle that was
manufactured at least 25 years before the replica. NHTSA is proposing
requirements that replica manufacturers demonstrate objective
manifestations of intent.
To balance objectivity, feasibility, and enforceability, NHTSA is
proposing a requirement that manufacturers submit documentation to
support the assertion that the replica vehicle is intended to resemble
the original. The documentation must demonstrate that the replica
vehicle has the same length, width, and height as the original and must
include images of the original vehicle and design plans for the replica
vehicle.
One way to ensure that a vehicle is intended to resemble another
vehicle would be to require the measurements and shape of the replica
motor vehicle body to be identical to those of the replicated vehicle.
NHTSA has tentatively decided not to propose requiring replica vehicles
to have the exact same specifications as the original vehicles. All of
the specifications for the original may not be available and some
adjustments may be necessary (e.g., to accommodate modern safety
features). That being said, our research shows that information
regarding the dimensions of popular car models is available. Therefore,
NHTSA believes that requiring the replica vehicles to have the same
height, width, and length of original would be a reasonable and
objective requirement that would help ensure that replica vehicles are
intended to resemble the replicated vehicle.
In addition to the dimension and shape requirement, NHTSA is
proposing a requirement that each replica vehicle have the same outward
appearance or exterior as the original vehicle. This would mean that
each replica must have the same body styling, shape, and exterior
features as the original. Compliance with this requirement would be
determined based primarily on the location, size, and shape of exterior
features and the overall shape of the body of the vehicle.
We interpret the Act's reference to ``body'' to mean any part of
the vehicle that is not part of the chassis or frame. Therefore, NHTSA
interprets ``body'' to include, but not be limited to: The exterior
sheet metal and trim, the passenger compartment, trunk, bumpers,
fenders, grill, hood, interior trim, lights and glazing. In making this
interpretation, NHTSA looked at, among other things, its concept of
``body type'' as defined at 49 CFR 565.12. ``Body type'' is defined as
the general configuration or shape of a vehicle distinguished by such
characteristics as the number of doors or windows, cargo-carrying
features and the roofline (e.g., sedan fastback, hatchback). This
definition helped NHTSA identify vehicle features and components that
are part of the vehicle body. Because the definition includes reference
to the shape of the vehicle as well as both exterior and interior
features, NHTSA interprets the concept of ``body'' to include both
exterior and interior characteristics. Although a replica vehicle must
be the same body type as the original vehicle, merely replicating the
number of doors and windows, cargo-carrying features, and the roofline
is not sufficient.
In each manufacturer's annual report, the manufacturer would
submit: Images of the original vehicle, images of the replica produced,
and full and complete descriptive information, views, and arguments
sufficient to establish that the replica motor vehicles, as
manufactured, resemble the body of the original vehicle.
Deviations in the appearance of the exterior would be considered
carefully. While reasonable allowances would be made to accommodate
safety equipment, NHTSA would consider any unjustified exterior changes
(e.g., not for safety) as potential indications that the vehicle is not
a replica. If a replica manufacturer wants to make deviations to the
exterior of the vehicle to accommodate safety features, it would be
required to highlight those deviations for NHTSA's consideration.
To be clear, the statute provides for the creation of an exemption
program
[[Page 797]]
designed to allow old models to be replicated in a less costly way for
low-volume manufacturers. It does not allow manufacturers to experiment
with new motor vehicle designs or produce vehicles that do not resemble
vehicles made not less than 25 years before the replica motor vehicle's
manufacture.
As the statutory definition refers specifically to the ``body'' of
the original vehicle, we propose that the interior of the replica
vehicle does not need to ``resemble'' that of the original vehicle.
NHTSA believes this approach would allow low-volume manufacturers to
update the interiors to provide modern amenities and safety
improvements.
NHTSA does not interpret the resemblance or licensing provisions in
the FAST Act as requiring replica vehicle manufacturers to obtain
rights to put all logos and emblems that were on the original vehicle
on the replica vehicle. Although separate from body styling, the logos
and emblems are part of the distinctive external appearance of a
vehicle. Whether vehicle logos and emblems are required to appear as
part of the requirements to produce a vehicle that resembles an
original vehicle is a separate concern from whether replica
manufacturers are required to obtain licenses from rights holders to
use the logos and emblems. NHTSA addresses intellectual property rights
requirements in the next section. In this section, NHTSA requests
comment on whether replica production under these requirements should
mandate the use of the actual logos, emblems and vehicle model names
that appear originally or if something less or different in this area
should apply. To be clear, NHTSA is not proposing to require the use of
vehicle logos and emblems as a requirement of resemblance under the
statute at this time.
NHTSA considered a provision requiring replica vehicles to resemble
the body of the original vehicle not only cosmetically, but also with
respect to the vehicle's conformance with the ``vehicle'' FMVSS that
applied to the original vehicle. This provision would require at a
minimum, the replica vehicle's body to include the safety features
incorporated in the original vehicle to meet the vehicle FMVSS. The
section titled ``Considered Requirements'' below discusses this further
and the reasons NHTSA decided not to take this approach.
Because we interpret ``body'' not to include chassis or frame
components, the replica would not need to have the same engine,
transmission or drive axles, or drive train as the original vehicle.
For example, a replica vehicle could be a battery electric vehicle,
while the original vehicle was powered by an internal combustion
engine.
Further, we propose that the replica vehicle must resemble the body
of another motor vehicle that was manufactured ``for consumer sale''
not less than 25 years before the manufacture of the replica motor
vehicle. The provision ``for consumer sale'' is intended to make clear
that the proposed replica vehicle exemption program does not apply to
prototype or concept vehicles that were never sold to consumers. NHTSA
intends to prevent the replication of prototypes because the vehicles
were never intended for sale to the public. Further, a prototype would
not be eligible for replication under this provision because the Safety
Act defines motor vehicle as a vehicle driven or drawn by mechanical
power and manufactured primarily for use on public streets, roads, and
highways, but does not include a vehicle operated only on a rail
line.\15\ A prototype not intended for sale to the public does not meet
the definition of a vehicle manufactured for use on public streets,
roads, and highways. Therefore, as the FAST Act provision requires that
the replica vehicle resemble another motor vehicle, a vehicle
replicating a prototype would not qualify for the exemption provided by
section 30114(b).
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\15\ 49 U.S.C. 30102(a)(7).
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NHTSA requests comment on the requirement for replica vehicles to
have the same dimensions and outward appearance as the original vehicle
and whether the logos and emblems from the original vehicle should be
reproduced on each replica vehicle. We also seek comment on the
requirement that manufacturers submit images of the both the original
vehicle and design plans or images of a representative replica vehicle
in the registration submission and requirement to submit images of the
replica vehicle(s) in the annual report.
2. Requirement To Manufacture Under License Agreement for Intellectual
Property Rights
The FAST Act states that a replica motor vehicle ``is manufactured
under a license for the product configuration, trade dress, trademark,
or patent, for the motor vehicle that is intended to be replicated from
the original manufacturer, its successors or assignees, or current
owner of such product configuration, trade dress, trademark, or patent
rights.'' NHTSA views this provision as requiring replica vehicles
manufactured under this program to be licensed products. This means
that the manufacturer must obtain all legal rights necessary to produce
the replica vehicle from the original manufacturer, its successes or
assignees, or current owner of such intellectual property rights. As is
clear from the comprehensive listing of the type of rights that might
apply in such an effort, while creating an exemption for replica
manufacturers, Congress also sought to protect the rights of the
original manufacturers and their successors.
NHTSA is defining legal rights to be primarily based on the
external appearance of the vehicle. Under the statute, replica
manufacturers are defined as producing vehicles that are intended to
resemble the body of another motor vehicle. NHTSA is not applying the
definition to require that manufacturers also obtain rights associated
with vehicle mechanics, electronic components or other interior aspects
of a vehicle, unless implicated by the reproduction or otherwise
necessary to ensure that the outward facing appearance of the replica
vehicle resembles the original vehicle. While it is clear that such
rights might exist, in our view, it is not necessary in most situations
to obtain those rights for the purpose of producing a replica. However,
we accept that some types of replica production may require
intellectual property rights to components or other parts that are
separate from the outward facing appearance of a vehicle.
In this document, NHTSA is not identifying any specific
intellectual property rights that must be obtained by a replica
manufacturer. However, as noted above, the FAST Act includes a
definition of replica vehicle that identifies specifically ``product
configuration, trade dress, trademark, or patent'' as intellectual
property rights that might be licensed from a current rights holder
prior to production. Based on this, replica manufacturers should
consider what intellectual property rights are needed for production
and obtain such rights prior to seeking registration with NHTSA.
For example, the FAST Act expressly includes trademarks as part of
the rights that a manufacturer would obtain from an original
manufacturer to produce a replica. Trademarks may cover vehicle make
and model names or logos. Since NHTSA is requiring that replica
manufacturers identify the original vehicle(s) it intends to replicate
by make and model name and certify that the replica is intended to
resemble and replicate the original, the manufacturer should consider
whether it is necessary to obtain these rights. Certifying that a
[[Page 798]]
vehicle is intended to resemble another vehicle could implicate
intellectual property rights for trademarked, or otherwise protected,
make or model names. However, NHTSA is not proposing any specific
requirement at this time that replica manufactures affirmatively obtain
these rights in connection with the manufacture of replica vehicles.
NHTSA seeks comment on whether the replica vehicle manufacturer must
obtain a license to use the original vehicle's make and model names and
reserves the right to add a requirement based on the nature of the
comments received.
NHTSA's role is to ensure that the manufacturers who register under
this program meet the statutory requirements set forth in the FAST Act.
Although NHTSA will review registration applications, NHTSA will not
determine what intellectual property is required to produce a replica
vehicle. Manufacturers remain responsible for performing the due
diligence necessary to determine what rights are needed, and to obtain
relevant rights. In areas of dispute, where the rights of a replica
manufacturer are questioned, NHTSA plans to allow general legal
procedures to take place without involvement.
That being said, NHTSA wants to ensure that manufacturers seeking
registration under the statute have the legal basis to produce the
replica vehicle. In order to protect rights holders and to mitigate the
chance that lawsuits will emerge from this process, NHTSA is proposing
that, when submitting its registration, manufacturers must provide a
binding certification that attests that they can legally produce each
replica vehicle model they propose to make. This requirement means that
manufacturers must certify that they have determined the legal rights
required and that they have obtained all licenses or permissions
necessary to produce the replica vehicle. Applications that contain a
missing or incomplete certification would be disapproved.
In addition to the required certification, the manufacturer also
must provide supporting documentation that sets forth a description of
the types of intellectual property that are necessary to produce the
replica vehicle, addressing the status of each of those rights. If the
manufacturer has a license for particular rights, it should provide
documentation to that effect. If intellectual property rights for the
original vehicle are no longer protected, the manufacturer should
include a statement briefly stating the basis for concluding that no
license is required. As an example,\16\ a manufacturer seeking to
replicate a Shelby Cobra must be able to state that it has the legal
right to produce its distinctive body styling or explain why the body
styling is no longer protected and provide support for this position.
The information submitted also must address the fact that ``Shelby''
and ``Cobra'' are both trademarked and that permission may be required
from both Carroll Shelby International and Ford Motor Company to
manufacture the replica vehicle. As shown in the example above, the
intellectual property of one vehicle may be owned by multiple
individuals or entities. In those situations, licenses would need to be
obtained from each one.
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\16\ Please note that this example is provided for illustrative
purposes only. The types of intellectual property rights discussed
for the Shelby Cobra are not meant to be authoritative or
exhaustive. It is merely provided as an example of some of the types
of intellectual property rights a prospective replica manufacturer
should look to when obtaining licenses to manufacture a replica.
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NHTSA is also proposing clarifying an aspect of the requirement
that replica motor vehicles be manufactured under licensing agreements
for the intellectual property rights of the original vehicles. The
statute is ambiguous concerning the treatment of current owners of
intellectual property rights that wish to manufacture replica vehicles.
That is, the statute could arguably be read to require license
agreements even when the current owner of the intellectual property
also intends to manufacture the replica vehicles. NHTSA believes this
creates an unnecessary step for current rights holders and does not
meet Congress' intent with these requirements. Accordingly, NHTSA
interprets the licensing requirement to apply only when a manufacturer
intending to produce replica vehicles does not own the intellectual
property rights to the original vehicle (which is being replicated).
V. Safety Requirements
a. Equipment FMVSS
The FMVSS apply to motor vehicles and/or motor vehicle equipment
that are manufactured on or after the effective date of the
standard.\17\ The covered replica vehicles would be exempt from
complying with the ``vehicle'' standards in effect on the date of
manufacture of the replica that apply to new vehicles of the replica's
type (e.g., passenger car, multipurpose passenger vehicle) and
configuration. However, equipment on a replica vehicle would not be
exempt from the ``equipment'' standards in effect on the equipment's
date of manufacture that apply to equipment items on or in the vehicle.
Equipment to which an FMVSS applies must meet the applicable standard
in effect on the equipment's date of manufacture, regardless of whether
it is installed on a conforming vehicle or a vehicle granted a replica
vehicle exemption.
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\17\ 49 CFR 571.7(a).
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Whether an FMVSS is a ``vehicle'' standard or an ``equipment''
standard is determined by the ``Application'' section of the standard.
If vehicle types are listed in the section, such as ``passenger cars,
multipurpose passenger vehicle, trucks, and buses,'' \18\ the standard
is considered a ``vehicle'' standard. If equipment items are listed in
the section, the standard is an ``equipment'' standard.\19\ A standard
that lists both motor vehicles and equipment items in its applicability
section is considered both a vehicle and an equipment standard.\20\
Replica vehicles would be exempt from any standard or portion of a
standard that applies only to vehicles.
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\18\ See e.g., FMVSS No. 101, ``Controls and displays,'' S3,
``Application.''
\19\ E.g., FMVSS No. 209, ``Seat belt assemblies,'' S2,
``Application,'' states: ``This standard applies to seat belt
assemblies for use in passenger cars, multipurpose passenger
vehicles, trucks, and buses.''
\20\ E.g., FMVSS No. 205, ``Glazing materials,'' S3,
``Application,'' states, in relevant part: ``This standard applies
to passenger cars, multipurpose passenger vehicles, trucks, buses,
motorcycles, slide-in campers, pickup covers designed to carry
persons while in motor and low speed vehicles, and to glazing
materials for use in those vehicles.''
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If an FMVSS that is both a vehicle and an equipment standard has
requirements that apply to vehicles that are vehicle-specific, separate
from requirements that apply to the equipment items, in NHTSA's view
the replica motor vehicles are exempt from the vehicle-specific
requirements but the requirements applying to the motor vehicle
equipment would continue to apply. For example, for FMVSS No. 108,
``Lamps, reflective devices, and associated equipment,'' while the
replica vehicle would not need to comply with vehicle-specific
requirements specifying where lamps must be placed on the vehicle, the
replica vehicle's lamps must meet the applicable portions of the
standard that apply to lamps as equipment items on the date that the
lamps were manufactured. Compliance with the vehicle portion of FMVSS
No. 108 may be difficult or impossible when trying to produce a vehicle
that resembles the appearance of an older vehicle, e.g., the number
and/or location of headlamps and/or tail lamps on the replica might not
meet the specifications of FMVSS No. 108.
[[Page 799]]
Another notable standard that is both a vehicle and an equipment
standard is FMVSS No. 208, ``Occupant crash protection.'' FMVSS No. 208
is mainly thought of as a vehicle standard requiring the installation
of air bags and seat belts and specifying vehicle crash tests to
evaluate the protective capabilities of those devices. However, section
S9, ``Pressure vessels and explosive devices,'' applies to vessels
designed to contain a pressurized fluid or gas, and to explosive
devices, for use in covered motor vehicles as part of a system designed
to provide protection to occupants in the event of a crash.\21\ If a
replica motor vehicle has a pressure vessel or explosive device, it
must meet the requirements of S9 of FMVSS No. 208.
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\21\ 49 CFR 571.208, S9.
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To assist the reader, the following is a list of current equipment
FMVSS that would apply to motor vehicle equipment manufactured on
today's date for installation in replica motor vehicles \22\ if the
program were in place today:
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\22\ These are the FMVSS applying now to equipment only and to
both vehicles and equipment. This list is provided here for
illustration purposes only and not for purposes of establishing
compliance. The list is also subject to change and/or correction.
Manufacturers are responsible for ensuring the compliance of their
vehicles and/or equipment with all applicable FMVSS and for keeping
current with the FMVSS that apply to their vehicles and/or
equipment.
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FMVSS No. 106, Brake hoses;
FMVSS No. 108, Lamps, reflective devices, and associated equipment;
FMVSS No. 109, New pneumatic and certain specialty tires;
FMVSS No. 110, Tire selection and rims and motor home/recreation
vehicle trailer load carrying capacity information for motor vehicles
with a GVWR of 4,536 kilograms (10,000 pounds) or less;
FMVSS No. 116, Motor vehicle brake fluids;
FMVSS No. 117, Retreaded pneumatic tires;
FMVSS No. 119, New pneumatic tires for motor vehicles with a GVWR
of more than 4,536 kilograms (10,000 pounds) and motorcycles;
FMVSS No. 120, Tire selection and rims and motor home/recreation
vehicle trailer load carrying capacity information for motor vehicles
with a GVWR of more than 4,536 kilograms (10,000 pounds);
FMVSS No. 125, Warning devices;
FMVSS No. 129, New non-pneumatic tires for passenger cars;
FMVSS No. 139, New pneumatic radial tires for light vehicles;
FMVSS No. 205, Glazing materials;
FMVSS No. 208, Occupant crash protection, for pressure vessels and
explosive devices;
FMVSS No. 209, Seat belt assemblies;
FMVSS No. 213, Child restraint systems;
FMVSS No. 218, Motorcycle helmets;
FMVSS No. 223, Rear impact guards;
FMVSS No. 304, Compressed natural gas fuel container integrity; and
FMVSS No. 403 Platform lift systems for motor vehicles.
b. Considered Requirements
In drafting this proposed rulemaking, NHTSA considered adding
requirements to ensure that replicas provide a minimum level of vehicle
safety beyond the performance of discrete equipment items. At this
time, NHTSA is not proposing any additional safety requirements, but
comments are requested to inform future agency action.
One considered approach would require replica vehicles to resemble
the body of the original vehicle not only cosmetically, but also with
respect to the safety designs and components incorporated into the body
of the original vehicle to meet the vehicle FMVSS applying to that
original vehicle. Features that meet a more current version of a
standard would also be permitted under this approach.\23\
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\23\ Note that, as explained above, regarding equipment items
for which an FMVSS applies, the replica vehicle would be required to
have the equipment that met the equipment FMVSS when it was
manufactured.
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The language of the FAST Act directs NHTSA to exempt covered
replica vehicles but to limit that exemption only to the current
``vehicle'' FMVSS that apply today to contemporary, newly completed
vehicles. The Act defines ``replica motor vehicle'' in relevant
part,\24\ as ``a motor vehicle produced by a low-volume manufacturer
and that . . . is intended to resemble the body of another motor
vehicle that was manufactured not less than 25 years before the
manufacture of the replica motor vehicle.'' The agency is considering
whether replica vehicles should be required to resemble the body of the
original vehicle not just superficially but also structurally with
respect to designs that met the vehicle FMVSS applying to the original,
but is not proposing to do so at this time.
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\24\ 49 U.S.C. 30114(b)(7)(B).
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c. Safety-Related Defects
NHTSA emphasizes that a replica vehicle manufacturer's obtaining of
an exemption from the FMVSS applicable to vehicles would have no effect
on the manufacturer's obligation under the Safety Act to recall and
remedy its vehicles if they are found by the manufacturer or NHTSA to
contain a defect that creates an unreasonable risk to safety. Further,
in such instance, manufacturers of covered replica vehicles must comply
with the requirements of 49 U.S.C. 30116 through 30120A relating to
defect reporting and notification. In addition, the FAST Act specifies
that a low-volume manufacturer's registration in the program may be
revoked if the manufacturer fails to comply with requirements or if its
vehicles are found to contain a safety-related defect or if the
manufacturer engages in unlawful conduct that poses a significant
safety risk.
VI. Registration Requirements
This NPRM proposes requirements to implement the amendments made by
section 24405 of the FAST Act to 49 U.S.C. 30114. Each manufacturer
wishing to manufacture replica motor vehicles under this program must
register, according the requirements in Part 586, as a replica motor
vehicle manufacturer for the calendar year in which the replica motor
vehicle is manufactured. Under 49 U.S.C. 30114(b)(2), low-volume
manufacturers must be registered ``[t]o qualify for an exemption.''
