Final Rule

Federal Register / Vol. 73, No. 230 / Friday, November 28, 2008 / Rules and Regulations

PART 571—[CORRECTED]
1. The authority citation for part 571
continues to read as follows:

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Authority: 49 U.S.C. 322, 30111, 30115,
30117, and 30166; delegation of authority at
49 CFR 1.50.

2. Section 571.139 is amended by
adding to S3, in alphabetical order, a
definition of ‘‘Snow tire,’’ and revising
S5.5 to read as follows:

■

§ 571.139 Standard No. 139—New
pneumatic radial tires for light vehicles.

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S3. Definitions.
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Snow tire means a tire that attains a
traction index equal to or greater than
110, compared to the ASTM E–1136
Standard Reference Test Tire when
using the snow traction test as described
in ASTM F–1805–00, Standard Test
Method for Single Wheel Driving
Traction in a Straight Line on Snowand Ice-Covered Surfaces, and which is
marked with an Alpine Symbol
specified in S5.5(i) on at least one
sidewall.
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S5.5 Tire markings. Except as
specified in paragraphs (a) through (i) of
S5.5, each tire must be marked on each
sidewall with the information specified
in S5.5(a) through (d) and on one
sidewall with the information specified
in S5.5(e) through (i) according to the
phase-in schedule specified in S7 of this
standard. The markings must be placed
between the maximum section width
and the bead on at least one sidewall,
unless the maximum section width of
the tire is located in an area that is not
more than one-fourth of the distance
from the bead to the shoulder of the tire.
If the maximum section width falls
within that area, those markings must
appear between the bead and a point
one-half the distance from the bead to
the shoulder of the tire, on at least one
sidewall. The markings must be in
letters and numerals not less than 0.078
inches high and raised above or sunk
below the tire surface not less than
0.015 inches.
(a) The symbol DOT, which
constitutes a certification that the tire
conforms to applicable Federal motor
vehicle safety standards;
(b) The tire size designation as listed
in the documents and publications
specified in S4.1.1 of this standard;
(c) The maximum permissible
inflation pressure, subject to the
limitations of S5.5.4 through S5.5.6 of
this standard;
(d) The maximum load rating and for
LT tires, the letter designating the tire
load range;

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(e) The generic name of each cord
material used in the plies (both sidewall
and tread area) of the tire;
(f) The actual number of plies in the
sidewall, and the actual number of plies
in the tread area, if different;
(g) The term ‘‘tubeless’’ or ‘‘tube
type,’’ as applicable;
(h) The word ‘‘radial,’’ if the tire is a
radial ply tire; and
(i) Alpine Symbol. A tire meeting the
definition of a snow tire as defined in
paragraph S3 may, at the option of the
manufacturer, show the pictograph of a
mountain with a snowflake as shown
below. If the manufacturer chooses to
mark the snow tire with the alpine
symbol, the mountain profile must have
a minimum base of 15 mm and a
minimum height of 15 mm, and must
contain three peaks with the middle
peak being the tallest. Inside the
mountain, there must be a six-sided
snowflake having a minimum height of
one-half the tallest peak.

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3. Section 571.208 is amended by
revising S20.2.1.6.2(g) and
S22.2.1.6.2(h), to read as follows:

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§ 571.208 Standard No. 208; Occupant
crash protection.

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S20.2.1.6.2 * * *
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(g) If the child restraint uses a linear
sliding or ratcheting mechanism that
requires the application of force to
securely install the child restraint,
within 25±5 seconds, apply a 475±25N
force, that has no lateral component,
aligned angularly ±10 degrees with a
parallel plane located within ±100 mm
of the plane formed by the linear
mechanism. Release the force.
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S22.2.1.6.2 * * *
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(h) If the child restraint uses a linear
sliding or ratcheting mechanism that
requires the application of force to
securely install the child restraint,
within 25±5 seconds, apply a 475±25N
force, that has no lateral component,
aligned angularly ±10 degrees with a
parallel plane located within ±100 mm

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of the plane formed by the linear
mechanism. Release the force.
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Issued: November 21, 2008.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
[FR Doc. E8–28096 Filed 11–26–08; 8:45 am]
BILLING CODE 4910–59–P

DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety
Administration
49 CFR Part 574
[Docket No. NHTSA–2008–0187]
RIN 2127–AK11

Tire Registration and Recordkeeping
National Highway Traffic
Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Final rule.
AGENCY:

SUMMARY: In this final rule, we are
amending our tire identification and
recordkeeping regulation to codify
existing interpretations regarding
opportunities for electronic registration
of tire sales and leases and to create new
opportunities for the public to use
electronic means to register new tires.
This regulation requires manufacturerowned tire distributors and dealers to
register the names and addresses of the
people to whom they sell or lease new
tires, and currently specifies the use of
standardized paper forms for this
purpose. It also requires independent
distributors and dealers to provide
purchasers with standardized
registration forms, with the tire
identification number filled in, that they
can complete and mail to the
manufacturer or its designee. Today’s
rule accommodates and facilitates
Internet and other electronic registration
of tires, including voluntary registration
of tires by independent dealers.
DATES: This final rule takes effect
January 27, 2009. Optional immediate
compliance with this final rule is
permitted as of November 28, 2008.
Petitions for reconsideration: Petitions
for reconsideration of this final rule
must be received not later than January
12, 2009.
ADDRESSES: Petitions for reconsideration
of this final rule must refer to the docket
and notice number set forth above and
be submitted to the Administrator,
National Highway Traffic Safety
Administration, 1200 New Jersey
Avenue, SE., Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT: For
non-legal issues, Mr. Jeff Woods,

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Vehicle Dynamics Division, Office of
Vehicle Safety Standards (Telephone:
202–366–6206) (Fax: 202–366–7002).
Mr. Woods’ mailing address is National
Highway Traffic Safety Administration,
NVS–122, 1200 New Jersey Avenue, SE.,
Washington, DC 20590.
For legal issues, Ms. Dorothy Nakama,
Office of the Chief Counsel (Telephone:
202–366–2992) (Fax: 202–366–3820).
Ms. Nakama’s mailing address is
National Highway Traffic Safety
Administration, NCC–112, 1200 New
Jersey Avenue, SE., Washington, DC
20590.
SUPPLEMENTARY INFORMATION:
Table of Contents

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I. Overview
II. Background—Tire Registration
Requirements
III. January 2008 Notice of Proposed
Rulemaking
A. Tires Sold by Independent Tire
Dealers—Alternative Means of Tire
Registration
B. Tires Sold by Dealers Controlled by Tire
Manufacturers—Electronic Tire
Registration
IV. Public Comments and NHTSA’s Response
V. Final Rule
VI. Statutory Basis for the Final Rule
VII. Rulemaking Analyses and Notices
A. Executive Order 12866 and DOT
Regulatory Policies and Procedures
B. Regulatory Flexibility Act
C. National Environmental Policy Act
D. Executive Order 13132 (Federalism)
E. Civil Justice Reform
F. Paperwork Reduction Act
G. National Technology Transfer and
Advancement Act
H. Unfunded Mandates Reform Act
I. Plain Language
J. Regulation Identifier Number
K. Privacy Act

I. Overview
In today’s final rule, we are amending
Part 574, Tire Identification and
Recordkeeping, to codify existing
interpretations regarding opportunities
for electronic registration of tire sales
and leases and to create new
opportunities for the public to use
electronic means to register new tires.
Part 574 requires manufacturer-owned
tire distributors and dealers to register
the names and addresses of the people
to whom they sell or lease new tires,
and currently specifies the use of
standardized paper forms for this
purpose. It also requires independent
distributors and dealers to provide
purchasers with standardized
registration forms, with the tire
identification filled in, that purchasers
can complete and mail to the
manufacturer or its designee.
Under the final rule, we make the
following changes concerning

