Document ID: NHTSA-2016-0065-0016
Agency: nhtsa
Document Type: Notice
Title: Defect and Noncompliance Notification and Reporting
Posted Date: 2023-10-26T04:00Z

[Federal Register Volume 88, Number 206 (Thursday, October 26, 2023)]
[Notices]
[Pages 73636-73640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23639]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[U.S. DOT Docket Number NHTSA-2016-0065]

Defect and Noncompliance Notification and Reporting

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

ACTION: Notice and request for comment on the reinstatement of a 
previously approved collection of information.

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SUMMARY: The National Highway Traffic Safety Administration (NHTSA) 
invites public comments about our intention to request approval from 
the Office of Management and Budget (OMB) for the reinstatement of a 
previously approved information collection. Before a Federal agency can 
collect certain information from the public, it must receive approval 
from OMB. Under procedures established by the Paperwork Reduction Act 
of 1995, before seeking OMB approval, Federal agencies must solicit 
public comment on proposed collections of information, including 
extensions and reinstatement of previously approved collections. This 
document describes a collection of information for which NHTSA intends 
to seek OMB approval.

DATES: Comments must be submitted on or before December 26, 2023.

ADDRESSES: You may submit comments identified by the Docket No. NHTSA-
2016-0065 through any of the following methods:
     Electronic submissions: Go to the Federal eRulemaking 
Portal at http://www.regulations.gov. Follow the online instructions 
for submitting comments.
     Fax: (202) 493-2251.
     Mail or Hand Delivery: Docket Management, U.S. Department 
of Transportation, 1200 New Jersey Avenue SE, West Building, Room W12-
140, Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through 
Friday, except on Federal holidays.
    Instructions: All submissions must include the agency name and 
docket number for this notice. 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 
below.
    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 association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (65 FR 19477-78) or you may visit https://www.transportation.gov/privacy.
    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 via internet.

FOR FURTHER INFORMATION CONTACT: For additional information or access 
to background documents, contact Jeremy Gunderson, Recall Management 
Division (NEF-107), [email protected], National Highway Traffic 
Safety Administration, U.S. Department of Transportation, 1200

[[Page 73637]]

New Jersey Avenue SE, Washington, DC 20590.

