# Presentation: 664752

## Supplier’s Declaration of Conformityand the Motor Vehicle Safety Act Conformity Assessment for a Changing Government 

- Rebecca B. MacPherson, Esq.
**National Highway Traffic Safety Administration (NHTSA)**
- December 3, 2001

## Federal Motor Vehicle Safety Act (49 U.S.C. 30101, et seq.)

- Regulation of motor vehicles is effected through compliance with Federal Motor Vehicle Safety Standards (FMVSS)
- FMVSS must be practicable, objective, and meet the need for motor vehicle safety;
- Regulations creating or amending a FMVSS are subject to extensive public notice and comment procedures under the Administrative Procedure Act.

## Prohibition on Manufacturing, Selling, and Importing Noncomplying Motor Vehicles and Equipment (49 U.S.C. 30112)

- An individual (including commercial businesses) may not
- manufacture for sale,
- sell,
- introduce or deliver for introduction in interstate commerce,
- or import into the United States,
-      any motor vehicle (including trailers) or motor vehicle equipment manufactured on or after the date an applicable FMVSS takes effect unless the vehicle or equipment complies with the standard and is certified as complying with the standard.

## Certification Requirements (49 U.S.C. 30115; 49 CFR 567)

- U.S. employs a system of manufacturer self-certification.
- U.S. Government does not conduct testing for manufacturers or certify that a vehicle or piece of motor vehicle equipment meets all applicable FMVSS.
- Either a vehicle manufacturer or a registered importer can certify that a vehicle complies with all applicable FMVSS.

## Certification Requirements (cont)

- All manufacturer certifications must be based on a good faith belief that the certification is not false or misleading in any material respect. This good faith requirement for self-certification forces manufacturers to satisfy themselves that their vehicles comply with all applicable safety standards prior to first retail sale.
- If a vehicle complies with all applicable FMVSS in effect on the date of manufacture, a certification label may be applied to the vehicle.
- All vehicles must have a certification label that is permanently affixed to the vehicle.

## Manufacturer Reporting Requirements (49 CFR 573)

- _Noncompliance information report_ – Must be submitted to NHTSA within 5 working days of either an agency or manufacturer determination that there is a non-compliance.
- _Quarterly reports_ – Must be submitted to NHTSA on a quarterly basis for six consecutive quarters beginning with the quarter when the recall campaign was initiated
- _Lists of purchasers, owners, lessors and lessees_ – Must be maintained by the manufacturer in a form suitable for inspection by NHTSA.
- _Notices, bulletins, and other communications_ – must be submitted to NHTSA.

## Manufacturer Notification Requirements (49 CFR 577)

- When a manufacturer determines a vehicle fails to conform to an applicable safety standard, it must provide notification in the time and manner required by 49 CFR 577.7.
- Manufacturer may not include a disclaimer in the notification letter.
- If, based on the quarterly reports, NHTSA determines a follow-up notification is necessary, it may order the manufacturer to send a follow-up letter.

## Vehicle Recalls

- All noncomplying motor vehicles or motor vehicle equipment must be recalled.
- A recall consists of two parts, notification of the noncompliance to the vehicle owner and a remedy of the defect or noncompliance.
- Majority of recalls are based on a determination by the manufacturer that a vehicle or piece of equipment does not comply with an applicable FMVSS.

## Ways to Remedy a Noncompliance

- Manufacturer of a noncomplying vehicle must remedy the noncompliance at no cost to the vehicle owner unless the vehicle was purchased at least 10 years before the agency determines there is a non-compliance or the manufacturer notified NHTSA that the vehicle is noncompliant.
- The manufacturer may remedy the noncompliance by repairing the vehicle, replacing the vehicle with an identical or reasonably equivalent vehicle, or by refunding the purchase price, minus a reasonable allowance for depreciation.

## Enforcement (49 U.S.C. 30165; 49 CFR 578)

- Civil penalties for failure to comply or failure to attach a certification label to a vehicle that requires such a label may be assessed for up to $5,000 per violation, with a maximum penalty for a related series of violations of $15 million.
- NHTSA may decrease the amount of penalty after considering the size of the affected business and the gravity of the violation.