National Highway Traffic Safety Administration
REGISTERED IMPORTER NEWSLETTER

Bulletin No. 11Office of Vehicle Safety ComplianceSeptember 15, 1997

NHTSA - People Saving People

RECALLS


As an RI you must assure that there are no outstanding recalls on vehicles which you are bringing into conformance. Your responsibility however does not end there. You are also responsible for notifying owners of a noncompliance with a safety standard or a safety related defect which is determined after importation. Enclosure 1 will assist you with your responsibilities. Vehicles you imported this year which are affected by recalls are on the enclosed list. A schedule for complying with the referenced requirements for these vehicles is required within 20 days from receipt of this letter.

CANADIAN ELIGIBILITY NUMBERS


This is a reminder that VSA 1 should no longer be used. The new eligibility numbers published in the Federal Register (62 FR 26348) for Canadian imports are:

VSA 80 - passenger cars

VSA 81 - MPVs, trucks and buses with a GVWR less than 4,536 kg

VSA 82 - MPVs, trucks and buses with a GVWR greater than 4,536 kg

VSA 83 - trailers and motorcycles

INFORMATION AVAILABLE ON INTERNET


The following sites contain important information and should be bookmarked:

http://www.nhtsa.dot.gov/cars/
rules/interps/

Interpretations done by NHTSA Chief Counsel.

http://www.nhtsa.dot.gov/cars/
rules/import/

List of Registered Importers, Vehicle Eligibility Numbers.

http://www.access.gpo.gov/
su_docs/aces/aces140.html

Federal Register.

http://www.access.gpo.gov/
cgi-bin/cfrassembe.cgi?title=49

49 CFR.

http://www.nhtsa.dot.gov/cars/
rules/standards/chapt301.html

Chapter 301 of Title 49, U.S. Code.

PREPARATION OF CONFORMANCE PACKAGE


Conformity packages should be prepared in the format shown in enclosure 2. Following this procedure will assure that your submissions have all the required documents. The requirements are different for Canadian vehicles and vehicles imported from a country other than Canada. Your attention is called to the photographic documentation required.

BROKERS


It is recommended that all RIs use brokers who are on the ABI system. This will improve processing time and provide for quicker bond releases. If you do not use a broker on the ABI system your bond releases may take longer.

INCORRECT ABI INFORMATION


When incorrect information is submitted on an ABI entry, your broker should FAX the correct information to the attention of:
Ms. Dee Blodgett
202-366-1024.

ADDRESSES AND TELEPHONE NUMBERS


You are required to notify NHTSA within 30 days of any changes in your address or phone number. If we are unable to contact you by phone at the number listed or by mail at the address listed, we will take measures to suspend or revoke your registration as an RI.

FEES


The fee schedule for next year remains the same. A new fee has been proposed for processing conformity packages. It is anticipated that this fee will be set at $17 per compliance package and that it will take effect some time in October 1997. The fee will apply to all vehicles for which compliance packages are submitted to NHTSA, including vehicles imported from Canada. Renewal of your RI registration should be submitted in September and contain the information required by 49 CFR Part 592. If timely renewal is not made, your registration will be canceled. The current fee schedule follows:

REGISTRATION FEES

RI application fee = $501.

Renewal of registration = $332.

Petition Fees Substantially similar = $199.

Capable of being modified = $721.

Importation of a vehicle covered by a petition or agency initiative = $134.

Processing fee Bond processing = $5.15

PAYMENT OF FEES


All fees may be charged to your Visa or MasterCard. Your account will be charged once a month for all fees incurred during the month. If you are interested please complete the enclosed form and contact
Ms. Dee Blodgett
202-366-5301
for more information.

HIGH THEFT VEHICLES


The final listing of model year 1998 high-theft vehicle lines was published in the Federal Register (62 FR 26348) on July 31, 1997.

ELECTRONIC BOND RELEASE


We have started a pilot program of sending bond release letters by E-mail. If you are interested in receiving your release letters electronically contact:
Ms. Dee Blodgett
202-366-5301

FOUR (4) ENCLOSURES


1. Recalls

2. Conformance Package

3. Credit Card

4. High Theft Vehicle Lines

REFERENCE INFORMATION


FMVSSs


101-Controls and Displays (Insp.)

102-Transmission Shift Lever Sequences, etc. (Insp.)

103-Windshield Defrosting and Defogging

104-Windshield Wiping and Washing

105-Hydraulic Brake System

106-Brake Hoses

107-Reflecting Surfaces (Insp.) CANCELED, May 6, 1996

108-Lamps, etc.

109-Passenger Car (PC) New Pneumatic Tires

110-PC Tire Selection and Rims

111-Rearview Mirrors

112-Headlamp Concealment Devices CANCELED, Oct 24, 1996

113-Hood Latch Systems (Insp.)

114-Theft Protection (Insp.)

115-Vehicle Identification Number (VIN) (Insp.) CANCELED, July 8, 1996

116-Hydraulic Brake Fluids

117-Retreaded Pneumatic Tires (Insp.)

118-Power-Operated Window Systems

119-Trk/Bus New Pneu. Tires

120-Trk/Bus Tire Selection/Rims

121D-Air Brake Systems (Dyno.)

121V-Air Brake Systems (Vehs.)

122-Motorcycle Brake Systems

123-Motorcycle Controls and Displays (Insp.)

124-Accelerator Control Systems

125-Warning Devices

126-Truck-Camper Loading

129-Pass. Car New Non-Pneu. Tires

131-School Bus Pedestrian Safety Devices

135-Pass. Car Brake Systems

201-Occupant Protection in Interior Impact (201U/201P)

202-Head Restraints

203-Impact Protection for the Driver from Steering Control

204-Steering Control Rearward Displacement

205-Glazing Materials (Insp.)

