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[Federal Register Volume 90, Number 3 (Monday, January 6, 2025)]
[Notices]
[Pages 729-731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31753]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2019-0129; Notice 2]

Transamerica Tire Co. Ltd., Grant of Petition for Decision of 
Inconsequential Noncompliance

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

ACTION: Grant of petition.

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SUMMARY: Transamerica Tire Co. Ltd. (Transamerica) has determined that 
certain Transeagle ST tires manufactured by Shandong Yinbao Tyre 
(Yinbao) do not fully comply with Federal Motor Vehicle Safety Standard 
(FMVSS) No. 119, New Pneumatic Tires for Motor Vehicles with a GVWR of 
More than 4,536 kilograms (10,000 pounds) and Motorcycles. 
Transamerica, on behalf of Yinbao, filed a noncompliance report dated 
November 21, 2019. Transamerica petitioned NHTSA on November 25, 2019, 
and amended its petition on April 22, 2021, for a decision that the 
subject noncompliance is inconsequential as it relates to motor vehicle 
safety. This document announces the grant of Transamerica's petition.

FOR FURTHER INFORMATION CONTACT: Jayton Lindley, Office of Vehicle 
Safety Compliance, the National Highway Traffic Safety Administration 
(NHTSA), telephone (325) 655-0547, email [email protected].

SUPPLEMENTARY INFORMATION:

I. Overview

    Transamerica has determined that certain tires manufactured by 
Yinbao do not fully comply with paragraphs S6.5, specifically S6.5(b), 
of FMVSS No. 119, New Pneumatic Tires for Motor Vehicles with a GVWR of 
More than 4,536 kilograms (10,000 pounds) and Motorcycles (49 CFR 
571.119). Transamerica, on behalf of Yinbao, filed a noncompliance 
report dated November 21, 2019, pursuant to 49 CFR part 573, Defect and 
Noncompliance Responsibility and Reports. Transamerica also petitioned 
NHTSA on November 25, 2019, for an exemption from the notification and 
remedy requirements of 49 U.S.C. Chapter 301 on the basis that this 
noncompliance is inconsequential as it relates to motor vehicle safety, 
pursuant to 49 U.S.C. 30118(d) and 30120(h) and 49 CFR part 556, 
Exemption for Inconsequential Defect or Noncompliance.
    Notice of receipt of Transamerica's petition was published with a 
30-day public comment period in the Federal Register (86 FR 64593, 
November 18, 2021). No comments were received. To view the petition and 
all supporting documents log onto the Federal Docket Management System 
(FDMS) website at https://www.regulations.gov/. Then follow the online 
search instructions to locate docket number ``NHTSA-2019-0129.''

II. Tires Involved

    Approximately 9,551 Transeagle ST radial tires, sizes ST235/85R16, 
ST235/80R16, and ST225/90R16, manufactured between September 23, 2017, 
and August 10, 2019, were reported by the manufacturer.

III. Noncompliance

    Transamerica explains that the noncompliance is that the subject 
tires were inadvertently labeled with a Tire Identification Number 
(TIN) that contains an incorrect manufacturer's

[[Page 730]]

code and, therefore, do not meet the requirements specified in 
paragraph S6.5(b) of FMVSS No. 119.
    For the tires that are the subject of this petition, what should be 
a 6 character manufacturer code contains an additional 7th character at 
the end of the labeled sequence, inadvertently producing a 14-character 
TIN instead of a 13-character TIN. Specifically, the subject tires were 
incorrectly marked with the code as ``1BP TTFEFTL'' whereas the 
manufacturer intended to mark the tires as follows:

 ST235/85R16: ``1BP TTFEFT''
 ST235/80R16: ``1BP TFEFTL''
 ST225/90R16: ``1BP TTFEF'' \1\
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    \1\ In its amended petition submitted on April 22, 2021, 
Transamerica acknowledges that this TIN which the manufacturer 
intended to use is also noncompliant because it does not contain six 
symbols as required. Because these tires are included in the scope 
of this petition, NHTSA does not need to further consider this fact 
in its analysis.
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IV. Rule Requirements

    Paragraphs S6.5 and S6.5(b) of FMVSS No. 119 include the 
requirements relevant to this petition. These requirements state that 
each tire shall be marked on one or both sidewalls with the TIN that 
meets the requirements of 49 CFR part 574. The TIN is comprised of 3 
distinct codes totaling 13 characters. The first is the plant code, 
which uses 3 symbols, second is the manufacturer's code using exactly 6 
symbols, and last is the date code, using 4 numbers to represent the 
week and year of production.