NHTSA would determine whether a manufacturer is eligible and
permitted to manufacture replica motor vehicles based on the
information the manufacturer provides in its registration documents. We
propose that manufacturers would register using the NHTSA Product
Information Catalog and Vehicle Listing (vPIC) platform (https://vpic.nhtsa.dot.gov/). We request comment on whether submissions should
be allowed to be submitted by mail as well.
We propose that manufacturers must submit information sufficient to
establish that their annual world-wide production, including by a
parent or subsidiary of the manufacturer, if applicable, is not more
than 5,000 motor vehicles, and a statement certifying to that effect,
including the total number of motor vehicles produced by or on behalf
of the registrant in the 12-month prior to filing the registration.
NHTSA proposes requiring that each manufacturer provide
information, in its registration submission, about the replica vehicle
it intends to manufacture, including a statement identifying the
original vehicle(s) the manufacturer intends to replicate by make,
model, and model year. The manufacturer must submit images of the
[[Page 800]]
front, rear, and side views of the original vehicle's exterior.
The manufacturer would also need to provide documents showing that
it has obtained the intellectual property rights to produce the replica
vehicle, documents to support that it has done so, and a statement
certifying to that effect. Proof of such rights could be shown by
furnishing a license for the product configuration, trade dress,
trademark, or patent, for the motor vehicle that is intended to be
replicated from the original manufacturer, its successors or assignees,
or the current owner of such product configuration, trade dress,
trademark, or patent. As discussed above this documentation could also
include a statement as to why obtaining licenses for certain
intellectual property is not required.
The manufacturer would also need to certify that it will not
manufacture more than the number of replica motor vehicles covered by
the requested exemption, a number not more than 325 replica motor
vehicles in a calendar year. NHTSA interprets this limitation to mean
that a manufacturer is limited to 325 replica vehicles, regardless of
whether it is manufacturing replicas of different makes and models of
vehicles. NHTSA also interprets this limitation to apply to
manufacturers under common ownership. For example, if a parent company
or individual owns two low-volume manufacturers, the 325-limit would
apply to all manufacturers under common ownership. Each low-volume
manufacturer would not be permitted to manufacture 325 replicas.
Instead, the two manufacturers under common ownership would need to
submit one registration submission and collectively cannot manufacture
more than 325 replica vehicles in any given calendar year. NHTSA
interprets the statute this way to ensure that the 325-replica limit
set by Congress is not circumvented.
Further, the manufacturer would need to submit information required
by other administrative regulations, including all information required
by 49 CFR part 566 to identify itself to NHTSA as a replica motor
vehicle manufacturer (see below for proposed amendments to Part 566),
VIN-deciphering information required by 49 CFR part 565, and a
designation of a permanent resident of the United States as its agent
for service of process if the manufacturer is not located in the United
States (49 CFR part 551, subpart D). (NHTSA does not believe that any
changes to the regulation at 49 CFR part 551, subpart D for
manufacturers of replica motor vehicles are needed.)
49 U.S.C. 30114(b)(5) specifies that NHTSA has 90 days to review
and approve or deny a registration. This new subsection also provides
an additional 30 days if the registration is determined to be
incomplete. We anticipate setting up the program so that registration
under Part 586 on the vPIC portal provides an acknowledgment of receipt
of the registration to the manufacturer when the registration is
submitted. As some of the information will be provided by the
manufacturer in attachments, NHTSA will review the submission,
including attachments, within 90 days of acknowledging receipt to
ensure that the registration is complete. If the registration is
incomplete, NHTSA will inform the manufacturer that the registration is
incomplete via email. NHTSA is proposing to give manufacturer 60 days
from the date of NHTSA's email to submit the necessary information to
complete the registration. If the necessary information is not
submitted within 60 days, the registration will be denied. NHTSA
requests comment on whether this 60-day period to respond is
appropriate. The manufacturer may resubmit the denied registration
(presumably, the resubmitted registration will include the information
NHTSA identified as missing from the prior application) but the 90-day
clock will reset.\25\
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\25\ Repetitious incomplete or inadequate registrations will be
denied. For example, if a manufacturer submits the same, previously-
denied registration in identical form a second time, NHTSA may deny
it without going through the step of asking for more information.
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A manufacturer may submit additional information to supplement its
registration per NHTSA's notification of an incomplete registration
(within 60 days of receipt of such notice), or may submit additional
information on its own initiative. In these instances, NHTSA will have
30 additional days to review the amended registration. That is, these
30 days will be added to any remaining days from the initial 90-day
review period. If the submission is still incomplete, NHTSA will deny
the registration.
On receipt of a complete registration, NHTSA will review and
approve or deny the registration. 49 U.S.C. 30114(b)(5) states that any
registration not approved or denied within 90 days after initial
submission, or 120 days if the registration submitted is incomplete,
shall be deemed approved.
We propose that a low-volume manufacturer is not considered
registered with NHTSA unless the manufacturer receives confirmation
from NHTSA that its registration is approved. A manufacturer whose
registration is not approved or denied within the allotted time, who
believes its registration is thus deemed approved, must obtain
confirmation of the approval from NHTSA. When NHTSA confirms the
approval, NHTSA would add the manufacturer to the up-to-date list of
registrants.
The reason for requiring that manufacturers obtain confirmation of
approvals in the circumstances describe above is to better safeguard
the integrity of the exemption program against confusion and fraud.
This approach would avoid situations in which a manufacturer might
assume its registration was deemed to be approved when in fact it was
never received by NHTSA. An up-to-date list of registrants will show
the ``deemed to be approved'' registrants, and the confirmation process
better establishes a means of communication between NHTSA and the
manufacturer to achieve this end. The list will be important to enable
members of the public to check whether the low-volume manufacturer they
are dealing with in fact qualifies for an exemption under this replica
vehicle program and which vehicles are covered by the exemption. The
list will also provide NHTSA with a strong enforcement mechanism to
monitor if manufacturers are lawfully presenting themselves as
registrants and to check which vehicles they are offering for sale, a
mechanism that would better ensure that only vehicles covered by
approved and deemed to be approved registrations are being manufactured
and sold.
NHTSA is proposing that, in the case that a registration is deemed
approved, NHTSA may request additional information from a ``deemed
approved'' replica manufacturer when the registration submission is
incomplete or does not meet the requirements in the new Part 586. NHTSA
is proposing that, when notified of the submission's shortcomings, the
manufacturer would have 60 days to submit information to correct and/or
complete the registration. If the manufacturer fails to submit the
requisite information, NHTSA may revoke the registration.
NHTSA requests comment on requirement for ``deemed approved''
replica manufacturers to respond within 60 days. NHTSA also requests
comment on what actions NHTSA should take in regards to revoking a
``deemed approved'' replica manufacturer. For purposes of this NPRM,
NHTSA is proposing to revoke a registration if the manufacturer fails
to respond within the allotted time. At NHTSA's discretion, additional
time may be provided if the deficiencies of the registration are deemed
correctable. And, consideration would be provided for the length of
time that NHTSA took to identify the
[[Page 801]]
deficiency and the extent that the manufacturer should have been aware
that the registration did not comply with the requirements.
49 U.S.C. 30114(b)(5) specifies that NHTSA has the authority to
revoke a registration based on a failure to comply with requirements or
a finding of a safety-related defect or unlawful conduct.
Section 30114(b)(5) also states that an exemption granted to a low-
volume manufacturer may not be transferred to any other person, and
expires at the end of the calendar year for which it was granted with
respect to any volume authorized by the exemption that was not applied
by the manufacturer to vehicles built during that calendar year. NHTSA
understands 49 U.S.C. 30114(b)(5) to address the vehicles that could
have been made under an exemption in a calendar year but which were
not, and not as requiring that manufacturers must re-register (renew
their registrations) annually. NHTSA has tentatively decided that
registrants may carry forward their registration by informing NHTSA in
an annual report (discussed below) of their intent to continue
manufacturing the vehicles covered by the approved registration, and
need not formally re-register annually at the end of the calendar year
concerning those covered vehicles. If an approved replica manufacturer
wishes to manufacture a different replica vehicle or make modifications
to a replica covered by an existing registration, the registrant must
submit an update to their existing registration with all necessary
supporting documentation. 49 U.S.C. 30114(b)(5) specifies that NHTSA
must maintain an up-to-date list of registrants and a list of the make
and model of exempted motor vehicles on at least an annual basis and
publish such list in the Federal Register or on a website operated by
NHTSA. We anticipate posting such a list on NHTSA's website where it
can be easily accessed and updated.
VII. Other Administrative Requirements
a. Manufacturer Identification Requirements (49 CFR Part 566)
NHTSA is proposing an amendment to Part 566 to list replica motor
vehicles among the types of vehicles manufactured. Manufacturers who
have already submitted information under Part 566 would be required to
update their information as required by Sec. 566.6 before
manufacturing replica vehicles.
The addition of replica motor vehicles to the types of vehicles is
merely for identifying the vehicle as a replica and does not supplant
the vehicle's type for application of FMVSS. The manufacturer of a
replica vehicle would determine which standards the replica vehicle is
exempt from by looking at the standards for a vehicle of that body type
and the VIN and certification labels would reflect that the vehicle is
a replica of a specific body type (e.g., replica passenger car).
In addition, NHTSA is proposing to update \26\ Sec. 566.5 to
indicate that the required information for all manufacturers may either
be submitted via mail or the vPIC portal.\27\ Replica motor vehicle
manufacturers, however, would be required under Sec. 586.6 to submit
the required Part 566 information via vPIC. Due to the potential for
delay when filing outside the vPIC portal, either due to errors or
delivery delays, most, if not all Part 566 manufacturer identification
entries are currently being submitted on vPIC.
---------------------------------------------------------------------------
\26\ The existing address in this section is an out-of-date
address for NHTSA.
\27\ https://vpic.nhtsa.dot.gov/.
---------------------------------------------------------------------------
b. Manufacturer Identifier
Replica motor vehicle manufacturers would need to obtain a
manufacturer identifier in this program, like other manufacturers are
currently required to do. Currently, a manufacturer that intends to
manufacture motor vehicles for sale or introduction into interstate
commerce in the United States must obtain a manufacturer identifier
from SAE International. The manufacturer identifier is incorporated
into the vehicle's VIN (see section below). NHTSA has a contract with
SAE International to assign manufacturer identifiers to manufacturers
in the United States. Manufacturers would contact SAE International
directly (and not NHTSA) to request the assignment of a manufacturer
identifier. They would do so by telephoning 724-772-8511 or by writing
to: SAE International, 400 Commonwealth Avenue, Warrendale, PA 15096,
Attention: WMI Coordinator.
c. VIN
NHTSA's regulations at 49 CFR part 565 require, among other things,
a motor vehicle manufacturer to assign each motor vehicle manufactured
for sale in the United States a 17-character VIN that uniquely
identifies the vehicle. Under regulations administered by NHTSA, a
vehicle identification number is ``a series of Arabic numbers and Roman
letters that is assigned to a motor vehicle for identification
purposes.'' (49 CFR 565.12(r)).
VINs serve a variety of public safety purposes. One of the original
purposes of the VIN requirements was to enhance public safety by
deterring vehicle theft based on the assumption that drivers of stolen
vehicles are more likely to operate those vehicles unsafety and thus be
involved in vehicle crashes.\28\ The current VIN system continues to
serve this purpose and, as stated in Part 565, also serves ``to
increase the accuracy and efficiency of vehicle recall campaigns.''
\29\ The VIN has also become the key identifier in data systems that
track such things as compliance with Federal importation regulations,
vehicle registrations, insurance coverage, and motor vehicle crashes.
Entities that today utilize VINs in data systems include NHTSA, state
motor vehicle departments, law enforcement agencies, insurance
companies, organizations involved in motor vehicle research, and
manufacturers.\30\
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\28\ 73 FR 23367-01, September 30, 2008.
\29\ 49 CFR 565.10.
\30\ 73 FR 23367-01, September 30, 2008.
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NHTSA has considered whether changes are required to the
regulations at 49 CFR part 565 for replica motor vehicles. The first
section of the VIN (positions 1-3) uniquely identifies the manufacturer
and type of the motor vehicle if the manufacturer is a high-volume
manufacturer. If the manufacturer is a low-volume manufacturer,
positions one through three along with positions twelve through
fourteen in the VIN must uniquely identify the manufacturer and the
type of the motor vehicle. The manufacturer identifier occupies the
first three characters of the VIN for manufacturers that produce 1,000
or more vehicles of a specified type within a model year, and positions
1, 2, 3, 12, 13, and 14 of VINs assigned by manufacturers that produce
less than 1,000 vehicles of a specified type of motor vehicle per model
year. Because this proposal would create a new vehicle type for replica
motor vehicles in Part 565 and each manufacturer is limited to
manufacturing 325 replica vehicles per year, all manufacturers of
replica vehicles would need to obtain new manufacturer identifiers that
contain six characters. Therefore, even existing manufacturers who are
manufacturing passenger cars would need to obtain new manufacturer
identifier to manufacture replica passenger cars. However, the same
identifier could be used for manufacturing different vehicle types. The
vehicle type of the replica vehicles (e.g., passenger car, MPV) would
be
[[Page 802]]
indicated in positions four through eight.
The second section of the VIN (positions 4-8) is known as the
``Vehicle Descriptor Section.'' This section contains information on
vehicle attributes, which vary based on the vehicle's type
classification (i.e., passenger car, multipurpose passenger vehicle,
truck, bus, trailer, motorcycle, low speed vehicle).
The third section (position 9) is a check digit, used to determine
whether the remainder of the VIN is properly configured.
The fourth section (positions 10-17) contains a variety of
information. Position 10 represents the vehicle's model year. NHTSA
interprets model year for the purposes of this replica vehicle program
as the calendar year in which the vehicle was manufactured, and not, in
the case of replica motor vehicles, the year the vehicle being
replicated was originally manufactured. While these vehicles will be
exempt from vehicle FMVSS, this information will be important for
enforcement purposes. As discussed below, NHTSA is also required to
include reporting requirements in this regulation, and NHTSA has
proposed requirements that distinguish the year of manufacture from the
year the replicated vehicle was manufactured.
Position 11 is the plant code, assigned by the manufacturer and
reported to NHTSA.
For manufacturers of replica motor vehicles, positions 12-14 will
be the remainder of the manufacturer identifier, which, with the
characters in positions 1-3 of the VIN, uniquely identify the
manufacturer and vehicle type for manufacturers that produce less than
1,000 vehicles of that type per model year. Positions 15-17 are the
numbers sequentially assigned by the manufacturer during the production
process.
NHTSA is proposing to amend the second section (Vehicle Descriptor
Section), positions 4-8, of the VIN to include specific vehicle
attributes for replica vehicles. Within positions 4-8, the manufacturer
must identify, in addition to the attributes specified in table I of
Part 565 for the vehicle's type classification (i.e., passenger car,
multipurpose passenger vehicle, truck bus) that the vehicle is a
replica.
This information would be important to NHTSA for tracking the
safety of the replica motor vehicles and for other purposes. It also
may be desirable to the States, which are permitted to regulate these
vehicles under the provisions of the FAST Act.
NHTSA is also proposing amendments to Table I of Sec. 565.15 which
would require replica manufacturers to encode the make, model, and
model year of the original replicated vehicle into the replica
vehicle's VIN.
NHTSA is requesting comment on the proposed VIN requirements for
replica motor vehicles.
d. Certification
Section 30114(b)(3)(a) directs NHTSA to require low-volume
manufacturers to affix permanent labels to the exempted vehicles that
identify the specified standards and regulations for which the vehicle
is exempt, states that the vehicle is a replica, and designates the
model year such vehicle replicates. NHTSA considered whether the label
should be conspicuous or whether it should be in the same location as
the certification labels required under 49 CFR part 567. While NHTSA
believes that consumers should be provided a conspicuous warning label,
NHTSA believes that aim is better accomplished by a requirement that
manufacturers affix a temporary label, as discussed below.
To satisfy the requirement to have a permanent label, NHTSA is
proposing requirements similar to those for certification labels that
are required under 49 CFR part 567. NHTSA believes these labels will
provide necessary information about the safety of the replica vehicle
without detracting from the customer experience. NHTSA requests
comments regarding the permanent label's placement and content
requirements.
49 CFR part 567 includes permanent labeling requirements for motor
vehicles to implement the certification requirements of 49 U.S.C.
30115. This NPRM proposes amendments to Part 567 to include a specific
provision for certifying replica vehicles. Most of the requirements
would be the same as those for non-replica vehicles.
For example, NHTSA is first proposing that Sec. 567.4(a) be
amended to include ``replica motor vehicles'' in the list of vehicles
that are exempt from those requirements. Section 567.3 would be amended
to include a definition of ``replica motor vehicles'' as discussed
above. Next, new requirements for replica motor vehicles would be added
in a similar format to the existing requirements. NHTSA is proposing to
include the requirements in a new Sec. 567.8. Many of the requirements
would be the same or similar to those for other vehicles, such as the
location on the vehicle where the label is to be affixed, as well as
the contents of the label, including manufacturer name, month and year
of manufacture, VIN, GVWR, vehicle type classification, and gross
vehicle and gross axle weight ratings.
However, as amended by the FAST Act, 49 U.S.C. 30114(b)(3)(A)
specifies that NHTSA shall require low-volume manufacturers to affix a
permanent label to motor vehicles produced pursuant to a replica
vehicle exemption. The label must identify the specified standards and
regulations from which the replica vehicle is exempt under 49 U.S.C.
30112(a), state that the vehicle is a replica, and designate the model
year such vehicle replicates. NHTSA is proposing that the requirements
for permanent labeling be incorporated into the requirements for
certification labels under 49 CFR part 567. NHTSA is proposing to
incorporate the permanent label requirements for replica motor vehicles
in the certification section to avoid duplicative requirements.
Details of the proposed permanent label requirements are discussed
in a section below.
e. Importation of Replica Motor Vehicles
Imported replica vehicles will be subject to requirements in Part
591, Importation of Vehicles and Equipment Subject to Federal Safety,
Bumper and Theft Prevention Standards. Section 591.5, Declarations
required for importation, requires importers to file declarations and
documentations with U.S. Customs and Border Protection at the time
vehicles or items of motor vehicle equipment are imported. Consistent
with NHTSA's treatment of vehicles that are subject to exemptions under
Part 555, Temporary Exemption from Motor Vehicle Safety and Bumper
Standards, replica vehicles will be permitted to be imported pursuant
to 49 CFR 591.5(b). This means that importers will mark box ``2A'' on
NHTSA's HS-7 declaration form, Importation of Motor Vehicles and Motor
Vehicle Equipment Subject to Federal Motor Vehicle Safety, Bumper when
importing a replica motor vehicle. NHTSA requests comment on whether
the agency should amend 49 CFR 591.5 to provide clarity and include
specific language that states that replica vehicles may be imported
pursuant to a declaration under 49 CFR 591.5(b).
VIII. Labels and Other Consumer Disclosures
a. Permanent Label
As amended by the FAST Act, 49 U.S.C. 30114(b)(3)(A) specifies that
NHTSA shall require low-volume manufacturers to affix a permanent label
to motor vehicles produced pursuant to
[[Page 803]]
a replica vehicle exemption. NHTSA is proposing that the requirements
for replica labeling be incorporated into the requirements for
certification labels under 49 CFR part 567 because Part 567 includes
permanent labeling requirements for motor vehicles pertaining to
certification to the FMVSS.
Part 567 currently requires manufacturers to certify that the
vehicle conforms to all applicable FMVSS. This NPRM proposes a
different statement for replica vehicles. For replicas, the label would
state that the vehicle is a replica, and designate the model year such
vehicle replicates. The label would state that the vehicle is exempt
from FMVSS that apply to a vehicle of its type and include a list of
all vehicle FMVSS and regulations the vehicle does not meet.
b. Written Notice to Dealers and First Purchasers
The FAST Act permits NHTSA to require registrants to provide
``written notice of the exemption'' to dealers and first purchasers of
replica vehicles.\31\ Accordingly, NHTSA proposes to require a written
disclosure to dealers and first purchasers of these vehicles which
would consist of a list of the FMVSS and regulations from which the
vehicle is exempt. To better inform consumers, NHTSA is proposing that
the manufacturers provide a ``purpose'' statement for each standard and
regulation from which the vehicle is exempt. The purpose statement
would assist consumers in understanding the safety implications of the
exemptions.