206-Door Locks and Door Retention Components

207-Seating Systems

208-Occ. Crash Protection (208S - Sled)

209-Seat Belt Assemblies

210-Seat Belt Assembly Anchorages

211-Wheel Nuts, Wheel Discs, and Hub Caps (Insp.) CANCELED, June 5, 1996

212-Windshield Mounting

213-Child Restraint Systems

214D-Side Impact Prot. (Dyn)

214S-Side Impact Prot. (Static)

216-Roof Crush Resistance

217-Bus Window Retention and Release

218-Motorcycle Helmets

219-Windshield Zone Intrusion

223-Rear Impact Guards

224-Rear Impact Protection

301-Fuel System Integrity

(Rear, Lateral, School Bus)

302-Flammability of Interior Materials

303-Fuel System Integrity of CNG Vehicles

304-CNG Fuel Container Integrity

REGULATIONS


P541-Theft Prevention Standard

P565-VIN Content Requirements

P566-Manufacturer Identification

P567-Certification Regulation

P568-Vehicles Manufactured in Two or More Stages

P569-Regrooved Tires

P572-Anthropomorphic Test Dummies

P573-Defect and Noncompliance Reports

P574-Tire Identification

P575.103-Truck-Camper Loading

P575.104-Uniform Tire Quality Grading Standards (UTQG)

P577-Defect and Noncompliance Notification

P579-Defect and Noncompliance Responsibility

P581-Bumper Standard

P591-Importation of Vehicles & Equipment Subject to FMVSS

P592-Registered Importers

P593-Determination for Eligibility for Importation of Vehicles

P594-Registered Importer Fee Schedule

 

SAFETY RECALLS


 

Dear Importer:

As a Registered Importer (RI), you are responsible for conducting recalls on vehicles for which you have submitted a statement of conformity if the vehicles have a noncompliance with a safety standard or contain a safety related defect. The requirement of 49 U.S.C. 30120 that remedy shall be provided without charge shall not apply if the noncompliance or safety related defect exists in a motor vehicle whose first sale occurred more than 8 calendar years before notification of the defect or noncompliance was furnished to owners of the affected vehicles. If a safety related defect exists and is attributable to the original manufacturer and not the RI, the requirement for remedy without charge shall not apply to a motor vehicle whose date of first purchase, if known, or if not known, whose date of manufacture as determined by NHTSA, is more than 8 years from the date on which notification was furnished to affected owners.

The National Highway Traffic Safety Administration (NHTSA) has not received the necessary reporting documents that are required by the regulations for vehicles imported by you which have been involved in recall campaigns. The enclosed Safety Recall Compendium provides the necessary guidance for reporting, notification, and remedy of such vehicles. Although you are responsible for all vehicles that you imported, we are only concerned at present with the vehicle(s) on the enclosed list that have been imported since January 1997. Please provide a description of the proposed remedy, how it will be implemented, and your timetable for your completion of the recall. Upon conclusion of the process for these vehicles, we will review prior year importations and identify vehicles which are to be recalled.

Please provide copies of your notification letter as detailed in the Compendium and initiate processing of applicable reporting requirements. Please be aware that notifications furnished for recalled vehicles must include the statement that in the absence of the RI facility being within 50 miles of the owner's mailing address for performance of repairs, such repairs may be performed at a specific facility designated by the RI without charge to the owner.

Please provide a schedule for complying with the referenced requirements within 20 days from receipt of this letter. If you have any questions, please contact Mr. Roy Shannon at (202) 366-5307.

2 Enclosures

 

1. Recall list

2. Recall compendium

Safety Recall Compendium

A Guide for the Reporting, Notification, and Remedy
of
Motor Vehicle and Motor Vehicle Equipment in Accordance with
Title 49 of the United States Code, Chapter 301
and Supporting Federal Regulations

Prepared by the<\P>

Technical Analysis Branch
Office of Defects Investigation
Safety Assurance
National Highway Traffic Safety Administration
U.S. Department of Transportation

Telephone: (202) 366-5227
FAX: (202) 366-7882

2nd Release
August 1996

I. Reporting Requirements

When to Report [49 U.S.C. § 30118 and Part 573.5(b)]

A manufacturer who has determined that a safety defect or noncompliance exists, must report such a determination to NHTSA within 5 working days. The determination may be that the defect or noncompliance exists, at least in some vehicles or items of motor vehicle equipment, while the cause, scope, and remedy may not be known at the time of the determination. Under Part 573.5(b), if part of the information which is required to fully describe the recall (Part 573.5(c)) is unknown, notification to the agency must be made with the existing information. The remaining information can be provided as it becomes available.

Note that motor vehicles or items of motor vehicle equipment containing the safety defect or noncompliance cannot be sold in accordance with 49 U.S.C. § 30112 and 30120, while a manufacturer's petition for a determination that the defect or noncompliance is inconsequential with respect to motor vehicle safety is under consideration.

Who Should Report [49 U.S.C. § 30102 and 30118; Parts 573.3 and 579]

Federal regulation 49 CFR Part 579, "Defect and Noncompliance Responsibility," states that each manufacturer of a motor vehicle shall be responsible for any safety-related defect or any noncompliance determined to exist in a vehicle or in any item of original equipment(1). The manufacturer of an item of motor vehicle equipment in which a safety defect or noncompliance is determined to exist, (1) is responsible for notifying the vehicle manufacturer and (2) with respect to an item of replacement equipment (including tires), has recall responsibility for the safety defect or noncompliance in the equipment.

Federal regulation 49 CFR Part 573, "Defect and Noncompliance Reports," identifies the specific requirements for safety recalls including defect/noncompliance information reports and quarterly status reports.

Part 573.3(f) addresses original equipment manufacturer responsibilities. If an item of original equipment is determined to contain a safety defect or noncompliance and is installed in the vehicles of more than one manufacturer, then the equipment manufacturer must file a defect/noncompliance information report (Part 573.5) with respect to the equipment and each vehicle manufacturer must file a defect/noncompliance information report with respect to its vehicles containing that equipment. Either the vehicle manufacturer or the manufacturer of the equipment containing the defect/noncompliance can conduct the actual recall and submit the required quarterly reports (Part 573.6). In the case where the item of original equipment containing a defect or noncompliance is sold to only one vehicle manufacturer (see Part 573.3(e)), the filing of the defect/noncompliance information report, performance of the recall, and the filing of the quarterly reports by either manufacturer is considered compliance by both. However, if the original equipment manufacturer also sells the item as replacement equipment, then that equipment manufacturer must also file and conduct a recall in accordance with Part 573 for those items of replacement equipment.