V. Summary of Transamerica's Petition

    The following views and arguments presented in this section, ``V. 
Summary of Transamerica's Petition,'' are the views and arguments 
provided by Transamerica and do not reflect the views of the Agency.

Background

    On October 21, 2019, Transamerica received a letter from NHTSA 
explaining that NHTSA's Office of Vehicle Safety Compliance ``has 
received information alleging that at least one of the tires 
manufactured by [Yinbao] and imported by [Transamerica] may not be in 
compliance with [FMVSS] No. 119.'' Accordingly, the letter included a 
``photo showing a labeling failure on the tires branded Transeagle ST 
radial size 235/85R16.'' Specifically, it is alleged that ``[t]he tires 
appear to have an improper 14 character [TIN] instead of the 8-13 \2\ 
character TIN required by FMVSS No. 119.''
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    \2\ NHTSA is clarifying the manufacturer's misunderstanding that 
an 8-13-character TIN would have been acceptable for these tires. 
Because the tires are marked with a 3-symbol plant code instead of a 
2-symbol plant code, the TIN must conform to the 13-character format 
described in 49 CFR part 574.
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    Upon the receipt of NHTSA's inquiry, Transamerica conducted an 
investigation to determine the validity of the allegations and the 
universe of tires affected by such noncompliance. Transamerica found 
that a total number of 9,551 tires branded Transeagle ST radial tires 
size ST235/85R16, ST235/80R16, and ST225/90R16 contained an incorrect 
manufacturer's code in their TIN labels molded on the sidewall of the 
tires.

Manufacturer's Arguments

    Transamerica offers the following views and arguments in support of 
its petition:
    1. Transamerica says that, except for the incorrect manufacturer's 
code, all other information labeled on the tires is correct, including 
the manufacturer's assigned identification mark (typically referred to 
as plant code) as well as the week and year of manufacture (typically 
referred to as date code), and that the Transeagle ST tires otherwise 
comply with all applicable standards.
    2. Both Yinbao and Transamerica state that they are not aware of 
any crashes, injuries, customer complaints, or field reports in 
connection with this noncompliance.
    3. Transamerica claims that the inaccurate manufacturer's code 
would not affect either their or a consumers' ability to identify the 
tires should they be recalled for a performance related noncompliance.
    4. Transamerica states that they have taken measures to ensure that 
the tires can be registered correctly. There is a ``Tire Registration'' 
option on Transamerica's website where consumers can register their TIN 
and contact information. Transamerica has taken steps to ensure that 
the incorrect TINs with the additional characters can also be 
registered for any future recalls or warranty issues.
    5. Transamerica has already corrected the molds at the applicable 
manufacturing plant, such that no additional tires were fabricated with 
the noncompliance. Transamerica stated that they will also improve 
their internal processes to prevent future TIN errors.
    6. Transamerica states that NHTSA has previously granted petitions 
for inconsequential noncompliance where TIN information labels are 
incorrect or missing information and that granting this petition would 
be consistent with NHTSA's prior decisions on petitions involving tires 
labeled with inaccurate TIN information. Transamerica cites the 
following petitions:

 Michelin North America, Inc., Grant of Petition for Decision 
of Inconsequential Noncompliance, 81 FR 76412 (November 2, 2016)
 Cooper Tire & Rubber Company, Grant of Application for 
Decision of Inconsequential Noncompliance, 63 FR 29059 (May 27, 1998)
 Tireco, Inc., Grant of Petition for Decision of 
Inconsequential Noncompliance, 80 FR 66614 (October 29, 2015)
 Cooper Tire & Rubber Company, Grant of Petition for Decision 
of Inconsequential Noncompliance, 71 FR 4397 (January 26, 2006)
 Cooper Tire & Rubber Company, Grant of Petition for Decision 
of Inconsequential Noncompliance, 82 FR 52966 (November 15, 2017).
 Yokohama Tire Corporation, Grant of Petition for Decision of 
Inconsequential Noncompliance, 84 FR 64403 (November 21, 2019).

    Transamerica concludes by again contending that the subject 
noncompliance is inconsequential as it relates to motor vehicle safety 
and asking that its petition to be exempted from providing notification 
of the noncompliance, as required by 49 U.S.C. 30118, and a remedy for 
the noncompliance, as required by 49 U.S.C. 30120, be granted. 
Transamerica's complete petition and all supporting documents are 
available by logging onto the Federal Docket Management System (FDMS) 
website at: https://www.regulations.gov and following the online search 
instructions to locate the docket number listed in the title of this 
notice.