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\31\ 49 U.S.C. 30114(b)(3)(B).
---------------------------------------------------------------------------
NHTSA has proposed purpose statements for each of the standards and
regulations covered by the replica vehicle exemptions for inclusion in
a table to Part 586. NHTSA is proposing using slight revisions of the
existing ``purpose'' statements set forth at the beginning of each
NHTSA regulation and standard in the CFR. NHTSA is asking for comments
about whether the statements are easy to understand. The agency also
requests comment on whether the table is needed or desirable.
Registrants could research the CFR and provide the purpose statements
on their own without NHTSA's intervention and without the need for
NHTSA to conduct rulemaking to amend the table as necessary.
c. Temporary Label
To draw the potential purchaser's attention to the written
disclosure and to better inform consumers about the safety implications
of their purchasing decisions, NHTSA is proposing a requirement that
each replica vehicle have a temporary label on the dashboard or
steering wheel hub, similar to the temporary air bag warning required
by 49 CFR 571.208 S4.5.1(e) when the vehicle is offered for sale. NHTSA
is proposing that the label conform to the color and size requirements
of 49 CFR 571.208 S4.5.1(e)(1)(i) and (ii), and include the following
statement in at least 20-point font: ``This motor vehicle does not
conform to all applicable Federal motor vehicle safety standards. Refer
to the written disclosures provided for further information.'' Comments
are requested on whether there are more effective means of warning
consumers about the replica vehicles' nonconformance with the
applicable FMVSS, such as whether the warning should also be provided
on advertisements and other marketing materials for the vehicles. NHTSA
also requests comment on the appropriate minimum lettering size for the
temporary warning label. Specifically, NHTSA requests comment on
whether the requirement that the warning statement be in 20-point font
or larger is appropriate to ensure legibility and conspicuity.
IX. Reporting
Under 49 U.S.C. 30114(b)(3)(C), NHTSA must require replica
manufacturers to submit an annual report providing the number and
description of motor vehicles exempted as replica motor vehicles,
including a list of the exemptions included on the mandatory label
described above. Because of this requirement, NHTSA is proposing to
specify that ``replica model year'' for replica motor vehicles must
correspond to the calendar year in which the replica was manufactured.
This would differ from ``Original model year of a replicated vehicle,''
which would be the year in which the vehicle being replicated was
originally manufactured.
NHTSA is also proposing that annual reports must be submitted
within 60 days of the end of the calendar year. Because these vehicles
would be produced in limited quantities, NHTSA believes that the
information for the report could be entered after each vehicle is
manufactured and that meeting a 60-day deadline for submitting the
report at the end of the calendar year is therefore reasonable.
NHTSA is proposing to require that annual reports include:
--Manufacturer's legal name;
--Manufacturer's address and phone number and email address;
--The calendar year for which the annual report is submitted (replica
model year) and the total number of replica vehicles manufactured
during that year.
--List of the different versions of replica motor vehicles produced by
make, model, and original model year of replicated vehicle.
--List of the FMVSS and regulations from which each version of replica
vehicle (by make, model, and original model year of replicated vehicle)
is exempt.
--Images of the front, rear, and side views of the original vehicle(s)
replicated, of both the vehicle's exterior, and images of the same
views of a representative replica manufactured to resemble each
original vehicle.
--Full complete descriptive information, views, and arguments
sufficient to establish that the replica motor vehicles, as
manufactured, resemble the body of the original vehicle;
--The complete Vehicle Identification Number (VIN) of each replica
vehicle manufactured.
--Statement as to whether the replica vehicle contains any of the
following vehicle safety features:
[cir] Air bags
[cir] Seat belts
[cir] Advanced safety systems/passive safety systems (listed w/
locations)
[cir] Electronic Stability Control
[cir] Rear visibility camera system
Statement of whether to the registrant will be manufacturing the
same replica motor vehicle(s) in the next calendar year and if so, how
many vehicles it will be manufacturing.\32\ If the manufacturer intends
to continue manufacturing replica motor vehicle(s), the manufacturer
must also submit information sufficient to establish that their annual
world-wide production, including by a parent or subsidiary of the
manufacturer, if applicable, is not more than 5,000 motor vehicles, and
a statement certifying to that effect, including the total number of
motor vehicles produced by or on behalf of the registrant in the 12-
month prior to filing the registration.
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\32\ Section 30114(b)(5) states that an exemption shall expire
at the end of the calendar year for which it was granted with
respect to any volume authorized by the exemption that was not
applied by the low-volume manufacturer to vehicles built during that
calendar year. NHTSA has tentatively decided not to require
manufacturers to re-register (renew their registrations) annually,
but instead may carry forward their registration by informing NHTSA
in the annual report of their intent to continue manufacturing the
vehicles covered by the approved registration.
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NHTSA is proposing that the annual report must be submitted using
the NHTSA Product Information Catalog and Vehicle Listing (vPIC). The
website
[[Page 804]]
would be updated to accommodate the submission of the annual replica
vehicle reports. NHTSA believes that the use of the online portal would
be less burdensome than requiring manufacturers to submit their annual
reports by mail. Online submission of the annual reports would also
assist NHTSA in complying with the FAST Act requirement that NHTSA
maintain a list of manufacturers of replica motor vehicles and the make
and model of exempted vehicles being produced. NHTSA intends to
maintain this list on its website as allowed by new subsection (b)(5)
added to 49 U.S.C. 30114 by Sec. 24405(a) of the FAST Act. NHTSA
requests comments on whether vPIC should be mandated for annual reports
or whether manufacturers should have the option of sending them by
mail.
NHTSA is proposing requiring a list of the complete VINs of all
replica vehicles to be included in the annual report. This requirement
will assist NHTSA in enforcing the annual limit of 325 replica vehicles
per manufacturer. And, as manufacturers already maintain lists of all
VINs manufactured in a given year, the burden should be very
minimal.\33\
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\33\ Although manufacturers keep lists for business purposes, it
is also required by 49 CFR part 573, Defect and Non-Compliance
Responsibility and Reports.
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X. Revocation of Registrations
New subsection (b)(5) added to 49 U.S.C. 30114 by Sec. 24405 of the
FAST Act specifies that NHTSA has the authority to revoke a
registration ``based on a failure to comply with requirements set forth
in this subsection [of the FAST Act] or a finding by the Secretary of a
safety-related defect or unlawful conduct under this chapter that poses
a significant safety risk.'' NHTSA is including this provision in the
proposed Part 586 regulation.\34\
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\34\ As stated in section 30114(b)(8), a low-volume manufacturer
shall be considered a motor vehicle manufacturer for purposes of
Title 49 subtitle VI parts A and C except as expressly provided.
Therefore, replica manufacturers are subject to the same
requirements as other manufacturers unless there is an express
provision that exempts them, as replica manufacturers, from the
requirement. Designation as a low-volume manufacturer under section
30114(b)(8) only applies in the context of exemptions for
manufacturers of replica motor vehicles. Section 30114(b)(8) states
that replica manufacturers will not be exempt from the requirements
of 49 U.S.C. 30116 through 30120A which provide requirements for
defects and noncompliance reporting, notification and remedies.
NHTSA is not proposing any regulatory changes based on this
provision. NHTSA requests comments about whether regulatory changes
are necessary for clarification. If commenters believe regulatory
changes are desirable, NHTSA requests that commenters provide
details on what changes should be made.
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NHTSA would like to emphasize that revocation of registrations is
not NHTSA's only means of enforcement. NHTSA's defect and recall
authority under 49 U.S.C. 30116 through 30120A continues to apply.
XI. Overview of Benefits and Costs
NHTSA has developed a Preliminary Regulatory Evaluation (PRE) that
discusses the potential costs, benefits and other impacts of this
regulatory action. The PRE is available in the docket for this NPRM and
may be obtained by downloading it or by contacting Docket Management at
the address or telephone number provided at the beginning of this
document.
The table below provides a summary of the various benefits and
costs that may accrue from this rule, as well as the various factors
that define the range of possible outcomes.
Table 1--Ranges of Outcomes for Benefit and Cost Categories
------------------------------------------------------------------------
Element Low case High case
------------------------------------------------------------------------
Benefits:
Incremental consumer Not estimated: Not estimated: If
surplus. Incremental replicas
consumer surplus manufactured under
would be low if the rule differ
substitutes such greatly in price and/
as luxury sports or transaction cost
cars and kit from luxury sports
cars are viable cars and kit cars--
alternatives for thus behave more
consumers. like a unique
product--incremental
consumer surplus
could be high.
Incremental fatalities, Estimated: Estimated: Fatalities
injuries and property Fatalities would would be higher if:
damage. be lower if: Voluntary compliance
Voluntary is low; production
compliance with is high; and if VMT
safety standards is high. Not
is high; Estimated:
production of Fatalities would be
replicas is on higher if replicas
the low end; and function as a new
VMT by replicas market that attracts
is also low. Not new consumers--
Estimated: implying
Fatalities will substitution from
be lower if more compliant
replicas vehicles--or, if
primarily replica vehicle
function as a drivers choose to
substitute for increase their VMT
kit cars. specifically to
enjoy the replica
vehicle, rather than
as a substitute for
mileage driven in
substitute vehicles.
Innovation................ Not Estimated: Not Estimated:
The proposed Manufacturers
rule is producing under the
primarily used proposed rule seek
to replicate old to incorporate some
technology. newer technologies
into replica
vehicles. Could lead
to innovation to
make technology fit
into older designs.
(e.g.,
miniaturization).
Incremental employment Not Estimated: Not Estimated: If kit
impacts. Job losses from car production
contractors and remains relatively
small businesses stable and replica
that assemble car production
kit cars are increases
around or equal significantly
to the job gains (consistent with
for small case where replicas
replica are a new and
manufacturers. separate product
category),
employment effects
would be greater.
Costs:
Mitigated compliance costs Estimated: Not Estimated: Would
Captures the consider the avoided
cost of costs of forcing
installing required safety
required safety technologies into
technologies on older vehicle
an average designs.
modern car.
Incremental fuel use...... Not Estimated: Not Estimated:
Reflects low VMT. Reflects high VMT.
Reporting costs........... Estimated: Estimated: Reflects
Reflects low high bound of
bound of production.
production.
------------------------------------------------------------------------
[[Page 805]]
NHTSA requests comment on the framework for the benefit cost
analysis and preliminary estimates included in the analysis.
XII. Effective Date
NHTSA proposes to make the changes discussed in this NPRM effective
immediately upon publication of the final rule in the Federal Register.
The Administrative Procedure Act (APA) states that a rule cannot be
made effective less than 30 days after publication, unless the rule
falls under one of three enumerated exceptions. One of these exceptions
is for a rule that ``grants or recognizes an exemption or relieves a
restriction.'' \35\ This rule would fall under this exception because
it would create a process through which manufacturers could obtain
exemptions to manufacture replica vehicles.
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\35\ 5 U.S.C. 553(d)(1).
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XIII. Regulatory Notices and Analyses
Executive Orders 12866 and 13563 and DOT Regulatory Policies and
Procedures
OMB has determined that this rule is nonsignificant. The amendments
proposed by this NPRM implement an exemption program mandated by
section 24405 of the FAST Act for low-volume manufacturers involving a
relatively small number of motor vehicles. Potential benefits include
costs avoided by low-volume manufacturers when producing replica
vehicles that would not be required to meet all the Federal regulations
and FMVSS applicable to new motor vehicles. Potential benefits could
also include increased consumer surplus, reduced barriers to
innovation, and increased incremental employment impacts among small
manufacturers. Safety impacts could result from crashes if replica
vehicles do not meet certain safety standards. However, we expect the
program to have no significant effect on the national economy, due to
the small number of vehicles affected by this program.
Regulatory Reform (E.O. 13771 and E.O. 13783)
NHTSA has reviewed this proposed rule for compliance with E.O.
13771 (``Reducing Regulation and Controlling Regulatory Costs''), which
requires Federal agencies to offset the number and costs of new
regulations through the repeal, revocation, and revision of existing
regulations. As provided in OMB Memorandum M-17-21 (``Implementing E.O.
13771''), a ``regulatory action'' subject to E.O. is a significant
regulatory action as defined in section 3(f) of E.O. 12866 that has
been finalized and that imposes total costs greater than zero.
For the reasons identified in the previous sections, this proposed
rule is not a significant regulatory action under E.O. 12866 and is a
``deregulatory action'' under E.O. 13771 because its total costs to
manufacturers will be less than zero.
Details on the estimated cost savings of this proposed rule are
presented in the Preliminary Regulatory Evaluation. The document
evaluates the economic impact, in terms of benefits and costs, on
Federal, State, and local governments, as well as private entities
regulated under this action and the public, as required by E.O. 12866
and E.O. 13563.
National Environmental Policy Act
The National Environmental Policy Act of 1969 (NEPA) (42 U.S.C.
4321-4347) requires Federal agencies to consider the environmental
impacts of proposed major Federal actions significantly affecting the
quality of the human environment, as well as the impacts of
alternatives to the proposed action.\36\ The FAST Act requires NHTSA to
establish an exemption program for replica vehicles, and this action
implements that exemption program and the procedural mandates in the
Act. The aspects of the program under the jurisdiction of NHTSA that
could have environmental impacts include the exemption from the FMVSS
(including those that may affect motor vehicle fuel economy) and the
exemption from average fuel economy standards that are both
specifically prescribed by statute. Although the PRE considers the
impacts of this proposal, NHTSA does not have the authority to consider
alternatives that would subject replica vehicles covered under this
program to the FMVSS or the average fuel economy standards in 49 U.S.C.
32902. Therefore, NHTSA is precluded from considering the environmental
and safety impacts of those aspects of the replica vehicle exemption
program in its rulemaking and is not required to address them in its
Environmental Assessment.
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\36\ 42 U.S.C. 4332(2)(C).
---------------------------------------------------------------------------
When a Federal agency prepares an environmental assessment, the
Council on Environmental Quality (CEQ) NEPA implementing regulations
(40 CFR parts 1500 through 1508) require it to ``include brief
discussions of the need for the proposal, of alternatives [. . .], of
the environmental impacts of the proposed action and alternatives, and
a listing of agencies and persons consulted.'' \37\ This section serves
as the agency's Draft Environmental Assessment (Draft EA) for those
aspects of the program for which NHTSA may exercise discretion. NHTSA
invites public comments on the contents and tentative conclusions of
this Draft EA.
---------------------------------------------------------------------------
\37\ 40 CFR 1508.9(b).
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This document sets forth the purpose of and need for this action.
The purpose of this rulemaking is to implement the exemption program
and the procedural mandates described in Section 24405 of the FAST Act,
which directs NHTSA to exempt annually a limited number of replica
motor vehicles manufactured or imported by low-volume manufacturers
from the FMVSS that apply to motor vehicles, but not standards that
apply to motor vehicle equipment. In addition, replica vehicles will be
exempt from the requirements of 49 U.S.C. 32304, 32502, and 32902, as
well as from section 3 of the Automobile Information Disclosure Act (15
U.S.C. 1232). This action is needed to implement a program to grant
exemptions, as directed by Congress, for the manufacture of replica
vehicles. NHTSA is also proposing labeling, consumer disclosure, and
registration requirements to ensure adequate public awareness and
agency oversight over these vehicles.
NHTSA seeks comment on all aspects of its proposal, including
limitations on importers, application to vehicles manufactured in two
or more stages, the use of vehicle logos and emblems as a requirement
of resemblance, the requirement to have the same dimensions and outward
appearance as the original vehicle, labeling requirements, and more.
The above requests for public comment specifically describe alternative
approaches to regulation that are being considered by the agency. NHTSA
will consider all substantive public comments received and
recommendations on alternatives in its final rule.
The aspects of the program over which NHTSA has the most
discretion, including labeling requirements and registration, are not
anticipated to have anything other than de minimis environmental
impacts. These aspects of the program are largely ministerial in nature
for replica vehicle manufacturers and importers and are not likely to
result in a significant change in sales volumes. Further, NHTSA assumes
that 40 low-volume manufacturers will produce between 4,000 and 8,000
replica vehicles annually, and the vehicles are expected to be driven,
on average, no more than 2,280 miles per year. With regard to all
aspects of the replica vehicle exemption program
[[Page 806]]
(including the exemption from the FMVSS and average fuel economy
standards), these vehicles represent an extremely small fraction of
overall motor vehicle sales and on-road VMT that will be disbursed
throughout the country. As a result, they are unlikely to cause
environmental impacts that could rise to any level of significance.
NHTSA seeks comments on this analysis and whether there are any
environmental impacts it has not considered that are relevant to a
reasoned choice by the decisionmaker.
NHTSA and DOT have consulted with EPA in developing this proposal.
NHTSA has reviewed the information presented in this Draft EA and
concludes that the proposed action and alternatives it may consider
would have nothing more than de minimis impacts on the quality of the
human environment. Based on the information in this Draft EA and
assuming no additional information or changed circumstances, NHTSA
expects to issue a Finding of No Significant Impact (FONSI). Such a
finding will be made only after careful review of all public comments
received. A Final EA and a FONSI, if appropriate, will be issued as
part of the final rule.
Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.,
as amended by the Small Business Regulatory Enforcement Fairness Act
(SBREFA) of 1996), whenever an agency is required to publish an NPRM or
final rule, generally it must prepare and make available for public
comment a regulatory flexibility analysis that describes the effect of
the rule on small entities (i.e., small businesses, small
organizations, and small governmental jurisdictions). The Small
Business Administration's regulations at 13 CFR part 121 define a small
business, in part, as a business entity ``which operates primarily
within the United States.'' (13 CFR 121.105(a)). A regulatory
flexibility analysis is not required if the head of the agency
certifies that the action would not have a significant economic impact
on a substantial number of small entities. The Regulatory Flexibility
Act requires Federal agencies to provide a statement of the factual
basis for certifying that a proposal would not have a significant
economic impact on a substantial number of small entities.
In compliance with the Regulatory Flexibility Act, NHTSA has
evaluated the effects of this proposed rule on small entities and has
prepared an Initial Regulatory Flexibility Analysis (IRFA).
This proposed rule would directly impact low-volume manufacturers
that choose to produce replica vehicles and that would fall under North
American Industry Classification System (NAICS) Nos. 336111, 336112,
and 336120 for Automobile Manufacturing, Light Truck and Utility
Vehicle Manufacturing, and Heavy Duty Truck Manufacturing. According to
13 CFR 121.201, the Small Business Administration's size standards
regulations used to define small business concerns, entities in these
industries are small business concerns if they have 1,500 or fewer
employees. NHTSA expects that most, if not all, replica manufacturers
will have 1,500 employees or fewer. NHTSA estimates that up to 40
manufacturers will register as low-volume manufacturers of replica
vehicles. However, as the Small Business Administration's regulations
define a small business, in part, as a business entity ``which operates
primarily within the United States,'' foreign manufacturers that
participate in the replica vehicle program are not considered small
businesses for the purposes of the Regulatory Flexibility Act.\38\ Of
the expected 40 such manufacturers, 10 of them are assumed to be
foreign replica manufacturers.\39\ Therefore, this proposed rule is
expected to impact 30 small entities.
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\38\ 13 CFR 121.105(a).
\39\ This assumption is based on the percent of all passenger
cars sold in the US but are manufactured outside the U.S. Between
January and August 2018, 76.1% of vehicles sold in the U.S. were
produced domestically and 23.9% were imported. ``U.S. light-vehicle
sales by nameplate, August & 8 months.'' Automotive News. September
10, 2018, pp. 56-7.
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Until the FAST Act was enacted, all low-volume manufacturers of
replica vehicles were subject to virtually the same Vehicle Safety Act
requirements as the largest manufacturers when producing new motor
vehicles. Occasionally, small manufacturers are given more time to
comply with new FMVSS requirements, such as by having longer phase-in
timelines to comply with new requirements, and can also petition for
exemptions from certain FMVSS for limited periods of time on certain
specific grounds.\40\ However, notwithstanding the flexibility
regarding compliance dates and limited-period exemptions, until the
FAST Act, low-volume manufacturers of replica vehicles had the same
responsibilities as larger manufacturers to certify their vehicles as
complying with all FMVSS applying to the vehicle that were in effect on
the day of manufacture of the vehicle. These FMVSS comprise standards
applying to ``equipment'' and standards applying to the ``vehicle'' as
a unit.