SUPPLEMENTARY INFORMATION: Under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501 et seq.), before an agency submits a proposed 
collection of information to OMB for approval, it must first publish a 
document in the Federal Register providing a 60-day comment period and 
otherwise consult with members of the public and affected agencies 
concerning each proposed collection of information. The OMB has 
promulgated regulations describing what must be included in such a 
document. Under OMB's regulation (at 5 CFR 1320.8(d)), an agency must 
ask for public comment on the following: (a) 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; (b) 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; (c) how to enhance 
the quality, utility, and clarity of the information to be collected; 
and (d) 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. In compliance with these requirements, NHTSA 
asks for public comments on the following proposed collection of 
information for which the agency is seeking approval from OMB.
    Title: Defect and Noncompliance Notification and Reporting.
    OMB Control Number: 2127-0004.
    Form Number(s): N/A.
    Type of Request: Reinstatement of a previously approved information 
collection.
    Type of Review Requested: Regular.
    Requested Expiration Date of Approval: 3 years from date of 
approval.
    Summary of the Collection of Information: This notice requests 
comment on NHTSA's proposed reinstatement of a previously approved 
collection of information, designated as OMB No. 2127-0004. This 
collection covers the information collection requirements found within 
various statutory provisions of the Motor Vehicle Safety Act of 1966 
(Act), 49 U.S.C. 30101, et seq., that address and require manufacturer 
notifications to NHTSA of safety-related defects and failures to comply 
with Federal Motor Vehicle Safety Standards (FMVSS) in motor vehicles 
and motor vehicle equipment, as well as the provision of particular 
information related to the ensuing owner and dealer notifications and 
free remedy campaigns that follow those notifications. The sections of 
the Act imposing these requirements include 49 U.S.C. 30118, 30119, 
30120, and 30166. Many of these requirements are implemented through, 
and addressed with more specificity in, 49 CFR part 573, Defect and 
Noncompliance Responsibility and Reports (Part 573) and 49 CFR 577, 
Defect and Noncompliance Notification (Part 577).
    Pursuant to the Act, motor vehicle and motor vehicle equipment 
manufacturers are obligated to notify, and then provide various 
information and documents to, NHTSA when a safety defect or 
noncompliance with FMVSS is identified in products they manufactured. 
See 49 U.S.C. 30118(b) and 49 CFR 573.6. Manufacturers are further 
required to notify owners, purchasers, dealers, and distributors about 
the safety defect or noncompliance. See 49 U.S.C. 30118(b), 30120(a); 
49 CFR 577.7, 577.13. Manufacturers are required to provide to NHTSA 
copies of communications pertaining to recall campaigns that they issue 
to owners, purchasers, dealers, and distributors. See 49 U.S.C. 
30166(f); 49 CFR 573.6(c)(10).
    Manufacturers are also required to file with NHTSA a plan 
explaining how they intend to reimburse owners and purchasers who paid 
to have their products remedied before being notified of the safety 
defect or noncompliance and explain that plan in the notifications they 
issue to owners and purchasers about the safety defect or 
noncompliance. See 49 U.S.C. 30120(d) and 49 CFR 573.13. Manufacturers 
are further required to keep lists of the respective owners, 
purchasers, dealers, distributors, lessors, and lessees of the products 
determined to be defective or noncompliant and involved in a recall 
campaign, and are required to provide NHTSA with a minimum of eight 
quarterly reports and three annual reports reporting on the progress of 
their recall campaigns. See 49 U.S.C. 30118and 49 CFR 573.7.
    The Act and part 573 also contain numerous information collection 
requirements specific to tire recall and remedy campaigns. These 
requirements relate to the proper disposal of recalled tires, including 
a requirement that the manufacturer conducting the tire recall submit a 
plan and provide specific instructions to certain persons (such as 
dealers and distributors) addressing that disposal, and a requirement 
that those persons report back to the manufacturer certain deviations 
from the plan. See 49 U.S.C. 30120(d) and 49 CFR 573.6(c)(9). The 
regulations also require that manufacturers report to NHTSA intentional 
and knowing sales or leases of defective or noncompliant tires.
    49 U.S.C. 30166(n) and its implementing regulation found at 49 CFR 
573.10 mandate that anyone who knowingly and willfully sells or leases 
for use on a motor vehicle a defective tire or a tire that is not 
compliant with FMVSS, and with actual knowledge that the tire 
manufacturer has notified its dealers of the defect or noncompliance as 
required under the Act, is required to report that sale or lease to 
NHTSA no more than five working days after the person to whom the tire 
was sold or leased takes possession of it.
    Description of the Need for the Information and Proposed Use of the 
Information: This information is necessary to enable NHTSA to 
administer, monitor, and enforce the legal, statutory, and regulatory 
requirements identified above. These requirements are intended to 
ensure the safety of the motoring public through the proper and timely 
notification and remedy of defective or noncompliant motor vehicles and 
motor vehicle equipment.
    Affected Public: Businesses or individuals.
    Estimated Number of Respondents: NHTSA receives reports of defect 
or noncompliance from roughly 240 manufacturers per year. Accordingly, 
we estimate that there will be approximately 240 manufacturers per year 
filing defect or noncompliance reports and completing the other 
information collection responsibilities associated with those filings.
    In summary, we estimate that there will be a total of 240 
respondents per year associated with OMB No. 2127-0004.
    Frequency: As circumstances necessitate.
    Estimated Burden: NHTSA previously estimated an annual burden of 
64,966 hours associated with this collection (of which 456 hours was 
contemplated for conducting supplemental recall communications under 
administrative activities. We continue to estimate a small burden of 2 
hours annually in order to set up a manufacturer's online recalls 
portal account with the pertinent contact information and maintaining/
updating their account information as needed. We estimate this will 
require a total of 480 hours annually (2 hours x 240 MFRs).
    Our prior estimates of the burden hours and cost associated with 
the requirements currently covered by this

[[Page 73638]]