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registration of tires sold by independent
dealers and dealers owned or controlled
by tire manufacturers:
Independent Tire Dealers
• Use of electronic instead of paper
registration. Dealers may, in lieu of
providing a paper registration form to
the consumer, voluntarily register a tire
by Internet or other electronic means, so
long as such means were authorized by
the tire manufacturer.
• Informing consumers of
opportunities for electronic registration.
If dealers use standardized paper
registration forms, they may use one
that identifies a Web site and/or other
means (e.g., a telephone number)
authorized by the tire manufacturer by
which the consumer could register the
tires instead of mailing in the form.
• Added flexibility in paper
registration. Dealers have the option of
providing to the consumer a mailable
standardized paper registration form
that includes the tire identification
number (TIN) and the dealer’s name and
address (this is the current requirement
set forth in Part 574), or using the same
standardized paper registration form,
but voluntarily completing the form and
registering the tire by sending the form
to the tire manufacturer or its designee.
• Added flexibility in designing paper
registration forms. The figures showing
the standardized paper registration form
are removed from the CFR. Some
requirements that were expressed by
referring to the forms in the regulatory
text are added to the regulatory text, but
the regulation no longer specifies as
many details concerning the format of
the forms.
Dealers Owned or Controlled by Tire
Manufacturers
• Added flexibility in designing paper
registration forms. The regulation
clarifies that dealers owned or
controlled by tire manufacturers may
register tires by electronic means,
consistent with a past agency
interpretation. The figure showing the
form used for these tires is also removed
from the CFR.
This final rule does not impose new
obligations on tire dealers or tire
manufacturers. Instead, it
accommodates and facilitates Internet
and other electronic registration of tires,
including voluntary registration of tires
by independent dealers. The rule also
clarifies that tire manufacturers must
meet requirements concerning retention
of information for registration
information submitted to them by
electronic or other means they
authorize, in addition to that submitted

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to them on the standardized paper
forms.
II. Background—Tire Registration
Requirements
As originally enacted, the National
Traffic and Motor Vehicle Safety Act of
1966 (now codified at Title 49 U.S.C.
Chapter 301 Motor Vehicle Safety) did
not include a requirement for tire
registration. However, in May 1970,
Congress amended the law to mandate
that every tire manufacturer shall
maintain records of the names and
addresses of the first purchaser of tires
produced by that manufacturer.1
NHTSA was given the authority to
establish procedures to be followed by
manufacturers in establishing and
maintaining such records, including
procedures to be followed by
distributors and dealers to assist
manufacturers in securing the names
and addresses of first purchasers. The
names and addresses of purchasers and
lessors are used by a tire or vehicle
manufacturer to contact those people in
the event that the tire manufacturer
must conduct a campaign to recall and
remedy tires that either fail to comply
with an applicable Federal motor
vehicle safety standard or to have a
safety-related defect.
Pursuant to this authority, in a final
rule published in the Federal Register
(35 FR 17257) on November 10, 1970,
NHTSA established the initial tire
identification and recordkeeping
requirements of 49 CFR part 574. The
rule required all tire dealers to record
the name and address of the purchaser
to whom they sold the tire, along with
the dealer’s name and address, and
forward that information to the tire
manufacturer.
However, under the Motor Vehicle
Safety and Cost Savings Authorization
Act of 1982 (Pub. L. 97–331), Congress
amended the Safety Act to mandate that
the obligations of independent
distributors and dealers be limited to
giving ‘‘a registration form (containing
the tire identification number) to the
first purchaser.’’ The tire purchaser
could then mail the form to the tire
manufacturer. Congress also mandated
that NHTSA should prescribe a
standardized registration form and that
tire manufacturers had to ensure that
they gave sufficient copies of these
forms to their dealers.
Congress adopted these amendments
after the House Committee on Energy
and Commerce found in its report on
the 1982 amendments that tire dealers
whose business was owned or
controlled by a tire manufacturer (these
1 Public

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dealers accounted for just under 1⁄3 of
tire sales) registered between 80 and 90
percent of the tires they sold.2 At that
time, however, independent tire dealers,
which accounted for more than 2⁄3 of tire
sales, registered only 20 percent of the
tires they sold.
The changes mandated by the 1982
amendments were established in an
interim final rule published on May 19,
1983 (48 CFR 22572). The regulation
required tire manufacturers to provide
both independent and non-independent
distributors and dealers with
standardized tire registration forms. The
regulation specified the exact content of
the forms given to independent
distributors and dealers, and that no
other information may appear on the
forms.3 When an independent
distributor or dealer sells or leases a tire
to a consumer, the distributor or dealer
must fill in the tire identification
number and its name and address on a
registration form and give the form to
the consumer. The consumer may then
fill in his or her name and address, add
a stamp and mail the form to the
manufacturer or its designee. In a
follow-up final rule published on
February 8, 1984 (49 FR 4755), the
agency made slight revisions to the tire
registration form to improve its clarity
and also reduced the size of the form so
that it could be mailed using post card
postage.
As part of the agency’s
implementation of the Transportation
Recall Enhancement, Accountability,
and Documentation (TREAD) Act (Pub.
L. 106–414) that was enacted on
November 1, 2000, the agency increased
the tire registration record retention
requirements for tire manufacturers
from three years to five years. The
record retention period was extended in
a final rule published in the Federal
Register (67 FR 45822) on July 10, 2002.
III. January 2008 Notice of Proposed
Rulemaking
On January 24, 2008 (73 FR 4157),
NHTSA published in the Federal
Register, a notice of proposed
rulemaking (NPRM) to amend the part
574 tire registration procedures to
facilitate Internet and other electronic
registration of tires by independent tire
dealers. For a full explanation of these
issues, please refer to the NPRM on
pages 4158 through 4161.
Specifically, under our proposal:
• Independent tire dealers could, in
lieu of providing a paper registration
2 H.R. Rep. No. 576, 97th Cong. 2d Sess. 8–9
(1982).
3 July 18, 2003 letter from Jacqueline Glassman to
Ann Wilson of RMA. Letter is available at: http://
isearch.nhtsa.gov/files/onlinetireregistration.html.

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form to the consumer, voluntarily
register a tire by Internet or other
electronic means, so long as such means
were authorized by the tire
manufacturer. These dealers would also
have the option of providing to the
consumer the mailable standardized
paper registration form that includes the
tire identification number (TIN) and the
dealer’s name and address (this is the
current requirement set forth in part
574), or using the same standardized
paper registration form, but voluntarily
completing the form and registering the
tire by sending the form to the tire
manufacturer or its designee.
• The standardized paper registration
form would be permitted to identify a
Web site authorized by the tire
manufacturer at which the consumer
could register the tires instead of
mailing in the form.
• We proposed to remove the figures
showing the standardized paper
registration form from the CFR. Some
requirements that were expressed by
referring to the forms in the regulatory
text would be added to the regulatory
text, but we proposed that the regulation
would no longer specify as many details
concerning the format of the forms.
• We also proposed regulatory text
that would clarify that dealers owned or
controlled by tire manufacturers may
register tires by electronic means,
consistent with a past agency
interpretation. The figure showing the
form used for these tires was also
proposed to be removed.
We stated that our proposal was not
intended to impose new obligations on
tire dealers or tire manufacturers.
Instead, it would accommodate and
facilitate Internet and other electronic
registration of tires, including voluntary
registration of tires by independent
dealers. We noted that we were
proposing a provision that would clarify
that tire manufacturers must meet
requirements concerning retention of
information for registration information
submitted to them by electronic or other
means they authorize, in addition to
that submitted to them on the
standardized paper forms.
The details of our proposal were as
follows:
A. Tires Sold by Independent Tire
Dealers—Alternative Means of Tire
Registration
A number of issues concerning
electronic registration of tires arose
between 2005 and 2007 in connection
with obtaining clearance of tire
registration requirements under the
Paperwork Reduction Act. In a March
21, 2007 (722 FR 1334) Federal Register
notice, we stated that we were

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considering revisions to update 49 CFR
part 574 to allow, to the extent
consistent with the agency’s authority,
for use of electronic and other possible
means of registering new tires at the
point of sale.
The statutory requirements relevant to
independent tire dealers are found at 49
U.S.C. 30117(b)(2)(B), which reads as
follows:
The Secretary shall require each distributor
and dealer whose business is not owned or
controlled by a manufacturer of tires to give
a registration form (containing the tire
identification number) to the first purchaser
of a tire. The Secretary shall prescribe the
form, which shall be standardized for all tires
and designed to allow the purchaser to
complete and return it directly to the
manufacturer of the tire. The manufacturer
shall give sufficient copies of forms to
distributors and dealers.

Given the pre-Internet date of enactment
of the statute, the statutory provision
appears to contemplate a mail-in paper
form (‘‘the manufacturer shall give
sufficient copies of forms to distributors
and dealers’’). Also, the legislative
history (House report 4) refers to forms
that are suitable for mailing and
addressed to the manufacturer or its
designee.
One relevant issue is the effect of
voluntary tire registration by
independent tire dealers on their
obligations under section
30117(b)(2)(B). While the statute
provides for a program in which
purchasers of tires from independent
tire dealers may register their tires by
returning a form to the tire
manufacturer, a 1983 NHTSA letter to
Congressman Timothy Wirth 5
addressed the situation in which
independent tire dealers may wish to
register tires voluntarily for consumers.
Invoking the principles of equitable
interpretation, the agency concluded
that voluntary registration would
partially relieve independent dealers of
their statutory obligations. Under those
principles, a statutory requirement need
not be literally applied in instances in
which the underlying Congressional
intent is otherwise satisfied. More
specifically, the agency stated:
Based on the principles of equitable
interpretation, we believe that an
independent tire dealer or distributor who (1)
registers tires by computer; (2) attaches a
computer-printed invoice containing all of
the information necessary for registration to
a blank standardized registration form; and
(3) furnishes the two documents to the
customer when the tires are purchased; fully
4 H.R.