VI. NHTSA's Analysis

    In determining inconsequentiality of a noncompliance, NHTSA focuses 
on the safety risk to individuals who experience the type of event 
against which a recall would otherwise protect.\3\ In general, NHTSA 
does not consider the absence of complaints or injuries when 
determining if a noncompliance is inconsequential to safety. The 
absence of complaints does

[[Page 731]]

not mean vehicle occupants have not experienced a safety issue, nor 
does it mean that there will not be safety issues in the future.\4\ 
Further, because each inconsequential noncompliance petition must be 
evaluated on its own facts and determinations are highly fact-
dependent, NHTSA does not consider prior determinations as binding 
precedent. Petitioners have the burden of persuading NHTSA that the 
noncompliance is inconsequential to safety.
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    \3\ See Gen. Motors, LLC; Grant of Petition for Decision of 
Inconsequential Noncompliance, 78 FR 35355 (June 12, 2013) (finding 
noncompliance had no effect on occupant safety because it had no 
effect on the proper operation of the occupant classification system 
and the correct deployment of an air bag); Osram Sylvania Prods. 
Inc.; Grant of Petition for Decision of Inconsequential 
Noncompliance, 78 FR 46000 (July 30, 2013) (finding occupant using 
noncompliant light source would not be exposed to significantly 
greater risk than occupant using similar compliant light source).
    \4\ See Morgan 3 Wheeler Limited; Denial of Petition for 
Decision of Inconsequential Noncompliance, 81 FR 21663, 21666 (Apr. 
12, 2016); see also United States v. Gen. Motors Corp., 565 F.2d 
754, 759 (D.C. Cir. 1977) (finding defect poses an unreasonable risk 
when it ``results in hazards as potentially dangerous as sudden 
engine fire, and where there is no dispute that at least some such 
hazards, in this case fires, can definitely be expected to occur in 
the future'').
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    NHTSA has evaluated the merits of the inconsequential noncompliance 
petition submitted by Transamerica and grants the petitioner's request 
for an exemption from the notification and remedy requirements of 49 
U.S.C. 30118 and 49 U.S.C. 30120 based on the following:
    1. NHTSA believes, based on information provided by the 
manufacturer, that the tires otherwise meet the performance criteria of 
FMVSS No. 119 and that the subject labeling noncompliance likely has no 
effect on the operational safety and performance of the affected tires.
    2. NHTSA agrees that the additional characters in the TIN do not 
affect the ability of the manufacturer or consumer to identify the 
affected tires in the event of a recall. The agency has also verified 
with the manufacturer that the affected tires with additional 
characters in the TIN may be registered. Transamerica has also ensured 
that any future safety related recalls will include the incorrectly 
marked TIN numbers if needed.
    This grant exempts Transamerica from its obligations under 49 
U.S.C. 30118 and 30120 to provide notification of, and a free remedy 
for, the noncompliance with FMVSS No. 119. However, erroneous TIN 
marking is also a violation of 49 CFR part 574. Grants of petitions for 
inconsequential noncompliance do not absolve entities subject to 
regulations other than the FMVSS from their obligations under those 
regulations. Although NHTSA has chosen not to do so in this instance, 
NHTSA may consider seeking civil penalties in the future for violations 
of part 574 by tire manufacturers and importers.

VII. NHTSA's Decision

    In consideration of the foregoing, NHTSA finds that Transamerica 
has met its burden of persuasion that the subject FMVSS No. 119 
noncompliance in the affected tires is inconsequential to motor vehicle 
safety. Accordingly, Transamerica's petition is hereby granted and 
Transamerica is consequently exempted from the obligation of providing 
notification of, and a free remedy for, that noncompliance under 49 
U.S.C. 30118 and 30120.
    NHTSA notes that the statutory provisions (49 U.S.C. 30118(d) and 
30120(h)) that permit manufacturers to file petitions for a 
determination of inconsequentiality allow NHTSA to exempt manufacturers 
only from the duties found in sections 30118 and 30120, respectively, 
to notify owners, purchasers, and dealers of a defect or noncompliance 
and to remedy the defect or noncompliance. Therefore, this decision 
only applies to the subject tires that Transamerica no longer 
controlled at the time it determined that the noncompliance existed. 
However, the granting of this petition does not relieve tire 
distributors and dealers of the prohibitions on the sale, offer for 
sale, or introduction or delivery for introduction into interstate 
commerce of the noncompliant tires under their control after 
Transamerica notified them that the subject noncompliance existed.

(Authority: 49 U.S.C. 30118, 30120; delegations of authority at 49 
CFR 1.95 and 501.8)

Otto G. Matheke III,
Director, Office of Vehicle Safety Compliance.
[FR Doc. 2024-31753 Filed 1-3-25; 8:45 am]
BILLING CODE 4910-59-P
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