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\40\ Pursuant to 49 CFR part 555, a manufacturer may petition
for a temporary exemption on the bases of substantial economic
hardship, making easier the development or field evaluation of new
motor vehicle safety or impact protection, or low-emission vehicle
features, or that compliance with a standard would prevent it from
selling a vehicle with an overall level of safety or impact
protection at least equal to that of nonexempted vehicles.
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The FAST Act allows low-volume manufacturers of replica vehicles
registered in the proposed exemption program to manufacture vehicles
that are exempt from meeting the ``vehicle'' FMVSS. NHTSA estimates
that involvement in the proposed Part 586 exemption program would save
low-volume manufacturers of replica passenger cars and light trucks,
MPVs, and buses (LTVs) between $3.4 million and $17.2 million at a
three-percent discount rate (between $3.3 million and $16.8 million at
a seven-percent discount rate) annually resulting from the elimination
of the requirement to comply with the vehicle FMVSS, fuel economy
standards, bumper standards, and labeling requirements.\41\ This means
that each replica vehicle manufacture would, on average, experience
cost savings of between $85,000 and $430,000 annually at a three-
percent discount rate and between $82,000 and $420,000 annually at a
seven-percent discount rate.\42\ NHTSA expects this cost savings would
have a significant positive economic impact on the 30 regulated small
entities.
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\41\ Additional detail on these estimates is provided in the
Preliminary Regulatory Evaluation.
\42\ NHTSA divided the total cost savings by 40 because these
estimates are based on NHTSA's assumption that there will be a total
of 40 replica manufacturers producing, on average, 200 vehicles per
year. In addition to the 30 replica manufacturers that NHTSA expects
to be considered small businesses by SBA, the total cost savings
also include savings to an estimated 10 replica manufacturers that
would not be considered small businesses by SBA.
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According to guidance provided by the SBA's Office of Advocacy, to
determine whether the number of small entities significantly impacted
is substantial, an agency may need to look not only at the number of
significantly impacted entities, but also at the percentage of affected
small entities so impacted.\43\ In view of the fact that the proposal
is expected to significantly economically impact 100 percent of the 30
regulated small entities, this would be a substantial number.
Therefore, the replica vehicle program is expected to significantly
economically impact a substantial number of small entities.
[[Page 807]]
Accordingly, NHTSA has prepared this Initial Regulatory Flexibility Act
Analysis.
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\43\ U.S. Small Business Administration Office of Advocacy, A
Guide for Government Agencies: How to Comply with the Regulatory
Flexibility Act, 21-22 (August 2017), available at https://www.sba.gov/sites/default/files/advocacy/How-to-Comply-with-the-RFA-WEB.pdf (last accessed Oct. 15, 2018).
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Overview of the Objectives of and Legal Basis for the Proposed Rule
NHTSA is proposing requirements in this NPRM to implement a program
mandated under the National Traffic and Motor Vehicle Safety Act
(Vehicle Safety Act), as amended by the Fixing America's Surface
Transportation Act (the FAST Act). The FAST Act directs the NHTSA by
delegation to exempt not more than 325 replica motor vehicles per year
that are manufactured or imported by a low-volume manufacturer. The
exemption must be limited to the FMVSS applicable to motor vehicles,
not motor vehicle equipment.
NHTSA is issuing this NPRM proposing to establish 49 CFR part 586
to implement the replica motor vehicle exemption program.\44\ NHTSA is
proposing a new 49 CFR part 586 to establish the requirements and
procedures for the registration of low-volume manufacturers as replica
motor vehicle manufacturers and establishes the duties of the
manufacturers.
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\44\ The FAST Act replica motor vehicle provision is not self-
executing. That is, the Secretary must take steps to implement it.
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Description and Estimate of the Number of Small Entities to Which the
Rule, if Made Final, Will Apply; Compliance Impacts
This proposed rule would affect manufacturers who have a total
annual worldwide production of 5,000 vehicles or less. According to 13
CFR 121.201, the Small Business Administration's size standards
regulations used to define small business concerns, vehicle
manufacturers would fall under North American Industry Classification
(NAICS) No. 336111, Automobile Manufacturing, which has a size standard
of 1,000 employees. Using the size of 1,000 employees or fewer, NHTSA
estimates that most, if not all, of the manufacturers that would
produce replica vehicles would be small businesses. NHTSA estimates
that there will be approximately 40 manufacturers that will take
advantage of this program and manufacture replica vehicles under the
replica vehicle exemption program.
Although this proposed rule would affect small manufacturers, we do
not anticipate that the proposed rule would have a significant negative
economic impact. Instead, this proposed rule should reduce compliance
costs for the small businesses that produce replica vehicles under the
exemption program. NHTSA estimates that manufacturers will save between
$3.4 million and $17.2 million at a three-percent discount rate
(between $3.3 million and $16.8 million at a seven-percent discount
rate) annually. The cost savings result from low-volume manufacturers
no longer having to conform their vehicles to the ``vehicle'' FMVSS.
A Description of the Projected Reporting, Record Keeping and Other
Compliance Requirements of the Proposed Rule, Including an Estimate of
the Classes of Small Entities Which Will Be Subject to the Requirement
and the Type of Professional Skills Necessary for Preparation of the
Report or Record
The proposed rule contains reporting, record keeping and other
compliance requirements to implement the replica vehicle program. All
the proposed reporting and record keeping requirements discussed below
are mandated or contemplated by the FAST Act or are essential to
carrying out the statute.
First, in accordance with the FAST Act, low-volume manufacturers
wishing to qualify for an exemption must register with NHTSA in
accordance with this proposed regulation. The FAST Act mandates this
registration requirement in section 30114(b)(1)(B)(2), specifying that
``a low-volume manufacturer shall register with [NHTSA] at such time,
in such manner, and under such terms that [NHTSA] determines
appropriate.'' NHTSA estimates that it would take each manufacturer 10
hours to draft and compile the submission. At an estimated cost of
$48.47 per hour,\45\ this burden would cost each manufacturer $484.70
one time for each original vehicle the manufacturer seeks to replicate.
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\45\ The hourly wage is estimated to be $33.98 per hour.
National Industry-Specific Occupational Employment and Wage
Estimates NAICS 336100--Motor Vehicle Manufacturing, May 2018,
https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last
accessed July 1, 2019. The Bureau of Labor Statistics estimates that
wages represent 70.1 percent of total compensation to private
workers, on average. Bureau of Labor Statistics (2019). Employer
Costs for Employee Compensation--March 2019. https://www.bls.gov/news.release/ecec.t04.htm, last accessed July 10, 2019. Therefore,
NHTSA estimates the total hourly compensation cost to be $48.47.
---------------------------------------------------------------------------
Second, in accordance with the FAST Act, manufacturers of replica
vehicles would be required to submit annual reports. The annual reports
are required by section 30114(b)(1)(C), which specifies that the annual
report include the number and description of the motor vehicles
exempted and a list of the exemptions described on a permanent label
required by section 30114(b)(3)(A) (described below). The agency
proposes that the annual report would be submitted online. In lieu of a
requirement that registrants renew their registrations, the NPRM
proposes only to require registrants to report to NHTSA if they will be
producing the same replica motor vehicles the following calendar year.
NHTSA estimates that compiling and submitting the annual report would
take two hours and would involve primarily administrative skills. NHTSA
estimates that labor to compile the report would cost $48.47 per hour,
for a total cost to compile the report of $96.94.\46\
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\46\ The hourly wage is estimated to be $33.98 per hour.
National Industry-Specific Occupational Employment and Wage
Estimates NAICS 336100--Motor Vehicle Manufacturing, May 2018,
https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last
accessed July 1, 2019. The Bureau of Labor Statistics estimates that
wages represent 70.1 percent of total compensation to private
workers, on average. Bureau of Labor Statistics (2019). Employer
Costs for Employee Compensation--March 2019. https://www.bls.gov/news.release/ecec.t04.htm, last accessed July 10, 2019. Therefore,
NHTSA estimates the total hourly compensation cost to be $48.47.
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Third, in accordance with the FAST Act, the proposed rule would
also require the registrants to disclose information to consumers.
Because the replica vehicles would be exempt from complying with
current FMVSS, it is important that the consumer understand the reduced
level of safety provided by the vehicle. In accordance with a mandate
in section 30114(b)(3)(A), the NPRM would require registrants to affix
a permanent label to the vehicle identifying the specified standards
and regulations from which the vehicle is exempt, stating that the
vehicle is a replica, and designating the model year such vehicle
replicates. In accordance with discretion provided to NHTSA in section
30114(b)(3)(B), the proposed rule would require registrants to provide
written notice of the exemption to the dealer and the first purchaser
of the vehicle for purposes other than resale. NHTSA estimates that the
consumer disclosures would cost $1 per vehicle and the temporary labels
would cost $1 per vehicle. If each manufacturer manufacturers 200
vehicles, the total cost per manufacturer would be $400 for both the
consumer disclosures and the temporary labels.
An Identification, to the Extent Practicable, of All the Relevant
Federal Rules Which May Duplicate, Overlap, or Conflict With the Final
Rule
NHTSA does not know of any Federal rules which duplicate, overlap,
or conflict with this proposal.
[[Page 808]]
A Description of any Significant Alternatives to the Proposed Rule That
Accomplish the Stated Objectives of the Applicable Statutes and
Minimize any Significant Economic Impact of the Final Rule on Small
Entities
The FAST Act provision directing the establishment of the replica
exemption program prescribes specific requirements that limit NHTSA's
discretion to adopt different regulatory approaches. For the purpose of
evaluating regulatory alternatives under the requirements of the
Regulatory Flexibility Act, NHTSA considers here not only alternatives
that are within NHTSA's discretion, but also alternatives that are not
permitted by statute. The alternative approaches impact: Which entities
may participate in the replica vehicle program; the safety performance
of replica motor vehicles; requirements for replica vehicles to
resemble the original vehicle; and reporting and informational
requirements.
First, NHTSA is considering limiting the exemption program to
replica vehicles that are built in one stage or, alternatively,
allowing replica vehicles to be manufactured in two or more stages, if
they are produced under a registration that was jointly submitted to
NHTSA by all of the low-volume manufacturers involved with the
production of the vehicle. These two alternative approaches would
impact which entities would qualify for the replica vehicle exemption
program. NHTSA is requesting comment on these approaches out of concern
about administering the program and the belief that some of the
requirements for the program could not be met if the vehicle is built
in more than one stage. NHTSA does not have sufficient data to quantify
the impact of this alternative approach and requests comment.
Second, there are alternatives that would impact the safety
performance of replica vehicles. Although not permitted by statute, one
alternative would be to take no action. This alternative, to maintain
the status quo, is demonstrably more burdensome to manufacturers. NHTSA
estimates that each replica manufacturer that participates in the
exemption program would, on average, realize cost savings of between
$85,000 and $430,000 annually (at a three-percent discount rate) and
between $82,000 and $420,000 annually at a seven-percent discount rate;
maintaining the status quo would forego these cost savings. Another
alternative would be to require that replica motor vehicles resemble
not only the original vehicle's exterior, but also its interior and its
conformance with FMVSS in effect when the original vehicle was
manufactured. NHTSA has not quantified the impact of this approach, but
NHTSA has concluded that it would significantly increase the burden on
small entities compared to the current proposal. This conclusion is
based on data from NHTSA's Preliminary Regulatory Evaluation that
estimates the savings that manufacturers may realize in manufacturing
vehicles that are exempt from the FMVSS applicable to vehicles.
Although NHTSA is not proposing the requirement to replicate the safety
performance of the original vehicle, NHTSA is requesting comment to
inform future decision-making.
Third, NHTSA considered some alternative approaches to ensuring
that vehicles exempted under Part 586 meet the definition for ``replica
motor vehicle'' in the FAST Act. The definition states that a replica
motor vehicle ``is intended to resemble the body of another motor
vehicle.'' To balance objectivity, feasibility, and enforceability,
NHTSA is proposing to require manufacturers to submit images with each
registration and documentation confirming that the replica vehicle will
have the same dimensions (height, width, and length) as the original
vehicle. Alternatively, NHTSA could have proposed either (1) no
requirements for resemblance; or (2) requirements that replica vehicles
have the exact specifications of the original vehicle and fully
replicate not only the exterior of the original, but also its interior.
NHTSA believes the proposal strikes the right balance between ensuring
that the program is limited, as Congress intended, to vehicles that
resemble previously-made vehicles while not unduly burdening low-volume
manufacturers. NHTSA decided not to propose requiring the more
stringent requirements because NHTSA recognizes that obtaining exact
specifications for original vehicles may be difficult and allowing
manufacturers to incorporate modern amenities and safety features in
the interior would enable a greater range of alternatives to customers
in terms of (improved) vehicle attributes and safety. NHTSA, however,
thought some minimum requirements would help bring some objectivity to
NHTSA's evaluation of whether a vehicle met the statutory definition of
``replica motor vehicle.'' NHTSA also believes that most replica
manufacturers will act in good faith to ensure resemblance with the
original and, even in the absence of requirements, will be motivated to
closely replicate the original vehicle in appearance for marketing
purposes. Therefore, although NHTSA does not have data to quantify the
impact of the proposed approach, NHTSA does not expect the proposed
requirements related to resemblance to generate any significant
incremental burden for replica vehicle manufacturers.
Fourth, there are some alternatives that would impact the amount of
information replica manufacturers would be required to submit to NHTSA
or disclose to members of the public. The new requirements that are
specific to replica vehicles include: Registration requirements, annual
reporting, temporary labels, and consumer disclosures. Some
alternatives are within NHTSA discretion, such as not requiring the
submission of images with registration and annual reports. Others, like
requiring less frequent reporting are not. Because the FAST Act
provision requires annual reporting, NHTSA does not have discretion to
require reporting only ever two or five years. NHTSA also does not have
the discretion to collect less information in the annual report than is
required by the FAST Act. In proposing these requirements, NHTSA
considered that most, if not all, of replica vehicle manufacturers
would be small entities; NHTSA estimated the costs associated with
these requirements with this in mind, as well. NHTSA estimates the
total cost associated with these requirements to be less than $1,500
for each replica manufacturer annually (approximately $4-$5 per vehicle
if producing the maximum number of replica vehicles allowed per year).
Thus, NHTSA does not believe these requirements will be burdensome to
manufacturers, and does not believe less stringent requirements would
constitute significant alternatives because the cost savings per
vehicle would be minimal.
Accordingly, NHTSA does not believe there are any significant
alternative approaches which would not only accomplish all the
objectives of the rulemaking and NHTSA's statutory mandate under the
FAST Act, but also minimize burden on small entities. NHTSA invites
public comment on this tentative conclusion and whether there are
workable significant alternative approaches for small entities that the
agency should consider.
E.O. 13132 (Federalism)
NHTSA has examined this proposed rule pursuant to E.O. 13132 (64 FR
43255, August 10, 1999) and concluded that no additional consultation
with States, local governments or their representatives is mandated
beyond the rulemaking process. The agency has
[[Page 809]]
concluded that the rulemaking would not have sufficient federalism
implications to warrant consultation with State and local officials or
the preparation of a federalism summary impact statement. The proposed
rule would not have substantial direct effects 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.
The FAST Act provision directing NHTSA to allow low-volume
manufacturers registering with NHTSA to produce replica vehicles
contains two unique provisions that have preemption implications.\47\
The first provision, section 30114(b)(6), provides protection to the
original manufacturer, its successor or assignee, or current owner, who
grants a license or otherwise transfers rights to a low-volume
manufacturer to produce replicas of vehicles. The Act states that those
persons shall incur no liability to any person or entity under Federal
or State statute, regulation, local ordinance, or under any Federal or
State common law for such license or assignment to a low-volume
manufacturer. This legislative command is set forth in the FAST Act and
this proposed rule has no effect on that directive.
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\47\ NHTSA does not believe regulation is necessary to implement
those provisions.
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The second provision, section 30114(b)(9), states that nothing in
the ``exemption for low-volume manufacturers'' subsection of the Act
shall be construed to preempt, affect, or supersede any State titling
or registration law or regulation for a replica motor vehicle, or
exempt a person from complying with such law or regulation. NHTSA
interprets this section to mean that States may have their own replica
motor vehicle standards for the vehicles to be titled or registered in
that State. NHTSA also interprets this provision to mean that NHTSA's
requirements for replica motor vehicles are intended to be minimum
requirements only. Therefore, States may have higher safety
requirements for replica vehicles than prescribed by NHTSA to be titled
or registered in that State.
In terms of preemption generally and the FMVSS, NHTSA rules can
preempt in two ways. First, the National Traffic and Motor Vehicle
Safety Act contains an express preemption provision under 49 U.S.C.
30103(b)(1): When a motor vehicle safety standard is in effect, a State
or political subdivision of State may prescribe or continue in effect a
standard applicable to the same aspect of performance of a motor
vehicle or motor vehicle only if the standard is identical to the
standard prescribed under 49 U.S.C. 30103(b)(1). It is this statutory
command by Congress that preempts any non-identical State legislative
and administrative law addressing the same aspect of performance.
The express preemption provision described above is subject to a
savings clause under 49 U.S.C. 30103(e), which states that compliance
with a motor vehicle safety standard prescribed under this chapter does
not exempt a person from liability at common law. Pursuant to this
provision, State common law tort causes of action against motor vehicle
manufacturers that might otherwise be preempted by the express
preemption provision are generally preserved. However, the Supreme
Court has recognized the possibility, in some instances, of implied
preemption of such State common law tort causes of action by virtue of
NHTSA's rules, even if not expressly preempted. This second way that
NHTSA rules can preempt is dependent upon there being an actual
conflict between an FMVSS and the higher standard that would
effectively be imposed on motor vehicle manufacturers if someone
obtained a State common law tort judgment against the manufacturer,
notwithstanding the manufacturer's compliance with the NHTSA standard.
Because most NHTSA standards established by an FMVSS are minimum
standards, a State common law tort cause of action that seeks to impose
a higher standard on motor vehicle manufacturers will generally not be
preempted. However, when such a conflict does exist--for example, when
the standard at issue is both a minimum and a maximum standard--the
State common law tort cause of action is impliedly preempted. See Geier
v. American Honda Motor Co., 529 U.S. 861 (2000).
Pursuant to Executive Order 13132 and 12988, NHTSA has considered
whether this proposed rule could or should preempt State common law
causes of action. The agency's ability to announce its conclusion
regarding the preemptive effect of one of its rules reduces the
likelihood that preemption will be an issue in any subsequent tort
litigation.
To this end, the agency has examined the nature (e.g., the language
and structure of the regulatory text) and objectives of this proposal
and finds that this proposed rule, like many NHTSA rules, would
prescribe only a minimum safety standard. As such, NHTSA does not
intend that this proposal preempt State tort law that would effectively
impose a higher standard on motor vehicle manufacturers than that to be
established by this proposal. Establishment of a higher standard by
means of State tort law would not conflict with the minimum standard
announced here. Without any conflict, there could not be any implied
preemption of a State common law tort cause of action.
Proposed 49 CFR part 586 would be issued as a regulation, not as an
FMVSS, so the express preemption provision under 49 U.S.C. 30103(b)(1)
does not apply to matters relating to Part 586. Therefore, NHTSA has
concluded that this rulemaking will not preempt State law and does not
require additional consultation with States and local governments.
E.O. 12988 (Civil Justice Reform)
When promulgating a regulation, E.O. 12988, ``Civil Justice
Reform'' (61 FR 4729; February 7, 1996), specifically requires that the
agency must make every reasonable effort to ensure that the regulation,
as appropriate: (1) Specifies in clear language the preemptive effect;
(2) specifies in clear language the effect on existing Federal law or
regulation, including all provisions repealed, circumscribed,
displaced, impaired, or modified; (3) provides a clear legal standard
for affected conduct rather than a general standard, while promoting
simplification and burden reduction; (4) specifies in clear language
the retroactive effect; (5) specifies whether administrative
proceedings are to be required before parties may file suit in court;
(6) explicitly or implicitly defines key terms; and (7) addresses other
important issues affecting clarity and general draftsmanship of
regulations.
Pursuant to this Order, NHTSA notes as follows. The preemptive
effect of this proposal is discussed above in connection with E.O.
13132. NHTSA has also considered whether this rulemaking would have any
retroactive effect. This proposed rule does not have any retroactive
effect. NHTSA notes further that there is no requirement that
individuals submit a petition for reconsideration or pursue other
administrative proceeding before they may file suit in court.