Rep. No. 97–576, p. 8.

5 February

1983 letter from Diane K. Steed to the
Honorable Timothy E. Wirth. Letter is available at:
http://isearch.nhtsa.gov/gm/83/1983-1.12.html.

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satisfies the tire registration amendments.
* * *

While, as discussed below, we now
believe that this interpretation goes to
some extent beyond what is necessary to
satisfy Congressional intent, we believe
the basic principle is correct. In
particular, if an independent tire dealer
voluntarily registers tires for the
consumer, it serves no purpose to
require the full procedures necessary to
enable consumers to also register those
tires.
Several other issues are whether the
statute can be interpreted to permit the
use of electronic forms in lieu of paper
forms and, assuming that the answer to
that issue is ‘‘yes,’’ the meaning of the
statutory command to ‘‘* * * give a
registration form (containing the tire
identification number) to the first
purchaser * * *’’ in the context of
electronic forms. As to the term ‘‘form,’’
it could be interpreted broadly enough
to include electronic as well as paper
forms, notwithstanding the statutory
language and legislative history
mentioned above that suggests the forms
are to be paper ones.
As to the term ‘‘give,’’ it could readily
be interpreted in the context of the
statute to mean physically provide
either ‘‘take away’’ means of registration
(i.e., mailable form) or means of ‘‘onthe-spot’’ registration (i.e., an in-store
computer terminal accessible to
purchaser). It is not apparent how the
term could be further interpreted to
mean simply inform the purchaser
about the opportunity to use means not
physically present in the dealer’s store
(e.g., use of a computer terminal located
at the purchaser’s home or elsewhere.)
It is even less apparent how such further
interpretation could be given the term
‘‘give’’ given the additional requirement
that the form given the purchaser
‘‘* * * contain the tire identification
number * * *’’
A possible scenario that could be
viewed as meeting all of the statutory
requirements would be one in which the
purchaser was provided access to a
computer at the dealership where the
screen showed the form with the tire
identification numbers already filled in,
and the purchaser could register the
tires with the manufacturer by entering
his or her name and address and
clicking on a button to register the tires.
In preparing the NPRM, we did not
know whether manufacturers and
dealerships would be interested in an
option along these lines, but noted that
we were requesting comments on this
type of approach. We also noted that a
number of approaches for electronic
registration by purchasers would appear

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not to meet these statutory
requirements, but could be viewed as
supplemental means of transmitting tire
registration to manufacturers.
In the NPRM, after discussing the
statutory requirements, we stated our
belief: (1) The regulation must include
a basic procedure consistent with the
statutory requirement that enables
purchasers of tires from independent
tire dealers to register their tires by
returning a form with the TIN already
filled in to the tire manufacturer; (2) the
regulation may provide options under
which an independent tire dealer may
voluntarily register tires for consumers,
in which case the dealer need not meet
the full procedures necessary to enable
consumers to register those tires; and (3)
the regulation may accommodate means
that tire manufacturers may provide for
tire registration (e.g., Internet
registration) that consumers may use
instead of mailing in the form.
Voluntary Registration by Independent
Dealers
After reviewing our 1983
interpretation to Congressman Wirth,
we stated our belief that it went to some
extent beyond what was necessary to
satisfy Congressional intent. In
particular, we stated our belief that
electronic registration of the tires by
independent dealers would satisfy the
statutory requirements, without the
need to provide an additional blank
form to the purchaser. The purpose of
the statutory requirement is to enable
the purchaser to register the tire
purchase with the manufacturer. As
such, if the dealer registers the tires
electronically for the purchaser and
provides a blank form to the purchaser,
confusion could result, since the
purchaser might think there was a need
to submit the paper form to the
manufacturer.
Regarding the statement in the
interpretation that the purchaser be
given a computer-printed invoice with
the information on the tire registration
paper form, we stated our belief that
that statement also exceeds what is
necessary. The tire registration
information is kept by the tire
manufacturer (or its designee). There is
no need for the purchaser to separately
be given that information. Instead of
duplicating the required information on
the invoice given to the purchaser, we
stated our belief that a written statement
on the invoice regarding the registration
of the tires by the dealer would be
sufficient to inform the consumer that
the tires have been registered.
We therefore proposed that
independent tire dealers have the option
of voluntarily electronically registering

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tires with the tire manufacturer. We
noted, however, that whether this
option can be used depended on the tire
manufacturer’s providing a means to
receive this information electronically,
or designating an agent to do so for it.
We stated we were not aware of what
specific means might be used to provide
electronic registration, such as specific
software that identifies tire sales and
then automatically uses the Internet to
transmit the information to the tire
manufacturer or its designee. However,
we stated our belief that many
company-controlled tire dealers have
autonomous systems in place to register
the tires as part of the sales transaction.
Such systems do not require additional
or separate actions by sales personnel to
register the tires. The agency welcomed
additional details on the methods that
are currently in place and also other
methods that might be used, including
how independent tire dealers may be
able to register tires electronically.
Our proposal also included an option
in which independent tire dealers could
use the standardized paper registration
form, but voluntarily complete the form
and register the tires by sending the
form to the tire manufacturer or its
designee.
One issue that arises with
independent dealers being permitted to
register tires voluntarily for consumers
is whether they could charge a separate
registration fee. Tentatively concluding
that this should not be permitted, as it
could discourage registration and cause
confusion, we requested comments on
this issue.
Another issue that arises with
electronic registration of tires is the
security of the information being
transmitted. The proposed regulatory
text would require that electronic
registration be by secure means, e.g., use
of https on the Web. We requested
comments on the need for such a
provision, and whether it should be
more specific. We noted that in
September 2005 we decided not to
include an ‘‘encryption’’ requirement
for electronic registration of child safety
seats.6
We noted that registration by
independent tire dealers would be
voluntary. Nothing in the proposed
rulemaking would require independent
tire dealers to register tires for the
purchaser.
For the new electronic registration
requirements, NHTSA also proposed to
permit the tire manufacturer to
designate a third party to collect or store
the tire registration information. Such
third party designation is currently
6 70

FR 53569, 53572–73, September 9, 2005.

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allowed for the paper registration forms
under 574.7, and we stated we were not
aware of any reason not to extend third
party designation to electronic tire
registration methods.

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Alternative Means of Registration by
Tire Purchasers
Consistent with a 2003 interpretation
letter to RMA, we included in the
proposed regulatory text a provision
stating that tire manufacturers may
voluntarily provide means for tire
registration via the Internet, by
telephone or other electronic means.
Based in part on comments to
NHTSA’s requests for comment to
extend OMB approval for the Part 574
collection of information, we tentatively
concluded that including, at the tire
manufacturer’s option, a Web site
address for purchasers to register tires
could facilitate registration for tire
purchasers, and also improve the
quality of information received by the
tire manufacturer.
We checked several tire
manufacturers’ Web sites, for both
widely-known tire brands and lesserknown tire brands, and found in all but
one case that the tire manufacturers
already have Web site-based tire
registration capability. Inclusion of Web
site registration information would be
performed at the option of the tire
manufacturer. We proposed simple text
to keep information on the form to a
minimum: ‘‘Instead of mailing this form,
you can register online at [insert tire
manufacturer’s Web site address]’’. This
proposed language deviated slightly
from the FMVSS No. 213 Child restraint
systems, text which includes references
to registering online on both sides of the
form, although the text on the mailing
label side of that form is on a part of the
form that is removed prior to mailing.
However, the tire registration form is
not of that design, and much of the form
space is needed for recording the tire
identification numbers. We sought
comments on the proposed text and
location of the optional Web site
registration information.
Other Possible Options for Tire
Registration
We requested comments on whether
the regulation should specify additional
options for registering tires sold by
independent tire dealers that would be
consistent with our statutory authority.
Several options were discussed in the
NPRM at page 4163.
Registration Forms
As discussed above, for tires sold by
independent tire dealers, NHTSA is
required by statute to prescribe a