This means that a vehicle manufacturer has ultimate responsibility for what is installed in the vehicle. A supplier of the original equipment which may contain either a defect or a noncompliance, can conduct the recall for the vehicle manufacturer. However, if the supplier also sells the item of motor vehicle equipment as replacement parts or assemblies, then that manufacturer must file a Part 573 report and conduct a recall for those items of replacement equipment.

The Defect/Noncompliance Information Report

[49 U.S.C. § 30166, 30118, and 30119 and Part 573.5(c)]

Part 573.5 addresses Defect and Noncompliance Information Reports, which must be filed within 5 working days of a determination by the manufacturer, or its agent, that a defect or noncompliance exists in its vehicles or items of motor vehicle equipment. Key elements of the information report to the agency are the recall population, problem description, chronological summary, remedy, and recall schedule.

Some submitted Defect/Noncompliance Information Reports have typically resulted in follow-up requests for certain additional information, particularly concerning the recall scope, the cause of the defect or noncompliance, the supplier of the recalled component/assembly (if applicable), the remedy, or the remedy schedule. Complete information in these areas is necessary for the agency to reasonably assume that the proposed recall program is complete.

Identifying the Recalling Manufacturer, Importer, Distributor, or Brand Name Owner

Part 573.5(c)(1) specifically requests the full corporate or individual identification of the fabricating manufacturer/brand name/trademark owner of the vehicle or item of motor vehicle equipment being recalled. If the recalled vehicle or item is imported, provide the name and address of the designated agent must be provided, as prescribed by 49 U.S.C. § 30164(a).

New Part 573.5(c)(11) states that the manufacturer's campaign number be provided, if it is not identical to the identification number assigned by NHTSA.

Recall Scope and Application

The scope of the recall, how it was determined, and whether other vehicles or manufacturers may be involved is extremely important. This includes information concerning how the inclusive dates of manufacture and the involved vehicles were determined. If the initial date of the recalled population is the start of production for the vehicle (or item of motor vehicle equipment), then it should be identified as such. In any case, an explanation on how the starting and ending dates of manufacture for the recalled population was determined must be provided.

The agency needs a clear definition of the recalled population. As appropriate, this includes a description of why a particular model or model year vehicle was included, but some other similar vehicle was not.

Part 573.5(c)(2) specifies that the recalled population of vehicles or items of motor vehicle equipment be identified as follows:

  1. Passenger Cars - Furnish the make, model, model year, the inclusive dates (by month and year) the vehicles were manufactured, and the number of vehicles potentially containing the defect or noncompliance for each model vehicle recalled. Furnish any other information as appropriate to describe or distinguish the recalled vehicles. It is requested that the Vehicle Identification Number (VIN) range of the recalled vehicles be provided.
  2. All Other Vehicles - Furnish the make, model (if applicable), bodystyle/type, model year (if applicable), the inclusive dates (by month and year) the vehicles were manufactured, and the number of vehicles potentially containing the defect or noncompliance for each model or applicable vehicle line. Furnish any other information as appropriate to describe or distinguish the recalled vehicles, such as gross vehicle weight rating or class for trucks, displacement (cc) for motorcycles, and number of passengers for buses. Photographs or illustrations may be submitted as appropriate. It is requested that the VIN range of the recalled vehicles be provided.
  3. Motor Vehicle Equipment - Furnish the generic name of the item (i.e. tire, axle, cruise control, etc.), brand or trade name, part number, size and function (where applicable), the inclusive dates (by month and year) the item was manufactured, and the number of items potentially containing the defect or noncompliance for each recalled item series or product line. Furnish any other information as appropriate to describe or distinguish the recalled item or product line.
  4. Motor Vehicle or Motor Vehicle Equipment Containing a Component that contains a defect or noncompliance manufactured by a manufacturer other than the reporting manufacturer, the reporting manufacturer shall identify the component by name, and the manufacturer of the component by name, business address, and telephone number. If the reporting manufacturer does not know the manufacturer of the component, then it shall identify the name, addresses, and telephone number of the entity from which the component was obtained.
  5. In the case of motor vehicle equipment, the manufacturer of the equipment must provide the name, address, and telephone number of every manufacturer that purchases the defective or noncomplying component for use or installation in new motor vehicles or new items of motor vehicle equipment.

The total number of vehicles or items of motor vehicle equipment recalled potentially containing the defect or noncompliance is requested in Part 573.5(c)(3). In addition, Part 573.5(c)(4) asks for the approximate percentage of the total number of vehicles or items of motor vehicle equipment estimated to actually contain the defect or noncompliance shall be provided.

Defect or Noncompliance Condition

Part 573.5(c)(5) specifies that the defect or noncompliance condition be described. The description should include, but not be limited to, a brief summary of the nature (addressing the contributing factors and known causes), physical location of the defect or noncompliance, and the consequence. Photographs or illustrations should be provided where appropriate.

A description of the cause of the defect or noncompliance should allow the agency to ascertain whether the problem may be supplier related, and whether other vehicle manufacturers may also have the same problem. A complete discussion of the cause of the defect or noncompliance is needed in order to determine if the remedy is adequate or applicable.

When the defect/noncompliance is in a particular component or assembly which is (a) supplied by another manufacturer, or (b) that component or assembly is possibly sold to other manufacturers or distributors in virtually the same form and manufacture; all these entities are to be identified.

In the case of a defect: Part 573.5(c)(6) specifies that a chronological summary (including dates) of all the principle events that were the basis for the determination of the defect be provided. The summary should include, but not be limited to, the number of reports, consumer complaints, accidents, injuries, fatalities, and warranty claims.

With respect to a noncompliance: Part 573.5(c)(7) specifies that the test results or other data (including dates) on which the manufacturer determined the existence of the noncompliance be provided.