E.O. 13609: Promoting International Regulatory Cooperation
Under E.O. 13609 (77 FR 26413, May 4, 2012), agencies must consider
whether the impacts associated with significant variations between
domestic and regulatory approaches are unnecessary or may impair the
ability of American business to export and
[[Page 810]]
compete internationally. In meeting shared challenges involving health,
safety, labor, security, environmental, and other issues, international
regulatory cooperation can identify approaches that are at least as
protective as those that are or would be adopted in the absence of such
cooperation. International regulatory cooperation can also reduce,
eliminate, or prevent unnecessary differences in regulatory
requirements. Sections 3 and 4 of E.O. 13609 direct an agency to
conduct a regulatory analysis and ensure that a proposed rule does not
cause unnecessary obstacles to foreign trade. This requirement applies
if a rule constitutes a significant regulatory action, or if a
regulatory evaluation must be prepared for the rule.
NHTSA has analyzed this action under the policies and agency
responsibilities of E.O. 13609, and has determined that this action
would have no effect on international regulatory cooperation. NHTSA
requests public comment on whether regulatory approaches taken by
foreign governments concerning the subject matter of this rulemaking
and the above policy statement have any implications for this
rulemaking.
National Technology Transfer and Advancement Act
Under the National Technology Transfer and Advancement Act of 1995
(NTTAA) (Pub. L. 104-113), all Federal agencies and departments shall
use technical standards that are developed or adopted by voluntary
consensus standards bodies, using such technical standards to carry out
policy objectives or activities determined by the agencies and
departments, except when use of such a voluntary consensus standard
would be inconsistent with the law or otherwise impractical. Voluntary
consensus standards are technical standards (e.g., materials
specifications, test methods, sampling procedures, and business
practices) that are developed or adopted by voluntary consensus
standards bodies, such as the SAE International. The NTTAA directs
NHTSA to provide Congress, through OMB, explanations when the agency
decides not to use available and applicable voluntary consensus
standards. NHTSA has searched for but did not find any voluntary
consensus standards that would apply to this proposal.
Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995 (UMRA) requires Federal
agencies to prepare a written assessment of the costs, benefits and
other effects of proposed or final rules that include a Federal mandate
likely to result in the expenditure by State, local or tribal
governments, in the aggregate, or by the private sector, of more than
$100 million annually (adjusted for inflation with base year of 1995).
Before promulgating a rule for which a written statement is needed,
section 205 of the UMRA generally requires NHTSA to identify and
consider a reasonable number of regulatory alternatives and adopt the
least costly, most cost-effective, or least burdensome alternative that
achieves the objectives of the rule. The provisions of section 205 do
not apply when they are inconsistent with the applicable law. Moreover,
section 205 allows NHTSA to adopt an alternative other than the least
costly, most cost-effective, or least burdensome alternative if the
agency publishes with the final rule an explanation why the agency did
not adopt the alternative.
This proposed rule is not anticipated to result in the expenditure
by State, local, or tribal governments, in the aggregate, or by the
private sector in excess of 100 million, $154 million when adjusted for
inflation, annually.
Paperwork Reduction Act
Under the procedures established by the Paperwork Reduction Act of
1995 (PRA), a person is not required to respond to a collection of
information by a Federal agency unless the collection displays a valid
Office of Management and Budget (OMB) control number. The Information
Collection Requests (ICR) for a proposed new information collection and
proposed revisions to the existing information collections described
below have been forwarded to the Office of Management and Budget (OMB)
for review and comment. The ICR describes the nature of the information
collections and their expected burden.
This proposed rule would have new collection of information
requirements that would require registrants to provide information to
NHTSA and to dealers and consumers pertaining to registration, annual
reporting, labeling, and written notification to dealers and owners.
This proposed rule would also make changes to existing information
collections for manufacturer identification, Vehicle Identification
Number (VIN) requirements, and certification labeling. Accordingly,
NHTSA is submitting requests to OMB for approval of a new collection of
information for Replica Motor Vehicles and revisions to existing
collections of information.
a. New Collection of Information for Replica Motor Vehicles
In compliance with these requirements, NHTSA asks for public
comments on the following proposed collection of information:
Title: 49 CFR part 586, Replica motor vehicles.
Type of Request: New collection.
OMB Control Number: 2127-New.
Form Number: The collection of this information would not use any
standard forms.
Requested Expiration Date of Approval: Three years from the date of
approval.
Summary of the Collection of Information: Manufacturers of replica
motor vehicles would be required to: Register with NHTSA, provide
dealers and first retail purchasers information on the standards with
which the vehicle does not comply, and annually report the type and
number of replica motor vehicles produced. Manufacturers would also be
required to provide NHTSA with images of the front, rear, and side
views of the exterior of the original vehicle, and if the manufacturer
has previously replicated that original vehicle, images of the front,
rear, and side views of the exterior of a representative replica motor
vehicle in both the registration and in their annual reports. NHTSA
considered but has tentatively decided against a requirement that
manufacturers must re-register (renew their registrations) annually.
Instead, we propose that registrants simply inform NHTSA in their
annual reports of their plans to continue manufacturing the previously-
approved replica vehicles under their current registration.
Manufacturers of replica vehicles would also be required to affix
temporary labels on the dashboard or steering wheel hub of each
exempted vehicle alerting passengers that the vehicle does not comply
with all FMVSS and directing them to consult their customer disclosure
for more information on the standards from which the vehicle is exempt.
However, this requirement is not subject to the Paperwork Reduction Act
because NHTSA provides the exact language to provide on the temporary
labels.\48\
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\48\ The public disclosure of information originally supplied by
the Federal Government to the recipient for the purpose of
disclosure to the public is not included within [the definition of a
collection of information]. 5 CFR 1320.3(c)(2).
---------------------------------------------------------------------------
Description of the Need for the Information and Use of the
Information: NHTSA is required by the Fixing America's Surface
Transportation (FAST) Act to exempt a limited number
[[Page 811]]
of replica motor vehicles manufactured by low-volume manufacturers from
certain Federal standards each year provided the manufacturer registers
with NHTSA. NHTSA is issuing a regulation that implements the exemption
program. All the proposed reporting and record keeping requirements
discussed below are mandated or contemplated by the FAST Act or are
essential to carrying out the statute.
First, in accordance with the FAST Act, low-volume manufacturers
wishing to qualify for an exemption must register with NHTSA in
accordance with this proposed regulation. The FAST Act mandates this
registration requirement in 49 U.S.C. 30114(b)(2), specifying that ``a
low-volume manufacturer shall register with [NHTSA] at such time, in
such manner, and under such terms that [NHTSA] determines
appropriate.'' NHTSA needs this information to keep track of the
exempted vehicles, ensure that the vehicles qualify as replica
vehicles, and for enforcement purposes.
Second, in accordance with the FAST Act, manufacturers of replica
vehicles would be required to submit annual reports. The annual reports
are required by 49 U.S.C. 30114(b)(3)(C). The Act specifies that the
annual report include the number and description of the motor vehicles
exempted and a list of the exemptions described on a permanent label
required by 49 U.S.C. 30114(b)(3)(A) (described below). In the annual
report, manufacturers that are registered in the program (registrants)
would be required to show NHTSA images of the vehicles they produced so
that NHTSA can assess if the vehicles resemble the original vehicle.
The registrants must also notify NHTSA if they will be manufacturing
the same replica motor vehicles in the next calendar year and if so,
how many vehicles they will be manufacturing. 49 U.S.C. 30114(b)(5)
states that an exemption ``shall expire at the end of the calendar year
for which it was granted with respect to any volume authorized by the
exemption that was not applied by the low-volume manufacturer to
vehicles built during that calendar year.'' The annual reporting
requirement would be essential to NHTSA's enforcement of the program,
enabling the agency to better assess whether registrants are complying
with the 325-vehicle limit and manufacturing vehicles qualifying as
``replica motor vehicles.'' The reporting requirements would also
enable NHTSA to keep track of registrants and the vehicles they
produce, which would help the agency meet a FAST Act requirement to
keep an up-to-date list of registrants and publish such list on an
annual basis (section 30114(b)(5)). NHTSA considered requiring all
registrants to formally renew their registration annually but believes
that this reporting process would simplify and reduce paperwork by
eliminating the need to re-register with NHTSA if the same replica
vehicles would be produced in the next calendar year.
Third, in accordance with the FAST Act, the proposed rule would
require the registrants to disclose information to consumers. Because
the replica vehicles will be exempt from current FMVSS, it is important
that the consumer understand the reduced level of safety provided by
the vehicle. In accordance with a mandate in 49 U.S.C. 30114(b)(3)(A),
the NPRM, if adopted, would require registrants to affix a permanent
label to the vehicle identifying the specified standards and
regulations from which the vehicle is exempt, stating that the vehicle
is a replica, and designating the model year such vehicle replicates.
In accordance with discretion provided to NHTSA in section 30114
(b)(3)(B), the proposed rule would require registrants to provide
written notice of the exemption to the dealer and the first purchaser
of the vehicle for purposes other than resale.
Description of the Likely Respondents (Including Estimated Number,
and Proposed Frequency of Response to the Collection of Information):
NHTSA estimates that at most there would be approximately 40
manufacturers in the replica vehicle program at any given time. NHTSA
estimates that it will take some time before the total number of
replica manufacturer reaches 40. By the end of the first three years of
the program, NHTSA estimates that there will be 30 replica vehicle
manufacturers. Therefore, in the first three years of the replica
program, NHTSA expects to receive approximately 10 submissions from
low-volume manufacturers to register as replica manufacturers each
year. Based on an assumption that on average 30 manufacturers would
each produce 200 vehicles each year, there would be 6,000 replica
vehicles produced each year by the end of the third year, or an average
of 4,000 replica vehicles a year over the first three years. For
purposes of calculating the burden associated with the collections, we
use the average of 4,000 replica vehicles a year and 20 replica
manufacturers. Combined, manufacturers are expected to label 4,000
replica vehicles with temporary and permanent labels and provide 4,000
written disclosures to consumers. Each manufacturer must submit one
report annually, for an average of 20 reports for the next three years.
Estimate of the Total Annual Reporting and Recordkeeping Burden
Resulting From the Collection of Information: NHTSA estimates the total
burden of this collection to be an average of 400 hours and $24,239
each year. The cost of labor associated with the 400 burden hours is
estimated to be $16,239 and the cost of printing the consumer
disclosures and temporary labels is estimated to be $8,000.
NHTSA estimates that it will take 10 hours to complete an initial
registration submission. NHTSA estimates the labor cost for compiling
and submitting the required information to be $48.47 \49\ per hour,
using the Bureau of Labor's mean hourly wage estimate for technical
writers in the motor vehicle manufacturing industry (Standard
Occupational Classification #27-3042).\50\ Therefore, NHTSA estimates
that the labor cost for each registration will be $484.70 (10 hours x
$48.47 per hour). NHTSA estimates that, over the first three years, a
total of 30 manufacturers will submit registrations to become
manufacturers of exempted replica vehicles. NHTSA estimates that, on
average, ten manufacturers will submit registrations each year.
Therefore, NHTSA estimates the total annual burden on low-volume
manufacturers for initial submissions to be 100 hours (10 manufacturers
x 10 hours). NHTSA estimates that the total cost associated with labor
for the registrations to be $4,847 (10 submissions x $484.70 per
submission) per year.
---------------------------------------------------------------------------
\49\ The hourly wage is estimated to be $33.98 per hour.
National Industry-Specific Occupational Employment and Wage
Estimates NAICS 336100--Motor Vehicle Manufacturing, May 2018,
https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last
accessed July 1, 2019. The Bureau of Labor Statistics estimates that
wages represent 70.1 percent of total compensation to private
workers, on average. Bureau of Labor Statistics (2019). Employer
Costs for Employee Compensation--March 2019. https://www.bls.gov/news.release/ecec.t04.htm, last accessed July 10, 2019. Therefore,
NHTSA estimates the total hourly compensation cost to be $48.47.
\50\ U.S. Office of Management and Budget. Standard Occupation
Classification Manual, 2018.
---------------------------------------------------------------------------
For the annual reporting requirement, NHTSA estimates it would take
a maximum of two hours to collect the necessary information and submit
it on the vPIC portal. NHTSA estimates that, on average, 20
manufacturers will submit annual reports each year. Therefore, the
burden hours associated with this information collection would, on
average, be 40 hours per year (20 manufacturers x 2 hours). NHTSA
estimates the hourly cost associated
[[Page 812]]
with annual reports to be $48.47 \51\ per hour, using the Bureau of
Labor's mean hourly wage estimate for technical writers in the motor
vehicle manufacturing industry (Standard Occupational Classification #
27-3042).\52\ Therefore, NHTSA estimates the total labor cost
associated with annual reports will be $96.94 per manufacturer and a
total of $1,939 for all manufacturers ($96.94 x 20 manufacturers) in
each of the first three years. NHTSA does not estimate that there will
be any additional costs because these reports would be submitted
electronically.
---------------------------------------------------------------------------
\51\ The hourly wage is estimated to be $33.98 per hour.
National Industry-Specific Occupational Employment and Wage
Estimates NAICS 336100--Motor Vehicle Manufacturing, May 2018,
https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last
accessed July 1, 2019. The Bureau of Labor Statistics estimates that
wages represent 70.1 percent of total compensation to private
workers, on average. Bureau of Labor Statistics (2019). Employer
Costs for Employee Compensation--March 2019. https://www.bls.gov/news.release/ecec.t04.htm, last accessed July 10, 2019. Therefore,
NHTSA estimates the total hourly compensation cost to be $48.47.
\52\ U.S. Office of Management and Budget. Standard Occupation
Classification Manual, 2018.
---------------------------------------------------------------------------
To estimate the burden to produce consumer disclosures, NHTSA
looked at estimates for owner's manuals which provide required
disclosures to consumers. Owner's manuals are much longer and contain
far more information than the replica vehicle consumer disclosures.
However, because owner's manuals are produced in higher quantities,
NHTSA estimates that it only costs manufacturers, on average, about
$.50 for each Owner's Manual.\53\ To account for the fact that replica
manufacturers are smaller and less able to take advantage of economies
of scale, NHTSA estimates that printing consumer disclosures will cost
$1 per replica vehicle. NHTSA estimates that, in the next three years,
20 manufacturers will each produce 200 replica vehicles. NHTSA
estimates the cost for producing the 4,000 consumer disclosures will be
$4,000 ($1 per disclosure x 4,000 replica vehicles).
---------------------------------------------------------------------------
\53\ The estimate is provided in the supporting statements NHTSA
submitted to OMB in 2015 in support of the renewal of NHTSA's
Information Collection titled ``Consolidated Owner's Manual
Requirements for Motor Vehicles and Motor Vehicle Equipment.'' NHTSA
estimated costs as $8,198,948 for 16,500,000 vehicles, or
approximately $.50 per vehicle. The supporting statements can be
accessed at https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201504-2127-001.
---------------------------------------------------------------------------
NHTSA estimates that it will take no more than 1 hour per
manufacturer to compile and format the consumer disclosures. Therefore,
the total burden hours for twenty manufacturers would be 20 hours (20
manufactures x 1 hour). NHTSA estimates the hourly cost associated with
compiling consumer disclosures to be $48.47 \54\ per hour, using the
Bureau of Labor's mean hourly wage estimate for technical writers in
the motor vehicle manufacturing industry (Standard Occupational
Classification #27-3042).\55\ Therefore, NHTSA estimates the total
labor costs associated with compiling and formatting consumer
disclosures to be $48.47 per manufacturer and $969 per year for all
replica manufacturers (20 manufacturers x $48.47 per hour).
---------------------------------------------------------------------------
\54\ The hourly wage is estimated to be $33.98 per hour.
National Industry-Specific Occupational Employment and Wage
Estimates NAICS 336100--Motor Vehicle Manufacturing, May 2018,
https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last
accessed July 1, 2019. The Bureau of Labor Statistics estimates that
wages represent 70.1 percent of total compensation to private
workers, on average. Bureau of Labor Statistics (2019). Employer
Costs for Employee Compensation--March 2019. https://www.bls.gov/news.release/ecec.t04.htm, last accessed July 10, 2019. Therefore,
NHTSA estimates the total hourly compensation cost to be $48.47.
\55\ U.S. Office of Management and Budget. Standard Occupation
Classification Manual, 2018.
---------------------------------------------------------------------------
Replica manufacturers will also be required to affix temporary
labels. NHTSA estimates that it will take each manufacturer 2 hours to
design and format the temporary labels for a total of 40 hours for all
replica vehicle manufacturers. NHTSA estimates the hourly cost
associated with designing and formatting temporary labels to be $48.47
\56\ per hour, using the Bureau of Labor's mean hourly wage estimate
for technical writers in the motor vehicle manufacturing industry
(Standard Occupational Classification #27-3042).\57\ Therefore, NHTSA
estimates the total annual labor cost associated with designing and
formatting temporary labels to be $96.94 for each manufacturer and
$1,939 for all manufacturers ($96.94 x 20 manufacturers). NHTSA
estimates the cost to print or purchase printed labels for each replica
vehicle to be $1 per vehicle, for a total cost of $4,000. This cost is
higher than what NHTSA estimates for the total cost to provide
certification labels.\58\ NHTSA has estimated a higher cost for
temporary replica vehicle warning labels because they will be larger
than certification labels and replica manufacturers will produce the
labels in smaller batches. NHTSA estimates that it will take
approximately 3 minutes to label each vehicle. This is longer than the
estimated 18 seconds to label an average vehicle with a Part 567
certification label.\59\ However, because replica vehicle manufacturers
are expected to be much smaller than the average vehicle manufacturer,
NHTSA assumes that replica vehicle manufacturers will not be able to
label each vehicle as quickly. Based on the assumption that 4,000
vehicles are manufactured, on average, in each of the next three years,
the labor costs associated with affixing the temporary labels to the
steering hub, at a cost of $32.72 per hour, using the Bureau of Labor
Statistic's mean hourly wage estimate for motor vehicle assemblers and
fabricators (Standard Occupational Classification #51-2000), will be
approximately $6,545 annually (200 hours x $32.72 per hour).
---------------------------------------------------------------------------
\56\ The hourly wage is estimated to be $33.98 per hour.
National Industry-Specific Occupational Employment and Wage
Estimates NAICS 336100--Motor Vehicle Manufacturing, May 2018,
https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last
accessed July 1, 2019. The Bureau of Labor Statistics estimates that
wages represent 70.1 percent of total compensation to private
workers, on average. Bureau of Labor Statistics (2019). Employer
Costs for Employee Compensation--March 2019. https://www.bls.gov/news.release/ecec.t04.htm, last accessed July 10, 2019. Therefore,
NHTSA estimates the total hourly compensation cost to be $48.47.
\57\ U.S. Office of Management and Budget. Standard Occupation
Classification Manual, 2018.
\58\ NHTSA estimates that the cost of 49 CFR part 567
certification labels is approximately $.10 per label.
\59\ 83 FR 8732, February 28, 2018.
---------------------------------------------------------------------------
The total burden associated with this information collection
request is estimated to be 400 hours. The cost associated with the
burden hours is estimated to be $16,239 and the cost associated with
printing consumer disclosures and temporary labels is estimated to be
$8,000. The total cost associated with this information collection is
estimated to be $24,239.
Labor Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total labor
Information collection Time per response Number of Hourly wage Total hourly cost per Total labor
responses cost response cost overall
--------------------------------------------------------------------------------------------------------------------------------------------------------
Initial Registration...................... 10 hours.................... 10 $33.98 $48.47 $484.70 $4,847
Annual Report............................. 2 hours..................... 20 33.98 48.47 96.94 1,939
Consumer Disclosures...................... 1 hour...................... 20 33.98 48.47 48.47 969
[[Page 813]]
Designing and Formatting Temporary Labels. 2 hours..................... 20 33.98 48.47 96.94 1,939
Labeling Each Vehicle..................... 3 minutes................... 4,000 22.94 32.72 1.64 6,545
-------------------------------------------------------------------------------
Total Cost............................ ............................ .............. .............. .............. .............. 16,239
--------------------------------------------------------------------------------------------------------------------------------------------------------
Other Costs to Respondents
----------------------------------------------------------------------------------------------------------------
Cost per Number of
vehicle vehicles Printing cost
----------------------------------------------------------------------------------------------------------------
Printing Temporary Labels....................................... $1 4,000 $4,000
Printing Consumer Disclosures................................... 1 4,000 4,000
-----------------------------------------------
Total Cost.................................................. .............. .............. 8,00
----------------------------------------------------------------------------------------------------------------
Comments are invited on:
i. Whether the proposed collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
ii. The accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
iii. How to enhance the quality, utility, and clarity of the
information to be collected;
iv. How to minimize the burden of the collection of information on
those who are to respond, including the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g. permitting electronic
submission of responses.