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standardized tire registration form for
all tires. Specifically, 49 U.S.C.
30117(b)(2)(B) provides ‘‘(t)he Secretary
shall prescribe the form, which shall be
standardized for all tires * * *.’’
The statute provides that tire
manufacturers must give sufficient
copies of the registration forms to
distributors and dealers. Also, Part
574.8 permits distributors and dealers to
use registration forms obtained from
other sources.
Pursuant to the requirement to
prescribe a standardized tire registration
form, NHTSA has adopted requirements
through rulemaking and placed them in
Part 574. The details of some of the
requirements, including size and data
elements, are set in the regulatory text.
The details of certain other
requirements are not set out in the
regulatory text. Instead, the regulatory
text requires that forms conform in
content and format to the forms
depicted in the figures included in Part
574. See 574.7(a)(2).
To promote flexibility, in the NPRM,
we proposed to remove the figures
showing the forms in Part 574. To
ensure that the forms remain
standardized, we proposed to add some
requirements to the regulatory text that
are currently expressed by referring to
the figures, but with fewer details
concerning format. We also proposed to
update the size standards to reflect the
current U.S. Postal Service’s ‘‘Domestic
Mail Manual’’ (Updated 12–6–07) at
Section 6.3 ‘‘Cards Claimed at Card
Rates,’’ that specifies physical standards
that postcards must meet in order to be
eligible for mailing at card rates.
Under our proposal, on the address
side of the form, the following would
continue to be required to be provided:
The name and address of the
manufacturer or its designee, and, in the
upper right hand corner, the statement:
‘‘Affix a postcard stamp.’’
The other side of the form would
continue to include the tire
manufacturer’s name (unless it already
appears on the address side), and the
statement: ‘‘IMPORTANT, In case of a
recall, we can reach you only if we have
your name and address.’’ There would
also continue to be a statement
indicating that sending in the card will
add a person to the manufacturer’s
recall list. However, we proposed that
the regulation no longer specify that the
statement indicate that a person ‘‘must’’
send in the card to be on the recall list,
since manufacturers may provide
alternative means of registering tires.
Under our proposal, if a tire
manufacturer provides a Web site where
its tires can be registered, it may (but is
not required to) include the following

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sentences: ‘‘Instead of mailing this form,
you can register online at [insert tire
manufacturer’s registration Web site
address]’’.
The form would also include the text:
‘‘Do it today.’’
The form would also continue to
include space for recording the tire
identification numbers for six tires.
There would also continue to be
shading to distinguish between areas of
the form to be filled in by sellers and
customers.
As indicated above, under our
proposal, the regulation would no
longer specify as many details
concerning the format of the form.
We requested comments on the
removal of these figures and on what
requirements expressed by reference to
the figures should be added to the
regulatory text.
Registration Rates
We sought comments on the current
registration rates of tires sold by
independent tire dealers. Commenters
were asked to provide information
concerning the total number of such
tires that are sold and the number of
those tires that are currently being
registered by each alternative means,
e.g., the number of tires registered by
returning the paper form, the number
registered using the tire manufacturer’s
Web site, etc. We requested that
commenters provide the specific basis
for any numbers or rates that are
provided. We also requested comments
on how and why these registration rates
may change if the agency adopts the
proposed rule.
B. Tires Sold by Dealers Controlled by
Tire Manufacturers—Electronic Tire
Registration
In the NPRM, we noted that the tire
registration form in Figure 4 of Part 574
is the form that is to be filled out by
company-controlled tire dealers and
returned to the manufacturer upon the
sale of new tires. We noted that we have
no data on the continued use of this
form, or what percentage of companycontrolled dealers continue to use this
form versus submit the registration
information to the tire manufacturer
using electronic means.
We reiterated that we have previously
provided an interpretation letter to the
RMA (July 18, 2003 agency letter)
stating that while company-controlled
dealers are permitted to register tires
electronically:
This interpretation does not relieve nonindependent distributors and dealers from
the requirements of section 574.8(b) that they
themselves record the purchaser’s name and
address, the tire identification number(s) of

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Federal Register / Vol. 73, No. 230 / Friday, November 28, 2008 / Rules and Regulations
the tire(s) sold, and a suitable identification
of themselves as the selling dealer on a tire
registration form and return the completed
forms to the tire manufacturers or their
designees. While we would interpret Part 574
to permit non-independent distributors and
dealers to accomplish these tasks by
electronic means, they may not transfer this
responsibility to consumers.

In the NPRM, we proposed to include
a provision expressly reflecting this
existing option in the Part 574
requirements. Specifically, we proposed
that electronic means be permitted as an
alternative to the paper registration
forms specified in § 574.7(b).
In the NPRM, we also noted that as to
Part 574’s requirements for these forms,
requirements concerning data elements
are set forth in the regulatory text, and
the regulatory text also specifies that the
forms must be similar in format and size
to that in Figure 4. We noted that the
statutory requirement that NHTSA
prescribe a standardized tire registration
form does not apply to ones for tires
sold by dealers controlled by tire
manufacturers.
To promote flexibility, in the NPRM,
we proposed to remove Figure 4
showing the registration forms to be
used. We proposed to add several
requirements currently expressed by
reference to the figure, and leave all
other details to the tire manufacturer.
Under our proposal, the form would
continue to be required to include:
• A statement indicating where the
form should be returned, including the
name and mailing address of the
manufacturer or its designee.
• The tire manufacturers’ logo or
other identification, if the manufacturer
is not identified as part of the statement
indicating where the form should be
returned.
• The statement: ‘‘IMPORTANT;
FEDERAL LAW REQUIRES TIRE
IDENTIFICATION NUMBERS MUST BE
REGISTERED.’’
We sought comments on the removal
of this figure and on what requirements
expressed by reference to the figure
should be added to the regulatory text.

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IV. Public Comments and NHTSA’s
Response
In response to the January 2008
NPRM, NHTSA received comments
from: CIMS; Dealer Tire; the National
Association of Trailer Manufacturers
(NATM); the National Automobile
Dealers Association (NADA); the Rubber
Manufacturers Association (RMA); Ms.
Barbara Sachau; Safety Research and
Strategies, Inc. (SRS); the Small
Business Administration’s (SBA) Office
of Advocacy; Specialty Equipment
Market Association (SEMA); TBC

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Corporation; and the Tire Industry
Association (TIA).
Commenters generally supported our
proposal, with some offering
suggestions they believed would
improve the rule. A number of
commenters urged that we issue the
final rule as soon as possible. While
some commenters raised other issues
about Part 574, none opposed our
proposal.
RMA stated that it fully supports the
proposed changes and urged the agency
to issue the final rule in its entirety, and
as expeditiously as possible. TIA stated
that it enthusiastically supports the
proposed changes. SEMA stated that it
strongly supports the proposed rule.
SBA stated that it ‘‘strongly supports
the proposed rule’’ and did not suggest
any changes to the proposal. SBA stated
that it heard from ‘‘a number of small
businesses representing automobile and
tire dealers who have expressed strong
support for NHTSA’s proposed rule.’’
SBA further stated that the current tire
registration program was nominated ‘‘as
a regulation in need of review and
reform under Advocacy’s new
Regulatory Review and Reform (r3)
Initiative.’’ SBA concluded that while
Part 574 ‘‘was not selected as one of our
final ‘Top 10’ r3 rules for 2008, it likely
would have been if not for NHTSA’s
timely proposed rule that does exactly
what the r3 submitter sought—for
NHTSA to modernize its rule to allow
for Internet registration of tires.’’
NADA generally supported the
proposed rule. It offered three
suggestions. First, tire manufacturers
should be allowed to voluntarily list on
their forms as many electronic filing
methods as they choose (e.g., Web site,
phone, fax, etc.). NADA stated that this
appears to be provided for by proposed
§ 574.7(e), but not by
§ 574.7(a)(2)(iii)(B)(4), which it said
should be revised commensurately.
NADA stated that § 574.8(a)(1)(iii)
should be revised to indicate that
independent tire dealers may
voluntarily register tires by any
electronic manner listed on the form or
by such other means as may be
authorized by a tire manufacturer.
After considering this comment,
NHTSA agrees that tire manufacturers
should be permitted to voluntarily list
on their forms as many electronic filing
methods as they choose, and that
independent tire dealers may
voluntarily register by any electronic
manner listed on the form or by such
other means as may be authorized by a
tire manufacturer. We agree that this
will help maximize the rate of electronic
tire registration. We have amended
§ 574.7(a)(2)(iii)(B)(4) to now read tire