Remedy Development

A description of the manufacturer's program for remedying the defect or noncompliance is required under Part 573.5(c)(8). A full description of what the remedy is, how the remedy will be implemented, and how the remedied vehicle or item of motor vehicle equipment can be distinguished from the recalled motor vehicle or item of motor vehicle equipment be necessary. If the motor vehicle or item of motor vehicle equipment is still manufactured at the time of the recall, identify and describe the production remedy if the production remedy is different than the field fix.

It is the manufacturer's responsibility to insure that the recall remedy will perform satisfactorily, both as installed and in-service. As such, the agency is concerned with how the remedy, or the durability of the remedy, was established. In noncompliance recalls involving performance, testing to demonstrate compliance is likely to be requested.

For motor vehicles: 49 U.S.C. § 30116 requires that a vehicle manufacturer provide the parts and instructions necessary to remedy new vehicles in dealer or distributor inventory as soon as possible. 49 U.S.C. § 30120 requires that once notified that a new vehicle in the dealer's possession contains a safety-related defect or noncompliance, a dealer cannot sell the vehicle until the defect or noncompliance is remedied.

For items of motor vehicle equipment: 49 U.S.C. § 30116 requires that manufacturers immediately offer to repurchase all unsold inventory of distributor and dealer/retailer stock which may contain a safety defect or noncompliance. 49 U.S.C. § 30120 requires that once notified that a new item of equipment in the dealer's possession contains a safety-related defect or noncompliance, a dealer cannot sell the item of equipment until the defect or noncompliance is remedied.

Recall Schedule

Under Part 573.5(c)(8)(ii), the manufacturer is to provide the estimated date on which it will begin sending notifications to owners that there is a safety-related defect or noncompliance that the remedy without charge will be available, and the estimated date on which it will have completed such notification. If a manufacturer subsequently becomes aware that either the beginning or the completion date reported to the agency will be delayed by more than 2 calendar weeks, it shall promptly advise the agency of the delay, including the reasons for the delay, and a revised estimate.

It is preferred that a recalling manufacturer provide a recall schedule for the public notification and remedy campaign which includes the approximate, or actual date, of the principle events (e.g., when the remedy will be developed. obtain parts sufficient to begin the campaign, develop the owner notification list of names and address, develop the dealer notice, develop owner notification letter, notify dealers, distributors and retailers of recall, notify owners, notify media, follow-up owner notification, etc.). The schedule should also clearly identify how the notification campaign implementation plan is to be conducted, i.e., nationally and uniformly, phased, or some other permutation. If the implementation plan for the public notice campaign is other than national and uniform, the basis for the particular implementation plan should be fully explained.

Part 573.5(c)(8)(iii) states that if a manufacturer intends to file a petition for an exemption from the recall requirements of Title 49 U.S.C. Chapter 301 on the basis that a defect or noncompliance is inconsequential as it relates to motor vehicle safety, it shall notify NHTSA of that intention in its report to NHTSA of the defect or noncompliance under this section. In addition, paragraph (iv) states that if a manufacturer notifies NHTSA of its intention to file a petition for inconsequentiality as it relates to motor vehicle safety, and does not do so within the 30-day period described in Part 49 CFR Part 556.4(c), the manufacturer must submit the information required by Part 573.5(c)(8)(ii), the estimated dates for the public notification and remedy campaign, no later that the end of the referenced 30-day period.

Notices and Communications

Part 573.5(c)(10) requires that a manufacturer submit a copy of its proposed owner notification letter, written in accordance with 49 CFR Part 577, "Defect and Noncompliance Notification," to the Office of Defects Investigation (ODI) no fewer than five Federal government business days before it intends to begin mailing it to owners. The letter can be submitted by any means which permits the manufacturer to verify promptly that the copy of the proposed letter was received by ODI. For efficacy, we recommend that the letter be submitted in draft by FAX [(202) 366-7882]. The letter will be reviewed and the manufacturer notified immediately.

Part 573.5(c)(9) specifies that a representative copy of all notices, bulletins, and other communications that relate directly to the defect or noncompliance and which are sent to more than one manufacturer, distributor, dealer/retailer, or purchaser are to be furnished to NHTSA. The representative copies are to be submitted to the ODI not later than 5 days after they are first sent to manufacturers, distributors, dealers/retailers, or purchasers. The representative copies of notifications or communications are to consist of all initial and/or subsequent communications actually sent by any means, including draft, intermediate, and final notifications or communications. The submissions should include printed copies (or transcripts) of all communications regardless of the media used to transmit the information.

Please note that submission of documents pertaining to a safety recall in accordance with Part 573.5(c)(9) are to be submitted separately and in reference to NHTSA's assigned safety recall number. This is in addition to the requirements of Part 573.8 where all manufacturer communications with owners, dealers, and distributors must be submitted to ODI on a monthly basis.

Comments on the Defect/Noncompliance Information Report

In summary, a complete Information Report should provide sufficient information for ODI to assess whether the scope and application of the recall is appropriate, whether the problem possibly includes other vehicles or items of motor vehicle equipment, and the adequacy of the public notification and remedy campaign. If necessary, a follow inquiry can be initiated to obtain the information.

Note that a Defect/Noncompliance Information Report does not contemplate a prior investigative file with NHTSA. The recall file and the investigative file are two separate entities with different file retention systems and different NHTSA identification codes. The information provided and required for recalls which have been the subject of an agency investigation is the same information which must be provided for those recalls which do not have an investigative file.

Defect/Noncompliance Information Report Guide

To assist manufacturers with the development of Defect/Noncompliance Information Reports, the office has developed a series of Defect/Noncompliance Information Report Guides or forms which can be used either to report a defect or noncompliance, or as a guide in developing such a report. The guides are available for vehicles, equipment, and tire recalls. Appendix B is a representative Defect/Noncompliance Information Report Guide which should be appropriate for that aspect of the automotive industry with which your company is involved according to our records.

