Interpretation ID: nht92-1.14

DATE: December 23, 1992

FROM: James E. Shlesinger -- Shlesinger, Arkwright & Garvey

TO: Walter Myers -- Office of the General Counsel, NHTSA

TITLE: None

ATTACHMT: Attached to letter dated 3/21/94 from John Womack to James E. Schlesinger (A42; Redbook; Part 575.104), letter dated 12/2/93 from James E. Shlesinger to Walter K. Myers (OCC-9388) and letter dated 2/23/93 from John Womack to James E. Schlesinger

TEXT:

Thank you for sending me the information with respect to safety standards for tires in accord with the National Traffic and Motor Vehicle Safety Act of 1966. Further to our discussions, we request that your office be kind enough to provide us with an opinion as to certain manufacturer and/or tire brand name owner requirements in the areas of treadwear, traction and temperature resistance (UTQG information) as set forth below.

Briefly, by way of background information, Companies A & B manufacture tires for Company C for sale and distribution in Canada. A & B have manufacturing facilities both in Canada and the U.S. It is believed that the tires manufactured for Company C are manufactured in Canada, however there is a possibility that some tires are manufactured in the U.S.

The tires manufactured for C carry C's brand name on them. These tires carry the "DOT" number and the Canadian National Tire Safety Mark which is evidenced by a maple leaf. Canada does not require that UTQG information be molded into the sidewall of the tire or be placed on the paper tread n oral understanding between manufacturers (A & B) and brand name owner (C), if there is an overrun of tires to the extent that C is unable to absorb the volume, then A & B may market and sell the tires in the United States or any other country except Canada. Also, C will not accept blem tires for sale through its stores in Canada. Blem tires would initially be offered for sale to an Associate in Canada, but if the Associate rejected the offer, A & B are free to dispose of these tires as they see fit, which would include sales to the United States.

Over a period of approximately 1 1/2 years, A moved 10,622 tires into the United States with a dollar value of U.S. $ 290,171.00. During the same period, B moved approximately 12,856 tires in the United States with a dollar value of U.S. $ 301,280.00. A's tires were all considered an overrun of tires to the extent that C was unable to absorb the volume. As for B, approximately 4,644 tires shipped into the United States were classified as blem tires.

All of the tires refer to passenger tires and we only request an opinion or information as to the requirements pertaining to passenger tires.

Based on the above facts, our questions are the following:

1. Is it unlawful to import, sell or distribute in the United States tires which do not have the UTQG information on the sidewall of the tire and/or on the paper tread label for the tire?

2. If it is unlawful to import, distribute or sell tires in the United States without said UTQG information, what penalties are imposed on the manufacturer and/or brand name owner?

3. Would any of the exceptions of 49 CFR Section 575.104 (c), apply in this case, and, if so, in what way? Is there any legislative history or interpretation of the meaning of "limited production tires" as noted in this section, and what effects, if any, this limitation might have on the above fact situation?

Thank you for your assistance on this matter. other questions, please contact Mamitation might have on the above fact situation?

Thank you for your assistance on this matter.