information collection require adjustment as follows.
    Based on current information, we estimate 240 distinct 
manufacturers filing an average of 976 part 573 Safety Recall Reports 
each year. This is a change from our previous estimate of 988 part 573 
Safety Recall Reports filed by 249 manufacturers each year. In 
addition, with reference to the metric associated with NHTSA's Vehicle 
Identification Number (VIN) Look-up Tool regulation, see 49 CFR 573.15, 
we continue to estimate it takes the 17 major passenger vehicle 
manufacturers (those that produce more than 25,000 vehicles annually) 
additional burden hours to complete these Reports to NHTSA, as explored 
in more detail below. See 82 FR 60789 (December 22, 2017). Between 2017 
and 2021, the major passenger vehicle manufacturers conducted an 
average of 355 recalls annually.
    We continue to estimate that maintenance of the required owner, 
purchaser, dealer, and distributors lists requires 8 hours a year per 
manufacturer. We also continue to estimate it takes a major passenger 
vehicle manufacturer 40 hours to complete each part 573 Safety Recall 
notification report to NHTSA, and it takes all other manufacturers 4 
hours. Accordingly, we estimate the annual burden hours related to the 
reporting to NHTSA of a safety defect or noncompliance for the 17 major 
passenger vehicle-manufacturers to be 14,200 hours annually (355 
notices x 40 hours/report), and that all other manufacturers require a 
total of 2,484 hours annually (621 notices x 4 hours/report) to file 
their notices. Thus, the estimated annual burden hours related to the 
reporting to NHTSA of a safety defect or noncompliance is 17,164 hours 
(14,200 hours + 2,484 hours) + (240 MFRs x 8 hours to maintain 
purchaser lists).\1\
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    \1\ For more information about how we derived these and certain 
other estimates, please see 81 FR 70269 (October 11, 2016).
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    We continue to estimate that an additional 40 hours will be needed 
to account for major passenger vehicle manufacturers adding details to 
Part 573 Safety Recall Reports relating to the intended schedule for 
notifying its dealers and distributors and tailoring its notifications 
to dealers and distributors in accordance with the requirements of 49 
CFR 577.13. An additional 2 hours will be needed to account for this 
obligation in other manufacturers' Safety Recall Reports. This burden 
is estimated at 15,442 hours annually (621 notices x 2 hours/
notification) + (355 notices x 40 hours/notification).
    49 U.S.C. 30166(f) requires manufacturers to provide to the Agency 
copies of all communications regarding defects and noncompliances sent 
to owners, purchasers, and dealerships. Manufacturers must index these 
communications by the year, make, and model of the vehicle as well as 
provide a concise summary of the subject of the communication. We 
continue to estimate this burden requires 3 hours for each vehicle 
recall for the 17 major passenger vehicle manufacturers, and 30 minutes 
for all other manufacturers for each vehicle recall. This totals an 
estimated 1,375.5 hours annually (355 recalls x 3 hours for the 17 
major passenger vehicle manufacturers) + (621 recalls x .5 for all 
other manufacturers).
    In the event a manufacturer supplied the defective or noncompliant 
product to independent dealers through independent distributors, that 
manufacturer is required to include in its notifications to those 
distributors an instruction that the distributors are then to provide 
copies of the manufacturer's notification of the defect or 
noncompliance to all known distributors or retail outlets further down 
the distribution chain within five working days. See 49 CFR 
577.7(c)(2)(iv). As a practical matter, this requirement would only 
apply to equipment manufacturers, since vehicle manufacturers generally 
sell and lease vehicles through a dealer network, and not through 
independent distributors. We have estimated the burden associated with 
these notifications (identifying retail outlets, making copies of the 
manufacturer's notice, and mailing) to be 5 hours per recall campaign. 
Assuming an average of 3 distributors per equipment item, which is a 
liberal estimate given that many equipment manufacturers do not use 
independent distributors, the total number of burden hours associated 
with this third-party notification requirement is approximately 1,290 
hours per year (86 recalls x 3 distributors x 5 hours).
    As for the burden linked with a manufacturer's preparation of and 
notification concerning its reimbursement for pre-notification 
remedies, we continue to estimate that the preparation of a 
reimbursement plan takes approximately 4 hours annually. We also 
continue to estimate that an additional 1.5 hours per year is spent by 
the 17 major passenger vehicle manufacturers adapting the plan to 
particular defect and noncompliance notifications to NHTSA and adding 
tailored language about the plan to a particular safety recall's owner 
notification letters, whereas an additional .5 hours per year is spent 
on this task by all other manufacturers. And we continue to estimate 
that an additional 12 hours annually is spent disseminating plan 
information, for a total of 4,827 annual burden hours ((249 MFRs x 4 
hours to prepare plan) + (355 recalls x 1.5 hours tailoring plan for 
each recall) + (621 recalls x .5 hours) + (249 MFRs x 12 hours to 
disseminate plan information)).
    The Safety Act and 49 CFR part 573 also contain numerous 
information collection requirements specific to tire recall and remedy 
campaigns, as well as a statutory and regulatory reporting requirement 
that anyone who knowingly and intentionally sells or leases a defective 
or noncompliant tire notify NHTSA of that activity.
    Manufacturers are required to include specific information related 
to tire disposal in the notifications they provide NHTSA concerning 
identification of a safety defect or noncompliance with FMVSS in their 
tires, as well as in the notifications they issue to their dealers or 
other tire outlets participating in the recall campaign. See 49 CFR 
573.6(c)(9). We believe our previous estimate of 12 tire recalls per 
year needs to be adjusted to 11 tire recalls per year to better reflect 
recent data. We continue to estimate that the inclusion of this 
additional information will require an additional two hours of effort 
beyond the subtotal above associated with non-tire recall campaigns. 
This additional effort consists of one hour for the NHTSA notification 
and one hour for the dealer notification for a total of 22 burden hours 
(11 tire recalls a year x 2 hours per recall).
    Manufacturer-owned or controlled dealers are required to notify the 
manufacturer and provide certain information should they deviate from 
the manufacturer's disposal plan. Consistent with our previous 
analysis, we continue to ascribe zero burden hours to this requirement 
since to date no such reports have been provided, and our original 
expectation that dealers would comply with manufacturers' plans has 
proven accurate.
    Accordingly, we estimate 22 burden hours a year will be spent 
complying with the tire recall campaign requirements found in 49 CFR 
573.6(c)(9).
    The agency continues to estimate 1 burden hour annually will be 
spent preparing and submitting reports of a defective or noncompliant 
tire being intentionally sold or leased under 49 U.S.C. 30166(n) and 
its implementing regulation at 49 CFR 573.10.