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72363

manufacturers may voluntarily provide
means for tire registration via the
Internet, by telephone, or other
electronic means. If a tire manufacturer
voluntarily provides a Web site or other
means by which its tires can be
registered, it may (but is not required to)
include a sentence listing one or more
such means, beginning with the phrase
‘‘Instead of mailing this form, you can
* * *’’ Example: Instead of mailing this
form, you can register online at [insert
tire manufacturer’s registration Web site
address].
We are amending § 574.8(a)(1)(iii) to
read electronically transmit the
following information on the tire
registration form by any means listed on
the form by the tire manufacturer, or by
such other means as may be authorized
by the tire manufacturer, to the tire
manufacturer or its designee, using
secure means (e.g., https on the Web), at
no charge to the tire purchaser and
within 30 days of the date of sale or
lease:
NADA’s second comment was that
while NHTSA need not mandate that
independent tire dealers inform
purchasers or get their permission
before voluntarily registering on their
behalf, nothing in the final rule should
prevent independent tire dealers from
doing so. NHTSA notes that the final
rule does not prevent independent tire
dealers from doing this.
Third, NADA recommended that to
more ‘‘appropriately distinguish
between the different registration
options, NHTSA should redraft
§ 574.8(a)(1) to read ‘independent
distributor and each independent dealer
selling or leasing new tires to tire
purchasers or lessors (hereinafter
referred to as ‘tire purchasers’) shall
comply with paragraph (a)(1)(i) of this
section. In the alternative, independent
distributors and independent dealers
may elect to voluntarily comply with
paragraphs (a)(1)(ii) or (a)(2)(iii) of this
section.’ ’’
NHTSA has decided not to adopt this
recommendation. We believe the
language proposed in the NPRM is clear
in this area.
In the NPRM,7 we asked whether, if
independent tire dealers voluntarily
registered tires for their customers, they
should be able to charge a separate
registration fee. We tentatively
concluded that this should not be
permitted, as it could discourage
registration and cause confusion. In
response, CIMS and TIA agreed with the
agency and both opposed permitting
fees for independent tire dealers to
voluntarily register tires for their
7 See

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customers. No other comments on this
issue were received. Thus, in this final
rule, we will not permit independent
tire dealers to impose fees for
voluntarily registering tires for their
customers.
Besides its recommendation that
NHTSA not permit independent tire
dealers to charge customers to register
their tires for them, TIA opposed
mandatory installation of computer
terminals in dealer showrooms for use
of consumers to register their tires. TIA,
however, did not object to voluntary
installation of such computer terminals.
In this final rule, we do not require
independent dealers to provide
computer terminals for use of its
customers to register their new tires.
However, nothing in this final rule
prohibits independent dealers from
voluntarily providing such computer
terminals for their customers.
CIMS commented in support of the
proposed changes to Part 574. It further
recommended that in order to avoid
confusion, NHTSA should ‘‘leave no
doubt about the following points’’:
• Tire registration is still the law
• Tire dealers must still provide every
customer with a tire registration form or
• Tire dealers must complete the
registration process electronically on
behalf of the customer.
NHTSA notes that independent tire
dealers will also have the option of
voluntarily completing the paper form
and registering the tire by sending the
form to the tire manufacturer or its
designee. The agency agrees, however,
with CIMS that it is important that
independent tire dealers understand
their responsibilities. We are currently
developing information specifically for
tire dealers similar to what the agency
has now on NHTSA’s Web site: http://
www.nhtsa.dot.gov, for manufacturers.
SRS commented that the ‘‘current
proposal does not do enough to close
the considerable gaps that remain
between tire recordkeeping, consumer
notification in recalls, and the ability of
the tire service professional to capture
recalled tires.’’ It recommended that
NHTSA initiate rulemaking to promote
adoption of Radio Frequency
Identification Tags (RFID). SRS stated
that if embedded in tires, RFIDs could
contain all of the information now in
TINs. When combined with scanners at
service locations and a recall database,
consumers and technicians can easily
determine whether a given tire has been
recalled.
While identification of recalled tires
through RFIDs is an interesting concept,
the agency notes that it could
supplement but not replace tire
registration, given the current statutory

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requirement. Moreover, we note that
there are many issues that would need
to be addressed in order to implement
such a program. Some of the issues
include the need to develop the
technology and the infrastructure to
ensure RFID tags installed in tires from
all manufacturers can be read with a
standard scanner, the availability of
standardized software for the scanner,
and the availability of such scanners at
tire dealers, including gas stations and
car dealerships that sell new tires.
While we decline to initiate rulemaking
in this area, we note that nothing in the
rule prevents tire manufacturers, dealers
and parties such as service centers from
creating networks using RFIDs.
NATM stated that it has no
fundamental objection to and supports
what it called the important reform
included in our proposal, but argued
that in order to materially improve the
effectiveness of future defective tire
safety recall campaigns, the agency
‘‘must totally revamp Part 574.’’ That
organization stated that NHTSA’s
approach overlooks what it referred to
as second-tier recordkeeping
requirements, those impacting the motor
vehicle manufacturer, and in particular,
the trailer manufacturer of light- and
medium-duty trailers. NATM stated:
The absence of coordination between tire
and trailer manufacturers and the lack of
clarity in the rules governing their respective
recordkeeping roles are at the heart of the
problem of second-tier tire record keeping.
To address this fundamental problem
NHTSA must revise Part 574 top to bottom,
redesigning it to facilitate integrating the tire
manufacturers and distributors into the
complete tire recordkeeping chain by
requiring and fostering coordination and
cooperation among all tire suppliers and
customers throughout the OEM chain of
distribution down to the point of sale when
the retail purchaser takes possession of his or
her new motor vehicle, whether automobile,
truck, or trailer.

NATM raised a variety of issues and
made a number of suggestions related to
this general area.
In the January 2008 NPRM, NHTSA
proposed only to change requirements
concerning the means by which
information about the retail customers
of new tires is collected, i.e., to facilitate
electronic registration of tires. We did
not propose to change the basic nature
or scope of Part 574 or requirements
concerning the various responsibilities
of tire manufacturers, dealers, and
distributors, motor vehicle
manufacturers, etc.
Because NATM’s comment addresses
requirements that NHTSA did not
propose to change, its suggestions are
largely outside the scope of this
rulemaking. In its comment, NATM

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cited a statement in the preamble that
the agency intended the scope of the
proposal to be broad. However, in the
sentence immediately preceding that
statement, the agency stated that it was
requesting comments on whether the
regulation should specify additional
options for registering tires sold by
independent tire dealers that would be
consistent with our statutory authority.
Nothing in our proposal indicated that
we were considering totally
‘‘revamping’’ Part 574.
One of NATM’s suggestions was that
we amend § 574.10 to extend the
electronic communication option to
motor vehicle manufacturers. That
section requires motor vehicle
manufacturers to maintain records
concerning tires and purchasers.
However, it does not specify how these
records must be maintained, and thus
does not prevent motor vehicle
manufacturers from using electronic
methods.
While we will consider NATM’s
comment advocating a significant
revision of Part 574 as a suggestion for
future rulemaking, we will not consider
that request as part of this rulemaking.
V. Final Rule
For the reasons discussed above, we
are adopting as a final rule the
requirements we proposed in our
January 2008, with minor adjustments.
As explained in our discussion of the
comments from NADA, we have
amended § 574(a)(2)(iii)(B)(4) and
§ 574.8(a)(1)(iii) in light of its
recommendations. In general, the
commenters to the NPRM agreed with
the proposal. Thus, no other changes
have been made to the regulatory text
proposed in the NPRM.
VI. Rulemaking Analyses and Notices
A. Executive Order 12866 and DOT
Regulatory Policies and Procedures
NHTSA has considered the impact of
this rulemaking action under Executive
Order 12866 and the Department of
Transportation’s regulatory policies and
procedures. This rulemaking action has
been determined not to be significant
under that Executive Order or those
policies and procedures.
In this document, NHTSA amends
Part 574 to permit collection of the
names and addresses of first purchasers
of new tires by Internet and other
electronic means. Nothing in this final
rule requires any tire dealer to use these
new electronic procedures. All
collection of the names and addresses of
first purchasers of new tires may
continue to be collected by the existing
means utilizing paper forms. However,