How and to Whom [49 CFR Part 573.9]

All required reports should be submitted to:

Associate Administrator for Safety Assurance(2)
(NSA-01)
National Highway Traffic Safety Administration
400 7th Street, SW
Washington, DC 20590

Whenever possible, the document should also be faxed to (202) 366-7882 to the attention of Mr. Jon White, Chief, Technical Analysis Branch. Draft documents or items of concern can similarly be faxed in or discussed with Mr. White or Mrs. Pat Wallace at (202) 366-5227.

NHTSA Receipt and Acknowledgement

Upon receipt of the Defect/Noncompliance Information Report, ODI will assign a unique safety recall identification number to the recall. This information will be communicated to the manufacturer immediately by fax. Shortly thereafter, ODI will send a formal, written acknowledgement letter providing the identification number and additional information on the scheduling of the recall. If necessary, the letter will also request additional information or identify specific concerns ODI may have with the proposed recall.

The recall is summarized and entered into the ODI data system which is accessible to the public through the Auto Safety Hotline (800-424-9393) or the Technical Reference Division (202-366-2768). NHTSA issues a monthly news release which briefly summarizes the recalls that were filed during the preceding month. Manufacturers wishing consideration for an exemption are advised to request consideration in a separate letter accompanying the Defect or Noncompliance Report, describing the basis for the exemption or postponement.

Petitions for Inconsequentiality Determination [49 CFR Part 556]

A manufacturer that has determined that a safety defect or noncompliance with an FMVSS exists in certain motor vehicles or items of equipment, and has filed a Defect/Noncompliance Information Report to NHTSA, has the option of petitioning the agency for a determination of inconsequentiality. The petition must be filed within 30-days from the date of the determination of a safety defect or noncompliance. A determination of inconsequentiality means that the defect or noncompliance is inconsequential as it relates to motor vehicle safety. Such a conclusion allows the manufacturer to be exempted from the statute's notification and remedy requirements for motor vehicles or items of motor vehicle equipment identified in the Defect/Noncompliance Information Report. However, any additional production after the inclusive dates identified in the Defect/Noncompliance Information Report must be remedied or otherwise not contain the defect or noncompliance. Only rulemaking (such as provided in 49 CFR Part 552, "Petition for Rulemaking, Defect, and Noncompliance Orders") can change the requirements of a FMVSS.

Note that motor vehicles or items of motor vehicle equipment containing the safety defect or noncompliance cannot be sold pursuant to 49 U.S.C. § 30112 and 30120, while a manufacturer's petition for a determination that the defect or noncompliance is inconsequential with respect to motor vehicle safety is under consideration.

II. Recall Remedy

The remedy for the recall must involve both the inventory of recalled, but unsold vehicles or items of motor vehicle equipment, and the production of vehicles or items of motor vehicle equipment (if still produced). If the remedy provided for the product already distributed or sold is different than the production remedy, the production remedy must be fully described in the Defect/Noncompliance Information Report.

A manufacturer can remedy a defect or noncompliance by refunding, replacing, or repairing the product. Refunds are to be for the purchased price, less reasonable depreciation for use. Replacements are to be for a comparably valued product. When the product is remedied, the remedy must be timely and performed without charge. The performance and/or compliance of the remedy should be established prior to implementing the remedy campaign. The manufacturer must insure an effective parts supply so that the product can be remedied as soon as possible.

If the remedy involves a repair or replacement, the manufacturer is expected to have established not only the suitability of the remedy when the repair is made, but also the durability of the remedy when the vehicle or item of motor vehicle equipment is used.

Since the underlying purpose of a safety recall is to minimize the safety risk, it is important to maximize the effectiveness and timeliness of the recall. Vehicles and items of motor vehicle equipment that are subject to a recall, but not as yet sold to consumers, should be removed from sale as quickly as possible. As specified in 49 U.S.C. § 30112, 30116, and 30120, the recalled product cannot be sold until remedied.

With respect to motor vehicle recalls, manufacturers should encourage their franchise dealers to insure that the manufacturer's used vehicles have all applicable recall work completed before resale to the public.

It is suggested that for recalls in which the replacement or repair is critical, the manufacturer develop an easily visible marking/identification scheme for the repaired/replaced component or assembly. This will allow the manufacturer, dealer, purchaser, and owners to readily determine whether the recalled item has been replaced or repaired. Also, consideration should be given to packaging the corrected components/assemblies, as well as the remedial parts, distinctly to assist service personnel in insuring only correct parts are used.

Finally, many manufacturers use a gummed label to attach to the vehicle, or item of motor vehicle equipment, to denote that the recall remedy work was completed. Generally each label is color coded and contains the manufacturer's recall code, the dealer code for the dealer completing the recall, and the date of the recall. NHTSA would recommend that the label also include the manufacturer's toll-free telephone number, the NHTSA assigned recall identification number, and the NHTSA toll-free Hotline number (1-800- 424-9393).

ODI monitors the performance and effectiveness of all safety recalls and will take immediate action to correct any potential problems that arise during the conduct of the recall.

III. Public Notification and Remedy Campaign

[49 U.S.C. § 30119; Part 577]

Recalled Vehicles and Equipment in Inventory

It is imperative that manufacturers notify distributors, dealers, retailers, and other purchasers of the recall as soon as possible to insure that the product is not sold prior to remedy. 49 U.S.C. § 30116 requires that the manufacturer or distributor shall repurchase any item of motor vehicle equipment in the inventory of the manufacturer, distributor, dealer, or retailer which contains a safety defect or noncompliance prior to sale to the public. 49 U.S.C. § 30116 also requires that the manufacturer or distributor repurchase or repair any motor vehicle in the inventory of manufacturer, distributor, or dealer which contains a safety defect or noncompliance prior to sale to the public. 49 U.S.C. § 30112 prohibits the sale of any motor vehicle or item of motor vehicle equipment which fails to conform to all applicable Federal motor vehicle safety standards. 49 U.S.C. § 30120 prohibits the sale by a dealer to the public of any motor vehicle or item of motor vehicle equipment which might contain a safety-related defect until the defect is remedied. 49 U.S.C. § 30165 imposes a civil penalty of up to $1,000 per violation, not to exceed $800,000 for any related series of violations.