[[Page 73639]]

    We continue to expect that nine vehicle manufacturers, who did not 
operate VIN-based recalls lookup systems prior to August 2013, incur 
certain recurring burdens on an annual basis. We continue to estimate 
that 100 burden hours will be spent on system and database 
administrator support. These 100 burden hours include: Backup data 
management and monitoring; database management, updates, and log 
management; and data transfer, archiving, quality assurance, and 
cleanup procedures. We continue to estimate another 100 burden hours 
will be incurred on web/application developer support. These burdens 
include: Operating system and security patch management; application/
web server management; and application server system and log files 
management. We continue to estimate these burdens will total 1,800 
hours each year (9 MFRs x 200 hours). We also continue to estimate the 
recurring costs of these burden hours will be $30,000 per 
manufacturer.\2\ Furthermore, we continue to estimate that the total 
cost to the industry from these recurring expenses will total $270,000, 
on an annual basis (9 MFRs x $30,000).
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    \2\ $8,000 (for data center hosting for the physical server) + 
$12,000 (for web/application developer support) = $30,000.
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    Changes to 49 CFR part 573 in 2013 required 27 manufacturers to 
update each recalled vehicle's repair status no less than every 7 days, 
for 15 years from the date the VIN is known to be included in the 
recall. This ongoing requirement to update the status of a VIN for 15 
years continues to add a recurring burden on top of the one-time burden 
to implement and operate these online search tools. We continue to 
estimate that 8 affected motorcycle manufacturers will make recalled 
VINs available for an average of 2 recalls each year and 19 affected 
passenger vehicle manufacturers will make recalled VINs available for 
an average of 8 recalls each year. We believe it will take no more than 
1 hour, and potentially less with automated systems, to update the VIN 
status of vehicles that have been remedied under the manufacturer's 
remedy program. We continue to estimate this will require 8,736 burden 
hours per year (1 hour x 2 recalls x 52 weeks x 8 MFRs + 1 hour x 8 
recalls x 52 weeks x 19 MFRs) to support the requirement to update the 
recalls completion status of each VIN in a recall at least weekly for 
15 years.
    Due to a congressionally-mandated increase in the required number 
of quarterly reports for each recall, the number of quarterly reports 
that track the completion of safety recalls has also increased. Our 
previous estimate of 4,498 quarterly reports received annually is now 
revised upwards to 5,875 quarter reports received annually. We continue 
to estimate it takes manufacturers 1 hour to gather the pertinent 
information for each quarterly report, and 10 additional hours for the 
17 major passenger vehicle manufacturers to submit electronic reports. 
We therefore now estimate that the quarterly reporting burden pursuant 
to 49 U.S.C.A. 30118 totals 6,045 hours ((5,875 quarterly reports x 1 
hour/report) + (17 MFRs x 10 hours for electronic submission)).
    We continue to estimate that 20 percent of part 573 reports will 
involve a change or addition regarding recall components, and that at 
two hours per amended report, this totals 390 burden hours per year 
(976 recalls x .20 = 195 recalls; 195 x 2 = 390 hours).
    Additionally, per the Bipartisan Infrastructure Law (Pub. L. 117-
58, title IV, subtitle B, section 24202), manufacturers are now 
required to submit three (3) annual recall completion rate reports. 
NHTSA estimates that it will receive and average of 316 reports yearly 
from manufacturers. We estimate it takes manufacturers 2 hours to 
complete annual reports, including 1.5 hours to gather pertinent 
information for each report, and .5 hours for the 17 major passenger 
vehicle manufacturers to submit the electronic reports. We therefore 
estimate that the annual reporting burden pursuant to 49 U.S.C. 30118 
totals 632 hours ((316 annual reports x 1.5 hours) + (17 MFRs x .5 
hours for electronic submission)). We continue to estimate that 20 