Please submit any comments, identified by the docket number in the
heading of this document, by the methods described in the ADDRESSES
section of this document to NHTSA and OMB.
b. Revision of Currently Approved Clearance for Manufacturer
Identification
In compliance with these requirements, NHTSA asks for public
comments on the following proposed collection of information:
Title: 49 CFR part 566, Manufacturer Identification.
Type of Request: Revision of a currently approved collection.
OMB Control Number: 2127-0043.
Affected Public: New manufacturers of motor vehicles and motor
vehicle equipment subject to the Federal motor vehicle safety
standards.
Requested Expiration Date of Approval: Three years from the date of
approval.
Form Number: None.
Summary of the Collection of Information: If a motor vehicle or
item of replacement motor vehicle equipment contains a defect related
to motor vehicle safety or fails to comply with an applicable Federal
motor vehicle safety standard (FMVSS), the manufacturer is required
under 49 U.S.C. 30118 to furnish notification of the defect or
noncompliance to NHTSA, as well as to owners, purchasers, and dealers
of the motor vehicle or replacement equipment, and to remedy the defect
or noncompliance without charge to the owner. To ensure that
manufacturers are meeting these and other responsibilities under the
statutes and regulations administered by NHTSA, the agency issued 49
CFR part 566, Manufacturer Identification. The regulations in Part 566
require manufacturers of motor vehicles or motor vehicle equipment to
which an FMVSS applies, to submit to NHTSA, on a one-time basis,
identifying information on themselves and a description of the products
that they manufacture to those standards. With changes implemented in
2015, manufacturers have been able to make these submissions using an
online portal on the agency's website at https://vpic.nhtsa.dot.gov/.
The information that must be submitted includes: (a) The full
individual, partnership, or corporate name of the manufacturer; (b) the
business name of the manufacturer commonly known to the public; (c) the
residence address of the manufacturer and State of incorporation if
applicable; (d) full contact information for the manufacturer and the
submitting official; and (e) a description of each type of motor
vehicle or of covered equipment manufactured by the manufacturer,
including, for motor vehicles, the approximate ranges of gross vehicle
weight ratings (GVWR) for each vehicle type. The regulations specify
that the description may be of a general type, such as ``passenger
cars'' or ``brake fluid,'' but that in the case of multipurpose
passenger vehicles, trucks, and trailers, the description shall be
specific enough to indicate the types of use for which the vehicles are
intended, such as ``tank trailer,'' ``motor home,'' or ``cargo van.''
\60\
---------------------------------------------------------------------------
\60\ 49 CFR 566.5(c)(1) and (2).
---------------------------------------------------------------------------
The regulations further specify that in the case of motor vehicles
produced in two or more stages, if the manufacturer is an incomplete
vehicle manufacturer, the description shall so state and include a
description indicating the stage of completion of the vehicle and,
where known, the types of use for which the vehicles are intended, such
as ``Incomplete vehicle manufacturer--Chassis-cab intended for
completion as a van-type truck.'' \61\ The regulations also specify
that if the manufacturer is an intermediate manufacturer, or a final
stage manufacturer of a vehicle manufactured in two or more stages, the
description shall so state and include a brief description of the work
performed, such as ``Multipurpose passenger vehicles: Motor homes with
GVWR from 8,000 to 12,000 pounds. Final-stage manufacturer--add body to
bare chassis.'' \62\
---------------------------------------------------------------------------
\61\ 49 CFR 566.5(c)(3).
\62\ Id.
---------------------------------------------------------------------------
The information must be submitted no later than 30 days after the
manufacturer begins to manufacture motor vehicles or motor vehicle
equipment subject to the FMVSS. No
[[Page 814]]
specific form need be used for the submission of this information.
NHTSA provides an online portal with a fillable web-based format for
use in submitting the required information. This is described in a
handbook entitled Requirements for Manufacturers of Motor Vehicles and
Motor Vehicle Equipment that can be accessed on the agency's website at
https://vpic.nhtsa.dot.gov/.
Manufacturers who have previously submitted identifying information
must ensure that the information on file is accurate and complete by
submitting revised information no later than 30 days after a change in
the business that affects the validity of that information has
occurred.
In 2016, NHTSA received submissions of manufacturer identifying
information under 49 CFR part 566 from 821 manufacturers. In 2016, the
agency received 882 such submissions. Based on this volume and the
estimating that the agency will receive 10 replica motor vehicle
manufacturer submissions in each of the next three years, the agency
projects that it will receive approximately 892 Part 566 submissions
from manufacturers in each of the next three years. Assuming that it
will take a manufacturer on average 15 minutes to prepare an online
submittal, the agency estimates that 223 hours will be expended on an
annual basis by all manufacturers required to submit Part 566
identifying information.
Description of the Likely Respondents (Including Estimated Number
and Proposed Frequency of Responses to the Collection of Information):
The agency estimates that it will receive 892 submissions of
manufacturer identifying information under Part 566 from manufacturers
of motor vehicles and regulated items of motor vehicle equipment per
year. The manufacturers need only submit the required information on a
one-time basis, with the proviso that they refile their information
through the online portal in the event of any changes in the
information on file within 30 days from the date that any change in
that information occurs.
Estimate of the Total Annual Reporting and Recordkeeping Burden of
the Collection of Information: 223 hours.
Estimate of the Total Annual Costs of the Collection of
Information: Assuming that the Part 566 information that needs to be
submitted through the online portal is entered by company officers or
employees compensated at an average rate of $33.98 \63\ per hour using
the Bureau of Labor's mean hourly wage estimate for technical writers
in the motor vehicle manufacturing industry (Standard Occupational
Classification # 27-3042),\64\ the agency estimates that the total
hourly wage cost associated with the burden hours is $7,577.54. The
Bureau of Labor Statistics estimates that for private industry workers,
wages represent 70.1% of total compensation.\65\ Therefore, NHTSA
estimates that a total of $10,809.61 will be expended on an annual
basis for wage by all manufacturers required to submit that
information.
---------------------------------------------------------------------------
\63\ National Industry-Specific Occupational Employment and Wage
Estimates NAICS 336100--Motor Vehicle Manufacturing, May 2018,
https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last
accessed July 1, 2019.
\64\ U.S. Office of Management and Budget. Standard Occupation
Classification Manual, 2018.
\65\ Employer Costs for Employee Compensation-March 2019,
https://www.bls.gov/news.release/pdf/ecec.pdf, last accessed June
28, 2019.
---------------------------------------------------------------------------
Comments are invited on:
i. Whether the proposed collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
ii. The accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
iii. How to enhance the quality, utility, and clarity of the
information to be collected;
iv. How to minimize the burden of the collection of information on
those who are to respond, including the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g. permitting electronic
submission of responses.
Please submit any comments, identified by the docket number in the
heading of this document, by the methods described in the ADDRESSES
section of this document to NHTSA and OMB.
c. Revision of Currently Approved Clearance for Vehicle Identification
Number (VIN) Requirements and Certification Labeling
In compliance with these requirements, NHTSA asks for public
comments on the following proposed collection of information:
Title: Consolidated Labeling Requirements for 49 CFR parts 565
Vehicle Identification Number (VIN) Requirements, and 567
Certification.
Type of Request: Revision of a previously approved collection.
OMB Control Number: 2127-0510.
Affected Public: Motor vehicle manufacturers.
Form Number: None.
Summary of the Collection of Information:
Part 565
The regulations in Part 565 specify the format, contents, and
physical requirements for a vehicle identification number (VIN) system
and its installation to simplify vehicle identification information
retrieval and to increase the accuracy and efficiency of vehicle recall
campaigns. The regulations require each vehicle manufactured in one
stage to have a VIN that is assigned by the vehicle's manufacturer.
Each vehicle manufactured in more than one stage is to have a VIN
assigned by the incomplete vehicle manufacturer. Each VIN must consist
of 17 characters, including a check digit, in the ninth position, whose
purpose is to verify the accuracy of any VIN transcription. The first
section of the VIN consists of three characters that occupy positions
one through three in the VIN. This section shall uniquely identify the
manufacturer and type of the motor vehicle if the manufacturer is a
high-volume manufacturer. If the manufacturer is a low-volume
manufacturer, positions one through three along with positions twelve
through fourteen in the VIN shall uniquely identify the manufacturer
and the type of the motor vehicle. The manufacturer identifier occupies
the first three characters of the VIN for manufacturers that produce
1,000 or more vehicles of a specified type within a model year, and
positions 1, 2, 3, 12, 13, and 14 of VINs assigned by manufacturers
that produce less than 1,000 vehicles of a specified type of motor
vehicle per model year. The remaining characters of the VIN describe
various vehicle attributes, such as make, model, and type, which vary
depending on the vehicle's type classification (i.e. passenger car,
multipurpose passenger vehicle, truck, bus, trailer, motorcycle, low-
speed vehicle), and identify the vehicle's model year, plant code, and
sequential production number. NHTSA has contracted with SAE
International of Warrendale, Pennsylvania, to coordinate the assignment
of manufacturer identifiers to manufacturers in the United States. Each
manufacturer of vehicles subject to the requirements of Part 565 must
submit, either directly or through an agent, the unique identifier for
each make and type of vehicle it manufactures at least 60 days before
affixing the first VIN using the identifier. Manufacturers are also
[[Page 815]]
required to submit to NHTSA information necessary to decipher the
characters contained in their VINs, including amendments to that
information, at least 60 days prior to offering for sale the first
vehicle identified by a VIN containing that information or if
information concerning vehicle characteristics sufficient to specify
the VIN code is unavailable to the manufacturer by that date, then
within one week after that information first becomes available. With
changes implemented in 2015, manufacturers have been able to make these
submissions using an online portal on the agency's website at https://vpic.nhtsa.dot.gov/. In 2016, NHTSA received 1,054 submissions of VIN-
deciphering information under Part 565 from manufacturers. In 2017,
NHTSA received 1,239 submissions. NHTSA estimates it will receive, on
average, 15 submissions of VIN-deciphering information from replica
manufacturers in the next three years. Based on these figures, NHTSA
expects to receive approximately 1,254 Part 565 submissions from
manufacturers in each of the next three years. Assuming that it would
take one hour to produce a VIN deciphering submission, at an average
cost of $33.98 per hour for the administrative and professional staff
preparing and reviewing the submission,\66\ NHTSA estimates that it
will cost vehicle manufacturers $42,610.92 to comply with the Part 565
requirements (1,254 submissions x $33.98 = $42,610.92).
---------------------------------------------------------------------------
\66\ This estimate uses the Bureau of Labor's mean hourly wage
estimate for technical writers in the motor vehicle manufacturing
industry (Standard Occupational Classification # 27-3042). National
Industry-Specific Occupational Employment and Wage Estimates NAICS
336100--Motor Vehicle Manufacturing, May 2018, https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last accessed July 1, 2019.
---------------------------------------------------------------------------
Part 567
The regulations in Part 567 specify the content and location of,
and other requirements for, the certification label to be affixed to a
motor vehicle, as required by the National Traffic and Motor Vehicle
Safety Act,\67\ as amended (the Vehicle Safety Act) and the Motor
Vehicle Information and Cost Savings Act,\68\ as amended (the Cost
Savings Act), to address certification-related duties and liabilities,
and to provide the consumer with information to assist him or her in
determining which of the Federal motor vehicle safety standards (as
found in 49 CFR part 571), bumper standards (as found in 49 CFR part
581, and Federal theft prevention standards (as found in 49 CFR part
541) are applicable to the vehicle. The regulations pertain to
manufacturers of motor vehicles to which one or more standards are
applicable, including persons who alter such vehicles prior to their
first retail sale, and to Registered Importers of vehicles not
originally manufactured to comply with all applicable Federal motor
vehicle safety standards that are determined eligible for importation
by NHTSA, based on the vehicles' capability of being modified to
conform to those standards. The regulations require each manufacturer
to affix to each vehicle, in a prescribed location, a label that, among
other things, identifies the vehicle's manufacturer (defined as the
person who assembles the vehicle), the vehicle's date of manufacture,
and the statement that the vehicle complies with all applicable Federal
motor vehicle safety standards and, where applicable, bumper and theft
prevention standards in effect on the date of manufacture. The label
must also include the vehicle's gross vehicle and gross axle weight
ratings (GVWR and GAWRs), vehicle identification number, and vehicle
type classification (i.e., passenger car, multipurpose passenger
vehicle, truck, bus, trailer, motorcycle, low-speed vehicle). The
regulations specify other labelling requirements for incomplete
vehicle, intermediate, and final-stage manufacturers of vehicles built
in two or more stages, such as commercial trucks that are built by
adding work performing components, such as a cargo box or cement mixer,
to a previously manufactured chassis or chassis-cab, and to persons who
alter previously certified vehicles, other than by the addition,
substitution, or removal of readily attachable components such as
mirrors or tire and rim assemblies, or minor finishing operations such
as painting, before the first purchase of the vehicle for purposes
other than resale.
---------------------------------------------------------------------------
\67\ 49 U.S.C. 30115.
\68\ 49 U.S.C. 30254 and 33109.
---------------------------------------------------------------------------
As NHTSA estimates that fewer than 8,00 replica vehicles will be
manufactured in each year, the implementation of the replica provision
is not expected to change the estimate that 17,600,000 vehicles will be
labeled according to Part 567 in each of the next three years.
Description of the Likely Respondents (Including Estimated Number
and Proposed Frequency of Responses to the Collection of Information):
The agency estimates that it will receive 1,254 submissions of VIN-
deciphering information under Part 565 from approximately 629
manufacturers of motor vehicles per year. The manufacturers need only
submit the required information on a one-time basis, with the proviso
that they notify the agency of any changes in the information on file
within 30 days from the date that any change in that information
occurs. In addition, the agency estimates that approximately 7,600
manufacturers of motor vehicles of all types, including manufacturers
of passenger cars, multipurpose passenger vehicles, trucks, buses,
trailers, motorcycles, low-speed vehicles, and replica motor vehicles
as well as incomplete vehicle manufacturers, intermediate and final-
stage manufacturers of vehicles built in two or more stages, and
vehicle alterers, will need to comply with the certification labeling
requirements of Part 567 in each of the next three years.
Estimate of the Total Annual Reporting and Recordkeeping Burden of
the Collection of Information: 1,254 hours for supplying required VIN-
deciphering information to NHTSA under Part 565; 88,000 hours for
meeting the labeling requirements of Part 567.
Estimate of the Total Annual Costs of the Collection of
Information: Assuming that the Part 565 information is submitted to the
agency's website by company officers or employees compensated at an
average rate of $33.98 \69\ per hour using the Bureau of Labor's mean
hourly wage estimate for technical writers in the motor vehicle
manufacturing industry (Standard Occupational Classification #27-
3042),\70\ the agency estimates that $42,610.92 will be expended on an
annual basis by all manufacturers required to submit that information
(1,254 hours x $33.98 = $42,610.92). Additionally, NHTSA assumes that
it will take an average of .005 hours to affix a certification label to
each of the approximately 17,600,000 vehicles produced each year for
sale in the United States, at an average cost of $22.94,\71\ using the
Bureau of Labor Statistic's mean hourly wage estimate for motor vehicle
assemblers and fabricators (Standard Occupational Classification #51-
2000).\72\ Therefore, the agency estimates that roughly $2,018.720 will
be expended by all manufacturers to comply with the labeling
requirements of Part 567
[[Page 816]]
(17,600,000 vehicles x .005 hours = 88,000 hours; 88,000 hours x $20.00
= $2,018.720).
---------------------------------------------------------------------------
\69\ National Industry-Specific Occupational Employment and Wage
Estimates NAICS 336100--Motor Vehicle Manufacturing, May 2018,
https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last
accessed July 1, 2019.
\70\ U.S. Office of Management and Budget. Standard Occupation
Classification Manual, 2018.
\71\ Occupational Employment and Wages, May 2018, https://www.bls.gov/oes/current/oes434031.htm, last accessed July 1, 2019.
\72\ U.S. Office of Management and Budget. Standard Occupation
Classification Manual, 2018.
---------------------------------------------------------------------------
The total hourly wage cost associated with this information
collection is $2,061,330.92. The Bureau of Labor Statistics estimates
that for private industry workers, wages represent 70.1% of total
compensation.\73\ Therefore, the total cost associated with the hourly
burden of this information collection is estimated to be $2,940,557.66.
---------------------------------------------------------------------------
\73\ Employer Costs for Employee Compensation-March 2019,
https://www.bls.gov/news.release/pdf/ecec.pdf, last accessed June
28, 2019.
---------------------------------------------------------------------------
Comments are invited on:
i. Whether the proposed collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
ii. The accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
iii. How to enhance the quality, utility, and clarity of the
information to be collected;
iv. How to minimize the burden of the collection of information on
those who are to respond, including the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g. permitting electronic
submission of responses.
Please submit any comments, identified by the docket number in the
heading of this document, by the methods described in the ADDRESSES
section of this document to NHTSA and OMB.
Plain Language
E.O. 12866 requires each agency to write all rules in plain
language. Application of the principles of plain language includes
consideration of the following questions:
Have we organized the material to suit the public's needs?
Are the requirements in the rule clearly stated?
Does the rule contain technical language or jargon that
isn't clear?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the rule easier to understand?
Would more (but shorter) sections be better?
Could we improve clarity by adding tables, lists, or
diagrams?
What else could we do to make the rule easier to
understand?
If you have any responses to these questions, please include them
in your comments on this proposal.
Regulation Identifier Number (RIN)
The Department of Transportation assigns a regulation identifier
number (RIN) to each regulatory action listed in the Unified Agenda of
Federal Regulations. The Regulatory Information Service Center
publishes the Unified Agenda in April and October of each year. You may
use the RIN contained in the heading at the beginning of this document
to find this action in the Unified Agenda.
Privacy Act
Anyone is able to search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an organization, business, labor union, etc.). You may review DOT's
complete Privacy Act statement in the Federal Register published on
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit
http://www.dot.gov/privacy.html.
XIV. Public Participation
How long do I have to submit comments?
We are providing a 30-day comment period. The comment period is
shorter than the customary 45-day comment period used by the agency for
nonsignificant rulemakings. A shorter comment period is in the public
interest because it will allow us to issue a final rule more quickly
and allow qualifying low-volume manufacturers to begin manufacturing
replica motor vehicles sooner. We do not believe a longer comment
period is necessary for the public to consider this proposal because
most of the proposed requirements are mandated or contemplated by the
FAST Act.
How do I prepare and submit comments?
Your comments must be written in English.
To ensure that your comments are correctly filed in the
Docket, please include the Docket Number shown at the beginning of this
document in your comments.
Your comments must not be more than 15 pages long. (49 CFR
553.21). We established this limit to encourage you to write your
primary comments in a concise fashion. However, you may attach
necessary additional documents to your comments. There is no limit on
the length of the attachments.
If you are submitting comments electronically as a PDF
(Adobe) File, NHTSA asks that the documents be submitted using the
Optical Character Recognition (OCR) process, thus allowing NHTSA to
search and copy certain portions of your submissions. Comments may be
submitted to the docket electronically by logging onto the Docket
Management System website at http://www.regulations.gov. Follow the
online instructions for submitting comments.
You may also submit two copies of your comments, including
the attachments, to Docket Management at the address given above under
ADDRESSES.
Please note that pursuant to the Data Quality Act, in order for
substantive data to be relied upon and used by the agency, it must meet
the information quality standards set forth in the OMB and DOT Data
Quality Act guidelines. Accordingly, we encourage you to consult the
guidelines in preparing your comments. OMB's guidelines may be accessed
at http://www.whitehouse.gov/omb/fedreg/reproducible.html. DOT's
guidelines may be accessed at http://www.bts.gov/programs/statistical_policy_and_research/data_quality_guidelines.
How can I be sure that my comments were received?
If you wish Docket Management to notify you upon its receipt of
your comments, enclose a self-addressed, stamped postcard in the
envelope containing your comments. Upon receiving your comments, Docket
Management will return the postcard by mail.
How do I submit confidential business information?