Public Notification: Press releases and other media

In preparing for the safety recall, the manufacturer should consider issuing a press release describing the nature, scope, and remedy. A press release is strongly encouraged whenever a number of consumers may benefit. The press release should be appropriate to the market and/or demographics of the consumers. There are instances where a specific media market is appropriate rather than a national news release. A press release is particularly appropriate whenever the public would benefit from the information, such as when a remedy will not be available for some time, but in the interim there are steps an owner can take to avoid the likelihood of the defect/noncompliance from occurring or alleviate the consequences. Similarly, a press release is important in reaching owners of vehicles and items of motor vehicle equipment which may not be registered or otherwise known to the manufacturer.

Contacting Unregistered Owners of Motor Vehicle Equipment

When a recall involves items of replacement equipment, it has been found that notification to specific owners is extremely limited because the owners are not registered and are not otherwise known to the manufacturers. In these instances it appears that point-of-sale posters and other media comparable to the approaches and techniques used to originally market the item, are appropriate. This procedure is similar to that employed by the Consumer Product Safety Commission, the Food and Drug Administration, and other agencies where owners are largely unknown. The information conveyed should be simple, short, and clear. The information should include: a declaration that the product manufactured or distributed by the

manufacturer is involved in a safety campaign; a clear identification of the recalled product; a statement describing the remedy and the procedure for obtaining the remedy; and the toll- free telephone numbers of the manufacturer and the Auto Safety Hotline. The consumer can then contact the manufacturer (or if necessary, NHTSA) for further information on the recall and how to obtain the remedy.

A number of manufacturers have adopted some form of the poster. Included in Appendix C are sample posters and a general guideline for the development of such posters. Before any poster is printed or distributed, the should poster be provided to NHTSA in draft for comment first.

While a poster is generally developed for the point-of-sale, there are instances where distribution to where owners are likely to be found, such as doctor's offices for child seats, may be appropriate as well.

Toll-Free Telephone Numbers

The agency believes that a toll free number for consumers to call to identify themselves to the manufacturer as owners of the recalled product and to receive aid in attaining the recall remedy is invaluable to the success of a safety recall, particularly recalls involving unregistered owners. The toll free number can be provided to owners and purchasers through press releases and other media.

Dealer Notice of Recall

Besides advising the dealer personnel of how to technically remedy the recall condition or to advise on the administrative reporting of the recall work, the dealer notice (most often a technical service bulletin) also should advise the dealer of its responsibilities in a safety recall. Dealers, retailers, distributors and non-retail purchasers are prohibited from selling defective or noncomplying vehicles or items of motor vehicle equipment until the defect or noncompliance is remedied. A dealer can be fined up to a $1,000 per vehicle for each violation. It is up to the recalling manufacturer to notify dealers, retailers, distributors, and purchasers. Appendix C provides sample language that, combined with a copy of the owner notification letter (written in accordance with Part 577) has been successful in conveying these responsibilities.

Defect and Noncompliance Notification to Purchasers

When a manufacturer has decided that a defect or a noncompliance exists in vehicles or items of motor vehicle equipment of its manufacture or import pursuant to 49 U.S.C. § 30118 the manufacturer is also required to notify owners, purchasers, and dealers in accordance with 49 U.S.C. § 30119.

49 U.S.C. § 30119 specifies the minimal information which must be provided: (1) a clear description of the defect; (2) an evaluation of the risk to motor vehicle safety; (3) a statement of the measures to be taken to obtain the remedy; (4) a statement that the defect/noncompliance will be remedied without charge; (5) a statement of the earliest date on which the defect/noncompliance will be remedied; and (6) a description of the procedure to be followed by the recipient of the notification in informing the Secretary (NHTSA Administrator) whenever a manufacturer, distributor, or dealer fails or is unable to remedy without charge such defect or failure to comply. The procedure must clearly state that if an owner is unable to have the defect/noncompliance remedied without charge within a reasonable amount of time, the owner can notify:

Administrator
National Highway Traffic Safety Administration
400 Seventh Street, SW
Washington, DC 20590

or call the toll free Auto Safety Hotline at 1-800- 424-9393 (Washington, DC area residents may call 202-366-0123).

49 U.S.C. § 30119 requires that such notification be furnished within a reasonable amount of time after the manufacturer first determines the defect or noncompliance condition.

49 U.S.C. § 30119 describes the notification requirements to purchasers and dealers for motor vehicles, tires, and items of motor vehicle equipment. Note that for motor vehicles, notification is to be made to registered owners determined from state motor vehicle registration records, augmented with corporate records. Notifications to purchaser's are by First Class mail, notifications to dealers and the Secretary/NHTSA are to be by certified mail. However, 49 U.S.C. § 30119 specifies that dealers are to be notified by certified mail or other more expeditious means. A safety recall campaign in accordance with Chapter 301 of Title 49 U.S.C., is to be conducted throughout the United States, Guam, Panama Canal Zone, the Virgin Islands, American Samoa, and Puerto Rico.

Approval of Owner Notification Envelopes

Part 577.5(a) states that the manufacturer shall mark the outside of each envelope in which it sends an owner notification letter with a notation that includes the words "SAFETY", "RECALL", and "NOTICE" all in capital letters and in type that is larger than that used in the address section, and is also distinguishable fro the other type in a manner other than size. Each manufacturer must submit the envelope format it intends to use to NHTSA at least 5 Federal government business days before mailing to owners. Once an envelope format has been approved by NHTSA, samples of the envelope do not have to be re-submitted (unless the manufacturer wishes to change the envelope format).

Federal regulation 49 CFR Part 577, entitled "Defect and Noncompliance Notification," specifically refers to notification to purchasers, owners, and lessees where the manufacturer or the NHTSA Administrator has determined a defect or noncompliance exists in the manufacturer's vehicles or items of motor vehicle equipment. The intent of notifying owners and purchasers of vehicles or items of motor vehicle equipment which contains a defect or noncompliance condition is to inform them of the condition and its consequences and to describe the corrective action. The notification is also intended to "effectively motivate" the owner/purchasers/lessees to have their vehicle or item of motor vehicle equipment inspected and corrected as soon as possible.