percent of Part 573 reports will involve a change or addition regarding 
recall components, and that at two hours per amended report, this 
totals 390 burden hours per year (976 recalls x .20 = 195 recalls; 195 
x 2 = 390 hours).
    As to the requirement that manufacturers notify NHTSA in the event 
of a bankruptcy, we expect this notification to take an estimated 2 
hours to draft and submit to NHTSA. We continue to estimate that only 
10 manufacturers might submit such a notice to NHTSA each year, so we 
calculate the total burden at 20 hours (10 MFRs x 2 hours).
    We continue to estimate that it takes the 17 major passenger 
vehicle manufacturers an average of 11 hours to draft their 
notification letters, submit them to NHTSA for review, and then 
finalize them for mailing to their affected owners and purchasers. We 
also continue to estimate it takes 8 hours for all other manufacturers 
to perform this task. Accordingly, we estimate that the 49 CFR part 577 
requirements result in 8,873 burden hours annually (11 hours per recall 
x 355 recalls per year) + (8 hours per recall x 621 recalls per year).
    We previously calculated that about 12 percent of past recalls 
require an interim notification mailing, but recent trends show that 3 
percent of recalls require an interim owner notification mailing. We 
continue to estimate the preparation of an interim notification can 
take up to 10 hours. We therefore estimate that 1,250 burden hours are 
associated with the 60-day interim notification requirement (976 
recalls x .03 = 34 recalls; 34 recalls times 10 hours per recall = 340 
hours).
    As for costs associated with notifying owners and purchasers of 
recalls, to reflect an increase in postage rates, we are revising our 
estimate of the cost of first-class mail notification to $1.53 per 
notification, on average. This cost estimate includes the costs of 
printing and mailing, as well as the costs vehicle manufacturers may 
pay to third-party vendors to acquire the names and addresses of the 
current registered owners from state and territory departments of motor 
vehicles. In reviewing recent recall figures, we determined that an 
estimated 51.4 million letters are mailed yearly totaling $78,642,000 
($1.53 per letter x 51,400,000 letters). The requirement in 49 CFR part 
577 for a manufacturer to notify their affected customers within 60 
days would add an additional $10,223,460 (51,400,000 letters x .03 
requiring interim owner notifications = 1,542,000 letters; 1,542,000 x 
$1.53 = $2,359,260). In total, we estimate that the current 49 CFR part 
577 requirements cost manufacturers a total of $81,001,260 annually 
($78,642,000 for owner notification letters + $2,359,260 for interim 
notification letters = $81,001,260).
    Utilizing these variables, we now estimate an initial annualized 
cost over the next three years of $81,271,260 per year.
    Because of the forgoing burden estimates, we are revising the 
burden estimate associated with this collection. The 49 CFR part 573 
and 49 CFR part 577 requirements found in today's notice will require 
68,837.5 hours each year. Additionally, manufacturers impacted by 49 
CFR part 573 and 49 CFR part 577 requirements will incur a recurring 
annual cost estimated at $81,271,260 total. NHTSA welcomes further 
comment and data on these estimates.
    Public Comments Invited: You are asked to comment on any aspects of 
this

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information collection, including (a) whether the proposed collection 
of information is necessary for the proper performance of the functions 
of the Department, including whether the information will have 
practical utility; (b) the accuracy of the Department's estimate of the 
burden of the proposed information collection; (c) ways to enhance the 
quality, utility and clarity of the information to be collected; and 
(d) ways to minimize the burden of the collection of information on 
respondents, including the use of automated collection techniques or 
other forms of information technology.
    Authority: The Paperwork Reduction Act of 1995; 44 U.S.C. chapter 
35, as amended; 49 CFR 1.49; and DOT Order 1351.29.

Cem Hatipoglu,
Acting Associate Administrator for Enforcement.
[FR Doc. 2023-23639 Filed 10-25-23; 8:45 am]
BILLING CODE 4910-59-P