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we believe that permitting electronic
means of tire registration will increase
the rate of registrations, which will in
turn increase the effectiveness of future
tire recalls and thus improve motor
vehicle safety.
There are some cost impacts
associated with increased registrations
of tires by electronic means. Since the
new options are voluntary, we do not
know the extent to which they will be
utilized by independent tire dealers and
tire manufacturers. However, we are
providing the following analysis to
show the cost impacts.
Increased Registrations by Consumers
Using the Internet
Under today’s final rule, tire
manufacturers can provide, on a
voluntary basis, Internet registration
information on the tire registration form
that is given to purchasers by
independent tire dealers. Consumers
can then register their tires online
instead of filling out the paper form and

mailing it to the tire manufacturer or its
designee. The cost of printing this
information on the form is negligible,
and therefore there is no cost increase
to tire manufacturers that are
responsible for printing the forms and
providing them to independent tire
dealers. However, the tire manufacturers
offering the option of Internet-based tire
registration on their Web sites will incur
some cost to include a registration site.
The agency has found that most tire
manufacturers already have tire
registration sites included on their Web
sites. Web site registration will save
consumers the cost of a postcard postage
stamp, and will save costs for tire
manufacturers because they (or their
designee) will not have to transcribe the
information on the paper forms into a
tire registration database.
In the table which follows, we are
providing estimates of the monetized
costs associated with various rates of
increased tire registration using the
Internet. Under this scenario, paper

72365

forms will continue to be provided to
purchasers, but the additional
registrations will occur via the Internet
rather than by the forms being mailed
in. Therefore, although tire registrations
will increase, mailing and other costs
associated with the paper form will
remain the same. We assume, for
purposes of these estimates, that the
costs associated with the current level of
tire registration will not change. The
additional costs associated with this
scenario will be the time consumers
spend registering tires via the Internet
that they otherwise would not register.
We also assume that because the tire
registration information is collected
using purely electronic means, there is
no additional labor burden for the tire
manufacturer for recordkeeping
associated with these additional
registrations. To monetize the costs of
consumers filling out paper forms or
using the Internet, a labor rate of $14.61
per hour is used.8

CONSUMER COST PROJECTIONS ASSOCIATED WITH INCREASED TIRE REGISTRATIONS WITH CONSUMERS REGISTERING
TIRES USING THE INTERNET
Current tire
registrations

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Consumer Hour Burden Estimates:
Number of Consumers .............................................................................
Total Tire Registrations ............................................................................
Tire Registration Hours ............................................................................
Monetized Costs (Consumer time valued at @ $14.61/Hour) .................

10,000,000
54,000,000
225,000
$3,287,250

Voluntary Registration by Independent
Tire Dealers
Under today’s final rule, independent
tire dealers may voluntarily register tires
for consumers by electronic means, if
this is authorized by the tire
manufacturer. Dealers that do this will
incur additional costs to upgrade their
computer systems, with both initial
startup costs and then costs for periodic
maintenance of the systems. We assume
that many independent tire dealers,
especially the larger ones, already
collect tire purchaser information as
part of the sales process. For these
manufacturers, we believe it may be
possible to upgrade the sales system to
include automatic electronic registration
on behalf of the purchaser. We do not
know the details of how this process
may work, which will be up to the tire
manufacturer and the independent tire
dealers. The process might also include
companies designated by the tire

manufacturers to provide services in
this area. We also do not know what
actual startup and annual costs might be
to independent tire dealers. However,
once these systems are installed, tire
registration rates could be 100 percent
for tires sold through these large
independent dealers. This compares
with overall current registration rates of
10 percent for tires sold through
independent dealers.
The costs associated with voluntary
tire registration by independent tire
dealers will be offset, or partially offset,
by the fact that these dealers will no
longer need to provide paper forms to
consumers, or fill out these forms with
tire identification numbers.
The agency has estimated that there
are a total of 59,000 tire dealers in the
U.S., including 13,000 that are
company-controlled dealers. The
remaining 46,000 tire dealers include

8 The median hourly rate among all occupations,
May 2006, according to the Bureau of Labor

Statistics; see http://www.bls.gov/oes/current/
oes_nat.htm#b00-0000.

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Future tire registrations using internet-based
registration by consumers
10 Percent
increase
11,000,000
59,400,000
247,500
$3,615,975

15 Percent
increase
11,500,000
62,100,000
258,750
$3,780,338

20 Percent
increase
12,000,000
64,800,000
270,000
$3,944,700

20,000 car and truck dealers and 26,000
independent tire dealers.
There are two unknowns for
estimating the cost impacts on
independent tire dealers—how many
independent dealers will voluntarily
upgrade computer systems to register
tires, and what the cost of these
computer systems will be in terms of
initial cost and annual maintenance.
Each year, a number of independent
dealers will install or upgrade computer
systems, and they continue to maintain
their systems in subsequent years. We
assume that an initial installation cost of
providing an upgraded system is $750
and that annual maintenance thereafter
is $200. We do not know whether each
tire manufacturer will work directly
with each independent tire dealer, or
whether third party designees will
provide an interface service for all tire
manufacturers and independent tire
dealers. We note that third party

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designees can provide efficiencies of
having a single contact company that
can be the interface for an independent
tire dealer and multiple tire
manufacturers.

We are providing cost estimates
assuming that 30 percent of
independent tire dealers will participate
in such a voluntary program, with 10
percent beginning the first year (4,600

Startup costs
for computer
systems

Year
2009
2010
2011
2012

.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
and Beyond ........................................................................................................................

Since the final rule establishes
collection of information procedures to
be used entirely at the discretion of the
tire dealer, and the estimated paperwork
burdens of tire dealers electing to use
these procedures are not expected to
exceed $100 million annually, the
agency does not consider this
rulemaking to be ‘‘economically
significant,’’ as defined by E.O. 12866.
Moreover, the impacts are sufficiently
small that the agency has not prepared
a full regulatory evaluation.

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B. Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility
Act (5 U.S.C. 601 et seq., as amended by
the Small Business Regulatory
Enforcement Fairness Act (SBREFA) of
1996), whenever an agency is required
to publish a notice of rulemaking for
any proposed or final rule, it must
prepare and make available for public
comment a regulatory flexibility
analysis that describes the effect of the
rule on small entities (i.e., small
businesses, small organizations, and
small governmental jurisdictions). The
Small Business Administration’s
regulations at 13 CFR part 121 define a
small business, in part, as a business
entity ‘‘which operates primarily within
the United States.’’ (13 CFR 121.105(a)).
No regulatory flexibility analysis is
required if the head of an agency
certifies that the rule will not have a
significant economic impact on a
substantial number of small entities.
The SBREFA amended the Regulatory
Flexibility Act to require Federal
agencies to provide a statement of the
factual basis for certifying that a rule
will not have a significant economic
impact on a substantial number of small
entities.
NHTSA has considered the effects of
this rulemaking action under the
Regulatory Flexibility Act. As explained
above, NHTSA amends Part 574 by
permitting collection of the names and
addresses of first purchasers of new tires
by Internet and other computerized
means. Electronic collection is

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dealers), an additional 10 percent
beginning the second year, and the third
10 percent beginning the third year.
These costs can be summarized as
follows:

permitted in place of paper forms. This
regulatory flexibility analysis does not
apply to manufacturer-owned tire
dealers, because they are not considered
small businesses under SBA’s affiliation
rule at 5 CFR 121.103(a)(1) which states
in part: ‘‘Concerns and entities are
affiliates of each other when one
controls or has the power to control the
other * * *’’ The tire manufacturer
either ‘‘controls or has the power to
control’’ dealerships that it owns.
Under SBA’s size standard regulations
(at 5 CFR part 121), ‘‘tire dealers’’ are
classified under North American
Industry Classification System (NAICS)
Code 441320 with a size standard of
average yearly sales of $6 million. ‘‘New
car dealers’’ are classified under NAICS
Code 441110 with a size standard of
average yearly sales of $24.5 million.
‘‘Used car dealers’’ are classified under
NAICS Code 441120 with a size
standard of average yearly sales of $19.5
million.
In its February 27, 2006 comments to
NHTSA, NADA stated that of its
‘‘20,000 franchised automobile and
truck dealers who sell new and used
motor vehicles,’’ a ‘‘significant number
are small businesses as defined by the
SBA.’’ At that time, NADA did not
specify the number that would be
considered ‘‘small businesses.’’ In the
Federal Register of March 21, 2007 (54
FR 133440), we estimated the number of
independent tire dealers to be 26,000. In
the January 2008 NPRM to amend Part
574, we stated our assumption that all
NADA members are small businesses
and that therefore, the total number of
independent tire dealers that are small
businesses would be 46,000.
In its comment to the NPRM, NADA
provided a clarification, stating that
‘‘NADA suggests that approximately 40
percent of the 22,000 dealerships
nationwide fall within SBA’s current
small business definition in annual
gross receipts 73 FR 4166.’’ NADA was
referring to that part of its membership
that is independent motor vehicle
dealers. Forty percent of 22,000 is 8,800