If you wish to submit any information under a claim of
confidentiality, you should submit three copies of your complete
submission, including the information you claim to be confidential
business information, to the Chief Counsel, NHTSA, at the address given
above under FOR FURTHER INFORMATION CONTACT. In addition, you should
submit two copies, from which you have deleted the claimed confidential
business information, to Docket Management at the address given above
under ADDRESSES. When you send a comment containing information claimed
to be confidential business information, you should include a cover
letter setting forth the information specified in our confidential
business information regulation. (49 CFR part 512).
[[Page 817]]
Will the agency consider late comments?
We will consider all comments that Docket Management receives
before the close of business on the comment closing date indicated
above under DATES. To the extent possible, we will also consider
comments that Docket Management receives after that date. If Docket
Management receives a comment too late for us to consider in developing
a final rule, we will consider that comment as an informal suggestion
for future rulemaking action.
How can I read the comments submitted by other people?
You may read the comments received by Docket Management at the
address given above under ADDRESSES. The hours of the Docket are
indicated above in the same location. You may also see the comments on
the internet. To read the comments on the internet, go to http://www.regulations.gov. Follow the online instructions for accessing the
dockets.
Please note that, even after the comment closing date, we will
continue to file relevant information in the Docket as it becomes
available. Further, some people may submit late comments. Accordingly,
we recommend that you periodically check the Docket for new material.
List of Subjects
49 CFR Part 565
Incorporation by reference, Motor vehicle safety, Reporting and
recordkeeping requirements.
49 CFR Part 566
Motor vehicle safety, Reporting and recordkeeping requirements.
49 CFR Part 567
Labeling, Motor vehicle safety, Reporting and recordkeeping
requirements.
49 CFR Part 586
Labeling, Motor vehicle safety, Replica motor vehicles, Reporting
and recordkeeping requirements.
In consideration of the foregoing, NHTSA proposes to amend 49 CFR
chapter V as follows:
PART 565--VEHICLE IDENTIFICATION NUMBER (VIN) REQUIREMENTS
0
1. The authority citation for part 565 is revised to read as follows:
Authority: 49 U.S.C. 322, 30111, 30114, 30115, 30117, 30141,
30146, 30166, and 30168; delegation of authority at 49 CFR 1.95.
0
2. Revise Sec. 565.12 to read as follows:
Sec. 565.12 Definitions.
(a) Federal Motor Vehicle Safety Standards Definitions. Unless
otherwise indicated, all terms used in this part that are defined in 49
CFR 571.3 are used as defined in 49 CFR 571.3.
(b) Other definitions. As used in this part--
Body type means the general configuration or shape of a vehicle
distinguished by such characteristics as the number of doors or
windows, cargo-carrying features and the roofline (e.g., sedan,
fastback, hatchback).
Check digit means a single number or the letter X used to verify
the accuracy of the transcription of the vehicle identification number.
Engine type means a power source with defined characteristics such
as fuel utilized, number of cylinders, displacement, and net brake
horsepower. The specific manufacturer and make shall be represented if
the engine powers a passenger car or a multipurpose passenger vehicle,
or truck with a gross vehicle weight rating of 4,536 kg (10,000 lb) or
less.
High-volume manufacturer, for purposes of this part, means a
manufacturer of 1,000 or more vehicles of a given type each year.
Incomplete vehicle means an assemblage consisting, as a minimum, of
frame and chassis structure, power train, steering system, suspension
system and braking system, to the extent that those systems are to be
part of the completed vehicle, that requires further manufacturing
operations, other than the addition of readily attachable components,
such as mirrors or tire and rim assemblies, or minor finishing
operations such as painting, to become a completed vehicle.
Line means a name that a manufacturer applies to a family of
vehicles within a make which have a degree of commonality in
construction, such as body, chassis or cab type.
Low-volume manufacturer, for purposes of this part, means a
manufacturer of fewer than 1,000 vehicles of a given type each year.
Make means a name that a manufacturer applies to a group of
vehicles or engines.
Manufacturer means a person--
(1) Manufacturing or assembling motor vehicles or motor vehicle
equipment; or
(2) Importing motor vehicles or motor vehicle equipment for resale.
Manufacturer identifier means the first three digits of a VIN of a
vehicle manufactured by a high-volume manufacturer, and the first three
digits of a VIN and the twelfth through fourteenth digits of a VIN of a
vehicle manufactured by a low-volume manufacturer.
Model means a name that a manufacturer applies to a family of
vehicles of the same type, make, line, series and body type.
Model year means the year used to designate a discrete vehicle
model, irrespective of the calendar year in which the vehicle was
actually produced, provided that the production period does not exceed
24 months.
Original model year of a replicated vehicle means the stated model
year of a vehicle that has been replicated pursuant to 49 CFR part 586.
Plant of manufacture means the plant where the manufacturer affixes
the VIN. Replica motor vehicle means a motor vehicle meeting the
definition of replica motor vehicle in 49 CFR part 586.
Replica model year means the calendar year in which a replica motor
vehicle was manufactured.
Series means a name that a manufacturer applies to a subdivision of
a ``line'' denoting price, size or weight identification and that is
used by the manufacturer for marketing purposes.
Trailer kit means a trailer that is fabricated and delivered in
complete but unassembled form and that is designed to be assembled
without special machinery or tools.
Type means a class of vehicle distinguished by common traits,
including design and purpose. Passenger cars, multipurpose passenger
vehicles, trucks, buses, trailers, incomplete vehicles, low speed
vehicles, and motorcycles are separate types.
VIN means a series of Arabic numbers and Roman letters that is
assigned to a motor vehicle for identification purposes.
0
3. In Sec. 565.15(b), amend Table I--Type of Vehicle and Information
Decipherable by adding an entry for ``Replica motor vehicle'' after the
entry for ``Low speed vehicle'' to read as follows:
565.15 [Amended]
(b) * * *
Table I--Type of Vehicle and Information Decipherable
------------------------------------------------------------------------
-------------------------------------------------------------------------
* * * * *
Replica motor vehicle: The make, model, and model year of the original
replicated vehicle; and the information listed in this table for the
vehicle' type classification (e.g., if the replica meets the definition
for passenger car in 49 CFR 571.3, the following information is
required: body type; engine type; and all restraint devices and their
locations).
[[Page 818]]
* * * * *
------------------------------------------------------------------------
* * * * *
PART 566--MANUFACTURER IDENTIFICATION
0
4. The authority citation for part 566 is revised to read as follows:
Authority: National Traffic and Motor Vehicle Safety Act (49
U.S.C. 30166) and Sec. 24405(a) of the Fixing America's Surface
Transportation Act (49 U.S.C. 30114(b)); delegation of authority at
49 CFR 1.95.
0
5. Amend Sec. 566.5 by revising the introductory text and adding
paragraph (c)(4) to read as follows:
Sec. 566.5 Requirements.
Each manufacturer of motor vehicles, and each manufacturer of
covered equipment, shall furnish the information specified in
paragraphs (a) through (c) of this section to: Administrator, National
Highway Traffic Safety Administration, 1200 New Jersey Avenue SE, West
Building, Washington, DC 20590 or at https://vpic.nhtsa.dot.gov/.
* * * * *
(c) * * *
(4) In the case of replica motor vehicles, the manufacturer shall
include, in the description of each type of motor vehicle it
manufactures, a designation that the vehicle is a replica motor
vehicle.
PART 567--CERTIFICATION
0
6. The authority citation for part 567 is revised to read as follows:
Authority: 49 U.S.C. 322, 30111, 30114, 30115, 30117, 30166,
32504, 33101-33104, 33108 and 33109; delegation of authority at 49
CFR 1.95.
0
7. Revise Sec. 567.1 to read as follows:
Sec. 567.1 Purpose.
The purpose of this part is to specify the content and location of,
and other requirements for, the certification label to be affixed to
motor vehicles as required by the National Traffic and Motor Vehicle
Safety Act, as amended (the Vehicle Safety Act) (49 U.S.C. 30114 and
30115) and the Motor Vehicle Information and Cost Savings Act, as
amended (the Cost Savings Act), (49 U.S.C. 30254 and 33109), to address
certification-related duties and liabilities, and to provide the
consumer with information to assist him or her in determining which of
the Federal Motor Vehicle Safety Standards (part 571 of this chapter),
Bumper Standards (part 581 of this chapter), and Federal Theft
Prevention Standards (part 541 of this chapter), are applicable to the
vehicle.
0
8. Amend Sec. 567.3 by adding in alphabetical order a definition for
``Replica motor vehicle'' to read as follows:
Sec. 567.3 Definitions.
* * * * *
Replica motor vehicle means a motor vehicle meeting the definition
of replica motor vehicle in 49 CFR part 586.
0
9. Revise Sec. 567.4(a) to read as follows:
Sec. 567.4 Requirements for manufacturers of motor vehicles.
(a) Each manufacturer of motor vehicles (except replica motor
vehicles or vehicles manufactured in two or more stages) shall affix to
each vehicle a label, of the type and in the manner described in this
section, containing the statements specified in paragraph (g) of this
section.
* * * * *
0
10. Add Sec. 567.8 to read as follows:
Sec. 567.8 Requirements for manufacturers of replica motor vehicles.
(a) Each manufacturer of replica motor vehicles shall affix to each
vehicle a label, of the type and in the manner described in this
section, containing the statements specified in paragraph (e) of this
section.
(b) The label shall be riveted or permanently affixed in such a
manner that it cannot be removed without destroying or defacing it.
(c) The label shall be affixed to either the hinge pillar, door-
latch post, or the door edge that meets the door-latch post, next to
the driver's seating position, or if none of these locations is
practicable, to the left side of the instrument panel. If that location
is also not practicable, the label shall be affixed to the inward-
facing surface of the door next to the driver's seating position. If
none of the preceding locations is practicable, notification of that
fact, together with drawings or photographs showing a suggested
alternate location in the same general area, shall be submitted for
approval to the Administrator, National Highway Traffic Safety
Administration, 1200 New Jersey Avenue SE, West Building, Washington,
DC 20590. The location of the label shall be such that it is easily
readable without moving any part of the vehicle except an outer door.
(d) The lettering on the label shall be of a color that contrasts
with the background of the label.
(e) The label shall contain the following information and
statements, in the English language, lettered in block capitals and
numerals not less than three thirty-seconds of an inch high, in the
order shown:
(1) Name of manufacturer: The full corporate or individual name of
the actual assembler of the vehicle shall be spelled out, except that
such abbreviations as ``Co.'' or ``Inc.'' and their foreign
equivalents, and the first and middle initials of individuals, may be
used. The name of the manufacturer shall be preceded by the words
``Manufactured By'' or ``Mfd By.''
(2) Month and year of manufacture: This shall be the time during
which work was completed at the place of main assembly of the vehicle.
It may be spelled out, as ``June 2000,'' or expressed in numerals, as
``6/00.''
(3) ``Gross Vehicle Weight Rating'' or ``GVWR'' followed by the
appropriate value in pounds, which shall not be less than the sum of
the unloaded vehicle weight, rated cargo load, and 150 pounds times the
number of the vehicle's designated seating positions.
(4) ``Gross Axle Weight Rating'' or ``GAWR,'' followed by the
appropriate value in pounds, for each axle, identified in order from
front to rear (e.g., front, first intermediate, second intermediate,
rear). The ratings for any consecutive axles having identical gross
axle weight ratings when equipped with tires having the same tire size
designation may, at the option of the manufacturer, be stated as a
single value, with the label indicating to which axles the ratings
apply.
Examples of combined ratings: GAWR:
(a) All axles--2,400 kg (5,290 lb.) with LT245/75R16(E) tires.
(b) Front--5,215 kg (11,500 lb.) with 295/75R22.5(G) tires.
First intermediate to rear--9,070 kg (20,000 lb.) with 295/
75R22.5(G) tires.
(5) The following statement: ``This vehicle is a replica motor
vehicle that replicates a [insert make and model of the replicated
motor vehicle] originally manufactured in model year [insert year].''
(6) The following statement: ``This replica motor vehicle is exempt
from the following Federal motor vehicle safety, theft prevention, and
bumper standards in effect on [insert the date of manufacture of the
replica motor vehicle] for [insert replica's type of motor vehicle
(e.g., passenger cars)].'' The expression ``U.S.'' or ``U.S.A.'' may be
inserted before the word ``Federal.'' List all standards that the
vehicle has been granted an exemption from under part 586.
(7) Vehicle identification number.
0
11. Add part 586 to read as follows:
[[Page 819]]
PART 586--REPLICA MOTOR VEHICLES
Sec.
586.1 Scope.
586.2 Purpose.
586.3 Applicability.
586.4 Definitions.
586.5 General requirements.
586.6 Registration.
586.7 Timing for processing registrations.
586.8 Deemed approved registrations.
586.9 Updating existing registrations.
586.10 Written notice.
586.11 Temporary label.
586.12 Annual report.
586.14 Revocation of registrations.
Authority: 49 U.S.C. 30112 and 30114; delegation of authority
at 49 CFR 1.95.
Sec. 586.1 Scope
This part specifies requirements and procedures under 49 U.S.C.
30114(b) for the registration of low-volume manufacturers as replica
motor vehicle manufacturers and establishes the duties of the
manufacturers. Once approved, replica motor vehicle manufacturers are
granted a conditional exemption from 49 U.S.C. 30112(a), 32304, 32502,
and 32902 and from section 3 of the Automobile Information Disclosure
Act (15 U.S.C. 1232) to produce up to 325 replica motor vehicles. That
is replica motor vehicles granted an exemption under this part are
exempt from all applicable Federal motor vehicle safety standards in
part 571 of this chapter (except for standards applicable to motor
vehicle equipment), passenger motor vehicle country of origin labeling
requirements, bumper standards, average fuel economy standards, and
vehicle labeling and safety rating disclosure requirements.
Sec. 586.2 Purpose.
The purpose of this part is to implement a program under 49 U.S.C.
30114(b) to annually exempt not more than 325 replica motor vehicles
per year that are manufactured or imported by low-volume manufacturers
from existing requirements for motor vehicles. This part specifies
eligibility requirements for low-volume manufacturers that wish to
register with NHTSA as a replica motor vehicle manufacturer, procedures
for the registration of such manufacturers, content and format
requirements for registration submissions, and requirements for
updating registrations. This part also provides for the revocation of
registrations and sets forth the duties required of replica vehicle
manufacturers. Manufacturers are not exempted under 49 U.S.C. 30114(b)
unless they register with NHTSA pursuant to this part 586.
Sec. 586.3 Applicability.
This part applies to low-volume manufacturers that wish to register
with NHTSA as a replica motor vehicle manufacturer, and to
manufacturers registered as replica motor vehicle manufacturers.
Sec. 586.4 Definitions.
All terms in this part that are defined in 49 U.S.C. 30102 and in
49 CFR 571.3 are used as defined therein.
Low-volume manufacturer is defined in 49 U.S.C. 30114(b)(7).
Original model year of a replicated vehicle means the stated model
year of a vehicle that has been replicated pursuant to 49 CFR part 586.
Replica motor vehicle manufacturer means a low-volume manufacturer
that is registered as a replica motor vehicle manufacturer pursuant to
the requirements in this part.
Replica model year means the calendar year in which a replica motor
vehicle was manufactured.
Replica motor vehicle means a motor vehicle that--
(1) Is produced by a manufacturer meeting the definition of replica
motor vehicle manufacturer under 49 CFR part 586 that has not
manufactured 325 replica motor vehicles in the current calendar year;
and
(2) Is intended to resemble the body of another motor vehicle that
was manufactured for consumer sale not less than 25 years before the
manufacture of the replica motor vehicle; and
(3) Is either:
(i) Manufactured under a license for all of the intellectual
property rights of the motor vehicle that is intended to be replicated,
including, but not limited to, product configuration, trade dress,
trademark, and patent, from the original manufacturer, or its
successors or assignees; or,
(ii) Manufactured by a current owner of such intellectual property,
including, but not limited to, product configuration trade dress,
trademark, and patent rights.
Sec. 586.5 General requirements.
(a) Each manufacturer wishing to register as a replica motor
vehicle manufacturer must have a calendar year, worldwide production,
including by a parent or subsidiary of the manufacturer, if applicable,
of not more than 5,000 motor vehicles, and must not be a registered
importer under 49 CFR part 592. Only one registration is permitted for
manufacturers sharing common ownership. If a manufacturer wishes to
manufacture replica vehicles and it shares common ownership with a
registered replica motor vehicle, it may only do so after the
registered replica manufacturer submits a revised registration
submission indicating that the exemption for 325 replica vehicles will
be divided between the manufacturers. Replica manufacturers sharing
common ownership will be limited to a total of 325 replica vehicles. An
update to a registration to add a manufacturer under common ownership
shall allocate the exemption for 325 replica vehicles between the
manufacturers. An update to the registration to adjust the allocation
must be made pursuant to Sec. 586.9.
(b) Each manufacturer wishing to manufacture replica motor vehicles
under this program must be registered, according to the requirements in
49 CFR 586.6, as a replica motor vehicle manufacturer for the calendar
year in which the replica motor vehicle is manufactured.
(c) Each replica motor vehicle manufacturer shall meet all
statutory and regulatory requirements applicable to motor vehicle
manufacturers, except:
(1) 49 U.S.C. 30112(a) regarding the Federal motor vehicle safety
standards applicable to vehicles in effect on the date of manufacture
of the replica motor vehicle; and
(2) 49 U.S.C. 32304, 32502, 32902 and 15 U.S.C. 1232.
(d) Each replica motor vehicle manufacturer shall:
(1) Meet all the requirements set forth in this part; and,
(2) Not manufacture more than 325 replica motor vehicles in a
calendar year.
(e) Each replica motor vehicle, as manufactured, shall closely
resemble the original replicated vehicle.
(f) An exemption granted by NHTSA may not be transferred to any
other person, and shall expire at the end of the calendar year for
which it was granted with respect to any volume authorized by the
exemption that was not applied by the replica motor vehicle
manufacturer to vehicles built during that calendar year.
Sec. 586.6 Registration.
(a) A manufacturer may register under this part as a manufacturer
of replica motor vehicles if:
(1) The manufacturer is not registered as an importer under 49 CFR
part 592;
(2) The manufacturer's annual worldwide production, including by a
parent or subsidiary of the manufacturer, if applicable, is not more
than 5,000 motor vehicles;
(3) The manufacturer has submitted manufacturer identification
information pursuant to part 566 of this chapter.
(b) To register as a replica motor vehicle manufacturer, a
manufacturer
[[Page 820]]
must submit, using the NHTSA Product Information Catalog and Vehicle
Listing (vPIC) platform (https://vpic.nhtsa.dot.gov/) its name,
address, and email address, and the following:
(1) Information sufficient to establish:
(i) That the manufacturer's annual world-wide production, including
by a parent or subsidiary of the manufacturer, if applicable, is not
more than 5,000 motor vehicles, and a statement certifying to that
effect, including the total number of motor vehicles produced by or on
behalf of the registrant in the 12-month prior to filing the
registration; and,
(ii) That the manufacturer is not registered as an importer under
49 CFR part 592;
(2) A statement identifying the original vehicle(s) the
manufacturer intends to replicate by make, model, and model year;
(3) Information sufficient to establish that the replica vehicle(s)
the manufacturer intends to replicate is intended to resemble the body
of the original vehicle, including:
(i) The images of the front, rear, and side views of the exterior
of the original vehicle;
(ii) If the manufacturer has previously replicated the original
vehicle(s), images of the front, rear, and side views of the exterior
of a representative replica motor vehicle;
(iii) If the manufacturer has not previously replicated the
original vehicle(s), design plans for the replica vehicles;
(iv) Information to show that the replica vehicle will be the same
height, width, and length as the original vehicle; and
(v) If any deviations were made to accommodate safety features,
highlight those deviations for NHTSA's consideration.
(4) A certification that the manufacturer has determined the
intellectual property rights required and obtained all licenses and
permissions necessary to legally produce the replica and documentation
to support that it has obtained the required licenses from the original
manufacturer, its successors or assignees, or the current owner of any
product configuration, trade dress, trademark, or patent necessary to
produce the replicated vehicle. The intellectual property rights for
the original vehicle may include, but are not limited to, the
following:
(i) Trade dress of the vehicle;
(ii) Trademarks for the body style of the vehicle;
(iii) Patents for the vehicle's exterior shape or features; and/or
(iv) Trademarks for make and/or model names used in connection with
the manufacturer and sale of the original vehicle.