The first sentence of the notification letter is prescribed in Part 577.5(b) and must be used verbatim. The language and form of the second sentence of the letter is specified by Part 577.5(c) and is provided for both defect and noncompliance type notifications. The appropriate sentence must be selected and provided to owners and purchasers verbatim.

Part 577.5(g)(1) requires that the manufacturer identify to the owner/purchaser its program for remedying the defect/noncompliance condition without charge. The description of the program must include the earliest date when the remedy can be made (both instructions and parts availability) and a general description of the actual remedy. Where the remedy involves repairing the vehicle or item of motor vehicle equipment, a description must be provided of the repair work and time required to perform the work. Where the remedy is to replace the vehicle or equipment item, a description of the replacement must be provided. Where the remedy involves refunding the purchase price of the vehicle or equipment item less depreciation, a description of how the depreciation was assessed must be given.

Part 577.5(g)(1)(vii) requires that the manufacturer inform the owner/purchaser that a complaint can be submitted to the NHTSA Administrator if the manufacturer has failed or is unable to remedy the defect/noncompliance condition without charge or within a reasonable amount of time.

Under certain conditions, a manufacturer is not required to provide remedy without charge, such as if the vehicle or equipment was first purchased more than 8 years before the recall. In such instances, the manufacturer must meet the requirements of Part 577.5(g)(2).

Under Part 577.8, a manufacturer's notification letter cannot include any statement or implication that there is no defect or noncompliance condition or that the condition does not exist in the owner's vehicle or item of motor vehicle equipment. Also, with respect to a safety defect, the manufacturer cannot state or imply that the defect does not relate to motor vehicle safety.

Appendix C contains sample safety recall notification documents.

Leased Vehicles

The Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) requires that lessors have the responsibility of notifying lessees. Therefore, in accordance with Part 577.5(i), a vehicle manufacturer conducting a safety recall must notify lessors that of their obligation to provide a copy of the owner notification letter to each vehicle lessee. The lessor must notify the lessee by first class mail within a reasonable time from receipt of their owner notification letter from the manufacturer; both for initial notification and all subsequent notification.

IV. Recall Monitoring and Performance

Quarterly Status Reports [49 CFR Part 573.6]

A quarterly status report is required to be submitted on each safety recall campaign beginning with the calendar quarter in which owner notification begins. The quarterly status report is required to be submitted on the 30th day of the month following the end of each calendar quarter (--April 30th, July 30th, October 30th, and January 30th).

Quarterly status reports will be required from the quarter the notification begins through 6 consecutive quarters after all owners are notified. As a matter of policy, recalls in which owner notifications begin within the last 15 calendar days of the end of the third month of each quarter, will be requested to provide an additional quarterly report.

Pre-delivery type recalls in which all recalled vehicles or items of motor vehicle equipment have not been sold to retail owners, will require at least one report. If any of the recalled items are sold to a retail customer, a notification and remedy campaign in accordance with the statute and Part 577 will be required as well as additional quarterly reports.

Owner notification is generally expected to occur within 30 days of determination of a defect or from the date a remedy is developed. Notification is expected to be conducted uniformly and nationally. If for some reason a public notification campaign is not conducted uniformly or nationally, the manufacturer must inform the agency when describing the remedy program in accordance with Part 573.5(c)(8).

Draft quarterly reports or items of concern can similarly be faxed to (202) 366-7882 or discussed with Mr. Jon White or Mr. Bill Lewis at (202) 366-5227.

Quarterly Status Report Guide

Appendix D is a Quarterly Report Guide which summarizes the information required in Part 573.6, "Quarterly Reports." For cross reference purposes, in addition to providing the agency's assigned recall campaign code, it is requested that manufacturers provide their company's recall campaign code (if applicable) which corresponds to NHTSA recall code. There is no obligation to follow the guide, however, the Quarterly Report Guide outlines information that this office will review for evaluation of the recall performance.

In addition, Part 573.6(b)(6) for manufacturer's of motor vehicle equipment, including tires, requires the manufacturer to report on the number of recalled items returned or retrieved from inventory for corrective action prior to sale.

The number of vehicles or items of motor vehicle equipment determined to be unreachable for the campaign is to be provided as prescribed in Part 573.6(b)(5): exported, stolen, scrapped, did not receive notification, or other identified reason.

Continued Responsibility

A manufacturer is responsible for the remedy of the defect or noncompliance regardless of mileage, ownership, or age of the recalled product.

Recordkeeping and Maintenance [Part 573.7]

Each manufacturer must maintain a list of the names and addresses of owners of the items involved in the recall. The list is to include the vehicle identification number (or tire identification number, or equipment serial number, as appropriate) and the recall status for each vehicle (or tire or item of motor vehicle equipment, as appropriate). For vehicles and items of motor vehicle equipment, the list must be maintained for 5 years after owners are notified. For tires, the list must be maintained for 3 years.

For items of motor vehicle equipment which are not uniquely identified by serial number or similar coding, the purchaser (distributors, dealer/retailers, and other purchasers) list must include the number of items sold to each purchaser and the date of shipment. The list shall show, as far as is practical, the number of items remedied or returned to the manufacturer and the dates of such remedy or return.

NHTSA Monitoring and Audits

The agency closely monitors the performance and effectiveness of each safety recall. Consumer complaints as well as review of the quarterly status reports, are used to assess recalls. Unresolved problems are investigated for identification and resolution.