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$3.45 M
3.45 M
3.45 M
0

Annual
maintenance
costs
0
0.92 M
1.84 M
2.76 M

Total cost
$3.45
4.37
5.29
2.76

M
M
M
M

or the number of NADA members that
are small businesses. The previous
estimate of 26,000 tire dealers plus
NADA’s small business (and therefore
independent) motor vehicle dealers
numbering 8,800 equals 34,800 small
business independent tire dealers.
34,800 is a smaller figure than the
46,000 small business independent tire
dealers estimated in the NPRM.
I hereby certify that this final rule will
not have a significant economic impact
on a substantial number of small
entities. The factual basis for the
certification is that this final rule will
not substantively change existing 49
CFR part 574 requirements for small
businesses that are independent tire
dealers. Adherence to the electronic
collection of information procedures is
voluntary for independent tire dealers.
The statement on the paper form giving
Web site information about online
registration of new tires or other
electronic means of registration (and the
paper form itself) are to be provided by
the tire manufacturer. If independent
dealers choose not to adopt electronic
tire registration procedures, the
responsibilities of the independent
dealer remains the same, i.e., to pass out
the paper forms to first purchasers of
new tires.
C. National Environmental Policy Act
NHTSA has analyzed this rulemaking
action for the purposes of the National
Environmental Policy Act. The agency
has determined that implementation of
this action would not have any
significant impact on the quality of the
human environment.
D. Executive Order 13132 (Federalism)
NHTSA has examined today’s final
rule pursuant to Executive Order 13132
(64 FR 43255, August 10, 1999) and
concluded that no additional
consultation with States, local
governments or their representatives is
mandated beyond the rulemaking
process. The agency has concluded that
this final rule does not have federalism

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Federal Register / Vol. 73, No. 230 / Friday, November 28, 2008 / Rules and Regulations
implications because the rule will not
have ‘‘substantial direct effects on the
States, on the relationship between the
national government and the States, or
on the distribution of power and
responsibilities among the various
levels of government.’’

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E. Executive Order 12988 (Civil Justice
Reform)
With respect to the review of the
promulgation of a new regulation,
section 3(b) of Executive Order 12988,
‘‘Civil Justice Reform’’ (61 FR 4729,
February 7, 1996) requires that
Executive agencies make every
reasonable effort to ensure that the
regulation: (1) Clearly specifies the
preemptive effect; (2) clearly specifies
the effect on existing Federal law or
regulation; (3) provides a clear legal
standard for affected conduct, while
promoting simplification and burden
reduction; (4) clearly specifies the
retroactive effect, if any; (5) adequately
defines key terms; and (7) addresses
other important issues affecting clarity
and general draftsmanship under any
guidelines issued by the Attorney
General. This document is consistent
with that requirement.
Pursuant to this Order, NHTSA notes
as follows. The Federalism effect of this
final rule is discussed above. NHTSA
notes further that there is no
requirement that individuals submit a
petition for reconsideration or pursue
other administrative proceeding before
they may file suit in court.
F. Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995, a person is not required to
respond to a collection of information
by a Federal agency unless the
collection displays a valid Office of
Management and Budget (OMB) control
number. These final changes to the tire
registration and recordkeeping rule
affect the scope of the rule’s ‘‘collection
of information,’’ as that term is defined
by OMB at 5 CFR part 1320. In the
January 24, 2008 NPRM (see pages
4167–4168), we described how the
proposed rule would affect the scope of
the collection of information. Given that
the various proposed options would be
voluntary, we stated we did not know
to what extent they would be utilized by
independent tire dealers, tire
manufacturers and consumers.
Therefore, based on the available
information, we provided the following
estimates of burden.
The same information (name and
address of the purchaser) would be
collected regardless of the format, paper
form, or typing in information on a
company Web site. Because some

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people type faster and some people
write faster, we stated our belief that the
amount of time it will take to provide
information about the name and address
of the purchaser would be very roughly
the same, regardless of the format. To
the extent more consumers registered
their tires, actual burdens realized could
thus increase concomitantly with the
higher registration rates. On the other
hand, it may be possible for tire
manufacturers and independent tire
dealers to develop electronic systems,
tied in with the systems used for
monitoring inventory and recording
sales information, that could
automatically register the tires with the
tire manufacturer at little additional
cost.
We stated our belief that virtually all
recordkeeping by tire manufacturers is
already done electronically. We
estimated that it takes roughly 25,000
hours to transfer handwritten data to an
electronic format for storage. Because,
with Web site-based information, there
would be no change in format (i.e.,
going from electronic reporting to
electronic storage), we stated our belief
that there would be virtually no burden
hours imposed in transferring
information provided on a tire
manufacturer’s Web site to a
recordkeeping site. For these reasons,
we stated our belief that the
recordkeeping burden hours would
remain at 25,000 hours.
We solicited comments on the
proposed changes in the collection of
information associated with Part 574
and on our analysis of how the changes
will affect the number of burden hours
affecting the public. We provided a 60day comment period on the proposed
collection of information.
We received no comments specifically
addressing this Paperwork Reduction
Act analysis. Therefore, when this final
rule takes effect, the total annual tire
registration and recordkeeping hours
associated with Part 574 (OMB
Clearance No. 2127–0050) will remain
at 250,000 hours per year.
G. National Technology Transfer and
Advancement Act
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (NTTAA), Public Law 104–
113, section 12(d) (15 U.S.C. 272)
directs NHTSA to use voluntary
consensus standards in its regulatory
activities unless doing so would be
inconsistent with applicable law or
otherwise impractical. Voluntary
consensus standards are technical
standards (e.g., materials specifications,
test methods, sampling procedures, and
business practices) that are developed or

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adopted by voluntary consensus
standards bodies, such as the Society of
Automotive Engineers (SAE). The
NTTAA directs the agency to provide
Congress, through the OMB,
explanations when we decide not to use
available and applicable voluntary
consensus standards.
After carefully reviewing the available
information, NHTSA has determined
that there are no voluntary consensus
standards relevant to this rulemaking, as
the information to be collected and sent
to tire manufacturers is needed only in
the event of a tire recall. Accordingly,
this rule is in compliance with Section
12(d) of NTTAA.
H. Unfunded Mandates Reform Act
Section 202 of the Unfunded
Mandates Reform Act of 1995 (UMRA)
requires Federal agencies to prepare a
written assessment of the costs, benefits,
and other effects of proposed or final
rules that include a Federal mandate
likely to result in the expenditure by
State, local or tribal governments, in the
aggregate, or by the private sector, of
more than $100 million in any one year
(adjusted for inflation with base year of
1995). Before promulgating a rule for
which a written statement is needed,
section 205 of the UMRA generally
requires NHTSA to identify and
consider a reasonable number of
regulatory alternatives and to adopt the
least costly, most cost-effective, or least
burdensome alternative that achieves
the objectives of the rule. The
provisions of section 205 do not apply
when they are inconsistent with
applicable law. Moreover, section 205
allows NHTSA to adopt an alternative
other than the least costly, most costeffective or least burdensome alternative
if the agency publishes with the final
rule an explanation why that alternative
was not adopted.
This final rule will not result in the
expenditure by State, local, or tribal
governments, in the aggregate, or by the
private sector of more than $100 million
annually. Accordingly, the agency has
not prepared an Unfunded Mandates
assessment.
I. Plain Language
Executive Order 12866 requires each
agency to write all rules in plain
language. Application of the principles
of plain language includes consideration
of the following questions:
—Have we organized the material to suit
the public’s needs?
—Are the requirements in the rule
clearly stated?
—Does the rule contain technical
language or jargon that is not clear?

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Federal Register / Vol. 73, No. 230 / Friday, November 28, 2008 / Rules and Regulations

—Would a different format (grouping
and order of sections, use of headings,
paragraphing) make the rule easier to
understand?
—Would more (but shorter) sections be
better?
—Could we improve clarity by adding
tables, lists, or diagrams?
—What else could we do to make this
rulemaking easier to understand?
If you have any responses to these
questions, please include them in
comments to the docket number cited in
the heading of this final rule.
J. Regulation Identifier Number (RIN)
The Department of Transportation
assigns a regulation identifier number
(RIN) to each regulatory action listed in
the Unified Agenda of Federal
Regulations. The Regulatory Information
Service Center publishes the Unified
Agenda in April and October of each
year. You may use the RIN contained in
the heading at the beginning of this
document to find this action in the
Unified Agenda.
K. 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
19477–19478) or you may visit http://
docketsinfo.dot.gov/.
List of Subjects in 49 CFR Part 574
Labeling, Motor vehicle safety,
Reporting and recordkeeping
requirements, and Tires.
■ In consideration of the foregoing,
NHTSA amends 49 CFR part 574 as
follows:
PART 574—TIRE IDENTIFICATION AND
RECORDKEEPING
1. The authority for part 574
continues to read as follows:

■

Authority: 49 U.S.C. 322, 30111, 30115,
30117 and 30166; delegation of authority at
49 CFR 1.50.