(5) A statement certifying that the manufacturer will not
manufacture more than the number of replica motor vehicles covered by
the requested exemption, a number not more than 325 replica motor
vehicles in a calendar year; and,
(6) All information required by part 566 of this chapter to
identify itself to NHTSA as a motor vehicle manufacturer.
(7) A statement certifying that the manufacturer understands that
information provided under this part is information upon which the
Federal Government will rely, and that submission of false, fictitious
or fraudulent information may result in civil or criminal penalties
under 18 U.S.C. 1001.
(c) A manufacturer is not considered registered under this part 586
until it receives written confirmation from NHTSA that:
(1) The registration is approved; or,
(2) The registration is deemed approved by NHTSA's failure to
approve or deny the registration pursuant to Sec. 586.7.
(d) A replica manufacture shall submit an updated registration
submission prior to beginning manufacture of any replica vehicle
model(s) not covered by their existing registration and will not begin
manufacturing those additional replica vehicle model(s) until the
registration is either approved or deemed approved as specified under
Sec. 586.9.
(e) A registrant need not reapply annually if the registrant seeks
to manufacture the same replica vehicles (make, model and model year)
for which it received approval. The registrant must provide
notification, by way of its annual report pursuant to Sec. 586.12, of
its intent to continue manufacturing covered replica vehicles.
Sec. 586.7 Timing for processing registrations.
Upon receipt of a registration submitted on vPIC, NHTSA will notify
the registrant within 90 days, in writing which includes by email,
whether the registration is approved or denied. If notification is not
sent to the registrant within 90 days from NHTSA's receipt of the
submission, the registration will be deemed approved pursuant to Sec.
586.6(c) unless:
(a) NHTSA determines that the submission is incomplete. If NHTSA
notifies the registrant, in writing which includes by email, within 90
days that the submission is incomplete, the manufacturer shall have 60
days to submit the missing information. If the manufacturer fails to
submit additional information, the registration will be denied.
(1) Upon receipt of additional information, NHTSA shall have 30
days plus the remaining time of the initial 90 days to review and grant
or deny the registration. For example, if NHTSA notifies the
manufacturer that registration is incomplete on the 30th day, NHTSA
shall have the remaining 60 days plus 30 days to review the
registration upon receipt of additional information.
(2) A registration shall be denied if NHTSA requests additional
information from the registrant necessary to complete the registration
and the manufacturer does not submit information sufficient to complete
the registration within 60 days.
(b) The submission is repetitious. A repetitious registration
submission is one that relies on the same facts and circumstances as a
previously denied registration.
Sec. 586.8 Deemed approved registrations.
(a) If a manufacturer believes that its registration is deemed
approved by NHTSA's failure to approve or deny the registration
pursuant to Sec. 586.7, the manufacturer must obtain written
confirmation from NHTSA that its registration is deemed approved. If
NHTSA confirms that the registration is deemed approved, NHTSA shall
include each deemed approved registrant's name on NHTSA's published
list of registrants. If NHTSA cannot find any record of the
registration submitted on vPIC, NHTSA will inform the manufacturer in
writing that the registration has not been deemed approved.
(b) If NHTSA determines that a registration, deemed approved by a
failure to approve or deny the registration within the allotted time,
is incomplete or does not provide a basis for qualifying as a
registrant, NHTSA may request additional information from the
registrant, in writing which includes by email. A manufacturer shall
have 60 days to respond to a request for additional information. If the
manufacturer fails to respond within the 60 days or submits information
that does not support qualification as a low-volume manufacturer of
replica vehicles, NHTSA may revoke the registration.
Sec. 586.9 Updating existing registrations.
A registered replica manufacturer shall submit updated registration
[[Page 821]]
information prior to commencing manufacturer of a new model of replica
vehicle or reallocating the number of replica vehicles to be made by
two or more replica manufacturers under common ownership. The
manufacturer shall submit updated registration information pursuant to
Sec. 586.6. The manufacturer may not begin producing the new model of
replica vehicle or reallocate replica vehicles until its registration
is either approved or deemed approved by NHTSA.
Sec. 586.10 Written notice.
Each replica motor vehicle manufacturer must provide the dealer and
first retail purchaser the following information, either in the owner's
manual or a separate document:
(a) A list of all current standards and regulations the vehicle
would be required to comply with but with which it does not comply due
to this exemption;
(b) The purpose statements of each such standard or regulation, as
provided in Table 1 of this part.
Sec. 586.11 Temporary label.
The vehicle shall have a label attached to a location on the
dashboard or the steering wheel hub that is clearly visible from all
front seating positions. The label need not be permanently affixed to
the vehicle. The label shall meet the following requirements:
(a) The label shall include a heading area in yellow with an alert
symbol consisting of a solid black equilateral triangle with a yellow
exclamation point and the word ``WARNING'' in black block capitals in a
type size that is larger than that used in the remainder of the label
and the alert symbol in black.
(b) The label shall include a message area in white with black text
in at least 20-point font stating: ``This vehicle is a replica motor
vehicle and is exempt from complying with all current Federal motor
vehicle safety standards that apply to motor vehicles, and with theft
prevention and bumper standards in effect on the date of manufacture.
[The expression ``U.S.'' or ``U.S.A.'' may be inserted before the word
``Federal''.] See the certification label or consumer disclosure for
more specific information.''
(c) The message area shall be no less than 30 cm\2\ (4.7 in\2\).
Sec. 586.12 Annual report.
Each manufacturer of a replica motor vehicle shall furnish the
following information to https://vpic.nhtsa.dot.gov/ no later than
March 1 following the end of a calendar year in which the manufacturer
produced at least 1 (one) replica motor vehicle:
(a) Full individual, partnership or corporate name of the
manufacturer.
(b) Residence address of the manufacturer, phone number and email
address.
(c) The calendar year for which the annual report is submitted
(replica model year) and the total number of replica vehicles
manufactured during that year.
(d) The complete Vehicle Identification Number (VIN) of each
replica vehicle manufactured.
(e) List of the different versions of replica motor vehicles
produced by make, model, and original model year of replicated vehicle.
(f) List of the FMVSS and regulations from which each version of
replica vehicle (by make, model, and original model year of replicated
vehicle) is exempt.
(g) Images of the front, rear, and side views of the original
vehicle(s) replicated, of both the vehicle's exterior, and images of
the same views of a representative replica manufactured to resemble
each original vehicle.
(h) Information sufficient to establish that the replica motor
vehicles, as manufactured, resemble the body of the original vehicle.
(i) State whether the replica vehicles contain any of the following
vehicle safety features: (1) Front or side air bags;
(2) Lap or lap and shoulder belts;
(3) Advanced safety systems/passive safety systems (listed with
locations);
(4) Electronic stability control;
(5) Rear visibility camera system; or
(6) Ejection mitigation.
(j) Notification to NHTSA if the registrant will be manufacturing
the same replica motor vehicle(s) in the next calendar year and if so,
how many vehicles it will be manufacturing. If the manufacturer intends
to continue manufacturing replica motor vehicle(s), the manufacturer
must also submit information sufficient to establish that their annual
world-wide production, including by a parent or subsidiary of the
manufacturer, if applicable, is not more than 5,000 motor vehicles, and
a statement certifying to that effect, including the total number of
motor vehicles produced by or on behalf of the registrant in the 12-
month prior to filing the registration.
Sec. 586.13 Revocation of registrations.
NHTSA may require registrants to provide information at any time
demonstrating compliance with the requirements of this part. NHTSA may
revoke an existing registration or deny a registration based on a
failure to comply with requirements of this part or a finding of a
safety-related defect or unlawful conduct under 49 U.S.C. Chapter 301
et seq. that poses a significant safety risk. Prior to the revocation
of the registration, NHTSA will provide the registrant a reasonable
opportunity to correct deficiencies, if such are correctable, based on
the sole discretion of NHTSA.
Tables to Part 586
Table 1--Purpose Statements for Inclusion in Consumer Disclosure
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------------------------------------------------------------------------
49 CFR 571.101; Controls and The purpose of this standard is to
displays. ensure that motor vehicle controls,
telltales, and indicators are
accessible, visible, and
recognizable. This is to help users
select the proper controls under
daytime and nighttime conditions to
reduce safety hazards caused by the
diversion of the driver's attention
from the driving tasks, and
mistakes in selecting controls.
49 CFR 571.102; Transmission shift The purpose of this standard is to
position sequence, starter specify the requirements for the
interlock, and transmission transmission shift position
braking effect. sequence, a starter interlock, and
for braking effect of automatic
transmissions, to reduce the
likelihood of shifting errors, to
prevent starter engagement by the
driver when the transmission is any
driver position, and to provide
supplemental braking at speeds
below 40 kilometers per hour (25
miles per hour).
49 CFR 571.103; Windshield The purpose of this standard is to
defrosting and defogging systems. specify requirements for windshield
defrosting and defogging systems.
49 CFR 571.104; Windshield wiping The purpose of this standard is to
and washing systems. specify requirements for windshield
wiping and washing systems.
49 CFR 571.105; Hydraulic and The purpose of this standard is to
electric brake systems. insure safe braking performance
under normal and emergency
conditions by specifying
requirements for hydraulic and
electric service brake systems, and
associated parking brake systems.
[[Page 822]]
49 CFR 571.106; Brake hoses....... The purpose of this standard is to
reduce deaths and injuries
occurring as a result of brake
system failure from pressure or
vacuum loss due to hose or hose
assembly rupture.
49 CFR 571.108; Lamps, reflective The purpose of this standard is to
devices, and associated equipment. reduce traffic accidents and deaths
and injuries resulting from traffic
accidents, by providing adequate
illumination of the roadway, and by
enhancing the conspicuity of motor
vehicles on the public roads so
that their presence is perceived
and their signals understood, both
in daylight and in darkness or
other conditions of reduced
visibility.
49 CFR 571.110; Tire selection and The purpose of this standard is to
rims and motor home/recreation specify requirements for tire
vehicle trailer load carrying selection to prevent tire
capacity information for motor overloading and motor home/
vehicles with a GVWR of 4,536 recreation vehicle trailer load
kilograms (10,000 pounds) or less. carrying capacity information.
49 CFR 571.111; Rear visibility... The purpose of this standard is to
reduce the number of deaths and
injuries that occur when the driver
of a motor vehicle does not have a
clear and reasonably unobstructed
view to the rear.
49 CFR 571.113; Hood latch system. The purpose of this standard is to
establish the requirement that each
passenger car, multipurpose
passenger car, truck and bus
provides a hood latch system or
hood latch systems.
49 CFR 571.114; Theft protection The purpose of this standard is to
and rollaway prevention. decrease the likelihood that a
vehicle is stolen or accidently set
in motion.
49 CFR 571.116; Motor vehicle The purpose of this standard is to
brake fluids. reduce failures in the hydraulic
braking systems of motor vehicles
which may occur because of the
manufacture or use of improper or
contaminated fluid.
49 CFR 571.118; Power-operated The purpose of this standard is to
window, partition, and roof panel minimize the likelihood of death or
systems. injury from accidental operation of
power operated windows, partitions,
and roof panel systems.
49 CFR 571.120; Tire selection and The purpose of this standard is to
rims and motor home/recreation provide safe operational
vehicle trailer load carrying performance by ensuring that
capacity information for motor vehicles to which it applies are
vehicles with a GVWR of more than equipped with tires of adequate
4,536 kilograms (10,000 pounds). size and load rating and with rims
of appropriate size and type
designation and by ensuring that
consumers are informed of motor
home/recreation vehicle trailer
load carrying capacity.
49 CFR 571.121; Air brake systems. The purpose of this standard is to
ensure safe braking performance
under normal and emergency
conditions.
49 CFR 571.122; Motorcycle brake The purpose of this standard is to
systems. ensure safe motorcycle braking
performance under normal and
emergency riding conditions.
49 CFR 571.122a; Motorcycle brake The purpose of this standard is to
systems. ensure safe motorcycle braking
performance under normal and
emergency riding conditions.
49 CFR 571.123; Motorcycle The purpose of this standard is to
controls and displays. minimize accidents caused by
operator error in responding to the
motoring environment, by
standardizing certain motorcycle
controls and displays.
49 CFR 571.124; Accelerator The purpose of this standard is to
control systems. reduce deaths and injuries
resulting from engine overspeed
caused by malfunctions in the
accelerator control system.
49 CFR 571.126; Electronic The purpose of this standard is to
stability control systems. reduce the number of deaths and
injuries that result from crashes
in which the driver loses
directional control of the vehicle,
including those resulting in
vehicle rollover.
49 CFR 571.131; School bus The purpose of this standard is to
pedestrian safety devices. reduce deaths and injuries by
minimizing the likelihood of
vehicles passing a stopped school
bus and striking pedestrians in the
vicinity of the bus.
49 CFR 571.135; Light vehicle The purpose of this standard is to
brake systems. ensure safe braking performance
under normal and emergency driving
conditions.
49 CFR 571.136; Electronic The purpose of this standard is to
stability control systems for reduce crashes caused by rollover
heavy vehicles. or by directional loss-of-control.
49 CFR 571.138; Tire pressure The purpose of this standard is to
monitoring systems. specify performance requirements
for tire pressure monitoring
systems (TPMSs) to warn drivers of
significant under-inflation of
tires and the resulting safety
problems.
49 CFR 571.141; Minimum Sound The purpose of this standard is to
Requirements for Hybrid and reduce the number of injuries that
Electric Vehicles. result from electric and hybrid
vehicle crashes with pedestrians by
providing a sound level and sound
characteristics necessary for these
vehicles to be detected and
recognized by pedestrians.
49 CFR 571.201; Occupant The purpose of this standard is to
protection in interior impact. require that vehicles provide
impact protection to occupants.
49 CFR 571.202a; Head restraints; The purpose of this standard is to
Mandatory applicability begins on reduce the frequency and severity
September 1, 2009. of neck injuries in rear-end and
other collisions by specifying
requirements for head restraints.
49 CFR 571.203; Impact protection The purpose of this standard is to
for the driver from the steering minimize chest, neck, and facial
control system. injuries to the driver as a result
of impact with the steering control
systems.
49 CFR 571.204; Steering control The purpose of this standard is to
rearward placement. reduce the likelihood of chest,
neck, or head injury by limiting
the rearward displacement of the
steering control into the passenger
compartment.
49 CFR 571.205; Glazing materials. The purpose of this standard is to
reduce injuries resulting from
impact to glazing surfaces, to
ensure a necessary degree of
transparency in motor vehicle
windows for driver visibility, and
to minimize the possibility of
occupants being thrown through the
vehicle windows in collisions.
49 CFR 571.206; Door locks and The purpose of this standard is to
door retention components. minimize the likelihood of
occupants being rejected from the
vehicle as a result of impact.
49 CFR 571.207; Seating systems... The purpose of this standards is to
minimize the possibility of seat
failure by forces acting on them as
a result of vehicle impact.
49 CFR 571.208; Occupant crash The purpose of this standard is to
protection. reduce the number of deaths of
vehicle occupants, and the severity
of injuries, by specifying vehicle
crashworthiness requirements in
terms of forces and accelerations
measured on anthropomorphic dummies
in test crashes, and specifying
equipment requirements for active
and passive restraint systems.
[[Page 823]]
49 CFR 571.210; Seat belt assembly The purpose of this standard is to
anchorages. reduce the likelihood that seat
belts will become disconnected from
the vehicle frame during impact by
specifying the location and
strength performance of seat belt
assembly anchorages.
49 CFR 571.212; Windshield The purpose of this standard is to
mounting. reduce crash injuries and
fatalities by providing for
retention of the vehicle windshield
during a crash, thereby utilizing
fully the penetration residence and
injury-avoidance properties of the
windshield glazing material and
preventing the ejection of
occupants from the vehicle.
49 CFR 571.213; Child restraint The purpose of this standard is to
systems. reduce the number of children
killed or injured in motor vehicle
crashes and in aircraft.
49 CFR 571.214; Side impact The purpose of this standard is to
protection. reduce the risk of serious and
fatal injury to occupants, of
passenger cars, multipurpose
passenger vehicles, trucks, and
buses in side impacts by specifying
strength requirements for side
doors, limiting the forces,
deflections and accelerations
measured on anthropomorphic dummies
in test crashes, and by other
means.
49 CFR 571.216; Roof crush The purpose of this standard is to
resistance; Applicable unless a reduce deaths and injuries due to
vehicle is certified to Sec. the crushing of the roof into the
571.216a. occupant compartment in rollover
crashes.
49 CFR 571.216a; Roof crush The purpose of this standard is to
resistance; Upgraded standard. reduce deaths and injuries due to
the crushing of the roof into the
occupant compartment in rollover
crashes.
49 CFR 571.217; Bus emergency The purpose of this standard is to
exits and window retention and minimize the likelihood of
release. occupants being thrown from the bus
and to provide accessible emergency
exits.
49 CFR 571.219; Windshield zone The purpose of this standard is to
intrusion. reduce crash injuries and
fatalities that result from
occupants contacting vehicle
components displaced near or
through the windshield.
49 CFR 571.220; School bus The purpose of this standard is to
rollover protection. reduce the number of deaths and the
severity of injuries that result
from failure of the school bus body
structure to withstand forces
encountered in rollover crashes.
49 CFR 571.221; School bus body The purpose of this standard is to
joint strength. reduce deaths and injuries
resulting from the structural
collapse of school bus bodies
during crashes.
49 CFR 571.222; School bus The purpose of this standard is to
passenger seating and crash reduce the number of deaths and the
protection. severity of injuries that result
from the impact of school bus
occupants against structures within
the vehicle during crashes and
sudden driving maneuvers.
49 CFR 571.224; Rear impact The purpose of this standard is to
protection. reduce the number of deaths and
serious injuries occurring when
light duty vehicles impact the rear
of trailers and semitrailers with a
GVWR of 4,536 kg or more.
49 CFR 571.225; Child restraint The purpose of this standard is to
anchorage systems. ensure the proper location and
strength for the effective securing
of child restraints, to reduce the
likelihood of the anchorage
systems' failure, and to increase
the likelihood that child
restraints are properly secured and
thus more fully achieve their
potential effectiveness in motor
vehicles.
49 CFR 571.226; Ejection The purpose of this standard is to
Mitigation. reduce the likelihood of complete
or partial ejection of vehicle
occupants through side windows
during rollovers or side impact
events.
49 CFR 571.301; Fuel system The purpose of this standard is to
integrity. reduce deaths and injuries
occurring from fires that result
from fuel spillage during and after
motor vehicle crashes, and
resulting from ingestion of fuels
during siphoning.
49 CFR 571.302; Flammability of The purpose of this standard is to
interior materials. reduce the deaths and injuries to
motor vehicle occupants caused by
vehicle fires, especially those
originating in the interior of the
vehicle from sources such as
matches or cigarettes.
49 CFR 571.303; Fuel system The purpose of this standard is to
integrity of compressed natural reduce deaths and injuries
gas vehicles. occurring from fires that result
from fuel leakage during and after
motor vehicle crashes.
49 CFR 571.304; Compressed natural The purpose of this standard is to
gas fuel container integrity. reduce deaths and injuries
occurring from fires that result
from fuel leakage during and after
motor vehicle crashes.
49 CFR 571.305; Electric-powered The purpose of this standard is to
vehicles: Electrolyte spillage reduce deaths and injuries during
and electrical shock protection. and after a crash that occurs
because of electrolyte spillage
from electric energy storage
devices, intrusion of electric
energy storage/conversion devices
into the occupant compartment, and
electrical shock.
49 CFR 571.401; Interior trunk The purpose of this standard is to
release. require providing a trunk release
mechanism that allows a person
trapped inside the trunk
compartment of a passenger to
escape from the compartment.
49 CFR 571.404; Platform lift The purpose of this standard is to
installations in motor vehicles. prevent injuries and fatalities to
passengers and bystanders during
the operation of platform lifts
installed in motor vehicles.
49 CFR 571.500; Low-speed vehicles The purpose of this standard is to
ensure that low-speed vehicles
operated on the public streets,
roads, and highways are equipped
with the minimum motor vehicle
equipment appropriate for motor
vehicle safety.
------------------------------------------------------------------------
Issued in Washington, DC, on December 12, 2019.
Under authority delegated in 49 CFR part 1.95 and 49 CFR 501.4.
James Clayton Owens,
Acting Administrator.
[FR Doc. 2019-27211 Filed 1-6-20; 8:45 am]
BILLING CODE 4910-59-P