A manufacturer may be requested to renotify owners of motor vehicles or items of equipment that have not been reported having the recall work performed. The scope, timing, form, and content of such follow-up notification will be established by NHTSA in consultation with the manufacturer, to maximize the number of owners, purchasers, and lessees who will present their vehicles or items of equipment for remedy. A renotification letter in general, will comply with all the requirements of the initial notification, except as determined by NHTSA. Consideration towards motivating owners and purchasers to present their vehicles or items of equipment for remedy is encouraged. NHTSA may authorize the use of other media, besides first class mail, for follow-up notification. [new Part 577.10]

Should a recall remedy or notification appear to be unreasonable or unresponsive, the agency can conduct a public hearing under 49 U.S.C. § 30118 and 30120 to investigate whether the manufacturer has reasonably met its obligation to notify (49 U.S.C. § 30118 and 49 CFR Part 577) and to provide a remedy (49 U.S.C. § 30120).

NHTSA audits a number of recalls each year to verify the reported performance and recall process of each recall. An audit will typically involve an information request to the manufacturer for specific information on the recall, as well as to request owner names and addresses and the reported recall remedy status of each recalled item involved in the recall. A follow-up survey of owners, and possibly dealers, will generally complete the audit.

NHTSA Consumer Complaints

The agency provides a copy of all consumer complaints on a recall to the recalling manufacturer. Unresolved problems or potential trends will likely result in an ODI inquiry. Also, owners are typically advised of their ability to petition the agency if they believe the manufacturer has not met the requirements of Chapter 301 of Title 49 U.S.C. with respect to notification or remedy. It is to everyones advantage to resolve problems early and quickly, before NHTSA's attention is demanded.

In Conclusion

After over 6,000 safety recalls involving millions of motor vehicles and items of motor vehicle equipment have occurred since the National Traffic and Motor Vehicle Safety Act was first signed. Hence, ODI believes that the notion of a recall is well established in the consumer's mind. A safety recall need not be regarded as a negative factor. How quickly and comprehensive a safety recall is conducted can have a strong influence on the consumer's sense of security, satisfaction, and attitude about the manufacturer and the recalled product. There is evidence to show that a successful safety recall program and a successful company, from the customer's viewpoint, are not inseparable.

PREPARATION OF VEHICLE CONFORMANCE PACKAGE
- OTHER THAN CANADIAN VEHICLES -

8-97

FORMS:

  • Declaration (HS-7)
  • DOT Bond (591.5f)
  • Insurance Policy
  • Owner's Contract (if required)
  • Owner's Power of Attorney (if required)
  • Confirmation sheet on recall check
  • Confirmation on High Theft Vehicle Line
  • Statement of Conformity
  • Cover letter from RI enclosing forms, photos, and fees.

PHOTOS: (Place under forms) (items 10-18)

  • Manufacturer and RI labels, including label stating location of manufacturer's label, VIN label on dash, tire & rim data label, and off-road vehicle label Use a 35 mm camera with a Macro lens to make photos large enough so the VIN is the entire photo.
  • Outside of Vehicle (¾ Front-Driver's side, and ¾ Rear-Passenger's Side)
  • Passive Restraints for Driver

and Passenger (if needed)

  • Substantially similar petition

Modifications needed to bring vehicle into conformance

Capable of being modified petition

First vehicle

Conformance with all applicable standards

After first vehicle

Modifications needed to bring vehicle into conformance

  • High theft VIN photos on parts (see note d)

NOTES:

  • Staple forms with one staple in top left and right corners of page with flat side of staple on outside of folder. Tape photos.
  • Any other documentation should be placed under form No. 4.
  • Passive Restraints - All passenger cars built on or after 9/1/89 must have passive restraints that are the same as U.S. comparison vehicle.
  • High theft vehicles must have VIN inscribed on parts prior to entry into the U.S. Manufacturer should be contacted for location of where to mark each part. High theft list is updated annually.

FEES:

Charged on Visa or MasterCard, or check made payable to U.S. Treasury.

PREPARATION OF VEHICLE CONFORMANCE PACKAGE
- CANADIAN VEHICLES -

8-97

FORMS:

  • Declaration (HS-7)
  • DOT Bond (591.5f)
  • Insurance Policy
  • Owner's Contract (if required)
  • Owner's Power of Attorney (if required)
  • Confirmation sheet on recall check
  • Confirmation on High Theft Vehicle Line
  • Statement of Conformity
  • Cover letter from RI enclosing forms, photos, and fees.

PHOTOS: (Place under forms) (items 10-18)

  • Manufacturer and RI labels, VIN label on dash Use a 35 mm camera with a Macro lens to make photos large enough so the VIN is the entire photo.
  • Speedometer
  • Passive Restraints for Driver and Passenger (if needed)
  • Outside of Vehicle (¾ Front-Driver's side)
  • High theft VIN photos on parts (see note e)

NOTES:

  • Staple forms with one staple in top left and right corners of page with flat side of staple on outside of folder. Tape photos.
  • Any other documentation should be placed under form No. 4.
  • Passive Restraints - All passenger cars built on or after 9/1/89 must have passive restraints that are the same as U.S. comparison vehicle.
  • Odometer must be marked "km" to indicate distance is in kilometers if the major scale on the speedometer is KPH
  • High theft vehicles must have VIN inscribed on parts prior to entry into the U.S. Manufacturer should be contacted for location of where to mark each part. High theft list is updated annually.

FEES:

Charged on Visa or MasterCard, or check made payable to U.S. Treasury.

RI Credit Card Authorization Form

Visa
 
Master Card
 
Date:
 

Card Holders Name:
 

Card Number:
 

Expiration Date:
 

Authorized User 1:
 


 
(Print)(Signature)
Authorized User 2:
 


 
(Print)(Signature)
 
 

RI Approval Number:
 

RI Name:
 

Phone Number:
 

Fax Number:
 

Address:
 

 
 

Fill out this form to use Visa or Master Card to pay the fees for your compliance packages, petitions, and/or RI renewals. Complete this form and make reference to it each time you want to use the card. Once completed you will need to notify us when the expiration date changes, an authorized user is no longer authorized, the card is canceled, stolen, or you change credit cards.

High Theft Listing - 62 FR 26348 published July 31, 1997

1. 1Original Equipment: an item of motor vehicle equipment which was installed in or on a motor vehicle at the time of its delivery to the first purchaser.

2. 2The current Associate Administrator for Safety Assurance is Mr. Kenneth W. Weinstein