2. Section 574.7 is amended by
revising paragraphs (a)(2) and (a)(3),
removing figures 3a, 3b, and 4
immediately following paragraph (d),
and adding new paragraphs (e) and (f)
to read as follows:

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■

§ 574.7 Information requirements—tire
manufacturers, new tire brand name
owners.

(a)(1) * * *

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(2) Each tire registration form
provided to independent distributors
and dealers pursuant to paragraph (a)(1)
of this section shall contain space for
recording the information specified in
paragraphs (a)(4)(i) through (a)(4)(iii) of
this section. Each form shall:
(i) Have the following physical
characteristics:
(A) Be rectangular;
(B) Be not less than 31⁄2 inches high,
5 inches long, and 0.007 inches thick;
(C) Be not more than 41⁄4 inches high,
6 inches long, and 0.016 inch thick.
(ii) On the address side of the form,
be addressed with the name and address
of the manufacturer or its designee, and
include, in the upper right hand corner,
the statement ‘‘Affix a postcard stamp.’’
(iii) On the other side of the form:
(A) Include the tire manufacturer’s
name, unless it appears on the address
side of the form;
(B) Include a statement explaining the
purpose of the form and how a
consumer may register tires. The
statement shall:
(1) Include the heading
‘‘IMPORTANT’’.
(2) Include the sentence: ‘‘In case of
a recall, we can reach you only if we
have your name and address.’’
(3) Indicate that sending in the card
will add a person to the manufacturer’s
recall list.
(4) A tire manufacturer may
voluntarily provide means for tire
registration via the Internet, by
telephone or other electronic means. If
a tire manufacturer voluntarily provides
a Web site or other means by which its
tires can be registered, it may (but is not
required to) include a sentence listing
one or more such means, beginning with
the phrase ‘‘Instead of mailing this form,
you can * * *.’’ Example: Instead of
mailing this form, you can register
online at [insert tire manufacturer’s
registration Web site address].
(5) Include the sentence: ‘‘Do it
today.’’
(C) Include space for recording tire
identification numbers for six tires.
(D) Use shading to distinguish
between areas of the form to be filled in
by sellers and customers.
(1) Include the statement: ‘‘Shaded
areas must be filled in by seller.’’
(2) The areas of the form for recording
tire identification numbers and
information about the seller of the tires
must be shaded.
(3) The area of the form for recording
the customer name and address must
not be shaded.
(E) Include, in the top right corner,
the phrase ‘‘OMB Control No. 2127–
0050’’.
(3) Each tire registration form
provided to distributors and dealers that

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are not independent distributors or
dealers pursuant to paragraph (a)(1) of
this section must contain space for
recording the information specified in
paragraphs (a)(4)(i) through (a)(4)(iii) of
this section. Each form must include:
(A) A statement indicating where the
form should be returned, including the
name and mailing address of the
manufacturer or its designee.
(B) The tire manufacturers’ logo or
other identification, if the manufacturer
is not identified as part of the statement
indicating where the form should be
returned.
(C) The statement: ‘‘IMPORTANT:
FEDERAL LAW REQUIRES TIRE
IDENTIFICATION NUMBERS MUST BE
REGISTERED’’.
(D) In the top right corner, the phrase
‘‘OMB Control No. 2127–0050’’.
*
*
*
*
*
(e) Tire manufacturers may
voluntarily provide means for tire
registration via the Internet, by
telephone or other electronic means.
(f) Each tire manufacturer shall meet
the requirements of paragraphs (b), (c)
and (d) of this section with respect to
tire registration information submitted
to it or its designee by any means
authorized by the manufacturer in
addition to the use of registration forms.
■ 3. Section 574.8 is revised to read as
follows:
§ 574.8 Information requirements—tire
distributors and dealers.

(a) Independent distributors and
dealers.
(1) Each independent distributor and
each independent dealer selling or
leasing new tires to tire purchasers or
lessors (hereinafter referred to in this
section as ‘‘tire purchasers’’) shall
comply with paragraph (a)(1)(i), (a)(1)(ii)
or (a)(1)(iii) of this section:
(i) At the time of sale or lease of the
tire, provide each tire purchaser with a
paper tire registration form on which
the distributor or dealer has recorded
the following information:
(A) The entire tire identification
number of the tire(s) sold or leased to
the tire purchaser, and
(B) The distributor’s or dealer’s name
and street address. In lieu of the street
address, and if one is available, the
distributor or dealer’s e-mail address or
Web site may be recorded. Other means
of identifying the distributor or dealer
known to the manufacturer may also be
used.
(ii) Record the following information
on a paper tire registration form and
return it to the tire manufacturer, or its
designee, on behalf of the tire purchaser,
at no charge to the tire purchaser and

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dwashington3 on PROD1PC60 with RULES

within 30 days of the date of sale or
lease:
(A) The purchaser’s name and
address,
(B) The entire tire identification
number of the tire(s) sold or leased to
the tire purchaser, and
(C) The distributor’s or dealer’s name
and street address. In lieu of the street
address, and if one is available, the
distributor or dealer’s e-mail address or
Web site may be recorded. Other means
of identifying the distributor or dealer
known to the manufacturer may also be
used.
(iii) Electronically transmit the
following information on the tire
registration form by any means listed on
the form by the tire manufacturer, or by
such other means as may be authorized
by the tire manufacturer, to the tire
manufacturer or its designee, using
secure means (e.g., https on the Web), at
no charge to the tire purchaser and
within 30 days of the date of sale or
lease:
(A) The purchaser’s name and
address,
(B) The entire tire identification
number of the tire(s) sold or leased to
the tire purchaser, and
(C) The distributor’s or dealer’s name
and street address. In lieu of the street
address, and if one is available, the
distributor or dealer’s e-mail address or
Web site may be recorded. Other means

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of identifying the distributor or dealer
known to the manufacturer may also be
used.
(2) Each independent distributor or
dealer that complies with paragraph
(a)(1)(i) or (ii) of this section shall use
either the tire registration forms
provided by the tire manufacturers
pursuant to § 574.7(a) or registration
forms obtained from another source.
Paper forms obtained from other sources
must comply with the requirements
specified in § 574.7(a) for forms
provided by tire manufacturers to
independent distributors and dealers.
(3) Multiple tire sales or leases by the
same tire purchaser may be recorded on
a single paper registration form or in a
single Web site transaction.
(4) Each independent distributor or
dealer that is complying with paragraph
(a)(1)(iii) with respect to a sale or lease
shall include a statement to that effect
on the invoice for that sale or lease and
provide the invoice to the tire
purchaser.
(b) Other distributors and dealers.
(1) Each distributor and each dealer,
other than an independent distributor or
dealer, selling new tires to tire
purchasers:
(i) shall submit, using paper
registration forms or, if authorized by
the tire manufacturer, secure electronic
means, the information specified in
§ 574.7(a)(4) to the manufacturer of the

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tires sold, or to the manufacturer’s
designee.
(ii) shall submit the information
specified in § 574.7(a)(4) to the tire
manufacturer or the manufacturer’s
designee, not less often than every 30
days. A distributor or dealer selling
fewer than 40 tires of all makes, types
and sizes during a 30 day period may
wait until a total of 40 new tires is sold.
In no event may more than six months
elapse before the § 574.7(a)(4)
information is forwarded to the
respective tire manufacturers or their
designees.
(c) Each distributor and each dealer
selling new tires to other tire
distributors or dealers shall supply to
the distributor or dealer a means to
record the information specified in
§ 574.7(a)(4), unless such means has
been provided to that distributor or
dealer by another person or by a
manufacturer.
(d) Each distributor and each dealer
shall immediately stop selling any
group of tires when so directed by a
notification issued pursuant to 49 U.S.C.
30118, Notification of defects and
noncompliance.
Issued on: November 19, 2008.
David Kelly,
Acting Administrator.
[FR Doc. E8–28094 Filed 11–26–08; 8:45 am]
BILLING CODE 4910–59–P

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